Tag: credit cards

The best travel credit cards offer consumers rewards points or miles toward purchases like airfare, hotels and rental cars. Though some carry steep fees, these credit cards typically result in more rewards for frequent travelers than a standard cash back credit card. And they might also come with unique perks like travel insurance, free baggage check and late check-out at hotels.

But with confusing terminology like points vs. miles and an oversaturated market full of general travel cards, airline cards and hotel cards, how can you determine which card offers the right mix of rewards and perks at the right annual fee for you? To help, we’ve compiled a list of the best travel credit cards currently available.

The Best Travel Credit Cards

• Capital One Venture Rewards Credit Card: Best Overall Travel Credit Card
• Chase Sapphire Preferred Card: Best Bonus Program
• Delta SkyMiles Gold American Express Card: Best Airline Credit Card
• Hilton Honors Aspire Card from American Express: Best Hotel Credit Card
• Citi Premier Card: Best for Everyday Purchases
• American Express Gold Card: Best for Foodies
• U.S. Bank Altitude Connect Visa Signature Card: Best for Road Trippers
• The Platinum Card from American Express: Best for Luxury Travel
• Wells Fargo Autograph Card: Best for No Annual Fee
• Chase Ink Business Preferred Credit Card: Best for Business Travelers
• Bank of America Travel Rewards Credit Card for Students: Best for Students
• Credit One Bank Wander Card: Best for Fair Credit Applicants

How We Picked the Best Travel Credit Cards

To select our top 12 best travel cards, we narrowed our focus to a list of 35 travel cards offering strong rewards and bonuses, balanced by justifiable fees. We whittled this list down further to unique cards for each type of traveler.

Here’s the full list of 35 travel cards that we started with, in alphabetical order:

• American Airlines AAdvantage MileUp Mastercard
• American Express Gold Card
• Bank of America Business Advantage Travel Rewards World Mastercard Credit Card
• Bank of America Travel Rewards Credit Card
• Bank of America Travel Rewards Credit Card for Students
• Bilt World Elite Mastercard
• Capital One Spark Miles for Business
• Capital One VentureOne Rewards Credit Card
• Capital One Venture Rewards Credit Card
• Capital One Venture X Rewards Credit Card
• Chase Freedom Unlimited
• Chase Ink Business Preferred Credit Card
• Chase Sapphire Preferred Card
• Chase Sapphire Reserve
• Citi Premier Card
• Credit One Bank Wander Card
• Delta SkyMiles Gold American Express Card
• Delta SkyMiles Reserve American Express Card
• Discover it Miles
• Hilton Honors American Express Surpass Card
• Hilton Honors Aspire Card from American Express
• JetBlue Plus Card
• Marriott Bonvoy Bold Card
• Marriott Bonvoy Boundless Card
• PenFed Pathfinder Rewards Visa Signature Card
• Southwest Rapid Rewards Priority Card
• The Platinum Card from American Express
• TD First Class Visa Signature Credit Card
• United Club Infinite Card
• United Explorer Card
• U.S. Bank Altitude Connect Visa Signature Card
• U.S. Bank Altitude Reserve Visa Infinite Card
• Wells Fargo Autograph Card
• World of Hyatt Credit Card

What Is a Travel Credit Card?

A travel credit card earns rewards that cardholders can apply toward travel purchases, like hotels and airfare. These rewards usually come in the form of points, miles or cash back. The best travel credit cards offer competitive rewards and, usually, a welcome bonus equivalent to several tens of thousands of bonus points.

Though many of the best travel credit cards come with an annual fee (the highest on our list is nearly $700), they can easily pay for themselves if you are a frequent traveler who knows how to take advantage of the perks. In addition to rewards, travel cards typically offer trip insurance. Co-branded travel cards, like airline credit cards and hotel credit cards, may even offer additional perks like lounge access, free checked bags, concierge services, free breakfast and early check-in and late checkout.

How Does a Travel Credit Card Work?

Travel credit cards work similarly to standard credit cards: Swipe them for everyday purchases, then pay them off each month to avoid accruing interest. The difference? Each time you use your credit card, you’ll accumulate points or miles that you can redeem for travel expenses.

