Best travel credit cards of July 2020
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At TPG, we paused traveling to help slow the spread of COVID-19. Local and national governments around the globe are now debating the appropriate levels of isolation and distancing. Before booking that next trip, we recommend you talk to your doctor, follow health officials’ guidance and research local travel restrictions. TPG is continuing to publish deals, credit card reviews and general travel news to inform and prepare you for that trip, whether it is next month or next year.
At TPG, we are firm believers that travel can be absolutely transformative. It provides an opportunity to learn about different people and cultures and can leave you with some unforgettable memories.
Travel credit cards offer rewards on different purchases that can help you book flights, hotels and more for little-to-no out-of-pocket expenses. Some cards also provide valuable perks and benefits that upgrade the overall travel experience — from Global Entry application fee credits to lounge access to complimentary elite status. If you have the right card (or cards) in your wallet, the sky is the limit on where your travels can take you — literally.
While many people have put travel on hold for the time being in light of the coronavirus pandemic, there is still a lot of value to get out of travel credit cards — whether you take advantage of temporary benefits or use current everyday expenses to build up your points balances for an amazing redemption in the future. In this guide, we’ve pulled together a rundown of the top travel credit cards for every type of traveler. Whether you’re a points-and miles beginner or a seasoned frequent flyer, there is a travel credit card for you.
It’s no surprise that the Chase Sapphire Preferred Card tops this list as the best overall travel credit card, with it’s solid earning structure, excellent sign-up bonus and low $95 annual fee. It even won the honor of Best Travel Rewards Credit Card at the 2019 TPG Awards. However, this list encompasses a large range of exceptional travel credit cards (including a few that also brought home honors from last year’s awards), all considered the best in their own categories.
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Without further ado, here are my top picks:
The Points Guy’s best travel credit cards
- Chase Sapphire Preferred Card: Best starter travel credit card
- American Express® Gold Card: Best for worldwide dining
- Chase Sapphire Reserve: Best for travel credits
- Ink Business Preferred Credit Card: Best for small business travel
- Wells Fargo Propel American Express® card: Best for no annual fee
- The Platinum Card® from American Express: Best for lounge access
- Capital One® Venture® Rewards Credit Card: Best for earning miles at a flat rate
- Hilton Honors American Express Aspire Card: Best premium hotel card
- Delta SkyMiles® Platinum American Express Card: Best for airline rewards
- Marriott Bonvoy Boundless Credit Card: Best mid-tier hotel card
- Alaska Airlines Visa Signature® credit card: Best for Alaska Airlines miles
- Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®: Best for American Airlines flyers
To start our analysis, here are some comparisons of the best travel credit card offers and bonuses available right now.
Comparing our best travel credit cards
|Credit Card||Category||Travel Rewards Rate||Bonus Value*||Annual Fee|
|Chase Sapphire Preferred Card||Best for starter travel||2x on travel; 2x on dining||$1,200||$95|
|American Express® Gold Card||Best for worldwide dining||4x at restaurants worldwide; 4x at U.S. supermarkets (up to $25,000 per year, then 1 point per dollar spent); 3x on airfare booked directly with airlines
(see rates and fees)
|Chase Sapphire Reserve||Best for travel credits||3x on travel; 3x on dining||$1,000||$550|
|Ink Business Preferred Credit Card||Best for small business travel||3x on the first $150,000 in combined spending each account anniversary year on travel; shipping purchases; internet, cable and phone services, and advertising purchases made with social media sites and search engines||$2,000||$95|
|Wells Fargo Propel American Express card||Best for no annual fee||3x travel, dining, gas stations and select streaming services||$200||$0|
|The Platinum Card® from American Express||Best for lounge access||5x on airfare booked directly; 5x on airfare and prepaid hotels booked through Amex Travel
(see rates and fees)
|Capital One® Venture® Rewards Credit Card||Best for earning miles||2x on all purchases||$700||$95|
|Hilton Honors American Express Aspire Card||Best for premium hotels||14x on eligible Hilton purchases; 7x at U.S. restaurants, flights booked directly or through amextravel.com and car rentals booked directly with select companies; 3x on all other purchases
(see rates and fees)
|Delta SkyMiles® Platinum American Express Card||Best for airline rewards||3x on eligible Delta purchases; 3x on hotel stays; 2x at restaurants; 2x at U.S. supermarkets
|$580||$250 (see rates and fees)|
|Marriott Bonvoy Boundless Credit Card||Best mid-tier hotel card||6x on eligible Marriott purchases; 2x on all other purchases||$600||$95|
|Alaska Airlines Visa Signature® credit card||Best for Alaska Airlines miles||3x on eligible Alaska Airlines purchases||$820||$75|
|Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®
||Best for American Airlines flyers||2x on eligible American Airlines purchases; 2x at restaurants; 2x at gas stations||$840||$99|
The best travel credit cards
Let’s take a look at the details of each of these travel credit cards and offers, including their bonus values and some of the ways I’ve been able to put the credit card benefits to use.
