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Best Travel Credit Cards for 2020
Travel credit cards are rewards cards that allow cardholders to earn points or miles redeemable for flights, statement credit or the ability to earn elite status on different airlines. If you regularly travel, this type of credit card makes an excellent carry-on. With that said, travel cards aren’t the most popular kind of card out there. Of all credit cards with rewards structures, most Americans prefer cash back over travel. Only 17.15% of respondents in a consumer survey reported they would choose travel cards over cash back.
But if a travel card is right for you, there are extensive offerings that appeal to a variety of users.
Best Travel Credit Cards of 2020
- Chase Sapphire Preferred® Card : Best for sign up bonus
- The Platinum Card® from American Express : Best for luxury travel
- Chase Sapphire Reserve® : Best for premium travel rewards
Compare the best travel credit cards of 2020
|Card||Travel Rewards Rate||Annual Fee||Welcome Bonus|
|Chase Sapphire Preferred® Card – Best for sign up bonus||Earn 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.||$95||Earn 60,000 bonus points after spending $4,000 within the first three months|
|The Platinum Card® from American Express – Best for luxury travel||Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel. Starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year. Terms Apply.|| |
|Earn 75,000 points after spending $5,000 within the first 6 months. Terms Apply.|
|Chase Sapphire Reserve® – Best for premium travel rewards||Earn 3x points on travel and dining, 1x per dollar for all other purchases||$550||Earn 50,000 bonus points after spending $4,000 within the first three months|
Additional travel credit cards
Capital One® Venture® Rewards Credit Card
Who should get it: The Capital One® Venture® Rewards Credit Card provides frequent fliers a high rewards rate and a solid bonus miles intro offer. For travelers looking for a simple answer to rewards, this card is a practical solution.
Why you’ll love it: First-year cardholders enjoy a one-time bonus of 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or still earn 50,000 miles if you spend $3000 on purchases in the first 3 months. The regular rewards rate is nothing to scoff at either; Capital One® Venture® Rewards Credit Card users receive 2x miles per dollar on eligible purchases, and you can redeem miles for any travel expense without any blackout dates to hold you back.
Things to consider:
- Cash redemption is half the rate of travel redemption.
- Annual fee is $95
- Applicants need good to excellent credit for approval.
Pro tip: If you apply for TSA PreCheck or Global Entry with your card, you can receive up to $100 application fee credit.
Capital One® VentureOne® Rewards Credit Card
Who should get it: For the fee-averse adventurers, the Capital One® VentureOne® Rewards Credit Card is here to save the day — and your trip. Travelers can enjoy a great rewards rate and transfer miles to a variety of travel partners for maximum flexibility.
Why you’ll love it:
Capital One® VentureOne® Rewards Credit Card cardholders receive 1.25 miles per dollar on every purchase and can earn 20,000 bonus miles after spending $500 within the first three months of account activation. You can rack up miles redeemable for statement credit toward travel and more.
Things to consider:
- Cash back redemption is lower value than travel redemption.
- Higher earning rewards cards available.
- Good to excellent credit required for approval.
Pro tip: Take advantage of the protective travel coverage like travel accident insurance, extended warranty options for certain items and rental car coverage.
Whether you’d like to gain access to airport lounges, make a dent in your travel expenses for an upcoming trip or reach a frequent flier elite status faster — the best credit cards for travel can help you get there (literally). There is a broad range of choices that can benefit a variety of travelers from business day-trippers to budget explorers to high spending jet setters.
How to choose the best travel card for you
Would you scoff at a card that charges hundreds in annual fees? Prefer fuss-free rewards structures? Traveling internationally? The answers to these questions all factor into which card is right for you. Below are the steps for choosing an ideal card that fits into your lifestyle.
Step 1: Know your spending habits
If you know you won’t reach a spending target based on your current financial habits, don’t be tempted into debt you can’t repay to get that sign-on bonus. Pick a card with perks that match your financial goals.
Step 2: Choose general or co-branded
Choose between a co-branded airline or hotel card or a general travel rewards card. Airline and hotel co-branded cards are best for brand loyalists who want to build up to elite status. General travel credit cards, on the other hand, offer more flexible rewards and redemption options.
Step 3: Look for a good sign up bonus
To get the most bang for your buck, search for a good sign up bonus. They can be worth hundreds of dollars if you play your cards right.
Step 4: Find a card offering travel protections
Many credit card companies offer certain protections for travelers, such as baggage insurance, car rental coverage, 24/7 travel assistance and $0 liability on unauthorized charges for fraud.
Step 5: Consider the network
American Express and Discover Cards are not accepted as widely compared to Visa and Mastercard. This is an important consideration to make if your travel card is the only one you’re planning on carrying. If you opt for Amex or Discover cards, you’ll likely need to carry a backup.
Step 6: Do the math for annual fees
Although an annual fee is never ideal, you can typically offset the cost by taking advantage of your card’s perks like statement credits for certain travel expenses. You’ll need to weigh the annual fee with the card’s perks to determine if the fee is neutralized.
