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“Would you like to get a 20% discount on your purchase today with a store credit card?”

It’s a question you’re likely to hear at many a checkout counter every Black Friday, that infamous shopping day that follows Thanksgiving. (More and more, though, Black Friday is a multiweek affair.)

At some stores, it’s a question you’ll hear each and every time you shop, regardless of time of year.

What’s the right way to react to this all-too-common scenario?

This post explains the basics of store credit cards, looks at the impact they can have on your credit, and shows you how they compare to regular credit cards offered by banks, credit unions, and online lenders.

Most importantly, you’ll get the data you need to decide if that 20% discount is worth it.

What are Store Credit Cards?

Store-branded credit cards are a revolving line of credit that can typically only be used at the store which issued it. Examples of store credit cards include the Target RedCard and the Macy’s Star Rewards Card.

Some store credit cards can be used at an entire family of stores. That’s the case with the Gap Good Rewards card. You can use it at Gap, but you can also use it at sister stores Old Navy, Athleta, and Banana Republic.

How Do Store Credit Cards Work?

Store credit cards work a lot like regular credit cards. When you swipe at the checkout, you won’t owe any money in the moment. But that money will be due at the end of your statement cycle. If you pay off your balance in full, you won’t owe any interest. If you don’t, though, store credit cards do typically charge higher-than-normal APRs.

While the best financial move is to pay off your store credit cards in full every month, at the very least you will want to pay the minimum due each statement cycle. If you don’t, you risk a late payment reporting to the credit bureaus, which can have a negative impact on your credit score.

Negative marks on your credit report can make it harder to secure financing in the future. If you do manage to secure a loan or other debt product with negative items on your credit report, the interest rate you’re offered will likely be higher.

Store cards are typically unsecured, which means you don’t have to put up any collateral. But if you have poor credit, some stores will issue a secured store credit card. This means you have to put a deposit down, then you will “borrow” against your deposit. If you make regular, on-time payments, secured store credit cards can help you build and improve your credit.

Amazon is one retailer that does this. Its Prime Store Card is an unsecured credit card, while the Amazon Prime Secured Card requires a deposit of $100 to $1,000. You can graduate to an unsecured Prime Store Card after a year of on-time payments. At that point, you’ll get your deposit back.

Pros and Cons of Store Credit Cards

There are disadvantages and advantages to using store credit cards. We’ve gathered the most prominent  to help you decide if using a store credit card makes sense for you.

Store credit cards usually come with lower minimum credit requirements than credit cards issued by large banks. That means that depending on the store, it may be easier to qualify with less-than-perfect credit or a higher debt-to-income ratio.

Another positive to store credit cards is that unlike many bank-issued credit cards, most store cards don’t come with an annual fee.

Some store credit cards offer regular discounts that are significant enough to take note. For example, as a Target RedCard holder, you get 5% off every purchase you make at Target. Target also does price matching, so if you find an item cheaper somewhere else, you can purchase it at Target plus get an extra 5% discount on top of the price match.

During the holiday season, many stores offer promos with store card signup. You might be offered 20% off your first store card purchase or a free thermos when you’re approved for your store credit card. While these offers can be viewed as a one-time positive, they often serve as bait that can get you ensnared in a credit trap if you’re not careful.

The most obvious con of store credit cards is that you can only use them at one, specific store — or in cases like Gap, you can only use them at one family of stores. But there are other potential negatives, too.

Store Credit Cards Encourage Spending at One Store

Store credit cards can encourage you to spend more with a certain brand or retailer than you would otherwise. That 5% off with every RedCard purchase? It’s a net positive if you’re using it for purchases you would’ve made anyways.

But if you find it’s feeding your Target addiction, it can end up being a net negative. If you’re spending $200 more per month with a retailer than you normally would, there’s no discount on Earth that’s going to help you make up the gap in your budget.

Because store credit cards can encourage irresponsible spending, they can also create nightmares for repayment and your credit report if they’re not used with caution.

High Interest and Potential Negative Line Items

If you can’t afford to repay in full, you’re likely to be charged sky-high interest rates. If you can’t even afford your minimum payment, your credit is going to suffer, making it more difficult to do things like secure a car note or obtain a mortgage in the future.