(Note that the bonus value is an estimated value calculated by TPG and not the card issuer.)
Chase Sapphire Preferred Card: Best starter travel credit card
Why this is the best starter travel credit card: We’ve long suggested the Chase Sapphire Preferred as a great option for those who are new to earning travel rewards, because it lets you earn valuable, transferable Chase Ultimate Rewards points with strong bonus categories and a reasonable annual fee.
Current bonus: Earn 60,000 Ultimate Rewards points after you spend $4,000 on purchases in the first three months of account opening (valued by TPG at $1,200).
Rewards rate: Earn 2x on dining and travel purchases
Travel benefits: When you redeem your points for travel through the Chase portal, you get a 25% bonus that makes your points worth 1.25 cents each. The CSP also comes with an entire suite of travel protections, including trip delay insurance, trip cancellation coverage, baggage delay and primary rental car insurance.
Annual fee: $95
Why it’s worth it: You’ll earn a solid return (4% back) on dining and travel on top of your generous sign-up bonus and you have access to some of the best travel protections offered by any travel rewards credit card.
If you are a frequent Lyft customer, you’ll also enjoy the 5x on Lyft rides. Fans of DoorDash food delivery service can take advantage of at least 12 months of DashPass membership. Although you won’t get the same travel credits or lounge access as you do with the Chase Sapphire Reserve, this is the perfect starter travel credit card for anyone who can’t justify a higher annual fee. Chase has also added a few temporary benefits to this card, including 3x on groceries on the first $1,500 spent each month through June 30, 2020, and new non-travel redemption options for your points.
Further reading: Chase Sapphire Preferred review
Apply here: Chase Sapphire Preferred Card
American Express Gold Card: Best for worldwide dining
Why it’s the best travel credit card for worldwide dining: The Amex Gold earns 4x on dining worldwide, with no foreign transaction fees (see rates and fees), meaning you’ll get an 8% return on purchases (based on TPG’s valuations). This makes it one of the best personal cards to use when you eat out anywhere.
Current bonus: Earn 35,000 Membership Rewards points after you spend $4,000 on purchases in the first three months (valued by TPG at $700). However, check the CardMatch tool to see if you’re targeted for a higher welcome bonus (offer subject to change at any time).
Rewards rate: Earn 4x at restaurants worldwide and at U.S. supermarkets (on the first $25,000 spent each year, then 1x), 3x on flights booked directly with airlines or on amextravel.com.
Travel benefits: You receive an airline-fee credit of up to $100 that can be used to pay for checked baggage, inflight food and beverages, seat assignments and more. Plus, you’ll get up to $120 in dining credits each year when you pay with the Amex Gold card at participating dining partners.
Annual fee: $250 (see rates and fees)
Why it’s worth it: Amex revamped its Premier Rewards Gold Card in 2018 and reintroduced it as the Amex Gold Card, with new bonus categories and a strong focus on dining. With this credit card, Amex finally has a strong option for dining purchases. The annual fee is $250 (not waived the first year), but thanks to the new earning rates and benefits, it could be worth it for you.
Further reading: American Express Gold review
Apply here: American Express Gold Card
Chase Sapphire Reserve: Best for travel credits
Why it’s the best credit card for travel credits: The Chase Sapphire Reserve comes with an annual $300 travel credit. But rather than limiting that credit to airline incidental fees like competing cards do, you can use it to offset a number of travel expenses such as airfare, hotels, rental cars, transit and more. You’re also getting an up to $100 Global Entry or TSA PreCheck application fee credit once every four years.
Current bonus: Earn 50,000 Ultimate Rewards points after you spend $4,000 on purchases in the first three months of account opening (valued by TPG at $1,000).
Rewards rate: Earn 3x points per dollar spent on travel (excluding $300 travel credit) and dining at restaurants and 1 point per dollar spent on everything else.
