Why You Should Have a Travel Credit Card and How to Choose the Right One

Traveling is one of the most rewarding experiences, offering a chance to explore new places, meet people from diverse cultures, and create unforgettable memories. However, the costs associated with travel—flights, hotels, meals, and more—can add up quickly. This is why you should always have a travel credit card. These cards not only help you manage your travel expenses but also reward you for spending, making your journeys more affordable and enjoyable.

Travel credit cards are designed to provide significant benefits for frequent travelers and even for those who only take occasional vacations. They offer perks like earning points or miles on purchases, which can later be redeemed for free flights, hotel stays, or travel credits. Beyond that, many travel credit cards enhance your travel experience with benefits like priority boarding, access to airport lounges, and travel insurance.

What makes travel credit cards stand out is their ability to turn everyday expenses into rewards. You don’t need to spend exclusively on travel to reap the benefits. Many travel cards offer bonus rewards for dining, groceries, and gas purchases, helping you rack up points or miles with your regular spending. For anyone who dreams of upgrading their travel experience or saving money on their next vacation, these cards are a game-changer.

Additionally, travel credit cards are often equipped with protections that can save you money and provide peace of mind. From trip cancellation insurance to rental car coverage and lost luggage reimbursement, these cards help you navigate unexpected travel hiccups with ease. For international travelers, the absence of foreign transaction fees is another big advantage, allowing you to spend freely without worrying about extra charges.

Whether you’re a seasoned jet-setter or planning your first big trip, having a travel credit card in your wallet can open doors to savings, rewards, and premium experiences. In this guide, we’ll delve into the reasons why you should have a travel credit card, what factors to consider before choosing one, and some top options to get you started. By the end of this blog, you’ll understand why a travel card is more than just a payment method—it’s a passport to a more rewarding travel experience.

Why You Should Have a Travel Credit Card

1. Earn Rewards on Travel and Everyday Spending

Most travel credit cards let you earn points or miles for every dollar you spend. Many offer higher rewards rates for travel-related purchases like flights, hotels, and car rentals, as well as on everyday spending like dining or groceries. Over time, these rewards can significantly offset the cost of your trips.

2. Access to Travel Perks

Travel credit cards often come with premium perks like free checked bags, priority boarding, and airport lounge access. These benefits make your travel experience more comfortable and can save you hundreds of dollars annually.

3. Save on Foreign Transaction Fees

If you travel internationally, foreign transaction fees can add up quickly. Many travel credit cards waive these fees, saving you 1%-3% on every purchase abroad.

4. Redeem Rewards for Travel

Travel credit cards allow you to redeem your points or miles for flights, hotel stays, car rentals, and more. Some cards even let you transfer points to airline or hotel loyalty programs for added flexibility.

5. Sign-Up Bonuses

Most travel credit cards offer lucrative sign-up bonuses, often worth hundreds of dollars in travel rewards, if you meet the spending requirement within the first few months.

6. Travel Protections

Travel credit cards frequently include built-in protections like trip cancellation insurance, rental car coverage, and lost luggage reimbursement. These features provide peace of mind during your trips.

Things to Consider When Choosing a Travel Credit Card

1. Annual Fees

Many travel credit cards come with annual fees, which can range from $95 to $695 or more. Consider whether the card’s benefits and rewards outweigh the cost of the fee.

2. Rewards Structure

Some cards offer flat-rate rewards on all purchases, while others provide higher rewards for specific categories like travel, dining, or groceries. Choose a card that aligns with your spending habits.

3. Sign-Up Bonuses

Look for a card with a generous sign-up bonus, but ensure you can meet the spending requirement without overspending.

4. Redemption Options

Flexibility is key. Some cards allow you to redeem points through their travel portals or transfer them to airline and hotel loyalty programs, while others are more restrictive.

5. Foreign Transaction Fees

If you plan to travel internationally, choose a card that doesn’t charge foreign transaction fees.

6. Travel Perks

Consider the card’s additional benefits, such as lounge access, TSA PreCheck/Global Entry credits, or free checked bags. These perks can add significant value.

7. Credit Score Requirements

Travel credit cards often require a good to excellent credit score (670 or higher). Check your score before applying to increase your chances of approval.

8. Spending Habits

Evaluate your spending habits to ensure the card aligns with your lifestyle. For instance, if you don’t spend heavily on travel, a card with everyday rewards categories may be more beneficial.

5 Great Travel Credit Cards

1. Chase Sapphire Preferred® Card

• Sign-Up Bonus: Earn 60,000 points after spending $4,000 in the first three months.
• Rewards: 5X points on travel through Chase Ultimate Rewards®, 2X on other travel purchases, and 3X on dining.
• Annual Fee: $95.
• Perks: Trip cancellation insurance, no foreign transaction fees, and points transferable to travel partners.
• Why It’s Great: This card offers flexibility and excellent rewards for both travel and dining, making it ideal for frequent travelers.