Application will Ding Your Credit Score

While store credit cards do tend to come with lower minimum credit requirements, that doesn’t mean there are zero standards. Every time you apply for a credit card or other lending product, your credit scores could take a slight hit. Usually, this is okay if you’re approved as the new line of credit gives you an opportunity to build your score by making regular, on-time payments.

But If you apply for a store credit card at checkout only to find out you don’t meet the credit requirements, you could walk away with a ding on your credit report with nothing to show for it.

Lower Credit Limits Lead to Higher Credit Utilization

Store credit cards also tend to have lower credit limits than regular credit cards. This can affect your credit utilization. An ideal credit utilization is somewhere around 30% or less.

Let’s say you have a regular credit card with a limit of $2,000. You spend $400, resulting in 20% credit utilization.

But if you have a store card with a limit of $500 and spend that same $400, your utilization rate is 80%, even though you spent the same amount of money.

What Are Hybrid Store Credit Cards?

Hybrid store credit cards can either be debit rewards cards that are linked to your debit account or credit cards issued in partnership with a traditional lending institution. Some stores offer multiple types of cards, including the hybrid credit card.

For example, Macy’s has two cards: Its store card is the Macy’s Star Rewards card, but it also has another option called the Macy’s American Express Card.

With the latter, you can use your card anywhere — not just at Macy’s. But when you redeem points earned on purchases, you’ll be able to convert them all into Star Money to spend at Macy’s only. While it’s nice that you can use the card anywhere, the rewards are still limited to that one retailer.

Let’s say you don’t want a credit card, but you do want the rewards. Some retailers, like Target, give you that option. Instead of a RedCard that functions like a credit card, you can opt for a RedCard debit card.

The debit card links directly to your preexisting checking account, so you won’t be borrowing any money or putting any negative marks on your credit report. But you’ll still get the 5% discount on all of your Target purchases.

You will still have to be careful about overspending, though. Just because it’s debit rather than credit doesn’t mean excessive spending won’t hurt your budget. It would just do so without interest.

Are Store Credit Cards Worth It?

If you’re already doing weekly shopping with a specific store and the card gives you a perpetual discount, then, yes, a store credit card could be worth it if you’re using it responsibly without increasing your spending.

But most store credit cards only offer an initial discount. The one-time discount or promotional offer opens you up to potential credit woes in the future that may not be worth the initial “savings.”

Alternatives to Store Credit Cards

Regular credit cards offer many of the same benefits of store cards with less limitations. Sometimes the benefits cast an even wider net.

Higher Credit Limits

While credit requirements for regular credit cards tend to be higher, they also tend to offer a higher credit limit, which can ultimately lower your credit utilization rate.

You do need to remember that those higher credit limits tend to come with slightly higher credit requirements. It’s completely possible to qualify for a bank-issued credit card with less-than-perfect credit, but it’s going to be harder.

Cashback Rewards Wherever You Shop

The Discover Cash Back Credit Card offers 5% cash back rewards on every purchase you make in rotating categories, like gas stations or restaurants. You don’t have to frequent a specific gas station or eatery – as long as it’s in the right category you’ll get the rewards.

While it’s not an upfront discount like the Target RedCard, the rewards you earn can be applied to your monthly statement, or you can deposit the money you earn into your bank account.

Travel Perks

Regular credit cards can come with other perks, too. If you’re really into travel, your card might help you earn points with your favorite airline or hotel chain. Some cards offer under-the-hood perks like travel insurance or insurance on rental cars when you use the credit card to make your reservation.

Let’s take a look at a real-life travel credit card. The Capital One Venture Card gives you ‘miles’ on every purchase. You can redeem these miles on any airline or hotel purchase. If you make a travel purchase, you’ll currently earn 5x miles for every dollar you spend. Each point is currently valued around $0.02, so you’d be earning $0.10 with each dollar. That’s an incredible 10% back.

Under the hood, the Capital One Venture Card also gives you:

• An effective refund on up to $100 of Global Entry and TSA PreCheck application fees.
• Two visits to Capital One Lounges per year.
• Access to free medical, legal, and travel concierges while you’re away from home.
• Free 24/7 roadside service.
• Free rental car insurance.
• Lost luggage reimbursement.

