It’s much easier than you think to use your credit card rewards to book award flights and upgrades. However, before you begin earning rewards, make sure your credit is in good standing because the interest rates and fees will outweigh the rewards earned on a monthly balance. The best card for you is determined by your goals and circumstances. Before applying for a new credit card, always do the math for your personal spending and consider how you will use the benefits.
2022’s Best Travel Credit Cards
Travel credit cards provide accelerated travel rewards as well as benefits such as complimentary lounge access, air mile earning, and co-branded benefits with airlines and travel partners. These cards are best suited for frequent business or leisure travellers. Here is our list of the best credit cards in India with the best travel-related benefits.
Travel Credit Card Types
Not all travel credit cards are created equal. Here’s a breakdown of the various types so you can decide which type of travel rewards card is best for your specific situation.
Credit Cards with Transferable Rewards
These credit cards offer points that can be transferred to other programmes, such as airline or hotel loyalty programmes. Capital One Miles, Bilt Rewards, Chase Ultimate Rewards, American Express Membership Rewards, and Citi Thank You Points are all transferable rewards.
Airline credit cards earn miles that can be redeemed for future airline purchases. You can also use that airline’s miles to book flights on other carriers in the same airline alliance, which may provide you with a better return on your investment.
Aside from earning miles, many airline credit cards provide additional benefits. Generally, the higher the annual fee, the more benefits you will receive. Free checked baggage, priority boarding, a TSA Precheck/Global Entry application fee credit, and airport lounge access are all common airline credit card extras. If you can take advantage of all of the extras, the benefits can often outweigh the annual fee.
Anyone who stays in hotels on a semi-regular basis and can commit to a single hotel brand may find that a hotel credit card is right for them. With hotel credit cards, you can earn rewards in the currency of the hotel, such as Marriott Bonvoy points, Hilton Honours points, or World of Hyatt points, which are redeemable at any eligible hotel property under that brand’s umbrella.
Having a hotel credit card can be a much faster way to accumulate points than simply staying at hotels. Some cards automatically confer elite status upon ownership, which comes with its own set of benefits ranging from late check-out to free breakfast to room upgrades. Some cards will also give you one free night every year you renew your card membership, as well as other benefits like airport lounge access.
Credit Cards with Fixed Amounts
When redeemed for things like cash or travel, credit card points often have a fixed value because the issuer publishes the cash value per point. A card, for example, may offer a penny per point when redeemed for any valid travel purchase.
Fixed-value point currencies can also vary by redemption type with some cards. Points on a card, for example, may be worth 1.5 cents each when redeemed for travel rewards but only 1 cent each when redeemed for cash back.
If you’re travelling for work and want to keep your business and personal expenses separate, a travel business credit card may be worth considering. Business credit cards for travel work the same way as consumer credit cards for travel, but the business versions frequently have different earnings rates and perks, as well as a different annual fee structure.
Best Travel Rewards Credit Cards
U.S. Bank Altitude Reserve Visa Infinite Card
The U.S. Bank Altitude Reserve Visa Infinite Card is the Minneapolis-based bank’s premium travel card, offering robust rewards and perks for those looking to maximise the value of their earnings while also receiving some extras. The elevated earnings rate for mobile wallet purchases is what sets this card apart. When used for eligible travel, rewards earned on this card are worth 50% more.
Rewards: 5 points per dollar spent directly in the Altitude Rewards Center on prepaid hotels and car rentals, 3 points per dollar spent on eligible travel purchases and mobile wallet spending, and 1 point per dollar spent on all other eligible net purchases.
After spending $4,500 in the first 90 days of account opening, you will receive 50,000 points worth $750 in travel.
The annual fee is $400.
Other Advantages and Disadvantages: Despite its high price, this card lacks travel transfer partners and restricts access to airport lounges. It does, however, include an annual travel and dining redemption credit of up to $325, which could help to offset the cost of ownership.
The Platinum Card from American Express
If you want lounge access but aren’t tied to a specific airline’s lounges, The Platinum Card from American Express (terms apply, see rates and fees) could be for you. You will have access to over 1,400 airport lounges worldwide, as well as a slew of other travel perks. The disadvantage is that it has the highest annual fee on our list.
Rewards: 5 Membership Rewards points per dollar spent on flights booked directly with airlines or through American Express Travel up to $500,000 per calendar year, 5 points per dollar spent on prepaid hotels booked through American Express Travel, and 1 point per dollar spent on all other eligible purchases.
The annual fee is $695
Other Advantages and Disadvantages: The Amex Platinum has evolved into a luxury coupon book, and the benefits easily offset the annual fee and then som as long as you use them. Many of the benefits are very specific and may also necessitate enrolment. Annual statement credits for Uber, Saks Fifth Avenue, digital entertainment, select hotel stays, and airline incidentals are some examples. Every purchase earns versatile Membership Rewards points, which can then be used for travel or other redemptions.
Some cards provide bonuses for dining, while others provide bonuses for groceries, but the American Express® Gold Card allows you to earn points for pretty much anything you put in your mouth (Terms apply. See rates and fees). If you travel on a regular basis but want a card that allows you to earn points faster in more categories, the American Express® Gold Card is a viable option.
Rewards: 4 Membership Rewards points per dollar spent at restaurants in the United States, plus takeout and delivery, 4 Membership Rewards points per dollar spent at supermarkets in the United States (up to $25,000 in purchases per calendar year, then 1 point per dollar), 3 Membership Rewards points per dollar spent on flights booked directly with airlines or through American Express travel, and 1 point per dollar spent on other eligible purchases.
The annual fee is $250.
Other Advantages and Disadvantages: While this card earns Membership Rewards, which are great for travel, it lacks travel-specific benefits. Instead, it offers monthly credits, some of which require enrolment, that are great for more common expenses like Uber Cash and dining credits valid at GrubHub (including Seamless) and others. This card seamlessly blends the experience for someone who wants to transform everyday expenses into a vacation.