Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed herein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank’s website for the most current information.
Author: Barry Bridges
Bankrate’s guide to the top travel credit cards of 2019
Both beginner travelers and seasoned road warriors can benefit from the rewards and perks that come with a travel credit card. With some strategizing and careful budgeting, you can easily use your points and miles to fund your next getaway.
Our answers to your questions on travel rewards cards
A closer look at our picks for best travel credit cards
Editor’s notes on our picks for the best travel credit cards
Capital One® Venture® Rewards Credit Card
What we love:
- Earn 10X miles on thousands of hotels booked and paid for on hotels.com/venture (through Jan. 2020)
- $95 annual fee is waived your first year
- 50,000-mile bonus offer when you spend $3,000 in three months
- Up to a $100 Global Entry or TSA PreCheck® Credit
- Purchase Eraser® feature allows you to redeem your miles for an account credit that covers the cost of a past travel purchase made with your Venture card
- No foreign transaction fees
Partner this card with: The Capital One Savor Cash Rewards Credit Card
Rewards Credit Card. Use the Savor for dining and entertainment purchases and the Venture for everything else. Use the cash back you earn from the Savor to cover travel expenses that your Venture rewards doesn’t cover.
Read the review and apply on Capital One’s secure website.
Capital One® VentureOne® Rewards Credit Card
What we love:
- Earn 10X miles on thousands of hotels booked and paid for on hotels.com/venture (through Jan. 2020)
- 20,000-mile bonus when you spend $1,000 in your first three months
- Transfer your miles to 10+ travel partners, including Aeromexico and Air Canada Aeroplan
- No foreign transaction fees
Partner this card with: The Capital One SavorOne Cash Rewards Credit Card. This is essentially the same matchup as the Venture/Savor, but without the annual fees. You’ll still earn some impressive rewards, just not at the same rate. If you one day decide the annual fees are worth it, you can always call Capital One to request these cards be upgraded to their big sisters.
Read the review and apply on Capital One’s secure website.
Chase Sapphire Preferred® Card
What we love:
- 60,000-point bonus when you spend $4,000 in your first three months
- Chase offers a competitive list of transfer partners
- Top-notch travel coverage like trip cancellation insurance and trip delay reimbursement
- Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards
- No foreign transaction fees
Partner this card with: The Chase Freedom Unlimited. This is an all-star combination for beginner travelers, especially in the first year. You can earn 3% cash back on your first $20,000 spent with the Freedom Unlimited in the first year (then 1.5%) for a total of up to $600 cash back (equivalent to 60,000 points). Then transfer those points to your Chase Sapphire Preferred for maximum value when you redeem. If you hit the minimum spend for the Sapphire Preferred (earning 60,000 points) and the $20,000 cap for the Chase Freedom Unlimited (earning $600 cash back which is equivalent to 60,000 points), you’ll earn 120,000 points (worth $1,500 when you redeem through the Chase Ultimate Rewards travel portal).
Read the review and apply on Chase’s secure website.
Bank of America® Travel Rewards credit card
What we love:
- Preferred Rewards members can earn 25% to 75% more points on top of the 1.5X base points you’ll earn with each purchase
- Earn 25,000 bonus points when you spend $1,000 in your first 90 days
- No annual fee
- No foreign transaction fees
Partner this card with: The Bank of America® Cash Rewards credit card. You can choose one category to earn 3% cash back in, plus earn 2% at grocery stores and wholesale clubs (up to $2,500 in combined bonus rewards quarterly). You’ll earn the same Preferred Rewards bonus with both cards.
Read the review and apply on Bank of America’s secure website.
Discover it® Miles
What we love:
- Unlimited Bonus: Discover will match all the Miles you’ve earned at the end of your first year, automatically. For example, if you earn 35,000 Miles, you get 70,000 Miles. That’s $700 towards travel.