Travel benefits: On top of the great travel credits offered by the card, there are new benefits. Cardholders get a combined up to $120 in food delivery credits with DoorDash between 2020 and 2021. When you’re traveling, you’ll get Priority Pass lounge access and some of the most extensive protections available on any credit card (including trip cancellation/interruption insurance, primary rental car coverage, trip delay insurance, emergency medical and more). The 50% redemption bonus when you use your points to pay for travel through the Chase portal is also a nice perk.
Annual fee: $550
Why it’s worth it: The Chase Sapphire Reserve offers a stellar selection of perks on top of solid earning rates. And if you have this card, the Ultimate Rewards points you earn on other Chase credit cards can be transferred over and redeemed at the 1.5-cent rate. You could get even more value by transferring your rewards to Chase’s 10 airline and three hotel partners, including Hyatt and United.
You also get an impressive 3x points on travel (after the $300 travel credit is exhausted) and dining purchases, which equates to a 6% return, based on TPG valuations. Plus, for cardholders who can use the new benefits, Lyft Pink, DashPass and the DoorDash credits are all great additions. Like with the Sapphire Preferred, Chase has added a number of temporary benefits to the card that makes it even easier to take advantage of what his card has to offer if you’ve put travel on hold for 2020. This credit card is a prime example of benefits more than making up for a steep annual fee.
Further reading: Chase Sapphire Reserve review
Apply here: Chase Sapphire Reserve
Ink Business Preferred Credit Card: Best for small business travel
Why it’s the best travel credit card for small businesses: You’re earning a solid return (6%) across multiple business-focused categories. Plus, the card gives you access to the Ultimate Rewards program and Chase’s valuable airline and hotel transfer partners. If you’re a small business owner looking for a way to rack up travel rewards on business expenses, this is a great option.
Current bonus: 100,000 bonus points when you spend $15,000 in purchases in the first three months of account opening.
Rewards rate: Earn 3x on the first $150,000 spent each cardmember year on travel, shipping purchases, internet, cable and phone services and advertising purchases made with social media sites and search engines.
Travel benefits: The Ink Business Preferred offers a solid array of travel protections, including trip cancellation/interruption insurance, roadside dispatch, primary rental car insurance, purchase protection and extended warranty protection.
Annual fee: $95
Why it’s worth it: You’re getting a lot of bang for your buck with this card. The bonus alone is worth $2,000 according to TPG valuations and that’s not including the rewards you’ll earn while hitting the spending requirement. You’ll also earn 3x points on a number of common business expenses. The Ink Business Preferred is an Ultimate Rewards credit card, which means you’ll be able to redeem your points by transferring to Chase partners or through the portal at 1.25 cents each.
It is worth mentioning that currently, Chase is requiring a sign-in before allowing anyone to apply for their business credit cards. So, you’ll need to have a business banking account or a credit card (personal or business) with them in order to apply.
Further reading: Ink Business Preferred Credit Card review
The information for the Ink Business Preferred card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Wells Fargo Propel American Express card: Best card with no annual fee
Why it’s the best travel credit card with no annual fee: The card offers one of the best rewards structures for a no-annual-fee credit card with 3x on a wide range of purchases.
Current bonus: 20,000 bonus miles after you spend $1,000 on purchases within the first three months
Rewards rate: Earn 3x points on travel (flights, hotels, taxis, ride-hailing, car rentals and more), dining, gas stations and streaming services.
Travel benefits: Compared to some of the other cards on this list, the Propel doesn’t have the same level of travel benefits. However, that’s to be expected with a no-annual-fee card. You do get standard travel protections, including travel accident insurance, lost baggage coverage and secondary car rental insurance in the U.S.
Annual fee: $0
Why it’s worth it: If you are a beginner cardholder, the Wells Fargo Propel is a great option. You’ll earn points across a solid array of purchases, and then use those rewards at a 1 cent-per-point ratio across redemption options. While experts may not appreciate the fixed-value return and lack of transfer partners, beginners and casual travelers will likely enjoy the uncomplicated redemption process and the knowledge that you’re getting the same value regardless of how you use your rewards. The card also comes with a few solid benefits, including cell phone protection, extended warranty, return protection and purchase protection.
Further reading: Wells Fargo Propel review
The information for the Wells Fargo Propel has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
The Platinum Card from American Express: Best for lounge access
Why it’s the best travel credit card for lounge access: With the Amex Platinum, you’ll have access to the American Express Global Lounge Collection (which includes Centurion Lounges), Priority Pass, Airspace and Escape lounges and Delta Sky Clubs (when flying Delta). No other card (other than the business version) offers this kind of access.
