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Opening a travel credit card account is a great way to make the most out of the money you’re spending day-to-day while earning points to be used for travel-related benefits down the road.
For travelers looking to save money on hotel stays and flights or even benefit from perks such as travel insurance and no foreign transaction fees, a travel credit card might be the answer they’re looking for.
I’ll admit, I only just recently opened an account for a travel credit card myself but wish I had done it years sooner so I could have racked up and redeemed points from purchases I was already making. It’s always better late than never, though.
NOTE: The travel credit cards that I lay out below are mainly targeted for beginners in the finance and credit card world along with budget travelers. Each card has an annual fee between $0-$100.
CREDIT CARD BASICS & BEST PRACTICES
What does APR mean? APR stands for “annual percentage rate” and is essentially an interest rate charged to your account’s outstanding balance. So, if by the end of a billing cycle you haven’t paid your statement balance, the specified APR will be applied to that amount. For example, if your statement is $1,000, a 17.49% APR will increase that balance to $1,174.90. If you pay off your balance on time each billing cycle, you won’t be charged.
Along with understanding APR, having beginner’s knowledge on good credit card practices will help you become a responsible credit card holder and limit unnecessary financial stress down the road. Here are some practices I recommend:
Only spend what you can afford. Credit cards are not free money, and you’ll eventually have to pay off your balance. So, keep your purchases within your means to stay clear of credit card debt.
Pay your statement balance each month. Avoiding APR charges will keep you from spending extra money strictly from interest on purchases you’ve already made. I suggest setting up auto-pay for this reason.
Before jumping into rewards or cash-back accounts, start with a no-fee credit card that helps you build your credit score.
Stay organized. If you have multiple credit cards, keep a payment schedule and set reminders so you don’t end up overspending or missing payment deadlines.
MY TOP 2 TRAVEL CREDIT CARD PICKS
After reading through countless articles, blog posts, and recommendations from other travel bloggers and finance experts, I narrowed my travel credit card search to two comparable picks: the Chase Sapphire Preferred credit card and the Capital One Venture Rewards credit card.
Both credit cards are great for beginners looking to maximize their travel benefits and coverages while paying a comparatively low annual fee. Ultimately, I chose the Chase Sapphire Preferred credit card because I am more likely to take advantage of rewards with their specified airline and hotel travel partner programs versus those with Capital One.
I’m confident that either of these credit cards are great options and recommend that you use your best judgement to pick one based on your personal spending habits and travel goals.
COMPARISONS AT A GLANCE
CARD: | NEW CARDMEMBER OFFER: | ANNUAL FEE: | APR: | BENEFITS: |
Earn 60,000 bonus points after you spend $4,000 within the first 3 months of opening your account | $95 | 17.49%-24.49% variable APR | 5x points on travel purchases made through Chase Ultimate Rewards 3x points on restaurant dining, grocery purchases, and select streaming services 2x points on other travel purchases 1 point per $1 spent on all other purchases $50 Annual Ultimate Rewards Hotel Credit Travel and purchase coverage Partner benefits with Lyft, Gopuff, and DoorDash 1:1 point transfer with qualifying airline and hotel travel partner programs No foreign transaction fees | |
Earn 75,000 bonus miles once you spend $4,000 within the first 3 months of opening your account | $95 | 17.49%-25.49% variable APR | Unlimited 2x miles per $1 on every purchase 5x miles per $1 spent on hotels and rental cars booked through Capital One Travel 2 complimentary visits per year to Capital One Lounges or to 100+ partner locations Receive up to a $100 credit for Global Entry or TSA PreCheck Travel and purchase coverage Transfer your miles to your choice of 15+ travel loyalty programs No foreign transaction fees |
TRAVEL CREDIT CARDS WITH NO ANNUAL FEE
If you’re really looking to stick to a budget and avoid any additional fees while still accumulating travel rewards and perks, then consider a travel credit card without an annual fee. While you might not earn as many points per dollar spent or as many travel benefits as other credit cards, you’ll still be earning points on your day-to-day purchases and might even benefit from a 0% introductory APR.