- No blackout dates. Simply pay for travel purchases like airlines, hotels, rental cars, and more with your Discover it® Miles card
- 14-month 0% introductory APR on purchases (13.99% – 24.99% variable APR thereafter)
- Easily redeem Miles as a statement credit for travel purchases, or get cash.
- No annual fee
Partner this card with: The Discover it® Cash Back. The Discover it® Cash Back offers 5% cash back on rotating categories (on up to $1,500 in purchases each quarter, then 1%; enrollment required). You can maximize rewards across every purchase category when you pair these cards strategically.
Read the review and apply on Discover’s secure website.
Alaska Airlines Visa Signature® credit card
What we love:
- The Alaska’s Famous Companion Fare offer is one of the industry’s top companion pass programs. With prices starting from $121 ($99 fare plus taxes and fees from $22) for flights booked on alaskaair.com, this offer could save you hundreds of dollars. What’s more, the Famous Companion Fare has no blackout dates and renews each year on your account opening anniversary.
- Making $2,000 or more in purchases within the first 90 days earns you the 40,000-mile bonus and qualifies you for the companion fare.
- You earn 3 miles for every $1 spent on eligible Alaska Airlines flights and 1 mile per $1 on other purchases.
- Travel perks include a free checked bag for you and up to six guests traveling on the same eligible Alaska Airline reservations
- The $75 annual fee is a bit lower than those of comparable airline cards.
Partner this card with: Marriott Bonvoy Boundless Credit Card. Alaska Airlines is one of 40+ airlines that partner with the Marriott Bonvoy rewards program, which means you can turn Marriott points into Alaska Airlines miles. You’ll lose some value in the transfer (3 Marriott points = 1 Mileage Plan mile), but getting the Bonvoy Boundless card would give you another source of travel rewards. Sill, this card combination works best for a specific kind of frequent traveler: one who always flies Alaska Airlines and always stays at a Marriott hotel. You’ll really need to maximize the Marriott perks to make up for this Bonvoy card’s $95 annual fee.
Read the Alaska Airlines Visa Signature review and apply on Bank of America’s secure website.
The information about the Marriott Bonvoy Boundless Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
What is a travel rewards card?
Travel rewards cards allow cardholders to earn points or miles on a variety of purchases (typically travel-related) that can then be redeemed in the form of travel bookings, statement credits, gift cards, and more.
The best travel cards won’t just help you foot the bill for your next flight — they’ll also offer perks to transform your entire travel experience. Trip insurance, annual travel credits, concierge services and lounge access are all common benefits. Airline and hotel co-branded credit cards sometimes offer specific discounts and perks for loyalty customers.
How do miles work on travel credit cards?
Miles work the same way as credit card points. When you use miles to book travel directly through an airline or travel portal, the airline or issuer will assign a set number of award miles to each ticket. Some airlines have established award charts that give you insight into what each flight would cost in miles, but many have switched to a dynamic pricing model that bases award pricing on multiple factors, including seasonality and route popularity.
Sign-up bonuses
When you’re redeeming miles as a statement credit, they’re assigned a monetary value (typically 1 cent per point, though that isn’t the case with all issuers). For example, if you spend $3,000 within the first three months of using your Capital One® Venture® Rewards Credit Card, you’ll receive 50,000 bonus miles.
Are travel rewards cards worth it?
Contrary to popular belief, you don’t actually have to be a frequent jet setter to reap all the benefits a travel credit card has to offer. There is a travel card out there for every type of traveler. Once you have a better understanding of the type of traveler you are, you can seek cards with perks that will best benefit your situation.
In short, travel credit cards are worth it for:
Beginner travelers
If you’re new to traveling, it might be best to start out with a card that offers simple yet flexible rewards. If you’re learning the ins and outs of points and miles, the last thing you need is a complicated rewards structure and redemption process.
The Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred are great places to start. Each card offers generous rewards rates on a variety of purchases, including travel, along with competitive sign-up bonuses and travel perks.
