Takeaways
- Travel rewards cards offer cardholders access to points or miles reward programs.
- Travel programs allow you to use points or miles to offset future travel costs.
- Travel points or miles can be redeemed for free flights, hotels, and rental cars.
- Travel rewards can help you get frequent flights or elite status with airlines.
- Travel reward credit cards offer perks like free checked bags, access to exclusive airport lounges, and boarding status.
Traveling is part of the American lifestyle. In fact, a recent survey showed that over 93% of Americans plan to travel within the next six months.[1] With so much upcoming travel, it makes sense to research the best travel rewards credit cards to use on your trip.
Travel rewards credit cards offer frequent and casual travelers a valuable opportunity to earn significant rewards and save money on trips. Let’s dig into how they work and how you can start accruing reward points quickly.
Take the Next Step:
On Upgrade’s Website
Upgrade Credit Card
Smart Money Rating: 5/5
Cash Back: 1.5%
Best For: Establishing Credit History
Credit Line: $500 – $25,000 (Terms Apply)
What Are Travel Rewards Credit Cards?
Travel rewards credit cards are credit cards that reward cardholders for using their credit card with travel points, airline miles, hotel rewards, or other travel-related benefits, like exclusive access to airport lounges.
Travel reward programs help cardholders redeem their points for travel-related expenses, like rental cars, flights, hotels, and cruises. Some cards even offer double or triple points for spending on travel-related items. Travel rewards cards offer frequent travelers an easy way to boost the quality, cost, and length of their travel and save money along the way.
Read More: 5 Reasons You Have a Low Credit Score
How Travel Rewards Credit Cards Work
Travel rewards credit cards typically award points or miles. Each dollar spent on eligible purchases counts toward accruing points or miles. The earning rate can vary depending on the lender, credit card program, type of purchase, and any ongoing promotions.
For example, a credit card may offer two miles per dollar spent on airline purchases and one mile per dollar spent on all other purchases. The points or miles earned are accumulated in the cardholder's account, and you can redeem them for future travel use.
Super users try to time travel rewards promotions credit cards offer to maximize their travel points. For those new to the process, many credit card companies provide heavily incentivized rewards packages to new cardholders. By signing up for a new card, you can amass points quickly. For example, the United℠ Explorer Card might offer 50,000 bonus miles for new card signups.
You Might Also Like:
Take the Next Step:
on Upstart Website
Upstart Personal Loans
Smart Money Rating: 5/5
Best For: Fast Online Loans
Loans From: $1,000 – $50,000 (Terms Apply)
Bonus Offer: Checking Interest Rate Won’t Affect Your Credit Score
How to Redeem Your Travel Rewards
Travel rewards can be redeemed in several ways, depending on what credit card you use and your personal preferences. Before redeeming your rewards, you will want to research your redemption options. Here are some standard redemption methods:
- Airline Miles or Hotel Points: Points or miles can be transferred to airline frequent flyer programs or hotel loyalty programs to book flights, hotel stays, and other travel-related expenses.
- Travel Portals: Many card issuers operate travel portals where cardholders can book flights, hotels, and rental cars using their accumulated points or miles.
- Statement Credits: Some cards allow cardholders to apply their travel rewards as statement credits towards existing travel expenses.
- Travel Vouchers: Cardholders can often redeem their rewards for travel vouchers that can be used to book flights, hotels, or other travel experiences.
- Merchandise and Gift Cards: Some cards allow cardholders to redeem their rewards for merchandise, gift cards, or even cash back.
Credit Score Requirements
Credit score requirements for travel rewards credit cards vary depending on the specific card and the issuing bank. Cards with higher reward rates or more exclusive benefits typically require higher FICO or VantageScore from applicants.
Most travel rewards cards require good to excellent credit (typically 670 or higher) to qualify. However, some cards may be available to individuals with lower credit scores, although they may have higher interest rates and lower credit limits. (Learn if an 800 Credit Score Is High Enough).