How points and miles are valued, how much you accrue with every dollar spent and how you redeem the points or miles all depend on the specific travel card you have and what you’re spending money on. For example, with one card, you might earn a flat rate no matter the purchase while others may offer more points for dining or gas. Basic rewards points usually have a fixed value between 1 and 1.5 cents per point, but airline miles and hotel points are a little more nuanced and can be challenging to track if you’re a beginner.

Types of Travel Credit Cards

Broadly, there are two types of travel cards: general travel credit cards and co-branded travel cards. Co-branded cards include airline credit cards and hotel credit cards.

General Travel Credit Cards

General travel credit card issuers include banks like Capital One, Chase and Citi. Such cards offer rewards that you can redeem more broadly for travel expenses, like a flight, rental car or hotel stay. Airline credit cards and hotel credit cards, on the other hand, require you to redeem your points or miles specifically with their brand.

Because you can more widely use the points accrued on a general travel card, the rewards might not be as competitive as they are with co-branded cards. You may also miss out on brand-specific perks, like free checked bags or room upgrades, that co-branded cards sometimes offer.

General travel cards often come with huge welcome bonuses (also called sign-up bonuses) if you spend a certain amount of money within a set timeframe from account opening. These cards can run the gamut; travel cards with no annual fees typically offer basic travel rewards while those with steeper fees offer higher reward amounts and may come with additional perks.

You can usually redeem these travel credit card points when booking through the card issuer’s website or platform. Alternatively, you can book a flight or hotel directly (or via another third-party application), then use your points as a statement credit after the purchase has gone through.

Some travel card issuers allow you to transfer points to airline and hotel loyalty programs — but this transfer may lower the value of each point. Similarly, you might be able to claim your rewards points as general cash back, but the value of each point will typically be lower when redeemed this way.

Airline Credit Cards

Airline credit cards are a type of co-branded travel credit card. Airlines like Delta, United and American Airlines partner with credit card issuers like American Express to offer these travel cards, which let you earn miles for every dollar spent. Airline credit cards make sense if you are loyal to a specific airline.

Once you’ve accrued enough miles, you can redeem them for future travel with that airline (or other airlines in the same airline alliance). Higher-tier airline credit cards, which fetch a higher annual fee, may come with perks like free baggage check, lounge access, priority boarding and TSA Precheck or Global Entry fee reimbursement.

Delta, United and American all have credit cards, but you can also find credit cards from smaller airlines like JetBlue and Southwest.

Hotel Credit Cards

Hotel credit cards are another form of co-branded travel credit card that instead allow you to earn points toward free nights at a specific hotel chain. That makes these cards most attractive to travelers who are loyal to a specific chain.

In addition to rewards points toward the hotel chain, a hotel credit card might include perks like early check-in and late checkout, free breakfast or even a free night every year. Three of the largest hotel chains to consider are Marriott, Hilton and Wyndham.

What to Look For in a Travel Credit Card

The market is saturated with travel credit cards, so how do you pick the right one? Comparing travel cards requires that you already have an understanding of the perks you want, the annual fee you’re willing to pay and, of course, your credit score. Here are some things to look for:

Annual Fee

If until now, you’ve only had basic cash back rewards credit cards, you may not be used to paying an annual fee for your credit card. While there are options without an annual fee, the best travel credit cards typically come with some kind of fee — at least $95. The more perks and rewards you want, the higher the fee will likely climb.

Before choosing a card with a high annual fee, calculate how much you’ll have to travel to make it worth your while. If you’re not a frequent traveler, a cash back rewards credit card may be the better deal.

Rewards

The main attraction of a travel card is the rewards perks. Look for a card that will offer rewards that you’ll actually use. For example, if you’re a frequent flier, you’ll want a card that rewards regular airfare purchases — with rewards in the form of miles. But if you like to go for road trips, you might prefer a credit card that rewards fuel purchases and can be redeemed as hotel points.