Current bonus: Earn 60,000 Membership Rewards points after you spend $5,000 on purchases in the first three months (valued by TPG at $1,200). However, be sure to check the CardMatch tool to see if you’re targeted for a higher welcome bonus (offer subject to change at any time).
Rewards rate: Earn 5x points on airfare purchased directly with the airlines or through Amex Travel, and 5x points on prepaid hotels booked through Amex.
Travel benefits: The Amex Platinum is the king of luxury travel benefits. You’ll get up to $200 in annual airline fee credits, up to $200 in Uber credits, up to $100 in credit at Saks Fifth Avenue and up to $100 credit for your Global Entry or TSA PreCheck application fee once every four years. Plus, you’ll get unparalleled lounge access, automatic Gold status with Hilton and Gold Elite status with Marriott, and extra perks with Avis Preferred and National Car Rental Emerald Club Executive.
Why it’s worth it: It’s not just the 60,000-point bonus that lands this card on our list of the most valuable travel credit cards. Besides the $500 in credits each year and various lounge access options, the Amex Platinum is a stellar premium travel credit card that can provide amazing redemptions. Among the Membership Rewards program’s 20 travel partners is Singapore Airlines KrisFlyer, which is the only way to book the ultra-premium Singapore Suites using miles.
Other card highlights include an amazing 5 points per dollar spent on airfare purchased directly with the airline or through Amex Travel (equal to a 10% return on these purchases) and the ability to add three authorized users for a total of $175 (see rates and fees). Amex has also added several temporary non-travel perks to the card in light of the coronavirus pandemic that help make this card’s benefits easier to use if your spending habits and redemption choices have changed in recent months.
Further reading: American Express Platinum review
Apply here: Platinum Card from American Express
Capital One Venture Rewards Credit Card: Best for earning miles
Why this is the best travel credit card for earning miles: With the Capital One Venture, you’re earning double miles on every purchase. That makes it easy to rack up rewards without having to juggle different bonus categories or spending caps.
Current bonus: Earn 50,000 Capital One miles after you spend $3,000 on purchases in the first three months of account opening (valued by TPG at $700*).
Rewards rate: Earn 2 miles per dollar spent on every purchase.
Travel benefits: You get an application-fee credit for Global Entry or TSA PreCheck of up to $100 every four years, which is a nice perk for a mid-tier card that only costs $95 a year.
Annual fee: $95
Why it’s worth it: The Capital One Venture Card allows you to redeem miles for a fixed-value or transfer the miles you earn to several airline transfer partners, including Avianca, Etihad and Singapore Airlines. Plus Capital One recently added Accor and Wyndham hotels as transfer partners. The transfer ratio is 2:1.5 for most partners, though some have a less-lucrative rate of 2:1. This means that for every dollar you spend on this card, you’re effectively getting 1-1.5 points or miles with a partner airline. And for those who know they don’t want to redeem for travel at this time, Capital One recently added new fixed-value redemption options for this card — takeout, restaurant delivery and select streaming services. It’s the one card The Points Guy, Brian Kelly, can’t live without.
Further reading: Capital One Venture Card review
The information for the Capital One Venture Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer. Bonus value is an estimated value calculated by TPG and not the card issuer.
Hilton Honors American Express Aspire: Best premium hotel card
Why it’s the best premium hotel travel credit card: Hilton is one of the top hotel brands in the world and the Hilton Honors Aspire Amex offers a packed lineup of great benefits for hotel customers.
Current bonus: Earn 150,000 bonus points after you use your new card to make $4,000 in eligible purchases within the first three months of card membership.
Rewards rate: Earn 14x on eligible Hilton purchases; 7x on U.S. restaurants, eligible airfare and eligible car rentals, and 3x on everything else.
Travel benefits: With this card, you get a number of great perks: complimentary Hilton Diamond status, up to two free weekend reward nights (one each year and one after you spend $60,000 on eligible purchases in the calendar year), up to $250 in Hilton resort statement credits, up to $250 in annual airline fee credits, up to $100 Hilton on-property credit at certain hotels, Priority Pass membership.
Annual fee: $450 (see rates and fees)
Why it’s worth it: Hilton’s premium card, the Hilton Honors American Express Aspire, offers a terrific haul of points and an array of perks. In addition to some stellar benefits, it offers an excellent 14x bonus category on spending at eligible Hilton properties — equivalent to a 8.4% return based on TPG’s point valuations — among solid returns in other spending categories. This card is also among the Amex cards to receive temporary benefits during 2020 to help you utilize this card while at home.