And the list goes on.

Secured Cards Outside the Store Credit Card Ecosystem

If you don’t have great credit, you can get a secured card outside of the store card ecosystem, too. If you’re not a big Amazon shopper — or you just want to be able to use your secured card places other than Amazon – you could look at an option like the Capital One Quicksilver Secured Cash Rewards card.

This card can be used anywhere Mastercard is accepted. There’s no annual fee, and you even earn at least 1.5% cash back on most purchases. While you have to wait 12 months before you have the opportunity to convert your Amazon secured card to a full-fledged credit card, Capital One only makes you wait six months.

Conclusion about Store Credit Cards

Whichever credit card you choose to use — whether it’s a traditional card or one issued by a retailer – make sure you use it responsibly. Outside of payday loans and a few other predatory products, credit cards are one of the most expensive forms of debt you can take on in terms of APR.

While perks, discounts, and cashback are all nice, banks and stores offer these benefits for a reason. In the end, they’re profiting off of credit cards. Enough people either don’t use them responsibly, or come upon a hardship where they feel they have no other choice, that they end up paying the bank enough collective interest to make up for the costs of giving out free airline miles and 5% discounts.

Credit cards are a useful tool to build credit history or improve your score, but go in with your eyes wide open – especially if you’re applying for a store-issued card.

Pittsburgh-based writer Brynne Conroy is the founder of the Femme Frugality blog and the author of “The Feminist Financial Handbook.” She is a regular contributor to The Penny Hoarder.

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

Chase Sapphire Preferred Card

Best Bonus Program

Key Features

• Welcome bonus plus anniversary bonuses
• Refer-a-friend bonuses
• Variable points for eligible purchases

Tracking points with the Chase Sapphire Preferred Card is no walk in the park; depending on what you purchase, you can earn anywhere between 1x and 5x points. But it’s worth tracking points to get this card: It comes with 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening — that’s worth $750 toward travel if you redeem through Chase Ultimate Rewards.

Chase Sapphire Preferred Card

Annual fee

$95

Rewards rate

1x to 5x points per dollar

Welcome offer

60,000 bonus points

Regular APR

18.24% to 25.24% variable

Foreign transaction fees

N/A

Balance transfer fees

5% per balance transfer ($5 minimum fee)

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About Chase Sapphire Preferred Card

The $95 fee for this card is negligible if you take advantage of all the great ways to earn points:

• Earn up to $50 in statement credits every year (account anniversary) for booking hotel stays directly through Chase Ultimate Rewards.
• Earn 5x points when you purchase travel through Chase Ultimate Rewards (excludes hotel stays that qualify for the annual Ultimate Rewards Hotel Credit).
• Earn 3x points on dining, including dining out, delivery services and takeout.
• Earn 3 points on online grocery shopping (excludes Walmart, Target and wholesale clubs).
• Earn 3x points on select streaming services.
• Earn 2x points on travel purchases made outside Chase Ultimate Rewards.
• Earn 1x point per dollar on all other purchases.

Each point is worth 1 cent — unless you use it to book travel via Chase Ultimate Rewards, where points are worth 25% more.

While earning points is easy through spending on eligible purchases, the real draw of this card is the bonus program:

• Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.
• Earn bonus points equal to 10% of your purchases from the previous year on each account anniversary.
• Earn 15,000 bonus points for each referral — up to 75,000 bonus points a year.

Other hallmarks of the Sapphire Preferred Card include trip delay reimbursement, baggage delay insurance and extended warranty protection.

Alternative Cards to Consider: If you bank with Chase but don’t want to pay an annual fee for your card, consider the Chase Freedom Unlimited or Chase Freedom Flex. The Chase Sapphire Reserve is pricier ($550 a year) but comes with more luxury perks and up to 10x points, which go even further in Chase Ultimate Rewards.

Delta SkyMiles Gold American Express

Best Airline Credit Card

Key Features

• First checked bag free on Delta flights
• Delta flight credit
• 20% back on in-flight purchases

If you’re looking for an airline credit card with great perks at a low fee, the Delta SkyMiles Gold American Express could be your answer. While the card only pays off for Delta loyalists, it comes with perks that quickly pay for the card, like Delta flight credits and a free checked bag. The 65,000 bonus miles you can earn after sign-up doesn’t hurt either; that’s worth $650 toward a flight.