If you’re just starting out, a luxury card might not be the best for your current situation. The Platinum® Card from American Express, for example, charges a hefty $550 annual fee and earns significant rewards only on travel-related purchases.
Brand loyalists
Some people like to fly with the same airline whenever possible or stay at the same hotel brand wherever they go. If you are the same way, a brand-specific card will probably provide you with the best value.
Most of the time, brand-specific cards have brand-related purchases as a bonus category and other perks for loyal customers. The Alaska Airlines Visa Signature® credit card, for example, earns unlimited 3 miles for every dollar spent on eligible Alaska Airlines purchases and offers a companion fare™ starting at $121 ($99 plus taxes and fees from $22) each year. In order to qualify for the companion fare, along with the 40k bonus miles, you have to spend $2,000 within the first three months as a cardholder.
While you’ll still get value out of a more general travel card, you can really maximize your rewards by sticking to a card that is brand-focused. You can also redeem miles with no blackout dates on any of Alaska’s 1,200 daily flights or choose from over 900+ destinations with more than a dozen global airline partners.
Business travelers
Some of the most valuable travel credit cards are actually business cards. Whether you are a freelancer who travels a lot to meet new clients or the CEO of a Fortune 500, the right travel credit card can help you reap the rewards of everyday business purchases while helping you keep your personal and business expenses organized.
For example, The Hilton Honors American Express Business Card offers 12x points at Hilton hotels and resorts, 6x points on select travel and business purchases and 3x points on everything else. The card comes with a competitive welcome offer and a low annual fee. Plus, Hilton has an impressive partner list. You can earn points with your Hilton card and then transfer them to your favorite airline to redeem (restrictions apply).
In order to keep business and personal expenses separate, you should think twice before getting a consumer card to use for your business travel purchases. It makes it harder to organize your receipts during tax season.
International travelers
If you travel out of the country for business or leisure frequently, consider opting for a card that doesn’t come with a foreign transaction fee. And if you hate waiting in line at airport security or customs, there are a lot of travel cards that will provide reimbursement for Global Entry or TSA PreCheck application fees, like the Platinum Card from American Express, Capital One Venture Card and more.
Luxury travelers
If you’re interested in upgrading your travel experience, there are many great choices. The Chase Sapphire Reserve is a fan favorite, offering a well-rounded selection of perks and a 50% redemption bonus when you book award travel through the Chase portal.
Another popular choice is The Platinum Card® from American Express, which comes with access to Centurion Lounges. While top-tier cards also come with higher annual fees, the costs are outweighed when you take full advantage of the trip insurance, travel credits and other perks. While the Capital One Venture and Chase Sapphire Preferred are both great all-around cards, they lack some of the luxury perks that come with the Chase Sapphire Reserve and Amex Platinum.
If you’re really looking for a luxury travel experience, you need a top-tier travel card.
The information about the Chase Sapphire Reserve card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
How to use a travel credit card to save for your next vacation
While a travel card alone isn’t likely to foot the entire bill for your next vacation, with strategic budgeting and forethought, it can certainly help mitigate the costs of travel. Plus, a travel card adds extra cushioning during your vacation in some instances — like paying for lost luggage or flight cancellations/delays.
Determine your budget
One of the greatest barriers to taking time off is money. A Bankrate survey found that only 52 percent of Americans said they were definitely taking a vacation in 2019. Considering Americans expected to spend an average of $1,979 on a summer vacation, perhaps unsurprisingly, most people who reported forgoing a 2019 vacation cited affordability as the number one reason. More specifically, day-to-day bills and paying down debt were the most common financial roadblocks to affording a getaway.
For starters, you can crunch the numbers on all the projected factors for your next vacation to see how much you need to save. This includes transportation (airfare, gas, tolls, etc.), hotels/lodging, various excursions, food and souvenirs. Once you have a rough idea of how much you could end up paying, you can then adjust or scale back as needed if it’s too expensive.
