Choosing the Best Rewards Credit Card for Travel

7 Min Read | Last updated: October 19, 2023

Looking to maximize your travel experiences? Choose the best rewards credit card that allows you to redeem points towards hotel stays, flights, & exciting perks.

At-A-Glance

  • There is no “best” rewards credit card for travel because one size does not fit all.
  • One consideration when choosing a rewards credit card for travel is figuring out how to match the benefits offered to your lifestyle – the way you’ll use the credit card.

There’s probably no such thing as the “best” rewards credit card for travel. People have different lifestyles, including different travel preferences, so they can get the most out of rewards credit cards in different ways.

 

As a result, your card options include a sea of rewards credit cards that don’t all work in the same way or provide the same benefits. Any one of them might be the best rewards credit card to suit your particular lifestyle and travel preferences.

 

To help chart a course to the best travel rewards credit card for you, this article explores:

  • The main types of rewards credit cards for travel.
  • Different ways you can earn rewards.
  • Different ways you can redeem points.
  • Features and perks of a typical co-branded airline travel credit card in the real world.
  • What the best rewards credit cards have in common.

Three Main Types of Travel Rewards Credit Cards

Broadly speaking, there are three major types of travel rewards credit cards, each with its own set of characteristics:

If you frequently fly with a specific airline or stay with a specific hotel chain, a co-branded credit card may make sense for you. But if you travel with a variety of different airlines and hotel chains, you might be better off with a general rewards credit card. With general rewards cards, you typically have more flexibility when it comes to earning and redeeming rewards. Typically, the value of your rewards will fluctuate depending on how you choose to redeem it and which transfer partners you choose to redeem with.

 

Some of these cards have an annual fee. While the amount varies, depending on the card, it typically ranges between $95 to $695 or even more, although no –annual fee rewards credit cards are also available. Naturally, the value of rewards benefits and perks tends to rise along with the fee.

Ways You Can Earn With Rewards Credit Cards

Points and miles are among the chief rewards you earn from airline or hotel rewards credit cards, with the airlines typically issuing miles and the hotels issuing points. Depending on the card, you may be able to earn several points or miles for every dollar you spend on flights or hotel stays with the airline or hotel chain named on the card or in some cases, with their partners. With some cards, you may also earn points or miles for spending in additional selected categories as well.

 

For example, with the no annual fee Hilton Honors American Express Card1, you can earn 7X Hilton Honors Bonus Points on hotel and resort purchases in the Hilton portfolio, along with 5X Points on dining at U.S. restaurants including takeout and delivery, and 5X Points at U.S. supermarkets and U.S. gas stations.2 This type of structure allows you to earn points on everyday eligible purchases, not just purchases that you make when traveling, something that could help your points add up faster.

 

You can also jumpstart your points or miles accumulation by taking advantage of a welcome offer, if there is one.

 

General rewards cards are typically more versatile. With these cards, you’ll often earn points on travel purchases, and even purchases in other categories as well, depending on the card.

Redeeming Rewards

With hotel or airline co-branded cards, you may be able to redeem your points or miles in a number of different ways or you may be limited to the hotel or airline in question. In some cases, you may be able to redeem them with the hotel or airline’s partners.

 

For general rewards cards, you may have more options when it comes to redemption but again, this will depend on the card in question. Some general rewards credit cards may also include travel-related perks and benefits to make travel easier and more enjoyable as well.

Real-World Travel Rewards Credit Card Examples

In general, the higher your card’s annual fee, the more valuable the perks and benefits may be.

 

To give a better sense of what travel rewards cards could potentially offer, here’s a hypothetical comparison between a no annual fee airline card and a premium one with an annual fee.

 

No annual fee airline credit cards may offer miles on purchases made directly with the airline. In some cases, they might offer points on other specific spending categories, such as restaurants or gas stations.

 

Additional card benefits might include: 

  • A modest welcome offer after spending a set amount in the first few months of card membership.
  • In-flight discounts
  • Certain types of car rental insurance
  • No foreign transaction fees

Premium airline cards usually have an annual fee. However, they will typically allow you to earn more points or miles on purchases made directly with the airline, which could help you to earn miles or points more quickly. For example, The Delta SkyMiles® American Express Platinum Card allows you to earn 3X SkyMiles on Delta and hotel purchases, and 2X Miles on dining at U.S. restaurants including takeout and delivery, as well as on groceries at U.S. supermarkets.3

 

Card Members may also receive more perks and benefits, which may include some of the following:

  • A larger welcome offer after spending a set amount in the first few months of card membership.
  • In-flight discounts.
  • First checked bag free when flying with that airline.
  • An airline companion ticket (may be subject to terms and conditions).
  • Priority boarding.

These examples are meant to serve as illustrations, giving you an idea about the type of rewards and benefits that you might find with no annual fee cards and premium cards. Again, the specific rewards and benefits that you will receive will vary greatly from card to card, so make sure you check your card’s terms and conditions to see what’s included.

 

The potential differences between a no annual fee airline card and a premium airline card illustrate how important it is to match your lifestyle and travel preferences to the benefits a card offers. If you’re a frequent flyer, a top-flight card might offer good value in return for its annual fee. But the no-fee card could make more sense for less frequent flyers.

What the Best Travel Cards Have in Common

At the end of the day, the best travel rewards credit card is one that fits well with your lifestyle and expenditures. It should also offer a rewards structure that you can benefit from and deliver value with the perks and benefits that it offers. When comparing travel credit cards, be sure to compare perks, features, and benefits while also carefully considering the card’s terms and conditions to ensure that the card aligns well with your preferences and needs.

Couple sitting on top of a cliff looking out at the horizon drinking from mugs

The Takeaway

One size does not fit all with rewards credit cards for travel. A little research should help you match your travel habits and preferences with the best rewards credit card for you. A good place to start is by evaluating your spending patterns so you then can look for a rewards credit card that will yield the best rewards for your typical expenditures.

Headshot of Scot Finnie

Scot Finnie is a journalist who covers primarily business and technology. He was Editor-in-Chief of Computerworld for more than a decade.
 
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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