Delta SkyMiles Gold American Express

Annual fee

$99 ($0 for the first year)

Rewards rate

1x to 2x miles per dollar

Welcome offer

65,000 bonus miles

Regular APR

18.74% to 27.74% variable

Foreign transaction fees

N/A

Balance transfer fees

Balance transfers not permitted

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About Delta SkyMiles Gold American Express Card

The Delta SkyMiles  Gold American Express Card is our favorite airline credit card, but it only makes sense for travelers who are willing to always book Delta. Savvy travelers on a budget who book flights based on the cheapest airline of the day should consider a general travel card instead.

But if you are loyal to Delta, it can pay off to have their card. Each mile is redeemable for a cent toward a flight through the Pay with Miles program: 5,000 miles means $50 off your next flight booked through Delta. And you’ll earn points for more than just Delta flight purchases. In fact, you earn 2x points not only on Delta purchases but also on dining and groceries; earn 1x points on everything else.

The 65,000 bonus points is an attractive offer; you only have to spend $2,000 on purchases in the first six months from account opening. Even more attractive is the free checked bag for every Delta flight, as well as the $100 Delta flight credit when you spend $10,000 with the card in a calendar year. Members even enjoy 20% cash back on in-flight purchases and get access to the Global Assist Hotline whenever they’re more than 100 miles from home.

The fee is small ($99) as far as travel credit cards go — and Delta waives it for the first year.

Alternative Cards to Consider: Delta loyalists can also consider the Delta SkyMiles Reserve American Express Card. Not a Delta stan? Consider the JetBlue Plus Card, American Airlines AAdvantage MileUp Mastercard, United Club Infinite Card, United Explorer Card or Southwest Rapid Rewards Priority Card.

Hilton Honors Aspire American Express

Best Hotel Credit Card

Key Features

• Complimentary Hilton Honors Diamond status
• $250 airline fee credit
• Annual free night reward

The Hilton Honors Aspire Card from American Express is a top-tier hotel card, meaning it comes with a high annual fee ($450). But with massive earning potential, a huge sign-up bonus, and perks like credits for baggage fees and a free night at the Hilton, it’s well worth the cost for regular travelers.

Hilton Honors Aspire American Express

Annual fee

$450

Rewards rate

3x to 14x points per dollar

Welcome offer

150,000 bonus points

Regular APR

18.74% to 27.74% variable

Foreign transaction fees

N/A

Balance transfer fees

3% per transfer ($5 minimum fee)

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About Hilton Honors Aspire Card from American Express

If you can handle the high annual fee, there’s so much to love about the Hilton Honors Aspire Card. For starters, you’ll earn 150,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. The points will keep flowing in after because you’ll earn:

• 14x points on hotel and resort purchases within the Hilton portfolio.
• 7x points on select travel (through AmexTravel.com or directly through participating airlines and car rental companies).
• 7x points on dining.
• 3x points on everything else.

Members automatically get Hilton Honors Diamond status, earn one free night at a Hilton each year (and an additional night after $60,000 in purchases in a calendar year) and an annual $250 Hilton resort statement credit for eligible purchases. Members also receive a $250 airline fee credit, which can go toward baggage fees, in-flight refreshments and other incidentals. Fly in style with Priority Pass Select for you and two guests — at more than 1,200 lounges around the world. Hilton also gives members a $100 property credit at participating Waldorf and Conrad properties.

Other perks include Premium Global Assist Hotline, a lost luggage insurance plan and access to a lifestyle concierge.

Alternative Cards to Consider: Hilton loyalists aren’t limited to the Aspire Card. The Hilton Honors American Express Surpass Card is more affordable ($95 a year; $0 in the first year) but does rack up the points at a slower rate.

Don’t stay at Hilton family hotels that often? You might prefer the Marriott Bonvoy Boundless or Marriott Bonvoy Bold; you can also just open a general Chase Sapphire Card and transfer Chase Ultimate Rewards points to your Marriott Bonvoy account. If you’re a Hyatt loyalist, you may like the World of Hyatt Credit Card.

