Best travel credit cards for 2020
Travel credit cards offer some of the highest premium rates available. Every time you use a travel credit card, the points you earn can be used for a future (or even past) travel purchase. Travel credit cards are also useful for benefits such as first-class upgrades, exclusive hotel and car rental discounts, fee-based TSA pre-checks, and global entry.
The points you collect are often redeemed through your credit card issuer’s website (or app) or displayed as a statement of credit that reimburses you for previous purchases made with your card. Points or miles can also be transferred at a fluctuating exchange rate to travel partners – primarily airlines and hotels – where they can then be used to book a flight or hotel room. More on that later.
There are a few key factors to consider when choosing the best travel credit card:
- Annual fees. All travel award cards discussed here incur annual fees, some of which are up to $ 550. However, these fees are usually reduced by monthly or annual credits.
- Exclusive benefits. Some of the cards also grant access to exclusive travel benefits such as airline lounges or VIP greetings in hotels. The value of these perks is subjective and something that you need to evaluate for your needs and desires.
- Foreign transaction fees. None of the best travel cards have foreign transaction fees, so you don’t have to worry about any of the credit cards recommended below.
The best overall travel card for most travelers
chase
Bonus rates: 3X points for travel and food (starts after earning $ 300 credit), 1x point for all other purchases
Annual fee: $ 550
Bonus for new members: 50,000 points
Bonus redemption threshold: Spend $ 4,000 in the first three months
APR: 17.99% to 24.99% variable
Foreign transaction fees: None
Credit request: Excellent
The Chase Sapphire Reserve is great value for those who spend at least $ 12,000 annually on travel. With Chase you can collect points for: flights, hotels, rental cars, trains, buses, either Travel or eat, think of the Platinum Card (for frequent flyers) or the Gold Card (for high food budgets). Otherwise, I’m a big fan of the numerous expenses that fall under the reserve’s bonus point categories. And it’s even better for those who appreciate additional travel benefits like travel insurance, hotel discounts and lounge access through Priority Pass Select.
Reward details
With the reserve card you get unlimited 3X points for travel and food purchases, 1X points for all other purchases and 10x points for Lyft journeys until March 2022.
While the $ 550 annual fee is high, the $ 300 annual travel credit lowers the total cost to $ 250, making the fee more manageable. In addition, the $ 50 sign-up bonus earned after spending $ 4,000 in the first three months is worth up to $ 1,000 depending on how you redeem these points (see below). Finally, cardholders will receive a Global Entry or TSA Precheck statement ($ 100 for Global Entry or $ 85 for TSA Precheck, both valid for five years) and a range of VIP-style travel benefits.
Redemption details
Chase Ultimate Rewards points can be redeemed in three ways.
- Cash redemption At a rate of 1 cent, your card effectively becomes a 3% cashback card for travel and restaurant purchases.
- travel book Chase’s Ultimate Rewards portal gives you a price of 1.5 cents per point, or $ 1.50 for 100 points, which is a 4.5% return on travel and restaurant purchases (well above most) Cash back cards).
- Transfer points to one of 13 Ultimate Rewards travel partners with a redemption rate of up to 2 cents per point, which corresponds to a total return of 6% The latest reviews of The Points Guy.
The best travel card for gourmets and large grocery buyers
American Express
Bonus rates: 4X points for restaurants and supermarkets, 3X points for flights (booked directly with the airline or amextravel.com), 1x point for all other purchases
Annual fee: $ 250
Bonus for new members: 50,000 points
Bonus redemption threshold: Spend $ 4,000 in the first three months
APR: 15.99% to 22.99% variable
Foreign transaction fees: None
Credit request: Good to excellent
As the only card on this list that offers a high premium rate for both restaurant and US supermarket purchases, the American Express Gold Card is a great option for those who don’t currently spend a ton on travel every year, but do this with a discount and earn points by spending money on groceries.
If you spend more than $ 7,000 a year on restaurants and supermarkets (including smaller grocery stores, but without large stores like Walmart or Target), the $ 250 annual fee is worth it. In view of The average American household spent $ 7,923 on food in 2018According to the US Bureau of Labor Statistics, many households could benefit from the Gold Card. (If you spend a large amount on both foods and Travel every year, I recommend the Chase Sapphire Reserve instead.)
Reward details
The Gold Card offers a wide range of reward categories for a travel card with 4X points for restaurants and US supermarkets and 3X points for flights booked through the Amex portal, the website where points can be redeemed. The annual fee of $ 250 is partially offset by annual meal credits of up to $ 120 (through services such as Grubhub and Seamless) and annual side flight fees of up to $ 100, such as in-flight restaurants, WiFi, and fees cover for checked baggage. The sign-up bonus is standard with 50,000 Membership Rewards (MR) points after spending $ 4,000 in the first three months, up to a value of $ 1,000.