Welcome Bonus

The rewards program is only part of the calculation. You should also pay attention to the sign-up bonus (but be warned — these change frequently). Sometimes, a strong welcome offer can counteract the card’s annual fee for the first year. If you are deciding between two similar travel credit cards, the sign-up bonus can be a good way to break the tie.

Other Perks

Points and miles are hallmarks of travel cards, but you should consider the whole package. Here are some other perks you may want to prioritize when selecting your travel credit card:

• Travel insurance, including lost luggage insurance, trip cancellation insurance, travel accident insurance, trip interruption insurance and even car rental insurance
• Airline perks like lounge access and priority boarding
• Hotel perks like early check-in and free breakfast

International Acceptance

Not all travel cards are created equal. While Mastercard and Visa are widely accepted around the world, travelers may have more trouble with Discover and American Express. If you travel abroad regularly, it’s a good idea to keep a Visa or Mastercard in your wallet. That doesn’t mean you shouldn’t have American Express or Discover but you may want the added security of multiple cards when traveling in a foreign country.

Foreign Transaction Fees

Speaking of traveling abroad, it’s a good idea to look for a credit card that doesn’t charge foreign transaction fees when used outside the country. The best travel credit cards have no such fees, but lower-tier cards that charge up to 3% in foreign transaction fees could still be attractive if you only travel in the U.S.

Minimum Credit Score Requirement

Travel cards pay out tremendous benefits, but they’re not available to everyone. Most credit card issuers require good if not excellent credit to be approved. While credit scores are not the only factor a card issuer will use to determine whether they approve your application, they’re an important consideration. Make sure you have at least the minimum score listed above for each card — but you’ll be more successful if you are on the higher end of the range.

Pros and Cons of Travel Credit Cards

If you have a strong enough credit score to qualify and travel enough to justify the annual fee, a travel card carries a number of advantages. But these cards can have their downsides, too. Weigh the pros and cons before signing on the dotted line:

Alternatives to a Travel Credit Card

If you’re looking for a good rewards credit card but don’t travel enough to justify the annual fee, consider a basic cash back credit card, like the Capital One Quicksilver. Such rewards credit cards offer straightforward cash back — either at a flat rate or at a variable rate depending on your purchase. This makes it easier to redeem your rewards, and the fees are much lower than travel credit cards. In fact, many cash back cards have no annual fees.

Frequently Asked Questions (FAQs) About Travel Credit Cards

We’ve rounded up the answers to the most common questions about travel credit cards to help you decide if this type of card is right for you.

Contributor Timothy Moore is a writer and editor in Cincinnati who covers banks, loans, insurance, travel and automotive topics for The Penny Hoarder.

When it comes to credit cards, keeping on top of your bills is important to maintaining or building good credit. Considering that your payment history makes up a large part of your credit, even one late payment could negatively affect it.

The good news is that the act of paying your credit card bill doesn’t have to be hard. In fact, credit card issuers offer many ways you can submit payment. Let’s take a look at what your options are, and more details about what can happen if you end up making a late payment on your credit card.

Online Payments

Most, if not all, credit card issuers allow you to make credit card payments online.

There are different methods of transferring funds, including:

• Bill pay: Your bank may have this feature, where you use your checking account to transfer money to your credit card. The bank will likely have an autopay feature.
• ACH transfer: Much like bill pay, except you enter your banking details through your credit card issuer’s website. Information you’ll most likely need to include are your bank’s routing number, your account number, and the bank’s contact information.
• Wire transfer: Some credit card companies accept incoming wire transfers, whether that’s through your bank or money transfer services.

Depending on your individual situation, you can choose to pay online in different ways.

Set Up Autopay

Setting automatic payments from your bank account to your credit card each month is an easy way to handle your credit card bill. All you’re technically doing is setting something up, and you can virtually forget it.

To do so, follow the prompts on your credit card issuer’s website and head to the payments section. There, you’ll be able to find options on setting up autopay, including the date and amount you want to pay — it’s typically for the balance in full, the minimum payment due, or a fixed amount you choose.

When it comes to autopay, you still need to monitor your credit card account (we did mention about virtually forgetting automatic payments, not totally forgetting it). Sometimes, a payment may not go through correctly for a myriad of reasons, or there’s a fraudulent transaction you failed to notice on your credit card statement.

