Part of being a savvy traveler is making sure you have the right credit card to maximize your travel rewards. Of course, there are many travel credit cards you can choose from. So, what is the best piece of plastic for you? Ultimately, it comes down to your travel behavior — and how you spend money traveling with a credit card`s rewards program. “I always recommend having a trade goal in mind before you start earning points and miles,” says Zach Honig, editor-in-chief of The Points Guy. “Those 100,000 Alaska miles you`ve earned with credit card sign-up bonuses won`t do you much good if you don`t plan to fly to Alaska or one of its partners.” If you have an airline reward card in mind, “make sure the miles you earn get you where you need to go,” Honig says. Similarly, if you`re focusing on earning hotel points, “make sure there`s actually a participating property at your intended destination,” Honig advises. International travelers should look for a credit card with no foreign transaction fees, says Bill Hardekopf, credit expert at LowCards.com. What for? Because some cards charge up to 3% fees for transactions abroad, which can effectively void any reward points, dollars, or miles you would earn with the card. Admittedly, a Travel Rewards credit card is not for everyone. For one, rewarded credit cards tend to have higher interest rates than non-reward cards. Therefore, “you shouldn`t have a rewards card unless you pay off the balance every month,” Hardekopf says.
Since some rewards cards have high annual fees (like the Visa Black card, which has a whopping $495 annual fee), it may not make sense for frequent travelers to have one. That being said, many consumers can save a lot of money with a Travel Rewards credit card, as long as you don`t forget to redeem your rewards. (A recent Bankrate.com report found that three out of 10 credit card holders have never cashed out their credit card rewards.) Still, the question arises: What are the best credit cards for travelers? We focus on credit cards with not only generous rewards, but also low fees and convenient redemption options, and we spoke to Honig and Hardekopf for their top recommendations. One of these five cards could be a great addition to your wallet. Chase Sapphire Preferred Card: If you`re looking for a credit card that allows you to earn points that you can easily transfer to hotels and partner airlines, this card is for you, Honig says. If you spend $4,000 on purchases in the first 3 months, you will receive a 50,000-point sign-up bonus that will give you two free domestic flights or multiple nights in a high-end hotel. In addition, the card offers car rental insurance and has no foreign transaction fees. However, the card has an annual fee of $95 after the first year. Barclaycard Arrival Plus World Elite Mastercard: This rewards card has been around for a while, but it`s still one of the best airline mileage reward cards, says Hardekopf. The card has a 40,000-mile sign-up bonus after spending $3,000 on purchases in the first 90 days – enough to redeem a $400 credit for a qualifying travel purchase.
You earn 2 miles on all purchases (a solid payment compared to other mileage reward cards) and earn back 5% of your miles every time you redeem them. The card has no foreign transaction fees, but there is an annual fee of $89 after the first year. Citi ThankYou Premier Card: You earn 3 points on travel for a range of expenses, including gas, flights, hotels, cruises, car rentals, travel agencies, railways, public transportation, tolls, taxis, and parking. (Translation: There are many ways to earn points with this card.) It`s also a great all-round rewards card, Honig says, as you get 2 points for dining and entertainment and 1 point for all other purchases. It has an annual fee of $95 after the first year. United MileagePlus Explorer card: If you`re looking for an airline-specific credit card, it deserves top ratings, Honig says. Similar to the Barclaycard, you earn 40,000 bonus miles after spending $2,000 on purchases in the first 90 days. You earn 2 miles for every dollar spent on tickets purchased from United and 1 mile for every dollar spent on all other purchases. You will also enjoy attractive benefits such as priority boarding and free checked baggage for you and a companion travelling on your booking.