The pros and cons of travel credit cards
Editor's Note
If you're new to the world of credit cards or points and miles, you might wonder if a travel credit card makes sense for you.
If you travel frequently or even semiregularly, travel rewards credit cards are some of the most rewarding cards on the market. With plenty of perks and earning categories — to go along with their sometimes very high annual fees — travel cards can provide plenty of value if used correctly.
Here are some of the upsides and downsides of travel credit cards so you can figure out if it's the right card type for you.
Related: The best starter travel credit cards
Pros of travel credit cards
Travel perks and benefits
Premium and even mid-tier travel credit cards often come with lavish perks that pretty much anyone can take advantage of when they're on the go.
Common benefits include annual credits for general travel, services like Global Entry and TSA PreCheck, elite status with a given airline or hotel, access to airport lounges, free checked bags and priority boarding.
Most of these perks are conferred automatically on cardholders, meaning it won't take much effort on your part to take advantage.
Travel-based rewards bonuses
If you spend a lot on travel, you'll also enjoy many cards' travel-focused rewards categories. These categories offer extra points or miles when you spend with an airline or hotel or use a card issuer's travel portal.
For example, the popular Chase Sapphire Preferred® Card (see rates and fees) offers 5 points per dollar on travel booked through Chase Travel℠, 5 points per dollar on Lyft purchases (through Sept. 30, 2027) and 2 points per dollar on all other travel.
If you're loyal to a particular airline or hotel brand, consider applying for one of its cobranded cards, like the Southwest Rapid Rewards® Plus Credit Card (see rates and fees) or the Marriott Bonvoy Bold® Credit Card (see rates and fees), to enjoy all the perks and rewards bonuses of that program.
Flexible rewards
Many travel cards allow you to redeem points or miles across various hotel and airline transfer partners, leading to valuable redemption opportunities.
To do this, most card issuers have their own dedicated travel portals so users can find the best way to utilize their rewards. Some, as mentioned above, even offer the chance to earn additional points or miles on trips booked through the portal.
For example, those holding the Chase Sapphire Preferred® Card (see rates and fees) or Chase Sapphire Reserve® (see rates and fees) can get up to 2 cents per point in value, depending on the specific redemption (see your rewards program agreement for full details) by transferring rewards to the issuer's 14 airline and hotel partners. Some of the best Chase transfer partners include United Airlines MileagePlus, World of Hyatt and Singapore Airlines KrisFlyer.
Valuable welcome bonuses
Lastly, premium travel cards often come with hefty welcome bonuses, which can justify the card's annual fee multiple times over.
Most cards come with a spending threshold that you have to hit within the first three to six months of card membership, so pay attention to that number to see if it's a reasonable spending requirement for you. Even better if a card has a special or elevated welcome offer when applying.
Cons of travel credit cards
Credit score requirements
While they can include many valuable benefits, travel credit cards usually have stringent credit score requirements, making it difficult to apply for some.
Most travel cards will require a "good" to "excellent" credit score of 670 or higher, with the most premium cards having an even higher requirement. If you're not in that range, consider improving your credit score before getting denied and hurting your score further with a hard inquiry.
High annual fees
Travel credit cards can also come with a bit of sticker shock: high annual fees, with the most lavish cards having price tags of more than $500.
While these annual fees typically justify themselves if you take full advantage of the card's benefits, that can be hard to do if you aren't traveling frequently or laser-focused on maximizing value. Consider starting small with a no-annual-fee or low-annual-fee card and going from there.
High APRs
Travel credit cards also typically have high annual percentage rates (commonly referred to as APRs), which is the amount of interest you'll pay on your debt if you don't pay your balance off in full each month.
Difficult to maximize value
It might also be hard for you to get the maximum value from their travel credit cards if you aren't constantly on the go or looking to fund a big upcoming trip.
Unsurprisingly, the best way to take advantage of your travel rewards is to put them toward travel. If you instead redeem rewards for cash back or statement credits, you likely won't get the full value. Moreover, many hotels and airlines are constantly revamping their rewards programs, meaning the value of your points and miles themselves can fluctuate.
For help maximizing value, keep an eye on TPG resources like our monthly valuations of what points and miles are worth and our guides on getting the most out of your next credit card or vacation.
Should you get a travel credit card?
If you have the required credit score and can justify the annual fee, you'll almost definitely be able to squeeze value out of a travel rewards credit card. Remember that welcome offers on cards, to say nothing of benefits and rewards programs, always change. If you have your eye on a card that you think might fit you, apply when the bonus is high to get the most bang for your buck and cash in on a great welcome offer.
Bottom line
Choosing the right travel credit card can help get you over a financial hump and fund your next big trip, or it can just put a little extra money in your pocket each month. How you use it — and how much value you derive from it — is highly dependent on your lifestyle and what makes the most sense for you and your wallet at the time.
For more advice, check out our beginners guide to credit cards.
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Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.