Travel credit cards allow you to earn rewards points and miles on your spending that can be redeemed for free flights, hotel stays, and other travel perks. Choosing the right card for your needs and travel habits can help you get the most value from your rewards.
How Do Travel Rewards Cards Work?
Travel rewards credit cards allow cardholders to earn points or miles on their spending. Most cards offer bonus rewards in certain categories like travel, dining, groceries, etc. The points or miles can then be redeemed for statement credits to cover travel purchases or transferred to airline and hotel loyalty programs to book award travel.
When you redeem through the card issuer’s travel portal, 100 points or miles is usually worth around $1 in travel. However, when transferred to loyalty programs, the redemption value can sometimes be higher.
For example, 100,000 Chase Ultimate Rewards points could get you a roundtrip flight within the U.S. if redeemed through the Chase travel portal. But if transferred to United MileagePlus, the same 100,000 points could get you a roundtrip flight to Europe.
Factors to Consider When Choosing a Travel Card
Here are some key factors to consider when choosing a travel credit card:
Rewards Rates – Cards offer different rewards rates on different categories of spending. Pay attention to categories where you spend the most.
Redemption Value – Understand how much value you can get from the points when redeemed for travel. Transferable points are generally more valuable.
Annual Fee – Make sure perks and rewards offset the annual fee.
Foreign Transaction Fees – These add 3% to charges made abroad. Cards with no foreign fees are better for international travelers.
Travel Perks – Perks like lounge access, credits for Global Entry, rental car insurance, etc. add value.
Sign-up Bonus – Lucrative one-time bonuses can make a big difference, especially for big spenders.
Card Network – Visa and Mastercard have wider acceptance than American Express and Discover.
The Best Travel Rewards Credit Cards of 2023
Based on rewards, perks, fees, and other features, here are the top travel credit cards for 2023:
1. Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card offers a great balance of rewards value, perks, and annual fee.
Rewards
- 5x points on all travel booked through Chase Ultimate Rewards
- 3x points on dining, select streaming, and online grocery purchases
- 2x points on other travel
- 1x point per dollar on other purchases
Perks
- $50 annual hotel credit
- 25% more redemption value when points used for travel through Chase
- Trip cancellation/interruption insurance
- Car rental collision damage waiver
Annual Fee: $95
Sign-up Bonus: 60,000 bonus points after spending $4,000 in first 3 months (worth $750 in travel redemptions)
With valuable points, a generous sign-up bonus, and useful perks, this is one of the best starter travel cards out there.
2. Chase Sapphire Reserve Card
The premium Sapphire Reserve offers higher rewards rates and more luxury benefits for frequent travelers.
Rewards
- 10x points on hotels and car rentals booked through Chase
- 5x points on flights booked through Chase
- 3x points on other travel and dining
- 1x points per dollar on other purchases
Perks
- $300 annual travel credit
- Priority Pass airport lounge access
- Global Entry/TSA PreCheck application fee credit
- 50% more redemption value when points used for travel through Chase
Annual Fee: $550
Sign-up Bonus: 60,000 bonus points after spending $4,000 in first 3 months (worth $900 in travel redemptions)
With valuable redemptions and luxury perks, the Sapphire Reserve is a top pick for frequent travelers who can justify the $550 annual fee.
3. Capital One Venture X Rewards Card
Offering high rewards rates and premium perks, the Venture X is a reasonably-priced premium card for travelers who want luxury without overly high annual fees.
Rewards
- 10x miles on hotels and rental cars booked through Capital One Travel
- 5x miles on flights booked through Capital One Travel
- 2x miles per dollar on other purchases
Perks
- $300 annual Capital One Travel credit
- Airport lounge access
- Up to $100 credit for Global Entry/TSA PreCheck
- Anniversary bonus miles
Annual Fee: $395
Sign-up Bonus: 75,000 bonus miles after spending $4,000 in first 3 months (worth $750 in travel)
With a high rewards ceiling and reasonably-priced annual fee compared to other premium cards, Venture X is a great pick for frequent travelers.
4. American Express Platinum Card
The Amex Platinum card offers premium travel benefits and access to Amex’s Membership Rewards program.
Rewards
- 5x points on flights booked with airlines or AmexTravel.com (up to $500k in purchases per year)
- 5x points on prepaid hotels booked with Amex Travel
- 1x points per dollar on other purchases
Perks
- Up to $200 in airline fee credits each year
- Up to $200 in Uber Cash annually
- Up to $240 annual digital entertainment credits
- Complimentary Gold elite status with Hilton and Marriott
- Airport lounge access through Priority Pass and Centurion Lounges
- Fine Hotels and Resorts program benefits
Annual Fee: $695
Sign-up Bonus: 80,000 Membership Rewards points after spending $6,000 in first 6 months
With an unrivaled collection of high-end travel perks and airport lounge access, this card offers exceptional value for luxury travelers and frequent flyers.