Citi Premier Card

Best for Everyday Purchases

Key Features

• Points redeemable for travel, gift cards & more
• Points for gas, groceries and more
• $100 hotel savings benefit

The Citi Premier card is a serious contender for best travel card; you can get up to 3x points depending on where you spend your card. Also noteworthy: You’ll earn 80,000 welcome bonus points after you spend $4,000 on purchases in the first three months from account opening. That’s worth $800 in gift cards. It’s missing luxury travel benefits, so this card is better for travelers who don’t care about extra perks.

Citi Premier Card

Annual fee

$95

Rewards rate

1x to 3x points per dollar

Welcome offer

80,000 bonus points

Regular APR

18.99% to 26.99% variable

Foreign transaction fees

N/A

Balance transfer fees

5% per transfer ($5 minimum fee)

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About Citi Premier Card

You won’t get lounge access or free checked bags with the Citi Premier Card, but it more than makes up for it with its winning rewards program. Earn 3x points at restaurants, gas stations and grocery stores — as well as for air travel and hotels. You’ll still earn 1x points for all other purchases.

You can redeem those points when shopping online (Amazon and Best Buy), as gift cards for department and home stores and restaurants and as travel rewards (flights, hotels, cruises and more).

Another huge benefit of this card is the $100 annual hotel savings benefit: You’ll get $100 off a single hotel stay of $500 or more (excluding applicable local sales tax and fees) if booked through thankyou.com. If you want to take advantage of specific airline or hotel perks, you can transfer your points to eligible loyalty programs for no fee.

We love that this card has no foreign transaction fees — and the annual fee is only $95 — but the 5% fee for balance transfers means you should look at another card if balance transfers from existing high-interest cards are a primary goal.

Alternative Cards to Consider: The Bank of America Travel Rewards Credit Card also offers decent rewards on everyday purchases — and it has no annual fee. Another comparable card is the Capital One Venture Rewards Card, which gets the edge on travel-specific purchases at 5x points when booked through Capital One. Similarly, the Chase Sapphire Preferred Card offers a range of rewards rates based on how you spend your money, and those rewards are even more valuable when spent through Chase Ultimate Rewards.

American Express Gold Card

Best for Foodies

Key Features

• Great rewards for dining and groceries
• $120 dining credit each year
• $120 in Uber Cash each year

Whether you’re a foodie at home or a foodie abroad, you’ll enjoy the special perks offered by the American Express Gold Card. While you can earn points to pay for flights and hotels from a range of purchases, food purchases — groceries and restaurants — will earn you the most. Plus, you’ll get dining credits every month, as well as Uber Cash (and yes, it’s good for Uber Eats).

American Express Gold Card

Annual fee

$250

Rewards rate

1x to 4x points per dollar

Welcome offer

60,000 bonus points

Regular APR

18.99% to 25.99% APR

Foreign transaction fees

N/A

Balance transfer fees

Balance transfers not permitted

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About American Express Gold Card

The American Express Gold Card pays for itself if you regularly dine out and use Uber (or Uber Eats). That’s because you’ll get a $10 statement credit every month for dining purchases through Grubhub, Goldbelly, Wine.com, The Cheesecake Factory, Milk Bar and select Shake Shack locations. You’ll also get $10 a month in Uber Cash if you connect your Uber account; you can redeem this for Uber rides in the U.S. and UberEats orders.

But it’s not just the $20 a month toward your food and rideshare budget; members also earn 4x points at restaurants worldwide (including takeout and delivery) as well as 4x points at U.S. supermarkets (up to $25,000 per year). All other purchases still earn 1x points. You can apply points toward airfare and hotel purchases — and when you sign up, you’ll get 60,000 bonus points after you spend $4,000 on purchases in the first six months from account opening.

What about the travel perks? You’ll earn 3x points when booking flights through AmexTravel.com or directly through the airlines; you’ll also get a $100 experience credit during a hotel stay when you book The Hotel Collection with American Express. Use the card abroad without worrying about foreign transaction fees, and you’ll also get a lost luggage insurance plan, rental vehicle insurance and the Global Assist Hotline. 

Oh yeah, and you can get the Gold Card in Rose Gold, if that’s your thing.

