Best travel credit cards of June 2023

Travel credit cards allow cardholders to earn points or miles on a variety of purchases (typically travel-related), which are redeemable for travel bookings, statement credits, gift cards and more.

The best travel credit cards do more than help you foot the bill for your next flight — travel cards also offer perks to upgrade 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 program members.

As with other types of cards, travel credit cards offer you a lot of variety to choose from. Notable features include issuer travel portals with boosted travel rewards value, hotel and airline loyalty status and credits for some of your favorite products and services. To zero in on which card might best fit your needs, consider the different categories of travel cards.

Although a well-chosen travel card can pay huge dividends, it might not be the right move for every traveler. Before you apply, take time to weigh the benefits versus the drawbacks of travel credit cards.

A travel credit card is almost always a good idea if you want to offset the cost of future travel. If you are able to save up airline miles, rack up points for free nights at hotels or get discounted travel through your credit card issuer, you’re on your way to saving significantly on travel costs. The right travel card will vary depending on your travel habits, but there is at least one that can fit your travel style and budget. 

Still unsure if a travel credit card is right for you? Check out our Credit Card Spender Type Tool where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.

To make sure a travel card is right for you, take some time to compare it with other cards with similar features to see which provides the best value for you. This could help you avoid missing out on a card with better benefits. Here are some factors to consider as you compare travel cards.

Earning travel rewards

When comparing travel credit cards, consider the rewards each one offers along with your spending habits and goals. If you value simplicity and ease of use, a flat-rate travel card that offers the same rate for all of your purchases could be your best option.

If you’re looking to maximize your points and miles and don’t mind redeeming rewards with a particular airline or hotel brand, a co-branded airline or hotel credit card may be a good fit. But if you don’t travel frequently or want a travel card with more flexibility in how you earn and redeem rewards, look for a general-purpose travel rewards card that earns bonus points or miles for travel and your top everyday purchases.

Redeeming travel rewards

Your travel card’s redemption options and value are also worth considering when comparing cards. Most travel cards give you the best value when you use your rewards to pay for upcoming travel, typically through the issuer’s travel portal. But for greater flexibility, you may want to look at cards that offer a variety of redemption options, such as redeeming points to cover past travel purchases, which gives you the freedom to book with third-party websites.

Or you may want a card with transferable points, which lets you move your rewards over to an airline or hotel loyalty program. This could help stretch the value of your points and miles even further. Most travel cards with transfer partners charge an annual fee, but there are a few notable exceptions like the Bilt Mastercard and Capital One VentureOne card.

You’ll also want to consider the value of your points or miles, which can fluctuate based on how you redeem, including when and where you book travel. If you think you’ll want to redeem your rewards for something other than travel, like statement credits or gift cards, make sure you choose a card that offers a redemption value of at least 1 cent per point or mile for those options. Otherwise, you’re better off using cash and saving your points and miles for travel redemptions.

Travel perks

The best credit cards for travel perks come with features and benefits that make travel more rewarding. If you like to travel in style, there are cards that make it easier to reach elite status or cards that come with complimentary lounge access or travel credits worth hundreds of dollars, which can make first-class airfare or luxury hotel accommodations more affordable.

Annual fee

Comparing the annual fees and features of similar travel cards can help you quickly narrow down your options. If you don’t want to pay an annual fee for a travel card, make sure to compare no-annual-fee cash back vs. no-annual-fee travel cards to make sure you get the right card for you. Keep in mind that some annual fees may be worth it if the card offers valuable perks or rewards.

Sign-up bonus

The best travel sign-up bonuses can knock anywhere from $200 to $1,000 or more off your next travel bill — but don’t just look at the size of the offer. When comparing travel cards, make sure the spend requirement fits your budget and doesn’t force you to overspend.

Travel protections

Credit card travel insurance is a feature that could save you from having to purchase standalone insurance and give you the peace of mind that you’re covered in the event something goes wrong with your trip. But the type of coverage and even the amount you receive can vary from card to card, so you’ll need to pay close attention as you compare travel cards.

Foreign transaction fees and international acceptance

If you travel overseas, check to see if the card you’re considering charges a foreign transaction fee. And since some credit cards aren’t as widely accepted as others, you’ll also want to make sure your credit card will work when traveling overseas.

Credit card points and miles are two of the three types of credit card rewards, in addition to cash back. Credit card points and miles have slight differences but work in mostly the same way: You earn rewards by making purchases using your credit card and storing up those points for travel, gift cards and other options.

Reward redemption values vary greatly, and since many airlines and hotels use dynamic pricing models that can adjust prices at a moment's notice, it can be hard to know if you’re getting a good deal.

Finding the best way to use points for travel starts with knowing how much your rewards are worth. When you know the value of your points and miles, you can make better travel decisions. Budget shoppers who use a travel card with transferable points will have a better idea of how to shop around for the best rates. Travel hackers will have an easier time knowing when to use points or save them for another trip when they’ll be more valuable.

To make sure you’re getting maximum value for your rewards, divide the cost of a plane or hotel booking in cash by its cost in points or miles. This will show you the cash value of your points or miles. Then take a look at the following points and miles valuations from Bankrate and compare the value you get with our estimate of what your points or miles should be worth on average.

Airline rewards values

*Based on weighted average of median point/mile values across economy and first/business class fares.

Hotel rewards values

*Based on median point values across budget, mid-tier and luxury hotel bookings.

Credit card program rewards values

*Based on an average of the issuer’s five highest-value transfer partners (if available).

When to use rewards vs. cash

Here’s an example: We estimate American Airlines Aadvantage miles are worth 1 cent. If you book a seat in the main cabin on a one-way flight from Boston to Miami, and it costs either $139 or 21,500 miles, your miles are only worth $0.006 ($139 / 21,500 miles = $0.006). Since your miles for this flight are worth less than 1 cent, you may want to save your miles and pay cash for this flight.

But if you book a first-class seat on the same flight for $433 or 31,500 miles, your miles are now worth $0.013 ($433 / 31,500 = $0.013). Since 1.3 cents is higher than our 1-cent baseline valuation, you’re coming out ahead if you use your miles to pay for this flight.

With inflation curbing the value of the dollar and adding financial stress to consumers across the country, 80% of likely summer vacationers are rethinking their plans, according to a new Bankrate survey. 

If you’re a frequent traveler, now is a good time to redeem frequent flyer miles to help bring down the cost of airfare. There are also travel cards that earn rewards for some of the hardest-hitting categories — like gas and groceries, which can help you stockpile rewards that can be used to help you save on your summer travel. For more information on ways to maximize and bring down the cost of summer travel, check out Bankrate's Travel Toolkit.

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