Choosing a travel rewards credit card is like planning a trip—your ideal choice depends on your preferences. Some travelers stick with a favorite airline, while others prefer the flexibility of finding the best available deal. The card you choose comes down to your travel style and spending habits. Here are five key things to consider when comparing options.
1. Flexible Redemption Options
Not all travel rewards cards offer the same flexibility when it comes to redeeming points. Some are tied to a single airline or hotel, which can be great for loyal travelers. But if you prefer more options, a card with transferable points and multiple ways to redeem might be a better fit.
For example, if your go-to airline has no available reward seats, a flexible rewards program may allow you to transfer points to a partner airline or use them for a hotel stay without worrying about blackout dates or limited availability.
Key features of a flexible rewards program:
- Transferable points: Some cards let you transfer points to airline or hotel partners at equal value.
- Travel portal bonuses: Some issuers, like Chase, offer more value when you book travel through their rewards platforms, helping you stretch your points further.
- No blackout dates: Flexible rewards programs typically don’t limit when or how you can redeem your points.
- Multiple redemption options: Some cards also let you use points for car rentals, cruises or experiences like concerts and tours.
The Chase Sapphire Preferred® Card is an example of a card with versatile redemption features. It allows point transfers to major airline and hotel partners without losing value, offers the option to redeem points for cashback if your plans change and provides 25% more value when redeeming points for travel through their Chase Travel℠ portal, though some restrictions may apply.
Pro tip: If you travel frequently but don’t always fly the same airline, a card with a flexible rewards program may provide better long-term value than a co-branded airline card.
2. Bonus Rewards on Everyday Purchases
Travel rewards cards can vary in how they earn points. Some offer higher rewards on specific categories, such as dining or gas, while others offer a flat rate on all purchases. Choosing a card that aligns with your spending habits can help you maximize rewards.
What to consider in a rewards program:
- Bonus categories: Cards offering extra points on categories like dining, travel or groceries can help you earn rewards faster. For instance, the Chase Chase Sapphire Preferred® Card offers 3x points on dining, online groceries and select streaming services, 2x points on travel and 1x point on all other purchases.
- Extra earning opportunities: Some cards offer welcome bonuses, points for adding authorized users or rewards for reaching spending milestones within the first few months.
- Earning structure: Flat-rate rewards cards offer the same rate on every purchase, while rotating category cards can provide higher rewards in select areas but usually require activation.
Pro tip: Consider pairing a travel rewards card with a no-fee cashback card. Use the travel card for purchases that earn bonus points and the cashback card for everyday spending in categories where the travel card falls short.
3. Built-In Travel Protections to Avoid Unexpected Costs
Unexpected travel issues like flight delays, lost baggage or last-minute cancellations can turn a well-planned trip into an expensive hassle. Many travel rewards credit cards include protections that can help cover these unexpected expenses.
How travel protections can help:
- Trip cancellation insurance: Reimburses nonrefundable expenses if you miss your flight due to illness, bad weather or an emergency.
- Baggage protection: Covers the cost of clothing, toiletries and essentials if your bags are delayed or lost.
- Car rental insurance: Provides coverage so you can skip the rental company’s policy, which can be expensive.
- Emergency medical coverage: Helps pay for unexpected medical expenses while traveling abroad.
Not all travel rewards cards offer the same protections, so it’s worth comparing the various benefits and reading the fine print to understand what each card covers. Some options, like the Chase Sapphire Preferred® Card, offer a wide range of travel protections, including trip cancellation insurance, primary rental car coverage, baggage protection, travel emergency assistance and 120 days of purchase protection against theft or damage up to $500 per item, with some restrictions.
Pro tip: When possible, book travel with a card that includes trip insurance, even if you have other travel coverage. Stacking protections can provide added peace of mind.
4. Reasonable Fees and No Hidden Costs
Travel rewards credit cards can offer great value—but only if the fees don’t outweigh the benefits. While some cards have premium perks and reward programs that justify their cost, others may include hidden charges that can affect your savings.
What to watch out for:
- Annual fees: There’s always a balancing act between potential rewards and the annual fee. Compare the fee with your estimated travel rewards and perks to ensure you receive more value than you’re paying.
- Foreign transaction fees: Some cards charge up to 3% per purchase abroad. A card with no foreign transaction fees, like the Chase Sapphire Preferred® Card, can be ideal for international travel.
- Hidden fees: Some credit cards may have hidden expenses buried in the terms and conditions, such as inactivity, balance transfer or high cash advance fees.
- Short-term value: Make sure the card continues providing rewards and perks beyond the first year’s welcome bonus.
Pro tip: A high annual fee isn’t always a deal-breaker. If a card offers valuable perks like travel credits, lounge access, superior insurance coverage or a high cashback or points earning rate, the benefits may outweigh the cost.
5. Welcome Bonuses that Fast-Track Your Next Trip
Many travel credit cards offer lucrative welcome bonuses, allowing you to quickly rack up points for free flights and hotel stays. These bonuses typically require meeting a spending threshold within a set timeframe. The Chase Sapphire Preferred® Card, for example, offers 100,000 100,000 bonus points after spending $5,000 on purchases in the first three months from account opening. That’s worth $750 in travel purchases when redeemed through Chase’s Travel portal.
Before applying for a travel rewards card, consider whether you’d naturally meet the spending requirement without making unnecessary purchases. If you have to force spending to earn the bonus, it could end up costing you more than the value of the reward.
Pro tip: Consider timing your credit card application around planned expenses, such as vacations, home improvements or even holiday shopping, to maximize your ability to meet the spending requirement.
Find a Travel Rewards Card that Works for You
There’s no one-size-fits-all travel rewards credit card. The best choice will depend on your spending habits, travel goals and rewards preferences. Ultimately, a travel rewards card should make your trips more affordable, convenient and enjoyable—not more expensive and complicated.
Research your options carefully, compare rewards and look for a card that provides more value than it costs. Cards like the Chase Sapphire Preferred® Card offer a balanced mix of rewards and protections, which can make it easier to get the most out of your everyday spending and travel purchases.