2. Capital One Venture Rewards Credit Card

• Sign-Up Bonus: Earn 75,000 miles after spending $4,000 in the first three months.
• Rewards: 2X miles on all purchases.
• Annual Fee: $95.
• Perks: No foreign transaction fees, Global Entry/TSA PreCheck credit, and miles redeemable for travel expenses or transfers to travel partners.
• Why It’s Great: A straightforward card with flat-rate rewards, perfect for travelers who want simplicity.

3. American Express® Gold Card

• Sign-Up Bonus: Earn 60,000 Membership Rewards® points after spending $4,000 in the first six months.
• Rewards: 4X points at restaurants, 3X on flights booked directly with airlines, and 1X on other purchases.
• Annual Fee: $250.
• Perks: No foreign transaction fees, dining credits, and access to Amex Offers.
• Why It’s Great: A premium card for foodies and travelers, with excellent rewards for dining and travel.

4. Citi Strata Premier® Card

• Sign-Up Bonus: Earn 60,000 points after spending $4,000 in the first three months.
• Rewards: 3X points on air travel, hotels, dining, supermarkets, and gas stations.
• Annual Fee: $95.
• Perks: Points transferable to airline partners and no foreign transaction fees.
• Why It’s Great: A well-rounded card with diverse bonus categories for everyday spending and travel.

5. The Platinum Card® from American Express

• Sign-Up Bonus: Earn 100,000 Membership Rewards® points after spending $6,000 in the first six months.
• Rewards: 5X points on flights and hotels booked through AmexTravel.com, 1X on other purchases.
• Annual Fee: $695.
• Perks: Extensive travel perks, including airport lounge access, Global Entry/TSA PreCheck credit, and hotel status upgrades.
• Why It’s Great: A luxury card for frequent travelers who value premium benefits.

Final Thoughts On Why You Should Have A Travel Credit Card

A travel credit card is more than just a way to pay for your trips—it’s a financial tool that can enhance your travel experience, save you money, and provide valuable rewards. Whether you’re a frequent flyer or an occasional traveler, the right travel credit card can turn your everyday spending into opportunities for free flights, hotel stays, or even luxurious perks like airport lounge access. But choosing the right card requires careful consideration of your travel habits, financial goals, and spending patterns.

One of the biggest benefits of travel credit cards is the ability to earn rewards on both travel and non-travel purchases. Cards like the Chase Sapphire Preferred® and Capital One Venture Rewards Credit Card make it easy to accumulate points or miles on everyday expenses like groceries, dining, and gas. Over time, these rewards can add up to significant savings, allowing you to offset the cost of your next vacation or business trip. Additionally, travel credit cards often offer lucrative sign-up bonuses, which can kickstart your rewards balance and make your first few trips even more affordable.

Another compelling reason to have a travel credit card is the access it provides to exclusive travel perks. From free checked bags and priority boarding to hotel room upgrades and airport lounge access, these benefits can elevate your travel experience and reduce stress. For example, cards like the American Express® Gold Card offer dining credits and enhanced rewards for dining and travel purchases, while premium options like the Platinum Card® from American Express provide luxury perks, including complimentary lounge access and elite hotel status.

If you’re a frequent international traveler, a travel credit card can also save you money by eliminating foreign transaction fees. Cards like the Capital One Venture Rewards Credit Card and the Citi Strata Premier® Card waive these fees, ensuring you won’t be charged extra when making purchases abroad. This feature alone can save you hundreds of dollars over time, especially if you travel to multiple countries or make large purchases internationally.

Travel credit cards also offer peace of mind with built-in protections. Many include trip cancellation or interruption insurance, rental car coverage, and lost luggage reimbursement. These benefits can be invaluable when plans go awry, helping you recover costs and minimize the financial impact of unexpected events. With these protections, you can travel with confidence, knowing that your card has you covered in case of emergencies.

While travel credit cards offer numerous advantages, it’s essential to choose the right card for your specific needs. Consider factors like annual fees, rewards structures, and redemption options to ensure you’re getting the most value. If you’re a frequent traveler, a card with an annual fee might be worth the cost if it includes perks like lounge access or travel credits. On the other hand, if you travel less frequently, a no-annual-fee card like the Blue Cash Everyday® Card from American Express might be a better fit.

Using your travel credit card responsibly is just as important as selecting the right one. To maximize rewards and avoid debt, pay your balance in full each month, use your card for everyday purchases in bonus categories, and take advantage of sign-up bonuses and travel perks. By managing your card wisely, you can enjoy the benefits without incurring unnecessary costs.

Ultimately, a travel credit card is an investment in a better travel experience. It’s a way to make your journeys more affordable, comfortable, and rewarding, whether you’re exploring exotic destinations, visiting family, or traveling for work. With options like the Chase Sapphire Preferred® Card, Capital One Venture Rewards Credit Card, and American Express® Gold Card, there’s a travel credit card for every type of traveler.

Start by evaluating your travel goals and spending habits, then choose a card that aligns with your lifestyle. With the right travel credit card, every purchase brings you closer to your next adventure. Make your travels more rewarding today—apply for a travel credit card and unlock a world of possibilities!