Step 7: Know your travel plans
If you plan on limiting your travel within the U.S., foreign transaction fees aren’t an issue. But if you’re planning on international travel, foreign transaction fees can really add up. For international travelers, it makes sense to invest in a travel card with no foreign transaction fees.
Using these steps as a guide, you’ll find a great travel credit card that lets you explore while earning points while saving money on what matters most to you.
How do travel credit cards work?
To gain miles, just use your credit card on your eligible purchases and redeem them through your card’s online shopping portal, through transfer partners or statement credit. Some card companies, like Chase or AmEx for example, offer shopping portals where you can extract the most value from your rewards. Make sure you know where your points are worth the most so you can optimize your rewards and strategize your spending.
What are the advantages of a travel credit card?
Travel credit cards offer a variety of perks like access to airport lounges, discounts on travel and even access to special events. Your terms and conditions will determine your exact benefits but they should mirror your priorities: no annual fees, no foreign transaction fees and statement credit toward things you actually use like Global Entry, for instance.
What types of travel credit cards are there?
There are two main types of travel credit cards: general and co-branded. General travel cards offer more flexible rewards that can be exchanged for flights, car rentals or hotel accommodations. Airline or hotel-specific credit cards (aka co-branded) may have more limited redemption options, but they’re a good choice for travelers who consider themselves brand loyalists looking for ways to get to elite status.
Best use of Southwest points
Southwest Rapid Rewards offers travelers points that never expire, no blackout dates and a fast-track to Preferred status that opens the doors to even more perks — the most important of which is the Southwest Companion Pass.
The Southwest Companion Pass allows you to bring a travel companion on every flight for no cost. You’re still on the hook for taxes and fees, but they tend to be fairly low.
If you sometimes fly Southwest but not always, you can still build miles by using Southwest’s travel partners to keep earning and building up to your desired elite status. In order to receive the Companion Pass, you are required to fly 100 qualifying one-way flights or earn 110,000 points over a calendar year.
Best use of Capital One miles
Capital One gives consumers practical travel card choices whether you pick the Capital One Venture Rewards card for a high earning flat rate, the Capital One VentureOne Rewards card for no annual fee or the Capital One Spark Miles for Business for company travel expenses.
You can maximize your rewards by taking advantage of the Capital One Travel Center or using the Purchase Eraser for statement credit on outside travel purchases which delivers the same value as if you booked through Capital One. Miles can also be redeemed for gift cards, statement credit or checks but they are worth less for those redemption options. Thanks to a 2:1.5 transfer rate, your points still hold impressive value with many international transfer partners, as well.
|Card||Welcome Bonus||Rewards rate||Number of transfer partners||Foreign transaction fees||Annual fee|
|Chase Sapphire Preferred® Card||60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®||Earn 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.||13||No|| |
|Capital One® Venture® Rewards Credit Card||50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel||Earn 2x miles per $1 on all purchases||15+||No|| |
Is an annual fee worth it?
An annual fee is only worth it if you can max out the card’s other benefits to neutralize the cost. A lower fee of $95 is going to be easier to overcome than cards with fees upwards of $450. Depending on your spending habits and ability to strategize, you can easily make up the difference by taking advantage of the card’s special features like annual statement credits, bonus offers and other perks.
Do travel credit cards have foreign transaction fees?
If a card does have a foreign transaction fee, it will usually be around 3%. At the outset, this isn’t an astronomical number, but if you’re planning on country-hopping, that small percentage can snowball your balance depending on how much you’re spending.
Should business owners have a travel credit card?
For business owners looking to make the most of frequent business trips, a travel credit card is a smart option to make the most of those miles. Cards like the Capital One Spark Miles for Business deliver benefits that can help you save on travel through points or miles redeemable in the form of a statement credit or travel rewards. In addition, many travel cards boast partnership networks so you transfer points for what you need, but not always at a 1:1 ratio.
5 tips on making the most of your travel credit card
Want to make the most of your new travel credit card? Utilize the following tips.
- Opt into your bonus categories: While some cards offer a set earning rate like one point per dollar you spend, there are several travel cards that offer opportunities for bonus categories where you can earn even more.
- Use your card for ordinary expenses: Typically, your reward card will go the furthest when you use it for travel costs. But earning points on those small purchases like gas or groceries does add up, so use your card over cash when you can.
- Leverage your card’s reward program: For many cards, you can get the most value from your rewards if you redeem them through the card’s online shopping portal.
- Think about loyalty: When planning a vacation, many travelers’ first instinct is to go to discount travel sites. While you might find cheaper car rentals or flights, you should weigh that against the miles and rewards you’d earn by booking through a travel partner or the card’s reward portal.
- Pay off your balance: Carrying a balance on any credit card is never a great idea, but it’s especially important to avoid this habit with a travel rewards card because they normally carry fairly high interest rates.
For rates and fees of The Platinum Card® from American Express, please click here .
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