Further reading: Hilton Honors American Express Aspire Credit Card review
Apply here: Hilton Honors American Express Aspire
Delta SkyMiles Platinum American Express Card: Best for airline status
Why it’s the best travel credit card for airline rewards: When it comes to cobranded airline cards, it doesn’t get much better than Delta’s lineup of cards. The Delta SkyMiles Platinum Amex is a great card for travelers hoping to hit Medallion elite status with the airline while racking up miles across a wide range of purchases.
Current bonus: Earn 40,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new card in your first three months of account opening. Plus, earn a $100 statement credit after you make a Delta purchase with your new card within your first three months.
Rewards rate: Earn 3x on eligible Delta purchases and hotel stays; 2x on restaurants and U.S. supermarkets, and 1x on everything else.
Travel benefits: The revamped Delta SkyMiles Platinum Card offers a Global Entry/TSA PreCheck application fee credit (up to $100), an annual companion certificate for a domestic main cabin round-trip ticket each year, elite-like perks like a free checked bag and priority boarding and a way to hit Medallion status faster: Earn 10,000 Medallion® Qualification Miles (MQMs) after $25,000 in eligible purchases and another 10,000 MQMs after spending $50,000 in a calendar year. You’ll also get a Medallion Qualification Dollar (MQD) waiver after spending $25,000 in a calendar year.
Annual fee: $250 (see rates and fees)
Why it’s worth it: Earlier this year, Delta and Amex relaunched all seven of their cobranded cards with a new suite of benefits. The Delta SkyMiles Platinum Amex added enhanced bonus categories (including increased 3x earning on Delta) and a host of new travel benefits (plus temporary benefits for part of 2020 like other Amex cards). The card’s annual fee increased to $250, so make sure you will get at least that much in value from the card each year. This card is best suited for regular travelers who are loyal to Delta and want a little help earning Medallion status with the airline.
Further reading: Delta SkyMiles Platinum Amex Card review
Apply here: Delta SkyMiles Platinum American Express Card
Marriott Bonvoy Boundless Credit Card: Best mid-tier hotel card
Why it’s the best mid-tier hotel travel credit card: Marriott properties can be found all over the world, and this card offers some solid perks for casual travelers.
Current bonus: Earn 75,000 bonus points after you spend $3,000 on purchases in the first three months from account opening.
Rewards rate: Earn 6x at participating Marriott Bonvoy hotels, and 2x on all other purchases.
Travel benefits: You’ll earn 15 elite-night credits every year, good enough for Marriott Bonvoy Silver Elite status and just 10 nights away from Gold. Plus, you’ll receive a free award night good for stays costing up to 35,000 points every year after your account anniversary.
Annual fee: $95
Why it’s worth it: The Marriott Bonvoy Boundless is a TPG reader favorite — it won Best Cobranded Hotel Credit Card at the 2019 TPG Awards. If you stay at Marriott properties on a regular basis, this is a great time to get this card and score its 75,000-point sign-up bonus. Just make sure you’re aware of the card’s complicated application restrictions, which could prevent you from earning the sign-up bonus depending on what Marriott cards you have had in the past or currently have across both the Chase and American Express Marriott card portfolios.
Further reading: Marriott Bonvoy Boundless credit card review
Apply here: Marriott Bonvoy Boundless Credit Card
Alaska Airlines Visa Signature credit card: Best for Alaska Airlines miles
Why it’s the best travel credit card for Alaska Airlines miles: Alaska Airlines miles are among the most valuable airline miles you can earn today, in part because of Alaska’s mix of airline partners and its distance-based award chart (as opposed to a revenue-based chart).
Current bonus: Earn 40,000 bonus miles, plus a $100 statement credit and Alaska’s Famous Companion Fare (from $121– $99 fare, plus taxes and fees from $22) after you spend $2,000 or more on purchases in the first 90 days your account is open.
Rewards rate: Earn 3x miles on eligible Alaska Airlines purchases
Travel benefits: Get a free checked bag on Alaska flights for you and up to six guests on your reservation, receive an annual Companion Fare (starting at $121; $99 base fare plus taxes and fees from $22) on your account anniversary, enjoy 50% off Alaska Lounge and 20% back on all inflight purchases.
Annual fee: $75
Why it’s worth it: Whether you live on the West Coast or not, the Alaska Airlines Visa Signature is a good cobranded airline card to consider adding to your wallet. Right now, the card is offering a limited-time sign-up bonus worth $820, according to TPG valuations.