Redemption details
There are two ways to redeem points with the Gold Card. The first is for travel purchases made through the American Express Travel portal, with one point equal to one cent. The second option is to transfer your MR points to one of 18 airline partners or 3 hotel partners for a value of up to two cents per point. Since your points are worth twice as much in transfer, we strongly recommend transferring them to a travel partner and looking for good redemption offers to maximize your points earned.
The best travel card for first-class pilots
American Express
Bonus rates: 5x points on flights (booked directly with the airline or Amex Travel) and prepaid hotels (* booked with Amex Travel)
Annual fee: $ 550
Bonus for new members: 70,000 points
Bonus redemption threshold: Spend $ 5,000 in the first three months
APR: NA (late fee up to $ 39)
Foreign transaction fees: None
Credit request: Good to excellent
The Platinum Card is the first-class travel card from Amex and offers the highest potential premium rate of all cards we have checked. It is 10%, depending on how points are redeemed (see details below). This card is ideal for those who already spend more than $ 10,000 a year on flights and hotels, and those who appreciate premium travel benefits like lounge access and hotel upgrades. The tight reward structure – which does not include food or food – and the high $ 550 annual fee make this card a valuable card for a particular spending profile. So do the calculations before you register.
Reward details
The Platinum Card gives you 5X Membership Rewards (MR) points for flights booked directly with airlines or via the Amex portal, as well as for hotels that require a prepayment and that were booked via the Amex portal. Flights or hotels booked through a third party or company like Orbitz are not eligible.
The high $ 550 annual fee is compounded by a $ 200 fee for travel expenses such as checked baggage, food or drinks in flight, or WiFi, a credit for Global Entry or TSA Precheck ($ 100 for Global Entry or 85 USD) offset for the TSA preliminary review, which is valid for five years, and for Uber credits of USD 200 per year. The bonus for new members is 70,000 points if you spend $ 5,000 in the first three months. When transferring to a travel partner and redeeming for up to $ 1,400. The Platinum Card also offers a number of premium travel benefits, including hotel benefits such as room upgrades, free breakfast, early check-in and late check-out, and access to Global lounge collection.
Redemption details
The Platinum Card offers three redemption methods:
- Travel purchases This is done through the Amex Travel portal, where one point equals one cent, including flights and prepaid hotel reservations
- Transfer your MR points to one of 18 airline partners or three hotel partners worth up to two cents per point. Given a 100% fluctuation in value, we strongly recommend switching to a travel partner and looking for good redemption offers to maximize your points.
- A bank statement credit, but the rate is variable and you usually get less value from your points using this method.
The best card to earn miles for daily expenses
CapitalOne
Bonus rates: 2X miles for all purchases, 5X miles (hotel and car rental only) through Capital One Travel
Annual fee: $ 95
Bonus for new members: 50,000 miles
Bonus redemption threshold: Spend $ 3,000 in the first three months
APR: 17.24% – 24.49% variable
Foreign transaction fees: None
Credit request: Excellent
The Capital One Venture card is a straightforward and easy-to-use option for those who want to book trips with reward points that are generated from general expenses and prefer not to worry about spending categories.
While the net premium rate is lower than that of competitors with higher fees, the annual fee is significantly lower, while you still earn 2X points with every purchase. This card is good value for those who spend between $ 6,000 and $ 10,000 annually on the card, less than $ 10,000 for food and travel, and less than $ 7,000 for food alone. If you spend more than these numbers, consider one of the higher fee cards in this list instead.
Reward details
With unlimited 2X miles on every purchase, the Venture card is the most profitable travel card on the market. The standard sign-up bonus is 50,000 Capital One Rewards miles if you spend $ 3,000 in the first three months (compared to $ 4,000 for most other cards). The $ 95 annual fee is also waived for the first year, which can be considered as a $ 95 addition to the intro bonus, as it is a one-time offer. Finally, Capital One Venture grants cardholders a TSA Precheck or Global Entry loan worth approximately $ 15 to $ 20 a year, plus travel accident insurance and rental collision insurance (more on that at the end).
Redemption details
The best way to use your Capital One Rewards miles is to transfer them to one of more than 15 travel partners at a rate of up to 1.4 cents per mile, which corresponds to a potential net reward value of 2.8% . The exact award rate depends on the flight you reserve. Compared to the dollar cost of a flight, some flights can get you closer to 1 cent per mile, while others bring you the maximum rate of 1.4 cents per mile. It is not clear how exactly the mileage cost is calculated. Note, however, that the maximum price is sometimes only available when booking Business Class or First Class flights.
