How do travel credit cards work?
Editor's Note
If youāre unfamiliar with the world of credit card rewards, youāre probably wondering why there are so many card offerings with benefits and perks focused on travel. Travel credit cards make up a healthy chunk of the financial space and can get you serious value on your next big trip or flight when used to their full potential.
Read on to see how these cards work and what kind of travel credit card best suits your needs.
How travel credit cards work
Unlike cash-back cards, travel credit cards earn rewards as issuer āpointsā or āmilesā that are racked up as you make purchases with your card.
Travel cards can be used like any other card, but they also offer valuable earnings rates (e.g., 3 miles per dollar spent or 5 points per dollar spent) in specific spending categories like groceries, restaurants and gas. These points or miles will be calculated and added to your card account for later use.
Many travel cards also offer valuable perks like free checked bags, priority boarding and statement credits for services like TSA PreCheck, which can be valuable if you travel frequently or even only a couple of times a year.
Related: 7 of the best starter travel credit cards
What are the types of travel credit cards?
The three main types of travel cards are airline, hotel and general travel cards.
As you might guess, the first two types are cards issued specifically by airlines and hotel chains. If youāre loyal to a particular brand, it might make sense to look into its card offerings and earn rewards for its particular loyalty program.
If youāre looking for more flexible rewards, you can opt for a general travel rewards card that isnāt tied to a specific hotel or airline brand. These cards, like airline and hotel cards, are issued by major banks like Chase, American Express and Citi, but they offer more versatility since their points and miles can be transferred to multiple travel partners.
Related: When does it make sense to spend on a cobranded credit card?
Points and miles overview
Once youāve accumulated a good amount of rewards with an issuer, you can redeem them for various travel-related expenses. The type of rewards you earn will depend on the type of card you get.
The best way to redeem your points or miles is usually to transfer them to one of the airline or hotel partners affiliated with the card issuer. We recommend using your points or miles for flights, especially if you have a big vacation or scheduled flight coming up.
Related: Credit cards 101: The beginnerās guide
How to maximize your value
When earning points, youāll want to make sure youāre doing two things. The first is taking advantage of your cardās earning rates in different spending categories ā such as travel, restaurants, gas and groceries ā to rack up as many points as possible.
The second is taking advantage of your cardās welcome offer. This is usually a significant number of bonus points or miles you can earn if you hit a specific spending threshold within a certain time period after opening a new card. For example, a valuable card might offer upward of 50,000 points or miles if you spend a few thousand dollars with your card in the first three or six months.
Hitting your welcome bonus can supercharge your earnings and, in some cases, pay for your next big flight several times over.
Related: Maximizing credit cards to become points-rich without spending a ton
Bottom line
Even if you arenāt a frequent flyer, travel credit cards can offer you substantial value, provided you follow a few simple steps and take advantage of the cardās earning rates and welcome bonus.
While we understand that not everyone can squeeze every dollar out of a premium travel credit card, there are plenty of offerings for everyone that can make your next excursion a little bit cheaper and, hopefully, more enjoyable.
Related: The best overall credit cards
TPG featured card
Rewards
| 4X | Earn 4X Membership RewardsĀ® 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 RewardsĀ® 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. |
| 3X | Earn 3X Membership RewardsĀ® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership RewardsĀ® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership RewardsĀ® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
Thereās a lot to love about the Amex Gold. Itās a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If youāre hitting the skies soon, youāll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkinā credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, thereās no reason that foodies shouldnāt add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 RewardsĀ® Points after you spend $6,000 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 youāre approved and find out your exact welcome offer amount ā all with no credit score impact. If youāre approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership RewardsĀ® 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 RewardsĀ® 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.
- Earn 3X Membership RewardsĀ® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership RewardsĀ® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership RewardsĀ® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. Thatās up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership RewardsĀ® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American ExpressĀ® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American ExpressĀ® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American ExpressĀ® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership RewardsĀ® 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 RewardsĀ® 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. |
| 3X | Earn 3X Membership RewardsĀ® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership RewardsĀ® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership RewardsĀ® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership RewardsĀ® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICOĀ® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
Thereās a lot to love about the Amex Gold. Itās a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If youāre hitting the skies soon, youāll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkinā credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, thereās no reason that foodies shouldnāt add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 RewardsĀ® Points after you spend $6,000 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 youāre approved and find out your exact welcome offer amount ā all with no credit score impact. If youāre approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership RewardsĀ® 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 RewardsĀ® 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.
- Earn 3X Membership RewardsĀ® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership RewardsĀ® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership RewardsĀ® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. Thatās up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership RewardsĀ® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American ExpressĀ® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American ExpressĀ® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American ExpressĀ® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.