The Seattle-based airline is mostly limited to North America routes (with some international destinations through partners), but that will change in 2021, when the airline joins the Oneworld alliance. The announcement came with the news that American Airlines and Alaska Airlines are renewing (and strengthening) their partnership. Both developments will help Alaska Airlines add new ways for customers to use the Mileage Plan program as the airline establishes a global footprint.
Further reading: Alaska Airlines Visa Signature review
The information for the Alaska Airlines Visa card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®: Best for American Airlines flyers
Why it’s the best travel credit card for American Airlines flyers: If you fly American Airlines often, it can be handy to have a cobranded credit card from the airline. The Citi/AAdvantage Platinum Select offers a nice mix of benefits and earning opportunities for a manageable $99 annual fee, which makes it great for AA flyers who aren’t looking for lounge access or an abundance of luxury perks.
Current bonus: Earn 50,000 bonus miles after you spend $2,500 in the first three months of account opening.
Rewards rate: Earn 2x miles on eligible American Airlines purchases, restaurants and gas stations.
Travel benefits: You’ll get preferred boarding, a free checked bag on domestic itineraries, discounts on eligible inflight purchases, access to reduced mileage awards and a $125 American Airlines flight discount when you spend more than $20,000 in a calendar year and renew your card.
Annual fee: $99
Why it’s worth it: For a low annual fee, American Airlines customers can enjoy elite-like benefits without breaking the bank or needing to hit an elite status tier. You’ll earn 2x (a 2.8% return) on three different bonus categories and a few nice benefits to help make the flight experience more enjoyable. Plus, the card is currently offering a welcome bonus that TPG values at $840. If you know how to maximize your AA redemptions, that bonus could potentially be worth even more.
The information for the Citi / AAdvantage Platinum Select World Elite Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Further reading: Citi/AAdvantage Platinum Select card review
How we chose the best travel credit cards
I reviewed numerous travel credit card offers and spent countless hours studying the pros and cons of each offer. I assigned value to these credit cards based on a number of criteria:
- Sign-up/welcome bonus value — The first thing I look at for each card is the value of each sign-up bonus. Although you shouldn’t choose a credit card based solely on that offer, you can use bonus values as a tiebreaker of sorts between similar cards or as a way to prioritize which card to get first.
- Earning rate — Bonus value is important, but so is the long-term value each card offers. I looked at the rewards rates to see which cards would reward cardholders for the long term.
- Travel credits — The best travel credit cards often offer an assortment of travel credits for cardholders. Some cards, like the Chase Sapphire Reserve, offer broadly defined travel credits. Others, like the Amex Platinum, offer shopping and airline-fee credits. Several offer a Global Entry/TSA PreCheck application-fee credit.
- Travel benefits — In addition to travel credits, top travel credit cards often come with benefits like complimentary elite status or lounge access. I took these into consideration as well.
- Rewards program — Not all credit card rewards programs are created equal. Each points program has its own point valuation, which you can study here. The value of each individual type of point is vitally important when rating travel credit cards and their promotional offers.
- Foreign transaction fees — This is a huge factor when choosing a credit card. If you plan to use your travel rewards credit card abroad or on websites hosted abroad, you want to ensure you don’t have a foreign transaction fee biting into your earnings.
- Travel insurance coverage — Last, I look at what travel protections each card offers. These benefits are often overlooked but can save travelers hundreds or even thousands of dollars when things go awry during trips.
How travel credit cards work
Travel credit cards help you upgrade your travel experiences in a number of ways. You’ll earn rewards across spending categories that can help you score free flights and hotel stays. You’ll also get access to certain travel and purchase protections. And cards also often come with premium perks like lounge access, travel credits and more.
Are you new to the travel rewards card game? Check out our beginner’s guide to all things points and miles. You’ll learn about top loyalty programs, how to maximize your credit card strategy to reach your travel goals and so much more.
Different types of travel credit cards
The reason to hold any travel rewards credit cards is to earn rewards, but there are different types of travel credits:
Transferable-rewards credit cards
These are cards that earn rewards that can be redeemed through a card’s rewards program directly or by transferring them to a travel partner. A lot of our best travel credit cards fall under this category because they are the most valuable type of points you can earn. Transferable rewards give you the flexibility to redeem your rewards in a way that will be most beneficial to you. Examples of top transferable rewards cards are the Chase Sapphire Reserve and Amex Platinum.
Airline credit cards
Airline cobranded cards earn a specific type of airline miles. These cards also generally come with perks specific to that airline. For example, an airline card may offer free checked bags, a certain number of elite-qualifying miles to help you reach status, priority boarding privileges, inflight discounts and more.