You can also redeem your Capital One Venture award miles as a bank statement credit for past travel purchases (at a price of one cent per mile), use them to shop at Amazon at a price of 0.8 cents per mile, or use them to book trips Capital One travel portal.
The best low-risk, toll-free travel card
Wells Fargo
Reward rates: Unlimited 3% cashback (3x points) on restaurants, travel, petrol stations, transit and selected streaming services, 1% (1x points) on everything else
Annual fee: $ 0
Bonus for new members: $ 200 (20,000 points)
Bonus redemption threshold: $ 1,000 in the first three months
APR: 15.49% to 27.49% variable
Credit request: Good to excellent
Technically, the Wells Fargo Propel card is not a credit card for travel awards. The awards are given in the form of cashback and not in the form of travel points or miles. Nevertheless, the Propel card is a simple solution for those who want to make money while traveling and eating expenditure However, you don’t necessarily want to use these rewards to book more trips through a credit card miles portal.
Although the card’s return rate is lower compared to other travel cards, its $ 0 annual fee and lower risk make it ideal for those who spend less than $ 10,000 a year in the eligible categories. It is also a great option for those who prefer to earn money back straight away instead of booking award travel.
Reward details
The Wells Fargo Propel receives unlimited 3X points for restaurants, petrol, carpooling, transit, flights, hotels, host families, rental cars and popular streaming services. This is a reasonable price compared to the travel rewards market, especially given the $ 0 annual fee. The card also offers new cardholders a sign-up bonus of $ 200 after spending $ 1,000 in the first three months. Similar to many other travel award credit cards, Propel offers some travel benefits, including up to $ 1,000 in lost baggage reimbursement, car rental loss and damage insurance, breakdown assistance, 24-hour travel and emergency assistance, and prepayment in case of emergancy.
Redemption details
To redeem points with the Wells Fargo Propel card, all you have to do is click on “Redeem Points” in the reward portal. That’s it. No problems booking websites or comparing award flights. Propel cash rewards can be redeemed either as a deposit into a Wells Fargo account or as a bank statement credit. One point equals one cent and the minimum redemption amount is 2,500 points ($ 25).
How do travel credit cards work?
Travel credit cards convert purchases into points or miles that can be redeemed for travel purchases such as flights and hotel stays. Sometimes you can redeem these points for cash, but you get the best price when you use them to book trips. The top maps have their own travel booking portals, through which you can find flights, hotels and rental cars. Sometimes points are worth more when used in these portals.
Airline and hotel credit cards – which we have not included in this list – work like loyalty programs because they remain in a closed reward system. You earn rewards when you buy flights or hotels through the airline or hotel company you choose, and you can use these points for discounts or future bookings with the same airline or hotel group.
Other benefits for travel credit cards
Most travel credit cards, which incur high annual fees, offer benefits that add additional value to these cards. Services such as collision insurance for rental cars and even the reimbursement of lost luggage have become standard. The following is offered for the selected cards:
- Travel accident insurance: Reserve, CapOne Venture
- Cancellation insurance: Reserve, platinum,
- Refund / Delay Protection: Reserve, platinum
- Refund of lost luggage: Reserve, platinum, gold, drive
- Car rental collision insurance: Reserve, platinum, gold, venture, propel
How we chose the best travel credit cards
To determine our recommendations, 19 of the most popular travel award credit cards (see below) were examined and selected based on the best monetary value for specific customer profiles, e.g. B. Frequent flyers, those who spend a lot on restaurants and groceries, or those who are looking for an easy way to travel with a discount that earns miles for their daily expenses. We always focus on the total net value because choosing the right reward credit card is about saving money and being financially responsible without being attracted by perks or offers that are striking or irrelevant.
To determine when a card made financial sense, these cards were compared to the best free cashback for restaurants and travel, the Wells Fargo Propel. Since the Propel card grants cardholders a 3% discount on travel, transit and food without a fee, it was used as the basis for evaluating the following cards.
Maps researched
- Platinum Card from AmEx
- Gold Card from AmEx
- Chase Sapphire preferred
- Chase Sapphire Reserve
- CapitalOne Venture
- Capital One VentureOne
- Bank of America premium rewards
- PenFed Pathfinder reward card
- About Visa Card
- BofA travel awards
- Discover it miles
- Virgin Atlantic World Elite Mastercard
- Hilton honors American Express Surpass
- Marriott Bonvoy Unlimited
- JetBlue Plus
- Alaska Airlines Visa signature
- United Explorer Card
- Delta Reserve® credit card from American Express
- Platinum Delta SkyMiles® credit card from American Express
- Gold Delta SkyMiles® credit card from American Express
A note on airline credit cards
After a long back and forth, we decided not to recommend a best airline credit card as part of this list. The five travel cards highlighted above give you a better overall value for redeeming points and are usually the best option as a primary travel card because you collect points from different airlines. However, some airline credit cards can be valuable for certain spending habits, e.g. For example, those who always fly with an airline and typically check in luggage, may be worth their low annual fees (usually less than $ 100) for some users.