Alternative Cards to Consider: The Chase Sapphire Preferred Card and the Chase Sapphire Reserve Card earn 3x points on dining and online grocery shopping, which make them a decent option for foodies. (And remember, those points go further when redeemed through Chase Ultimate Rewards.)

U.S Bank Altitude Connect

Best for Road Trippers

Key Features

• $30 credit for streaming
• Variable points with emphasis on driving
• Up to $100 toward TSA PreCheck or Global Entry

If your idea of travel is a pair of hiking boots, a cooler full of sandwiches, and the open road, you might prefer a travel card that rewards you for driving purchases (think gas and rental cars). That’s where the U.S. Bank Altitude Connect Visa Signature comes in. But just because it offers great rewards for gas and rentals doesn’t mean it lacks other key travel benefits.

U.S Bank Altitude Connect Visa Signature

Annual fee

$95 ($0 for the first year)

Rewards rate

1x to 5x points per dollar

Welcome offer

50,000 bonus points

Regular APR

18.99% to 26.99%

Foreign transaction fees

N/A

Balance transfer fees

3% per transfer ($5 minimum fee)

Minimum credit score requirement

Excellent credit (740 and higher)

More Information About U.S. Bank Altitude Connect Visa Signature Card

The U.S Bank Altitude Connect Visa Signature Card is great for road trippers, whether you travel in your own car or you pick up a rental before hitting the open road. You’ll earn 5x points on prepaid hotels and rental cars booked through the Altitude Rewards Center, plus 4x points on travel, gas station and EV charging station expenses. You’ll also get 2x points at grocery stores (and delivery), dining and streaming services — and 1x points on all other eligible purchases.

Speaking of streaming services, the U.S. Bank Altitude Connect card gets you a $30 annual credit toward streaming purchases like Spotify, Netflix and Apple TV+. Other perks of this card include up to a $600 reimbursement if your cell phone is stolen or damaged (when you pay your monthly phone bill with the card) and up to $100 in statement credits to reimburse TSA PreCheck or Global Entry purchases (once every four years).

The welcome bonus isn’t the best on our list, but it’s still noteworthy (and easier to attain): 50,000 bonus points after you spend $2,000 in the first 120 days from account opening. You can redeem those points — and other points — toward travel, but you can also redeem points for merchandise, gift cards and cash back.

Alternative Cards to Consider: If earning rewards for fueling up your car is your prime motive, you may want to avoid travel cards altogether; instead, consider a gas rewards card, like the Shell | Fuel Rewards Card or the BPme Rewards Visa.

The Platinum Card from American Express

Best for Luxury Travel

Key Features

• Abundance of statement credits
• High rewards points on travel purchases
• Access to travel counselors

The Platinum Card from American Express has the most comprehensive statement credit program — but it’s also the most expensive on our list. In addition to a plethora of credits, you’ll enjoy 5x points on flights and prepaid hotels and an abundance of travel perks, including lounge access, travel counselors, and special status for Marriott Bonvoy and Hilton Honors.

The Platinum Card from American Express

Annual fee

$695

Rewards rate

1x to 5x points per dollar

Welcome offer

100,000 bonus points

Regular APR

18.99% to 25.99% variable (see Pay Over Time feature)

Foreign transaction fees

N/A

Balance transfer fees

Balance transfers not permitted

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About The Platinum Card from American Express

The Platinum Card costs nearly $700 a year, but what do you get for that fee? Here are all the credits you’ll be eligible for:

• $200 annual hotel credit on prepaid Fine Hotels and Resorts
• $20 monthly entertainment credit (Audible, Disney+, The Disney Bundle, ESPN+, Hulu, Peacock, SiriusXM and The New York Times) — that’s $240 a year
• $155 annual Walmart+ credit
• $15 monthly Uber Cash (plus an extra $20 in December) — that’s $200 a year, good for rideshare and Uber Eats
• $200 annual airline fee credit for incidentals like checked bags and flight changes
• $25 monthly credit for eligible Equinox club memberships — that’s $300 a year
• $100 annual statement credits for Saks Fifth Avenue purchases
• $189 back each year for CLEAR membership
• Up to $100 reimbursement for TSA PreCheck or Global Entry

Points are easy to track. You’ll earn 5x points for flights and hotels when you book directly through eligible airlines or hotels or on AmexTravel.com. All other purchases yield 1x points, redeemable for travel purchases.

