Credit card combinations: Travel and dining
Quick insights
- Pairing credit cards that allow you to earn rewards from travel and dining purchases may help you to maximize your cards’ point earning potential.
- Applying for credit cards from the same issuer may allow you to combine points from different cards.
- While these credit card pairings could be beneficial, some credit cards have annual fees.
Many credit cards have categories that earn rewards at an accelerated rate. For example, some cards have higher earn rates on categories like travel and dining. Some people try to maximize their rewards earning potential by carrying more than one credit card. Selecting cards that complement, not duplicate, each other’s strengths may provide value to cardmembers.
In this article, we’ll discuss using travel and dining rewards credit cards and things to consider when carrying both types of cards.
Benefits of pairing travel and dining cards
Pairing credit cards that allow you to earn rewards on travel and dining may be worthwhile depending on your typical spending habits. By mixing cards with individual strengths, you could potentially unlock greater reward earning potential from your purchases by using cards strategically. When you use different cards for their strongest categories, you might earn more rewards than you would by using a flat rate rewards card.
Combining rewards from multiple cards
Some credit card issuers let you combine or transfer points from multiple cards into one rewards account. So, having multiple cards from the same card issuer may mean you can combine the rewards on those cards for more redemption options.
For example, you can pay for a meal with your card that earns accelerated rewards on dining purchases (rewards vary by credit card). Pool those points with your travel card rewards and your dining points might help cover a future flight or hotel stay partially or completely.
You may find when combining points that you can use your points more strategically. For example, dining rewards could be transferred to a travel credit card or rewards account which could potentially increase the value of rewards when booking travel.
Choosing a dining credit card
If you often dine out at restaurants or frequently order takeout and delivery, you may want to consider a credit card that prioritizes earning rewards on dining. Here are some perks to look for when searching for a card that prioritizes dining-related rewards:
- Accelerated rewards on restaurants, takeout and delivery purchases—both domestically and when you travel
- A complimentary or discounted membership to food delivery services
- Statement credits that apply to dining purchases
When considering a dining rewards card, your credit card’s agreement should tell you how the card earns dining rewards: Does the rate apply to fast food, delivery apps or only sit-down restaurants? Does it apply to dining purchases worldwide or only in the U.S.? Details like these can make a difference in how you earn rewards.
Also, if the card has an annual fee, you may want to consider if its rewards align with your spending habits to help you maximize its benefits.
Choosing a travel credit card
Those who enjoy traveling may find value in credit cards that offer travel-related benefits and accelerated rewards on travel purchases. Some travel card features to consider include:
- Accelerated earn rates for travel bookings, including flights, hotels, car rentals, rideshare services and more
- Benefits like airport lounge access, travel statement credits, priority boarding or hotel upgrades may be available with some travel cards
- Low foreign transaction fees for spending abroad
- Travel protection benefits which can include insurance coverage for car rentals, reimbursement for trip delays, insurance for travel accidents and more
Some travel credit cards also may let you transfer or pool points with airline and hotel partners. You may be able to transfer your rewards to these partner brands, or sometimes your rewards can be worth more at a partner brand. However, factor in time when transferring points. Timing varies depending on the program, but the process could take a week or more.
Considerations of having multiple credit cards
Though having multiple cards can help you earn more rewards and could provide access to more benefits than you would with a single card, there are credit cards that let you earn accelerated points on both travel and dining purchases. Here are a few things you may want to keep in mind when considering multiple cards:
- Annual fees: Many rewards cards have an annual fee. Typically, the more benefits and rewards, the higher the annual fee.
- Managing payments: Keeping track of different billing cycles, payment due dates and minimum payment amounts for several cards may take careful planning.
- Overlapping benefits: If two cards offer similar benefits (e.g., airport lounge access, a food delivery membership, travel statement credits), you might be paying annual fees for perks you already have or can only use once.
When you apply for a new card, it may have a welcome bonus offer. This offer often includes additional rewards when a new cardmember hits a spending target within a specific time period. When thinking about applying for multiple cards, you may want to consider if you’re eligible for the bonus and able to meet the spending requirements in order to earn the bonus rewards.
You also may want to consider the impact of applying for multiple cards. Credit card applications typically result in a hard pull of your credit which can affect your credit score. Some card issuers also may reject an application if you’ve applied for too many cards within a given time frame.
In summary
Using travel and dining rewards credit cards can boost rewards earning potential and unlock more cardmember perks. This approach allows individuals—particularly travel and food enthusiasts—to potentially earn more rewards.
You may want to consider cards with high rewards for food-related spending and travel cards offering accelerated earnings, perks like airport lounge access and travel protection benefits. However, before applying for multiple cards, you may want to weigh the potential drawbacks such as annual fees and redundant benefits.
With a bit of strategy, a travel and dining credit card pairing may turn everyday spending into tangible rewards and memorable experiences.