Choosing the best airline credit card (with or without co-branding) depends on your loyalty to a particular airline. Benefits such as early boarding, seat upgrades, lounge access, and airline status vary depending on which airline you’re loyal to and how often you travel with them. In many cases, airline credit cards are selected based on which airlines operate hubs at your nearby airport.
Even if you stick to an airline on all your flights, co-branding cards are difficult when it comes to adding value. For example the Virgin Atlantic World Elite Mastercard from Bank of America offers 3X Virgin Atlantic Flying Club miles for Virgin purchases and 1.5X Flying Club miles for all other purchases. With the points guy last maximum rating from 1.5 cents per mile, which means you can get back up to 4.5% on Virgin purchases and 2.5% on everything else. while maximizing the value of these points. Given the difficulty of finding a perfect redemption for a particular flight, we don’t expect many users to maximize the redemption value every time.
These award rates are decent, but keep in mind that you can only redeem these miles a short list from airline partners and you rarely get the highest redemption value. The best redemptions are often transcontinental flights in the business or first class area, e.g. B. Booking a return flight ticket worth $ 4,000 for $ 2,000. This is good business, but not relevant to most American consumers. Because you only get the highest reward rate (3X) when flying with that particular airline, you may be able to spend more on certain flights than bargain hunting. For example, if you want to fly from LAX to NYC and spend $ 100 more on flying with an airline of your choice, you are sacrificing a significant portion of the award value you generated.
However, if you’re flying the same airline multiple times a month, evaluating status improvements with a particular airline, and possibly maximizing the redemption value on longer flights or upper-class cabins, an airline credit card may be a good option you. They can also be helpful for occasional loyalty pilots who want to waive the checked baggage fee (free checked baggage is a common benefit for flight tickets), but only if they don’t fly often enough to cover the high fee for one Justify premium travel card. There are also scenarios in which it makes sense to have an airline card and a card without co-branding. However, be sure to keep an eye on the annual fees and never let points or miles expire.
A note on hotel credit cards
Hotel credit cards work similarly to airline cards, since your best reward value is obtained when you buy from this hotel chain and your redemption options are limited. As with airline co-branding credit cards, we do not recommend preferring one hotel credit card to another, and believe that the top travel award credit cards listed outperform the co-branding cards in most scenarios. However, if you always book your hotel stays with a hotel chain, it may be worth taking a look at the available cards.
Another important factor with hotel cards is that the value of their points is very different from that of the flight points or miles. Hilton Honors points, for example, are only worth 0.6 cents in the upper price segment, although the Hilton Honors credit cards With high award rates, the value of these awards is below Chase Ultimate Rewards points, American Express Membership Rewards points or air miles.
For those who want to get a status upgrade (usually associated with perks like free breakfast and room upgrades) from a hotel chain without spending above the standard threshold, a co-branded credit card will speed up your progress and help you with that a higher status with the chain for less spending. Keep in mind that you essentially pay for these upgrades in a different way and may sacrifice the value of the expense if you don’t use another travel credit card.
What about APR?
Annual interest is the annual percentage and is the amount of interest you pay over the year for each credit you keep on your credit card. Since we strongly recommend that you pay off the remaining amount of your credit card in full every month, we do not take the APR too closely into account when evaluating premium credit cards.
If you’re having trouble paying off your credit card balance every month, start with low APR cards and don’t worry about rewards. Any rewards you generate – be it a cashback, a travel reward or something else – will quickly disappear if you pay interest every month. Also keep in mind that some first-year award credit cards offer an intro APR, usually 0%, but the travel category usually doesn’t.
Other types of cards to consider
If you don’t meet the minimum spending recommended for any of the credit card options above, you can consider using a cash back credit card instead of a travel credit card. Cash-back credit cards offer rewards in the form of bank statement credits or cash. These are relatively easy to use cards with rewards in the general range of 1.5% to 3%, often with no annual fee. They also offer sign-up bonuses, usually in the form of a certain amount after a threshold in the first few months.
Other types of cards are more focused on specific situations, e.g. B. Credit transfer cards if you need to “restructure” your credit card debt, credit cards like secured credit cards if you have low or no credit, low APR cards if you have trouble paying your bill every month, or student credit cards for Full or part-time students.
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