5. Capital One Venture Rewards Card
Offering simple flat-rate rewards on all purchases, Venture Rewards is easy to maximize.
Rewards
- 2x miles per dollar on all eligible purchases
Perks
- Global Entry / TSA PreCheck application fee credit
- Extra bonus miles on hotels and rental cars booked through Capital One Travel
- No foreign transaction fees
Annual Fee: $95
Sign-up Bonus: 75,000 bonus miles after spending $4,000 in first 3 months (worth $750 in travel)
With no need to track bonus categories and easy redemptions, this is one of the most straightforward travel cards to earn and use rewards with.
Maximizing the Value of Travel Credit Cards
To get the most out of your travel credit card:
Use it for everyday purchases: Using your card for things like groceries, gas, utilities bills, etc. makes it easier to reach minimum spending requirements for sign-up bonuses faster.
Take advantage of bonus categories: Try putting all travel, dining, or other bonus category spending on your travel rewards card.
Pay your balance in full each month: This avoids interest charges which can negate the value of rewards.
Transfer points to loyalty programs: Compare redemption values and transfer points/miles to airline and hotel partners to maximize their value.
Use annual travel credits: Use credits offered by the card proactively before they expire.
Leverage card perks and benefits: Take advantage of every perk the card offers to offset annual fees.
Downgrade after getting sign-up bonus: If an annual fee is no longer worth it long-term, call the issuer to downgrade your card to avoid closing the account.
To Recap
Credit cards with generous travel rewards programs offer useful perks, and valuable points and miles through sign-up bonuses and ongoing spending bonuses. Choosing the right card and learning to maximize redemption values allows you to take trips with fewer out-of-pocket costs.
Just be sure to always pay statement balances in full each month and follow other smart credit card usage habits. Used wisely, the top travel rewards credit cards provide exceptional ongoing value.
Frequently Asked Questions About Travel Rewards Cards
How many points do I need for a free flight?
The exact number needed will vary, but expect around:
- Domestic economy: 25,000 – 50,000 miles
- One-way to Europe/Asia in economy: Around 60,000 miles
- Business class to Europe/Asia: ~ 120,000+ miles
- First/business to Australia/S.America: ~ 80-150k+ miles
When transferring points to frequent flyer programs, you can sometimes book business class flights to Europe, Asia or South America for as little as ~80-90k miles each way.
Are all travel points and miles created equal in value?
Not necessarily. With some programs like Chase Ultimate Rewards and Amex Membership rewards, points can be quite valuable when transferred to travel partners.
As an estimate based on point valuations:
- Chase UR points: ~1.8 cents per point
- Amex MR points: ~1.5 cents
- Capital One miles: ~1 cent
- Citi ThankYou points: ~1 cent
And fixed-value cards often peg points at ~1 cent each. But redemption values vary depending on how and where points are redeemed, so check valuations often.
Should I pay an annual fee? What should I look for?
Paying an annual fee only makes sense if you will use the card enough to justify the fees based on total rewards earned minus fees paid. As a rule of thumb, look for:
- Lucrative welcome offer bonus
- Strong bonus rewards rates in your top spending categories
- Annual credits and perks that offset the annual fee
- Cards that make it easy to maximize value from your points
How can I use travel rewards as cash?
Most let you redeem rewards for cash back, account statement credits, gift cards or to cover charges on your card. But when redeemed for cash, expect 1 cent per point or mile in most programs.
You’ll get better overall value by redeeming points for award travel instead. Even fixed-value rewards cards allow redemptions for 1.25 to 1.5 cents in value or more when booking travel through their portals.
Can I earn miles just by making everyday purchases?
Yes! Cards that offer flat-rate rewards (1-2 points or miles per dollar spent on all purchases) make it easy to rack up thousands of points per year through everyday spending alone.
Some examples:
- Wells Fargo Propel Card – 1.5x points on all purchases
- Capital One Venture Cards – 2x or 5x miles per dollar spent
- Citi Double Cash – 2% cash back (equal to 2 points)
- Chase Freedom Unlimited – 1.5% cash back
Over the course of a year, you could easily earn enough rewards just through routine daily spending for a free domestic plane ticket or hotel night.
