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What is a Travel Credit Card?

6 min read

Last Updated: October 16, 2025

Table of contents

Key Takeaways

A travel credit card lets you earn rewards on eligible purchases that may be redeemed for future travel (and non-travel) expenses.
Travel rewards cards that are branded by an airline or hotel chain might include perks like priority boarding or room upgrades.
You can use a travel credit card with an airline or hotel loyalty card to maximize your earning potential.

They say that travel is about the journey, not the destination. And if you travel regularly, you know that small comforts on that journey are essential to a good experience—especially if those comforts include discounts or rewards. For an avid traveler, the benefits of a travel credit card can be very valuable.

So, just what is a travel credit card? Travel cards give you the opportunity to earn Miles, rewards, or points on qualifying purchases that you make with your card. Depending on the issuer, these rewards can then be redeemed for a statement credit, travel bookings, and more. Some cards even allow redemption on non-travel-related expenses.

Further, a co-branded travel card (a credit card issued by a bank in partnership with an airline, hotel, or other hospitality brand) lets you earn rewards when you're loyal to their specific airline or hotel brand. Because of that, some people carry more than one travel card and use the combined benefits to earn even more rewards.

How do different types of travel rewards credit cards work?

Are you looking for the best credit card for you? Here’s a quick overview of the four most common types of travel rewards credit cards and how they work:

General travel rewards cards

Earning rewards: A general travel reward card offers the flexibility to earn rewards without being tied to a specific airline carrier, hotel chain, or other hospitality group. Instead, cardmembers earn rewards on eligible purchases with flexible redemption options. The Discover it^® Miles Card lets you earn unlimited 1.5x Miles automatically on travel purchases and all your everyday purchases.¹

Rewards redemption: There can be a wide range for redeeming miles depending on the issuer. For instance, with the Discover it^® Miles Card, redeem your Miles for cash in any amount.² You can even easily redeem Miles as a statement credit for travel purchases or get cash.¹

Did you know?

Discover it^® Miles lets you turn miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants, and more.¹

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Airline rewards credit cards

Airline credit cards are tied to a specific airline. Note that the Discover travel rewards card isn’t tied to an airline. Your purchases on an airline credit card allow you to earn rewards that are redeemable for flights with that airline.

Some airline credit cards bump up your rewards when you spend more, allowing you to access even more membership rewards. These may include free checked bags, a VIP lounge priority pass, travel insurance, expedited customs clearance with Global Entry, or discounts on in-flight purchases.

Hotel rewards credit cards

Hotel rewards cards allow you to earn points that can be redeemed with a specific hotel brand. Perks may range from a free hotel stay to extra rewards when you use your card to book with one of the brand’s properties.

Train rewards credit cards

Frequent transit and train travelers can apply for branded or co-branded cards that allow cardmembers to earn rewards they can put toward train travel. This works both in the United States and for travel abroad. Many allow redemption of your rewards toward hotels, rideshares, gas stations, dining, and entertainment to make your trip even more enjoyable.

Is a travel credit card with no annual fee best for you?

You can unlock significant value and perks with a no-annual-fee travel card. Travel cards with no annual fee give cardmembers the benefit of earning rewards without the yearly cost.

General travel rewards cards with no annual fee

For occasional travelers, travel rewards credit cards that offer flexible earning and redemption options with no annual fee are a great option. You may be able to earn rewards from each credit card purchase without having to pay a fee every year.

Co-branded travel rewards credit cards with no annual fee

Before choosing a co-branded travel rewards credit card with no annual fee, check the card’s rewards structure against your current spending habits. If you regularly travel with a preferred airline or hotel, a card that's co-branded could offer extra rewards and benefits that might save you money in the long run.

Choosing the best travel credit card for you

Now that you know what a travel credit card is and how they work, it’s time to look at how to choose the best travel card for you.

Here are a few factors to consider when you’re deciding which travel credit card is best for you:

New cardmember bonus

Many rewards cards allow new cardmembers to earn bonus rewards within a set period of time from opening the account. In some cases, that means meeting a spending requirement before earning a bonus. It’s a good idea to check that any spending requirement fits your spending budget.

Foreign transaction fee

Some credit cards charge foreign transaction fees whenever you make a purchase outside of the United States or with an online retailer in a foreign currency. If you plan on traveling internationally, consider a travel credit card without a foreign transaction fee. Discover^® has no foreign transaction fee.

Your income, credit score, and other factors affect your ability to qualify for a travel card.

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Using more than one travel credit card

Many people use more than one travel credit card. By carrying both a general travel credit card and a co-branded hotel or airline credit card, you can get the perks that come with your favorite hotel or airline credit card—such as free checked bags or fast-track elite status—while having the option of using a general travel card to earn rewards you can redeem toward travel and non-travel-related expenses.

The bottom line

Before deciding whether a travel credit card is right for you, do the math on where your money is currently going, and ask yourself whether you could profit from earning rewards for future travel expenses.

Once you understand how travel credit cards work, you can enjoy the benefits of adding one to your wallet. Keep that in mind as you book your next trip.

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