In these cases, you may want to consider setting up email or text alerts to let you know when a credit card statement is posted, the credit card’s due date, and when your payment is posted. Don’t forget to check your bank account regularly to ensure you have enough money to cover your monthly payments.

Through the App

If you’re not interested in making automatic payments, you can still make it easier on yourself by paying through your credit card or bank app if that option is available to you. It’s just like how you would do it by logging into your account online through your computer: indicate the amount you want to pay and use the bank account you’ve linked to your credit card account.

On the Phone

Paying your credit card bill over the phone entails giving the same information as you would with online payments, except you’re calling your credit card company instead. Make sure you gather all necessary information beforehand, such as your credit card account number, and banking information for your checking or savings account.

To find the right phone number to call, check the back of your credit card or your credit card statement. While many credit card issuers have a catch-all phone number for their customer service department and will transfer you to the right representatives, you can also consider digging around their website to see if there’s one specifically for credit card payments.

Pay in Person

You may be able to pay your credit card bill in person if your credit card issuing bank has brick and mortar locations or ATMs that will accept credit card payments. To do so, bring a copy of your credit card statement along with a method of payment and either speak with a representative, or follow the prompts on the ATM. In some cases, you can pay cash, but that’s not always the case.

Mail in Your Payment

Credit card statements usually have a section in which you can tear off a payment slip to pay by mail. On this pay slip it’ll have your account number and you can indicate the amount you want to pay. You can find the address to mail the payment to on your credit card statement.

Credit card issuers most likely won’t accept cash in the mail, but they do accept paper checks, and ACH information (if there is an option for that on the payment slip. If you receive paper statements, you may receive an envelope in which you can mail your payment.

What Happens If You Pay Credit Card Bills Late?

Paying a credit card late will cost you money. It will start with a late fee charged by the issuer and that is usually a flat fee that is outlined in the terms of the credit card. If payment continues unpaid, the issuer may increase your APR and also freeze the card so it can’t be used. Eventually, the bill will be turned over to a collection agency and this will affect your credit score.

But life happens. Sometimes you’re juggling so much that you end up forgetting about your credit card bill, or you make a payment that isn’t received by the credit card issuer by the due date. If that happens, your credit card issuer may charge you a late fee.

For late payments after a certain length of time, credit card issuers may start charging you a penalty APR, which is higher than your regular APR.  Meaning, you could end up paying more in interest if you’re late on your payment.

Another consequence of late payments is that your credit score could be negatively affected. As mentioned earlier, payment history makes up around a third of credit scores. So your credit card company could report the late payment to the credit bureaus and lower your score.

To ensure late payments don’t happen, it’s important to take care of payments right away. That means understanding your credit card issuers billing cycle and when yours ends, which is usually between 20 and 45 days.

Once it’s the end of the billing cycle, you’ll get a statement in the method you choose, whether that’s electronically or by mail.

According to the law, credit card companies have to give their customers a minimum of 21 days between when the statement is given out and at least the minimum payment is due. The idea here is to give you enough time to decide on your method of payment and to pay part or all of your credit card balance.

Depending on how you pay and the time you make a payment, the credit card issuer will credit and post the amount to your account either the same or next business day when it receives the funds.

To ensure your credit card payment arrives on time, check to see when you should receive your credit card statement and what your approximate due date will be — it’s usually around the same time each month.

After reviewing your statement and ensuring there are no fraudulent transactions, submit your payment well before the due date so it increases the chances of the transaction being posted. You can also consider using a faster form or payment. In most cases, online bill payment or ACH transfers take the fastest, whereas mail payments tend to take the longest.

Frequently Asked Questions (FAQ) About How to Pay Credit Card Bills

We’ve rounded up the answers to the most frequently asked questions about how to pay credit card bills.

Contributor Sarah Li-Cain is a personal finance writer based in Jacksonville, Florida, specializing in real estate, insurance, banking, loans and credit. She is the host of the Buzzsprout and Beyond the Dollar podcasts.