Luxury perks for the Platinum Card include access to the Global Lounge Collection (more than 1,400 worldwide), special credits for The Hotel Collection experiences, access to travel counselors, Marriott Bonvoy Gold Elite Status, Hilton Honors Gold Status, premium car rental status and plenty of travel insurance, including rental car insurance, trip delay and trip cancellation.Right now, you can get your Platinum Card with special Kehinde Wiley or Julie Mehretu artwork.

Alternative Cards to Consider: The Chase Sapphire Reserve also swipes like a luxury card. While the perks aren’t as comprehensive, the annual fee is only $550 — and points go further when redeemed via Chase Ultimate Rewards. The Capital One Venture X Rewards offers premium travel perks at a lower fee as well (just $395 a year).

Wells Fargo Autograph Card

Best for No Annual Fee

Key Features

• No annual fee
• Points redeemable for travel, gift cards & more
• Low intro APR

The Wells Fargo Autograph Card is one of only two travel credit cards on our list without an annual fee. While we considered other cards with no annual fee, the Autograph came out on top, with unlimited 3x points on eligible purchases. The APR can get high (up to 27.99%), and balance transfers are costly, but for no annual fee, this card is solid.

Wells Fargo Autograph Card

Annual fee

N/A

Rewards rate

1x to 3x per dollar

Welcome offer

30,000 bonus points

Regular APR

17.99% to 27.99% variable

Foreign transaction fees

N/A

Balance transfer fees

5% per transfer ($5 minimum fee); balance transfers only 3% during 120-day intro period

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About Wells Fargo Autograph Card

The headliner for this credit card from Wells Fargo is the lack of annual fees. While Wells Fargo isn’t generally known for offering the best rates on bank accounts and credit cards, the Autograph Card is a noteworthy exception.

You can earn 3x points on qualifying restaurants, travel, gas, transit, phone and streaming purchases — and 1x points on everything else. Each point is worth 1 cent, and you can redeem points for travel (flights, car rentals and hotel stays), gift cards (in $25 increments) and other eligible purchases.

You can also earn 30,000 bonus points after you spend $1,500 in purchases in the first three months from account opening.

With this card, you will miss out on luxury travel perks, like free checked bags, lounge access and free hotel stays. You may also face a higher APR (don’t let the first-year 0% intro APR fool you). But for no annual fee, the Autograph Card is a great choice.

Alternative Cards to Consider: Looking for other travel cards with no annual fee? Consider the Bank of America Travel Rewards Credit Card (including the option for students!) or the Chase Freedom Unlimited or Chase Freedom Flex. The Chase cards also get you access to Chase Ultimate Rewards, where points carry even more value.

Chase Ink Business Preferred Credit Card

Best for Business Travelers

Key Features

• Huge welcome bonus
• Points for common business expenses
• Employee cards at no extra cost

If you’re looking for a credit card to run your business, the Chase Ink Business Preferred Credit Card is the best in the, well, business. You’ll earn 3x points on common business expenses like shipping, advertising, internet, phone and travel — and points are worth 25% more when redeemed for travel via Chase Ultimate Rewards.

Chase Ink Business Preferred Credit Card

Annual fee

$95

Rewards rate

1x to 3x per dollar

Welcome offer

100,000 bonus points

Regular APR

18.24% to 23.24%

Foreign transaction fees

N/A

Balance transfer fees

5% per transfer ($5 minimum fee)

Minimum credit score requirement

Good to excellent credit (670 and higher)

More Information About Chase Ink Business Preferred Credit Card

Small business owners, listen up: The Chase Ink Business Preferred Credit Card is the best travel card for businesses, hands down. You’ll earn 3x points per dollar on the first $150,000 spent a year on things like shipping, internet, advertising (social media and search engine), phone bills and travel costs. You’ll earn 1x points on every other purchase.

You’ll also receive 100,000 bonus points after you spend $15,000 on purchases in the first three months from account opening. Each point is worth 1 cent, redeemable for cash back and gift cards. Or you can redeem your points for travel via Chase Ultimate Rewards for a boosted 25% value per point.

