How to Choose the Best Travel Credit Card for Your Next Adventure 2023

If you are planning to travel and looking for ways to make your journey hassle-free with some added perks, then choosing the right travel credit card can be a game-changer. With so many options available in the market, choosing the best one can be overwhelming. Here’s a comprehensive guide to help you pick the best travel credit card for your next trip.

Table of Contents

Understanding the Basics of Travel Credit Cards

What is a travel credit card?

A travel credit card is a type of credit card that offers travel-related benefits such as rewards points, miles, and other perks to help you save money on your travels.

How does a travel credit card work?

A travel credit card works by earning you points or miles on every purchase you make. These points can be redeemed for travel benefits such as free flights, hotel stays, and other travel-related perks.

Advantages of using a travel credit card

The advantages of using a travel credit card include:

The advantages of using a travel credit card include:
Earning rewards on every purchase.
Travel benefits such as free flights and hotel stays.
Priority check-in and boarding.
Complimentary checked bags.
Travel insurance.
Exclusive access to airport lounges.

Determining the Best Travel Credit Card for You

Factors to consider

When choosing a travel credit card, consider the following factors:

Travel goals

Your travel goals will determine the type of travel credit card you should choose. If you travel frequently, you would benefit from a card that offers rewards points or miles. If you are a casual traveler, a card with no annual fee might be the best option for you.

Credit score

Your credit score will determine the type of travel credit card you can qualify for. If you have a low credit score, you might not qualify for a card with a high credit limit or rewards program.

Annual fees

Annual fees can vary from zero to a few hundred dollars. While some travel credit cards offer great rewards, it is important to consider the annual fee before choosing a card.

Interest rate

The interest rate on a travel credit card is important. If you plan on carrying a balance, choose a card with a low interest rate.

Rewards program

The rewards program can make a significant difference in the value of a travel credit card. Consider the type of rewards program and the value of the rewards before choosing a card.

Foreign Transaction Fees

Foreign transaction fees can add up quickly and eat into your rewards. Consider a travel credit card that offers no foreign transaction fees.

Evaluating different types of travel credit cards

There are three types of travel credit cards:

Airline co-branded credit cards

Airline co-branded credit cards offer rewards that can be used for flights on a specific airline. These cards typically offer perks such as priority boarding and free checked bags.

Hotel co-branded credit cards

Hotel co-branded credit cards offer points that can be redeemed for free hotel stays or upgrades at a specific hotel chain. These cards typically offer perks such as free breakfast and late checkout.

General travel credit cards

General travel credit cards offer rewards that can be used for any travel-related purchases. These cards typically offer a wider range of benefits such as no foreign transaction fees and travel insurance.

Understanding Rewards Programs

Types of rewards programs

There are three types of rewards programs offered by travel credit cards:

Cashback

Cashback rewards programs offer a percentage of cash back on every purchase.

Points

Points rewards programs offer points that can be redeemed for travel benefits such as free flights and hotel stays.

Miles

Miles rewards programs offer miles that can be redeemed for flights on specific airlines.

How to Earn Rewards

You can earn rewards by:

Making purchases with your travel credit card.
Meeting spending requirements to earn signup bonuses.
Referring friends for a signup bonus.

Redeeming rewards and their value

The value of rewards points and miles varies depending on the card and the rewards program. It is important to understand the value of your rewards before redeeming them. Generally, travel-related redemptions offer the most value.

Additional Benefits and Perks

Travel insurance

Travel insurance is one of the most valuable benefits of a travel credit card. It can cover you and your family for unexpected events such as trip cancellations, lost luggage, and emergency medical care.

Automatic Statement Credits

Automatic statement credits can help offset travel-related expenses such as baggage fees and in-flight purchases.

Lounge access

Travel credit cards can offer lounge access at airports around the world. These lounges can offer a peaceful escape from the hustle and bustle of the airport.

Complimentary checked bags

Complimentary checked bags can help save money on your travels. Some travel credit cards offer this perk as part of their rewards program.

Comparison of Popular Travel Credit Cards

American Express Gold Card

Offers travel credits and money-saving perks.
Has a wide range of rewards categories to earn points on.
Annual fee of $250.

Chase Sapphire Reserve

Offers a generous signup bonus and rewards program.
Includes travel insurance and priority pass lounge access.
Annual fee of $550.

Capital One Venture Rewards

Offers flexible rewards that can be redeemed for any travel-related purchase.
Has no foreign transaction fees.
Annual fee of $95.

Citi Premier Card

Offers a generous rewards program and signup bonus.
Includes travel insurance and no foreign transaction fees.
Annual fee of $95.

Discover it Miles

Offers flat-rate rewards and no annual fee.
Matches the rewards you earn in the first year.
Includes travel insurance and no foreign transaction fees.

Bank of America Travel Rewards

Offers flat-rate rewards and no annual fee.
Has no foreign transaction fees and includes travel insurance.
Rewards can be redeemed for any travel-related purchase.

Marriott Bonvoy Boundless Credit Card

Offers rewards that can be redeemed for Marriott hotel stays.
Includes a free night stay every year and automatic elite status.
Annual fee of $95.

Southwest Rapid Rewards Priority Credit Card

Offers rewards that can be redeemed for Southwest flights.
Includes a generous signup bonus and travel benefits.
Annual fee of $149.

Conclusion

Choosing the best travel credit card requires careful consideration of several factors. By assessing your travel goals, credit score, annual fees, interest rate, rewards programs, and additional benefits and perks, you can determine which travel credit card is right for you.