With the right travel credit card, you can maximize every dollar you spend towards your next getaway. Even the most basic travel cards allow you to gain rewards for each dollar you spend, while elite cards offer discounts and VIP experiences at select resorts.
Here are 5 things to look for when identifying which travel credit card is best for you:
1. Rewards Rate
The most important thing to consider when applying for any credit card is the rewards rate. Whether the card in question refers to the rewards as miles or cash back, you should aim to maximize your rewards per dollar spent.
Depending on the card, you may have the option to earn a higher rewards percentage in select categories (dining, transportation, gas, etc.), or opt for a higher base-rate on all rewards.
Attentive users can usually squeeze more rewards out of cards with categorical incentives. However, maximizing these cards can take time and deliberate spending practices. If you would rather swipe and forget, aim for a card with a high base-rate on rewards (~2%).
2. Foreign Transaction Fees
If you’re a regular international traveler, make sure to choose a travel card without foreign transaction fees. Waiving foreign transaction fees is common among top travel cards, but never hurts to double check this feature for your preferred card. Overlooking this issue could lead to markups of 3% or more on any purchases made while abroad.
3. Additional Benefits
Many travel cards offer additional benefits to active members by partnering with resorts or travel agencies. For example, when we were traveling through Asia, we carried a Capital One – Venture One card. At the time, the card offered 10x miles on all purchases through Hotels.com. We were able to book the majority of our accommodations through Hotels.com, racking up the miles with Capital One, while also gaining rewards nights on Hotels.com.
Other popular benefits include mile-for-mile exchange programs with major airlines and hotel chains, complimentary room upgrades, complimentary food/drinks
These incentives usually rotate, so be sure to read up on each card’s additional benefits while doing your research.
4. Sign-Up Offer
If you have good credit, almost every credit card will offer some sort of sign-up incentive. Look for cards to offer a large chunk of miles after spending a minimum amount over your first few months using the card. For example, the American Express Gold Card currently offers new users 60,000 bonus miles (~$600) after spending 4,000 within 6 months of opening an account.
Many cards will also waive the annual fee for the first year using the card.
With travel in mind, it is not unreasonable to expect the value of a free round-trip ticket upon signing up for a new card.
5. Annual Fee
Annual fee alone can determine whether or not a credit card offers a good value. Even with a high rewards rate, a card’s value can easily be offset by a high annual fee. For example, if you are earning 40,000 miles (~$400) worth of rewards annually on a card with a $250 annual fee, you would be better off finding a card with a lower rewards rate (20,000 miles/year) that doesn’t require an annual fee. Be sure to do the math to determine what card makes the most sense for your spending habits.
