Which Travel Rewards Credit Card is Best for You?
Key Points About: How to Choose the Best Travel Rewards Credit Card for You
Travel rewards credit cards may offer cash back, miles, or other benefits
Some travel credit cards charge fees that may cost more than the rewards you’ll earn
If you travel internationally, check whether your travel credit card charges foreign transaction fees
If you like to travel, you know that travel expenses can add up quickly. However, there are simple ways you can maximize your travel budget. One option is to have a travel rewards credit card that lets you earn rewards on both travel and non-travel purchases.
Finding the best rewards credit card for travel depends on many factors, like your purchase habits and how much you spend. This guide will help you determine the best travel rewards credit card to maximize your travel rewards potential.
1. How do travel credit cards work?
Some credit cards offer cash back, miles, or other rewards that can be used toward travel expenses. For example, if you have the Discover it® Miles Travel Credit Card, you earn unlimited 1.5x Miles on every dollar of every purchase–from airfare and hotels to groceries and online shopping.
Earning rewards, no matter where you shop may be ideal for some, but what about claiming the rewards you’ve earned? Some travel credit cards give you airline miles that you can redeem for a flight, but these usually have restrictions on the dates and destinations you can use them for. With the Discover it® Miles Travel Credit Card, you can redeem Miles for a statement credit against travel purchases or cash.2
Paying for a travel expense with a credit card can help protect you. If a company fails to deliver the goods or services you paid for, you can dispute the charge through your credit card. The Discover it® Miles Travel Credit Card offers $0 Fraud Liability, where you’re never responsible for unauthorized purchases on your credit card.3
2. Types of travel credit cards
Typically, you’ll find two different kinds of travel credit cards. Whether one is better for you will depend on how you travel and what you’re looking for.
Co-branded travel rewards cards
Co-branded travel credit cards are cards that are affiliated with a particular hotel chain, airline, or other travel brand. The way you earn rewards and can redeem them is usually focused on you spending with the brand. For example, you might earn more points for paying for your hotel stay when you use the hotel’s co-branded credit card to pay for your reservation than you do when you use the co-branded card for everyday purchases. When you redeem your credit card points, you might be limited to hotel-specific options, like room upgrades or other perks. If you stay at a particular hotel chain or use a specific airline whenever you travel, and are a loyal customer with these vendors, it might make the most sense to use a credit card offered by them.
Flexible travel rewards cards
The other type of travel credit card is one that lets you earn miles or points that you can redeem for travel or cash. These cards are more flexible because they allow you to redeem your rewards for cash to spend with the airline or hotel of your choosing, or on any other expense
3. Choosing the travel rewards credit card that’s best for you
Many people look for four things from their travel rewards cards:
- Value: The overall value of a travel rewards credit card may depend largely on the rewards earned for each dollar spent, plus any fees you might have to pay, such as annual fees. Discover has no annual fee on any of our cards.
- Flexibility: When shopping for travel credit cards, customers may benefit most from cards that offer flexible opportunities for redemptions. Some cards have blackout dates for redeeming miles, which means you might not be able to redeem your rewards for the travel times you prefer. The most flexible cards don’t limit you to redeeming rewards with only one travel provider.
- Cost and fees: Travel cards may vary in their interest rates and fees. If you’re carrying a balance each month, it’s important to check your travel card’s APR (annual percentage rate) and to calculate whether the rewards you might earn would be worth more to you than any fees you might pay.
- Sign-up bonuses: Many travel cards have large sign-up bonuses to entice applicants. The Discover it® Miles Travel Credit Card is unique in its sign-up bonus, in which you get an unlimited Mile-for-Mile match of all the Miles you earn at the end of your first year, automatically. There is no limit to how much we’ll match.1 For example, if you earn 35,000 Miles, you get 70,000 Miles. This means that a new Discover it® Miles Cardmember has control over the size of their own signup bonus, because it will be as large as your Miles earned for the first year.
If you’re unsatisfied with the travel benefits on your current credit card, consider looking for a travel rewards credit card that’s better for your needs.
Each travel rewards credit card may have pros and cons so shape your decision to match your personal travel and spending habits.
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