An Excel spreadsheet might work for your trip, but getting in the habit of budgeting your everyday (and major) expenses might help you save in the long run. Bankrate’s Home Budget Calculator can help you gain a better understanding of where the majority of your heftiest expenses lie, and mobile apps like Digit, Dobot and others can make sticking to your budget less of a hassle.
Maximize rewards, sign-up bonuses
Depending on your budget and needs, knowing how to spend a travel credit card can make paying for your next trip less daunting. If you utilize the sign-up bonus and spend the recommended amount to reach, say, that 50,000 mile offer — that’s essentially $500 in your pocket toward transportation, lodging or whatever the card allows. If you’re loyal to a certain airline or hotel, consider choosing a co-branded card to use for everyday expenses and earn points that can be used toward your trip.
Know when to book
Using your travel credit card to book flights or hotels in advance can also help you save money. According to CheapAir.com’s 2019 Airfare study, Tuesday is the cheapest day to fly, with costs coming in at about $85 cheaper than the most expensive day of the week (typically on a weekend). Fall — otherwise known as a “shoulder season” — is also a more affordable time to travel. The average domestic fare in the fall costs $342 compared to peak summer season at $365, according to the study.
How we compare and review travel credit cards
At Bankrate, we judge credit cards on a five-point system devised to take into account various attributes, such as the card’s annual fee, rewards value, sign-up bonus and any extras or discounts.
Finding the right travel credit card can be complicated, and it’s easy to get overwhelmed by the different rewards structures and offerings. But these scores can serve as shortcuts to give you a better idea of what we think these cards can bring to the table.
How to choose the right travel credit card for your lifestyle
We know that everyone is unique: Just because a card has a lucrative welcome offer doesn’t mean it is the right card for your regular spending habits. Wherever possible, we have identified where we think a card will suit a particular type of spender or traveler. When looking at multiple travel credit cards to find the right one for you, there are three main factors you should consider:
- Rewards structure. You want a card that will allow you to earn the most rewards for your specific spending habits. If you spend a lot of money on dining and an array of travel purchases, the Chase Sapphire Preferred’s 2x points on dining and travel might be best for you.
- Welcome bonus. Welcome bonuses are a large factor in determining the first-year value of a travel credit card. Take a look at the bonus, the minimum spend required and the redemption value of the bonus.
- Additional perks. Some cards offer an impressive lineup of trip insurance coverages while others are more focused on luxury lounge access and airline credits. Know the type of traveler you are and which perks you will use the most.
Let’s look at two popular travel credit cards: The Capital One Venture and Amex Platinum. The Venture is a mid-tier card, and the Amex Platinum is a luxury card. Assuming you spend an average of $2,000 each month ($1,500 on regular expenses and $500 on travel), here is the value each card brings when you also factor in welcome bonuses and any account credits.
|
Annual Fee |
Approx. first-year value |
Approx. second-year value |
| Capital One Venture |
$95, waived the first year |
$1,080 |
$480 |
| Amex Platinum |
$550 |
$1,680 |
$980 |
*Editor’s note: These valuations are calculated by the Bankrate staff and not the individual issuers. The first- and second-year value calculations do not factor in the annual fee or ancillary perks that do not have a set monetary value.
The Amex Platinum also gives you access to luxury hotel perks and exclusive lounge access — the values of both are hard to exactly quantify. While it’s obvious that the Amex Platinum offers more value on paper, you also have to consider the $550 annual fee. If you are using the card to book a considerable amount of travel through the Amex portal and taking full advantage of its luxury perks, the annual fee is definitely worth it. However, if you don’t travel a lot, the Capital One Venture (with its significantly lower annual fee) might be a better choice.
Barry Bridges is a senior editor for Bankrate. Before he started writing about personal finance, he was an award-winning newspaper journalist in his native North Carolina. Send your questions about credit cards (and fantasy baseball) to bbridges@bankrate.com.
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