The Ink Business Preferred Credit Card also offers a host of business monitoring features like fraud protection, purchase protection and personalized account alerts. You can even issue your employees cards (with individual spending limits) for no extra cost.

Alternative Cards to Consider: The Chase Ink Business Preferred Credit Card is our favorite travel business credit card — but it’s not your only option. Others on our radar include the Capital One Spark Miles for Business and the Bank of America Business Advantage Travel Rewards World Mastercard Credit Card.

Bank of America Travel Rewards Card

Best for Students

Key Features

• No annual fee
• Student borrowers with fair or limited credit
• Decent points and bonuses

Students who are looking to get their first credit card should consider the Bank of America Travel Rewards Credit Card for Students — especially if they’ll be studying abroad. With no foreign transaction fees and easy travel points redemption, this card offers serious perks at no cost to students.

Bank of America Travel Rewards Card

Annual fee

N/A

Rewards rate

1.5x points per dollar

Welcome offer

25,000 bonus points

Regular APR

16.99% to 26.99%

Foreign transaction fee

N/A

Balance transfer fees

3% per transfer ($10 minimum fee)

Minimum credit score requirement

Fair credit (580 or higher) or limited credit history

More Information About Bank of America Travel Rewards Card for Students

Students who plan to study abroad or just travel during summer break should consider this Bank of America travel card. Because it’s targeted toward students, it’s easier to get with a limited credit history or a fair credit score.

You might get stuck with a high APR (though for the first 18 months, it’s 0%), but there are no foreign transaction fees to worry about. Balance transfers are another story; you’ll pay 3% for balance transfers with Bank of America — or a $10 minimum per transfer.

The points program is admirable, especially for a no-fee student card: You’ll earn 1.5x points on every purchase, no matter the category. You can also get 25,000 bonus points after you spend $1,000 on purchases in the first 90 days from account opening. Each point is worth 1 cent — so that’s a $250 statement credit toward travel (or dining) purchases.

Alternative Cards to Consider: If travel or study abroad aren’t your main goals as a student, you might find a student credit card better suited to your needs. Our favorite student credit card is the Discover it Student Cash Back; it’s not a travel card, but it’s an ideal choice for first-time borrowers in college.

Credit One Bank Wander Card

Best for Fair Credit Applicants

Key Features

• Available to fair credit borrowers
• High rewards rates
• 10% cash back at select retailers

Traditionally, travel credit cards are reserved for people with good or excellent credit scores, but the Credit One Bank Wander Card brings travel rewards to borrowers with average credit. You’ll pay a higher APR and an annual fee for basic benefits, but the rewards might still be worth your while as you repair your credit score.

Credit One Bank Wander Card

Annual fee

$95

Rewards rate

1x to 10x points per dollar

Welcome offer

10,000 bonus points

Regular APR

26.24% variable

Foreign transaction fees

N/A

Balance transfer fees

See terms for balance transfers

Minimum credit score requirement

Fair to good credit (580 or higher)

More Information About Credit One Bank Wander Card

The Credit One Bank Wander Card gives fair credit borrowers a chance to earn rewards for their travels. While balance transfers are expensive and the card carries a high APR, the annual fee is negligible ($95), and you have the opportunity to earn some great rewards.

In fact, you can earn 10x points on eligible hotels and car rentals when you book through the Credit One Bank travel partner. You’ll also earn 5x points on eligible travel (including flights, gas and dining purchases) and 1x points on all other eligible purchases. You can also earn 10% cash back when shopping at select retailers.

The bonus offer pales in comparison to other cards on this list, but it’s still good for a card marketed to fair credit borrowers: Earn 10,000 bonus points after you spend $1,000 on purchases in the first 90 days after account opening. Each point is worth 1 cent and can be redeemed for a statement credit, gift cards or travel.

Alternative Card to Consider: There aren’t a lot of travel cards available to borrowers with fair credit. Instead, you might consider a secured credit card as you work to repair your credit score. One of our favorite secured cards is the Discover it Secured Credit Card, but the Chime Credit Builder Secured Visa Credit Card is also a solid choice.

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.