Read Also: Ultimate Guide on How to Increase Your Credit Limit
Take the Next Step:
On Upgrade’s Website
Upgrade Personal Loan
Smart Money Rating: 5/5
Best For: Fast Funding
Loans From: Up to $50,000 (Terms Apply)
5 Steps to Maximize Travel Rewards
Optimizing your travel rewards requires a strategic approach. Here’s how to get the most out of your travel rewards program:
1. Select the Best Card: Choose a credit card that aligns with your travel patterns and spending habits. Consider cards that offer bonus points or miles in the categories where you spend the most, such as airlines, hotels, or restaurants.
2. Use Your Card Regularly: Consistent use of your travel rewards card is a critical element to maximizing your card's rewards. Try to use it for everyday purchases, like monthly groceries, dining out, or gassing up your car (in addition to travel expenses). If you use your credit card frequently, make sure you choose an effective budgeting system.
3. Enroll in Extra Earnings: Take advantage of any bonus categories or promotional offers that may increase your rewards earnings. Some cards offer increased rewards for spending in specific categories during limited-time promotions or for meeting certain spending thresholds (e.g., spending a minimum of $500 per month for 3 months to earn an extra 10,000 points).
4. Travel Frequently: The more you travel, the more opportunities you have to utilize your earned rewards. If you own your business or travel frequently for work, make sure to use your credit card to book all travel—flights, rental cars, meals, and other expenses—to accrue points quickly.
5. Plan Ahead: One of the main reasons you might now utilize your rewards is that you don't plan your trip out early enough. Plan your trips around your available rewards and take advantage of any travel perks offered by your card, such as airport lounge access or free checked bags. You can get more for your rewards by choosing flights several months out or having the flexibility to travel at non-peak times.
You Might Also Like:
Pros of Travel Rewards Credit Cards
- Significant Travel Savings: Travel rewards cards can offer substantial savings on travel expenses, such as flights, hotels, and rental cars.
- Exclusive Travel Benefits: Many travel rewards cards offer exclusive travel benefits, such as airport lounge access, free checked bags, and travel insurance. (Read more about 5 Amazing Smart Money Saving Habits).
- Flexibility: Travel rewards can be redeemed for a variety of travel expenses, allowing you to be flexible in how and when you use them.
- Credit Building: Responsible use of a travel rewards card can help to build and maintain a good credit score. (Read about how to boost your credit score quickly).
Take the Next Step:
Member FDIC
Quontic High Yield Savings Account
Smart Money Rating: 5/5
APY: 4.50%
Required Minimum Balance: $100
Cons of Travel Rewards Credit Cards
- Complex Rewards Programs: Some travel rewards programs can be complex and challenging to understand. One key ratio to know is the conversion ratio between points and dollars. The higher this ratio, the more you get per dollar spent with your card.
- Limited Redemption Options: The availability of award seats and hotel rooms can be limited, especially during peak travel seasons. Check reward program blackout dates for flights or hotel bookings.
- Potential for Overspending: The convenience of using a credit card can lead to hyper or overspending, which can negate the value of any earned rewards. (Read more about 5 Ways to Curb Overspending).
- Interest Charges: Carrying a credit card balance can result in significant interest charges, quickly exceeding the value of any earned rewards. Each credit card has different Annual Percentage Rates to consider.
Smart Summary
Travel reward credit cards allow users to earn reward program points and miles. By carefully selecting a card that aligns with their travel preferences and utilizing their rewards effectively, cardholders can maximize the value of their travel rewards and enjoy more affordable and rewarding travel experiences. However, using travel rewards credit cards responsibly and carrying a balance to avoid accruing high-interest charges that can negate the value of any earned rewards is crucial. (Read more about the 7 Types of Credit Cards).
(1) U.S. Travel Association. The Latest Travel Data. Last Accessed February 5, 2025.