Related reading: Best airline credit cards
Hotel credit cards
Hotel cobranded cards work like airline cards. You’ll earn rewards that are redeemable for a certain hotel program, such as Hilton or Marriott. Hotel cards come with their own benefits, such as complimentary elite status or free award-night stays. One of my favorite things about hotel cards is that you can stack your earnings on hotel stays with the hotel’s program. For example, if you have the Marriott Bonvoy Boundless card, you’ll earn 6x at participating Marriott properties on top of the 10x base points you get as a member of the Bonvoy program. That means you’re really earning 16x on Marriott stays when you use your hotel card to pay for your booking. If you have Bonvoy elite status, you’ll also earn a bonus on those base points. You could earn up to 23.5x on eligible hotel stays, depending on what level of status you have.
Related reading: Best hotel credit cards
Fixed-value credit cards
Fixed-value cards earn points or miles that are always redeemed for the same value. For example, the Bank of America Premium Rewards Card earns points that are always worth 1 cent each. These types of cards are great for beginners who haven’t quite gotten the hang of maximizing transferable points or for casual travelers who don’t want to worry about transfer partners or dynamic pricing. As more hotels and airlines move to a dynamic pricing model where award pricing shifts dramatically, fixed-value rewards programs are becoming more popular.
Related reading: Comparing the best fixed-value point credit cards
Pros and cons of travel credit cards
Travel credit cards are a great way to earn rewards that allow you to travel the world for less money — or practically for free — simply by using a credit card to buy the same items you’d otherwise buy with cash or a debit card. With certain travel credit cards, you can also get perks to use while traveling — everything from airport lounge access and hotel elite status to free airline companion certificates and discounts or credits on your travel purchases. Those who are well-versed in award charts and redemption options for travel rewards cards can often get more value from points than from cash back.
However, there are a few drawbacks to travel rewards cards. Because travel credit cards are focused on earning and redeeming for travel expenses, your redemption options are slightly limited when it comes to maximizing value. For example, you can redeem your Amex Membership Rewards points as a statement credit — through Amazon, for gift cards and more — but you’re generally only getting the best value when you transfer your points to partners. But when it comes to transfer partners, the value you’re getting can also change drastically depending on the partner and redemption you book. More airlines and hotels are switching to dynamic pricing models, which means the value you get from your points/miles can vary drastically.
Compare travel credit cards
With so many travel credit cards on the market, it’s important to ask yourself which credit card benefits best meet your travel goals. Are you hoping to use your sign-up bonus for a specific redemption? Are you looking for a card that gives you luxury travel perks? Are you hoping to hit elite status with a certain hotel brand or airline? Are you a casual traveler or a frequent flyer? What spending categories will be most beneficial to you?
For example, if you want a card to help you hit elite status with Delta while giving you elite-like perks, you should strongly consider getting a Delta credit card. Multiple Amex Delta cobranded cards give you perks like earning MQMs when you hit certain spending thresholds and offer free checked bags and priority boarding.
On the other hand, if you only fly occasionally and aren’t exclusively loyal to one airline, you might be better off with a flexible travel credit card that doesn’t offer perks on any one airline but earns points or miles that can be redeemed on a variety of airlines — a card like the Chase Sapphire Preferred. And if you’re typically a road warrior who flies every week, you’ll want to think about a premium travel credit card that offers lots of travel perks, such as the Amex Platinum with airport lounge access and hotel elite status.
Things to consider before applying:
- 5 things to understand about credit before applying for cards
- 3 key considerations for improving your credit score
- Debunking credit card myths: Does applying for a card permanently impact my credit score?
As always, head to TPG’s cards hub to see the best credit cards currently available.
Frequently asked questions about travel credit cards
How much is a point or mile worth on a travel credit card?
Every point or mile from an airline, hotel or bank is worth a different amount, so you can’t assume that a 50,000-point bonus on one card is equivalent to a 50,000-point bonus on another. That’s why The Points Guy maintains a guide to point and mile valuations, which explains how much each type of point and mile is worth. You can use those valuations to determine how much a sign-up bonus or bonus category is actually worth.
For instance, Amex Membership Rewards are worth 2 cents each based on TPG’s valuations, which means the 60,000-point bonus on the Amex Platinum is worth $1,200. That’s because 60,000 x 2 cents = $1,200. And since that card earns 5 points per dollar on airfare, you can also determine that each dollar you spend on airfare will get you 10 cents back in points, because 5 points x 2 cents = 10 cents.
Is an annual fee worth it?