COMPARISONS AT A GLANCE
CARD: | NEW CARDMEMBER OFFER: | ANNUAL FEE: | APR: | BENEFITS: |
| $0 | 0% intro APR for 15 months, then 13.49%-24.49% variable APR | 1.5x miles per $1 spent on all purchases Unlimited 1:1 match for all miles earned at the end of your first year Redeem miles as a statement credit | |
Earn $200 after you spend $500 within the first 3 months of opening your account 5% cash back on gas station purchases on up to $6,000 spent in the first year | $0 | 0% intro APR for 15 months, then 16.49%-25.24% variable APR | 5% back on travel purchases made through Chase Ultimate Rewards 3% back on dining including takeout and eligible delivery services 3% back on drugstore purchases 1% or 1.5% back on all other purchases Travel and purchase coverage | |
Earn 25,000 bonus points once you spend $1,000 within the first 3 months of opening your account | $0 | 0% intro APR for 15 months, then 16.24%-26.24% variable APR | 1.5x points per $1 spent on all purchases | |
| $0 | 26.99% APR | 1.25x miles per $1 on all purchases 5x miles per $1 spent on hotels and rental cars booked through Capital One Travel Transfer your miles to 15+ hotel and airline loyalty programs Book trips with a price match guarantee through Capital One Travel No foreign transaction fees |
BRAND-SPECIFIC TRAVEL CREDIT CARDS
Staying loyal to a specific airline can have its benefits, too. While you might not always end up with the lowest prices for any given flight route, you’re bound to rack up points and get free flights and perks with your go-to airline in the future.
COMPARISONS AT A GLANCE
CARD: | NEW CARDMEMBER OFFER: | ANNUAL FEE: | APR: | BENEFITS: |
Earn up to 70,000 bonus miles once you spend $3,000 within the first 3 months of opening your account Earn an additional 10,000 bonus miles once you spend $6,000 within the first 6 months of opening your account | $0 intro for the first year, then $95 | 17.99% to 24.99% variable APR | 2x miles on United purchases 2x miles on hotel stays when booked with the hotel 1x mile on all other purchases 2 United Club passes per year Free checked bag + priority boarding Up to $100 Global Entry, TSA PreCheck, or NEXUS fee credit 25% back on inflight purchases No foreign transaction fees Travel and purchase coverage | |
Earn 40,000 bonus miles once you spend $2,000 within the first 3 months of opening your account | $0 intro for the first year, then $99 | 17.99% to 26.99% variable APR | 2x miles on Delta purchases 2x miles at restaurants 1x mile per $1 spent on other purchases $100 Delta eCredit if you spend $10,000 in any calendar year Free checked bag + priority boarding 20% back on inflight purchases No foreign transaction fees | |
Earn 40,000 bonus miles and buy one ticket, get one for just the taxes and fees once you spend $3,000 within the first 3 months of opening your account | $75 | 18.24% to 26.24% variable APR | 3x miles per $1 spent on Alaska Airlines purchases 1x mile per $1 spent on other purchases Annual companion fare from $121 every year Free checked bag 20% back on inflight purchases | |
Earn 50,000 bonus miles once you spend $2,500 within the first 3 months of opening your account | $0 intro for the first year, then $99 | 17.49% to 26.49% variable APR | 2x miles per $1 spent at gas stations and restaurants 2x miles per $1 spent on eligible American Airlines purchases 1x mile per $1 spent on other purchases 25% savings on inflight food and beverage purchases Free checked bag + preferred boarding No foreign transaction fees |
I hope this blog helps you make the best decision for you when it comes to finding the right travel credit card.
If the Chase Sapphire Preferred credit card sounds like the one for you, you can apply today using my referral link! Apply here.
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