Photo courtesy of Sean MacEntee via flickr
There are multiple benefits to consider when selecting a travel credit card: sign-up bonuses, points per dollar spent, miles that don’t expire, lack of foreign transaction fees, and other perks. Ultimately, however, the right card depends on your personal travel goals. Typically the best cards have annual fees, but they are often waived the first year, and may be waived in the future if you call and ask nicely.
Keep in mind, as long as you pay bills on time and in full, there’s no reason to limit yourself to one card. The Points Guy, Brian Kelly, recommends having a few travel credit cards — one for points, one for perks, and one for using abroad without fees.
Big-trip traveler: Chase Sapphire Preferred card
Beverly Harzog, author of Confessions of a Credit Junkie, recommends the Chase Sapphire Preferred Card, a transferrable points card with top air and hotel partners that is chip-enabled for extra security.
“The rewards program is very generous, starting with a sign-up bonus that’s worth $500 in travel expenses if you spend $4,000 within the first three months,” Harzog said.
But the maximum benefit comes when transferring points to partner airlines.
For flexibility: Capital One Venture Card or the Barclaycard ArrivalTM World MasterCard
Personally, I use the Capital One Venture Card, with perks including 2 miles for every dollar spent, a 40,000-mile sign-up bonus if you charge $3,000 in the first three months, no foreign transaction fees, and limited travel insurance.
Kelly also recommends the Barclaycard Arrival PlusTM World Elite MasterCard for the two miles earned for every dollar spent. The sign-up bonus is worth a $440 travel statement credit if you spend $3,000 within the first three months, and you get a 10% discount on miles redemptions.
While these cards don’t have valuable transfer partners, they offer a high number of points per dollar spent, and you don’t have to redeem your miles on a big trip. You can even redeem points for a partial flight.
For travelers with airline or hotel loyalty: a co-branded card
Jeanine Skowronski, credit card analyst for Bankrate.com, advises checking if an airline has a co-branded credit card offering higher rewards on travel purchases — a decent rate is two to five points per dollar — as well as ancillary perks such as free checked bags, opportunities to upgrade, or airport lounge access. Of course, make sure you also get a good sign-up bonus, preferably one that equates to a free domestic flight.
Take the Starwood Preferred Guest American Express for example. Points are extra valuable, as you can use them at hotels in more than 100 countries, as well as with their 30+ partner airline programs. If you transfer 20,000 Starpoints to one of the many airline transfer partners, you get a 25% bonus. You also receive 2-points-per-dollar on Starwood purchases (and 1 point on all other spend), and a sign-up offer of 25,000 Starpoints once you spend $5,000 within the first 6 months.
For big spenders: the American Express Platinum
For traveling well without paying full price, Kelly loves the American Express Platinum card, as $450 per year (not waived) gets you $200 per year in airline rebates, free Global Entry/TSA Pre✓ ($100 value), and access to Delta lounges and the new Amex Centurion Lounges.