Many of the top travel rewards credit cards come with hefty annual fees. But cardholders who maximize the perks and rewards structures on these cards will almost always come out net-positive by the end of the year.
For example, although the Amex Platinum comes with a $550 annual fee (see rates and fees), you’re getting up to $500 in annual credits, unrivaled lounge access, a TSA PreCheck/Global Entry application-fee credit, elite status with Hilton and Marriott and more in return. If you’re using your credits every year and visiting lounges regularly, that annual fee is already paying for itself even before factoring in any rewards you earn with the card.
Related reading: Battle of the premium travel rewards cards: Which is the best?
Even cards that don’t offer a lot in the way of travel credits are often worth the annual fee for cardholders. Take the Chase Sapphire Preferred Card, for example. There are no travel credits to offset the cost of the annual fee, but you only have to spend $2,375 on dining and travel each year in order to make the annual fee worth it ($2,375 x 2 points per dollar = 4,750 points; 4,750 points x 2 cents per point = $95). If you know you’ll use the benefits and perks offered by a card while also earning rewards through bonus spending, annual fees are easily worth it.
Related reading: 5 reasons why the Chase Sapphire Preferred should be your first card
Should I get a cash-back or travel credit card?
Ideally, you should have both types of cards in your wallet. Travel credit cards are great when you want to redeem points and miles for travel purchases, but you aren’t getting a great redemption value when you redeem for almost anything else. Cash-back cards, on the other hand, can be used to offset the cost of expenses your points and miles won’t cover.
Related reading: The best cash-back credit cards for 2020
Let’s say you are taking a trip to London in the spring. With the points earned through your Amex Platinum, you transfer points to partners for your award flights and hotel stays. However, those aren’t the only expenses that go into a trip. Points and miles won’t cover expenses like ground transportation, eating out or tourist attractions while you’re there. But you can use cash-back rewards to offset those costs. For example, if you use a cash back-card like the Capital One® Savor® Cash Rewards Credit Card for your dining and entertainment spending, you can use cash back you’ve saved up previously as a statement credit to cover those purchases even while earning 4% back.
The information for the Capital One Savor Cash Rewards Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
If you are wondering which type of card would be best as your first travel credit card, consider what type of rewards you will find more valuable. Cardholders who only plan to travel every once in a while may get more value out of a cash-back card that they can use to offset the cost of other expenses. However, if you are hoping to use the rewards from your card to book award flights and hotels, a travel credit card is the way to go.
Are there different considerations for choosing a card for international travel?
Not all travel credit cards are best for spending outside of the U.S. Some tack on fees for purchases not made within the U.S. or on a U.S. site. Others may not be widely accepted overseas. Plus, some cards offer more benefits that help you on your international adventures.
Here are a few of the things to look out for when choosing a card for international travel:
- Foreign transaction fees — Some cards charge a fee (typically 3% to 5% of each transaction) when you use your card outside of the U.S. (including sites that are considered international and not U.S.-based). That fee will wipe out any rewards you may earn, so make sure to have a card that charges no foreign transaction fees.
- TSA PreCheck/Global Entry — TSA PreCheck and Global Entry can make security lines go faster and reentry into the U.S. smoother. Luckily, plenty of top travel credit cards come with a TSA PreCheck/Global Entry application fee credit that is typically worth $100 every four years.
- Insurance benefits — In 2019 travel insurance benefits declined across many credit cards, but it remains an important factor. No one wants to think about the worst-case scenario happening on vacation, but it’s better to be prepared with a card that offers some form of travel protections.
- Earning abroad — Some cards limit your bonus categories to U.S. merchants. If you plan to use a credit card abroad, make sure it will earn rewards on purchases no matter where you are.
Travel credit cards are great at helping you meet your vacation goals. They can save you thousands of dollars on airfare and hotel costs. Whether you’re a beginner who wants a card to offset the cost of your first big international trip or a road warrior looking to upgrade your travel experiences, there is a travel credit card out there for you.
It all comes down to choosing a card that will help you maximize your spending. Adding one of these cards to your wallet now could help you save up rewards for an amazing redemption in the future.
For rates and fees of the Amex Platinum Card, please click here.
For rates and fees of the Hilton Aspire Card, please click here.
For rates and fees of the Delta Platinum Amex, please click here.
For rates and fees of the Amex Gold Card, please click here.
Featured photo by YinYang/Getty Images
This is The Points Guy’s permanent page for the best travel credit cards, so you can bookmark it and check back regularly for updates. Keep in mind you may see some reader comments referring to older offers below.
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.