Best Travel Credit Cards of October 2022 | Credit Cards

A co-branded airline or hotel credit card enters you into a specific brand’s loyalty membership club and rewards all types of spending. For example, Delta has several co-branded credit cards. If you use a Delta credit card, you earn SkyMiles for future travel expenses. Some co-branded cards offer membership tiers that give you a variety of perks when you attain certain levels.

But the points you earn can only be redeemed toward that brand and its partners. General travel cards also reward all types of spending, but they have more redemption options. You can even cash in your rewards for a statement credit. Some of the issuers of these cards also offer travel rewards portals or access to an issuer’s airline or hotel loyalty program partners.

Let’s take a closer look at each of the three basic types of travel credit cards: airline, hotel and general travel.

Airlines partner with credit card companies to offer co-branded travel rewards credit cards. Usually, these cards earn the most miles when used for flights with the airline or partner airlines, typically at least 2 miles per dollar.

Cardholders still earn miles for other purchases, but often at a lower rate, generally 1 mile per dollar. You can redeem earned miles with the airline or its partners.

Airline cards can deliver a more economical, comfortable flying experience. Benefits often include free checked bags, priority boarding, complimentary or discounted access to airport lounges, and discounts on in-flight purchases. Two examples:

Hotel credit cards are most valuable when used to book accommodations with participating hotel chains. As with airline cards, hotel cards earn bonus rewards for loyalty spending and offer a lower rewards-earning rate for other purchases.

One-time sign-up bonuses are common, providing bonus rewards if you spend a minimum amount within the first few months. Points are redeemed through the hotel brand or its partners.

Hotel credit cards work best for loyal guests of a hotel group. If you regularly stay at properties within a hotel group, your card can earn more rewards that can be redeemed for free nights at participating hotels.

Some hotel credit cards offer an annual free night’s stay or automatic hotel status. Hotel status may unlock perks such as complimentary upgrades, late checkout or free Wi-Fi. Many hotel cards provide various forms of travel insurance, including lost baggage protection, trip delay reimbursement, emergency assistance and car rental insurance coverage.

General travel credit cards

With general travel credit cards, your rewards aren’t tied to a particular travel brand. You can redeem rewards for many things, including taking statement credits, booking trips via the issuer’s travel portal, transferring rewards to partners or buying gift cards. With some general travel cards, you can use your rewards to pay for Amazon purchases.

General travel cards are more flexible than airline or hotel credit cards, which is a big plus for travelers who aren’t loyal to a particular brand or who travel to destinations with fewer options for hotels or airports. Cardholders can worry less about blackout dates or travel restrictions because they’re not tied to a sole provider.

Points can sometimes be transferred to partner loyalty programs. However, the value of your points may change, and, in some cases, you get the best redemption value by transferring points to partners.

For the right consumer, travel credit cards can make a lot of financial sense, but make sure you know the pros and cons.

Research the rewards program for the credit cards you’re considering. That way, you can truly take advantage of the benefits and rewards that are offered.

Before signing up for a travel rewards credit card, make sure to assess whether you:

To find a travel card that meets your needs, evaluate each card using the following criteria:

Your travel credit card will work either in conjunction with the loyalty program of an airline or hotel chain or with the issuer’s rewards program. Each program has unique terms and conditions for earning, redeeming and transferring points.

Loyalty airline programs: For some travelers, loyalty to any particular airline lasts only as long as that airline offers the cheapest flights. But frequent flyers might be willing to forgo initial cost savings in exchange for benefits later. Which airline program works best for you depends on how frequently you fly with the airline and how much value you can get from your rewards. Popular airline programs include:

Loyalty hotel programs: As with airline cards, choosing a credit card from a hotel group you regularly patronize is likely to offer the best value for earning and redeeming rewards. Popular hotel rewards programs include:

General travel rewards programs: Using a general travel credit card earns rewards that can be redeemed for a statement credit or through the issuer’s travel portal, or transferred to partners. Many of these programs also have redemption options for gift cards, experiences and more. Examples:

Which is the right choice?

If you’re loyal to a particular travel brand and want to earn rewards and take advantage of benefits with the brand, an airline or hotel card is the way to go.

But if you travel infrequently or with many different brands, or simply want more flexibility, a general travel card may be a better choice.

Travel cards earn rewards at different rates for spending in different categories, so you have to analyze your spending habits to determine which card will help you maximize your rewards value. A good travel card will have a range of purchases that qualify as travel spending, which may include flights, hotels and car rentals.

Depending on the type of card, these purchases can earn two points per dollar or more. Other purchases may earn one point per dollar or more.

The most lucrative travel cards offer consumers bonus points for meeting a spending threshold within a few months of opening an account. These bonuses can be worth hundreds of dollars.

Every travel card has a rate at which points or miles are awarded. However, what those points are worth to you depends on redemption value as well as your preferences and priorities.

For general travel cards, point valuation may be as simple as the number of points multiplied by the redemption rate, often 1 cent per point.

Awards travel with airlines or hotels is more complicated. The number of points or miles needed to book a flight or hotel room may fluctuate from card to card.

But airlines and hotels frequently adjust the price of award travel based on award level, award availability, time, destination, fare or hotel class, demand, and other factors. And rewards values aren’t consistent across all programs: You might be able to redeem a point or mile for a value of 3 cents with one program or less than 1 cent with another.

The average annual fee for travel credit cards is about $139, according to U.S. News research. Credit card companies sometimes entice new users by waiving the annual fee for the first year.

Once the fee kicks in, be sure you’re earning enough rewards or enjoying the other card benefits to compensate for it. Also, about a third of travel cards don’t carry an annual fee.

Travel benefits can be practical tools, discounted pricing or luxe perks. Common benefits include no foreign transaction fees, access to 24/7 concierge or customer service assistance, a free checked bag – and sometimes a free checked bag for a travel companion – and travel insurance.

The Chase Sapphire Preferred Card, for example, comes with trip cancellation and interruption insurance, auto rental collision damage waiver, baggage delay insurance, trip delay reimbursement, 24/7 customer service and more.

Many travel cards don’t charge a foreign transaction fee, which is typically 3% on every purchase in a foreign currency or country. Because these fees can be greater than any rewards you earn, frequent international travelers will want to make this card feature a top priority.

Yes, travel rewards cards work the same with international travel, but there are some things you’ll want to keep in mind. Knowing how your travel credit card works and what benefits and protections it offers can help you solve some of the problems that may arise when you’re abroad. It’s always best to be prepared.

Avoid foreign transaction fees.

If you’re not sure whether your card has foreign transaction fees, check with your issuer when you notify it of your upcoming trip. You most likely have a card that has EMV smart chip technology, which is the most compatible with foreign merchants and provides the best security.

Avoid dynamic currency conversion.

Many foreign merchants let you choose to be charged in local currency or to pay with dollars through dynamic currency conversion. You should always opt for local currency. The exchange rate with dynamic currency conversion might be unfavorable or even have a fee tacked on top. It’s always good to have cash on hand in case a store or restaurant won’t accept your card.

Know whom to contact in an emergency.

Some travel credit cards offer free access to a 24/7 benefits administrator – also called a concierge service – that can provide medical referrals, contact loved ones and arrange for payments. Likewise, as a cardholder, you may be able to receive round-the-clock referrals and other help with medical and legal emergencies.

Take advantage of travel insurance.