Comparing travel credit cards

Quick insights

Travel credit cards offer cardmembers perks and rewards that are often tied to various kinds of travel. Travel is a broad category which can include hotels, airfare, excursions, airport lounges and more. It may be useful to have a travel credit card to maximize your travel, no matter what kind of travel you do.

In this article, we’ll discuss different types of travel credit cards, what they offer and ways to determine which one is right for you.

What are travel credit cards?

Travel credit cards are a popular card option among frequent and even occasional travelers due to their ability to convert credit card purchases into travel rewards. Typically, these cards earn points or miles when used to make purchases, with accelerated rewards for travel-related purchases.

Some cards offer the flexibility to book travel through their own portal or transfer points to a variety of airline and hotel loyalty programs, often at a favorable transfer rate.

Travel cards may also include perks like airport lounge access, elite status and travel protection benefits, which can include auto rental coverage, travel and emergency assistance and trip delay reimbursement, to name a few.

Types of travel credit cards

There are many travel cards that provide rewards on most purchases, not just travel-related expenses. However, one hallmark of many travel credit cards is having higher rewards rates on travel purchases.

There are a few types of cards that prioritize earning rewards on specific types of travel:

Airline credit cards

Airline credit cards may be offered in partnership between a credit card issuer and a specific airline. They reward cardholders with points or miles for each dollar spent, which can be redeemed for air travel, upgrades and other travel-related benefits (depending on the card).

These cards may provide additional airline-related enhancements such as priority boarding, complimentary checked bags and access to exclusive airport lounges. They also typically provide the most favorable rewards rate for purchases made with the airline.

Hotel credit cards

Hotel credit cards are co-branded cards between a credit card issuer and a hotel chain. They are designed to reward cardholders with points for spending, often with the most points awarded for purchases made at the hotel chain.

These cards may include additional benefits like automatic elite status in hotel loyalty programs, late checkouts and free hotel stays. Points accumulated with hotel cards can often be redeemed for free nights, room upgrades and other hospitality services.

Premium travel credit cards

Premium travel credit cards offer a broad spectrum of travel-related rewards and benefits. They are notable for their wide range of perks, which may include:

Premium travel cards may provide rewards points on most purchases and higher rewards rates on spending associated with travel. Travel cards also may have several affiliated hotel and airline partners that allow cardmembers to transfer their rewards points at a 1:1 rate to those providers.

Choosing the best travel credit card for you

Before choosing a travel credit card, you may want to consider the following potential card features and benefits:

Rewards and earning potential

Assessing the rate at which the card earns points or miles on purchases may provide insights on the card’s earning potential. Cards may offer higher earning rates on categories where you spend the most, such as travel. They can also offer flat-rate rewards on all purchases, which might be beneficial if your spending is varied and doesn't fit into specific categories.

Redemption flexibility

How you can redeem points can be as important as how you earn them. Some cards are tied to specific airlines or hotel chains, while others offer points that can be transferred to multiple travel partners or redeemed through a travel portal. Using travel cards with versatile redemption options allows you to maximize your rewards.

Welcome offers

Many credit cards provide new cardmembers with the opportunity to earn welcome offers. Many of these offers require cardmembers to meet certain spending thresholds within a specific time period to earn the offer. You may want to compare welcome offers as well as consider the spending requirements to earn these bonuses.

Travel benefits

Travel-related benefits such as airport lounge access, priority boarding, complimentary checked bags and elite status upgrades can enhance your travel experience and potentially save you money. It may be helpful to determine which benefits you will use most frequently and factor these into your decision.

Fees

Many travel cards have an annual fee. While premium cards with high annual fees typically offer more benefits, they may only make sense if you use the benefits enough to justify the cost. Some cards also offer statement credits that you may find beneficial.

Travel protection benefits

Travel credit cards sometimes provide travel and purchase protections. Common travel protection benefits include auto rental coverage, lost luggage reimbursement and emergency evacuation and transportation. Purchase protections may provide extended warranties and return protection too.

Credit requirements

Premium travel credit cards may require good to excellent credit. You may want to check that you meet the credit criteria before applying to avoid a negative impact on your credit score from a declined application.

In summary

Travelers looking to enjoy the rewards of a credit card have many options to choose from. Premium travel credit cards, airline credit cards and hotel credit cards may provide cardmembers with the ability to earn accelerated rewards on travel-related purchases. Other benefits often include elite status, airport lounge access and travel and purchase protections.

Those looking for a travel credit card may want to consider a card’s fees, perks, welcome offers and ability to earn and redeem rewards when considering which travel credit card is best for them.