Maximize Your Travel Rewards and Pay No Foreign Transaction Fees
If you’re interested in travel—and trying to stretch the dollars you spend on trips—you may be wondering whether you’re better off with an airline credit card or an all-purpose travel rewards credit card. Though they can both get you back in the window seat (and often help you avoid foreign transaction fees), there are some key differences to consider when making your decision.
One airline vs. multiple options
The first thing to think about is how you travel. If you usually fly with the same carrier, an airline credit card would earn you miles to use with your favorite airline and its partners. On the other hand, a travel rewards card gives you the flexibility to use points or miles on a range of different airlines. This can help make flight schedules more accommodating and get you in and out of more airports.
Earnings on travel vs. earning all purchases
Next, look at what you charge to your credit card. If you travel frequently, most airline credit cards offer a higher rewards earn rate for travel spending, like booking a ticket or in-flight purchases. But if more of your charges come from everyday items (like restaurants, gas, groceries, the occasional pumpkin latte), a travel rewards card might earn you more points or miles with a flat rate of rewards across all categories.
Free checked bags vs. other travel rewards
Finally, figure out which other perks matter the most to you. With airline credit cards, these extras are usually focused on the part of your trip that gets you from point A to point B, like free checked bags, priority boarding and seat upgrades. Some even offer lounge access. The points or miles you earn with a travel rewards card can often be used more broadly to upgrade the other aspects of your trip, such as hotels, rental cars and taxis. Because travel cards offer the flexibility of more choices, you can book what you want, exactly when you want it.
Either way, you win
When it comes to an airline credit card vs. a travel rewards card, it’s up to you to choose the option that works for you. Both cards have distinct advantages, so you should pick the program that best matches your travel style.
Frequent travelers will love the perks and abilities that come with airline cards like seat upgrades, priority boarding and free checked bags. But for those of us who don’t want to be tied to any one particular airline carrier and want the cheapest fare would be better of using all-purpose travel credit cards like Capital One Venture or Chase Sapphire Preferred.
Best All-Purpose Travel Cards
- Capital One Venture : Best for Most People – 2X Flat Rate Rewards on Every Purchase
- Chase Sapphire Preferred: Best for Frequent Flyers – Flexible Redemption Options
- Chase Sapphire Reserve: Best for Premium Perks
- Wells Fargo Propel American Express : 3X Points for Travel Including Flights, Hotels, Gas, & Car Rentals. No Annual Fee
- Citi Thank You Premier : 3X Points on Travel, Including Gas Stations
Best Airline Cards
- Citi AAdvantage Platinum Select World Elite Mastercard: Best for American Flyers
- Gold Delta SkyMiles: Best for Delta Flyers
- United Explorer : Best for United Flyers
All-Purpose Travel Credit Cards
All-purpose travel credit cards are not tied to any particular travel brand and offer the flexibility to redeem through their own travel portals or transfer points to partners to redeem for cruises, hotel packages, rental cars and cruises, among other options. Purchases typically carry a flat reward rate, but points can be redeemed from a broad selection of travel brands and sometimes for nontravel rewards.
Benefits: Flexibility and value
All-purpose travel cards are inherently more flexible than airline or hotel credit cards, which is a big plus for travelers who aren’t loyal to any particular brand or who travel to destinations with fewer options for hotels or airports. Cardholders can worry less about blackout dates or travel restrictions because they’re not tied to a sole provider.
Points can sometimes be transferred to other loyalty programs. However, points don’t transfer equally with all partners and the exchange rates do vary; in some cases you get get the best redemption value by transferring points to partners. It’s important to review your card’s reward charts to better calculate the value of transferring your points with partners.
The ability to also redeem general travel card points toward statement credits or cash back makes this type of card particularly attractive to users who prioritize flexibility.
Chase Sapphire Preferred
Current Bonus: 50,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. That’s $625 in travel when you redeem through Chase Ultimate Rewards. You can also earn another 5,000 bonus points by adding an authorized user and making a purchase within the first three months.
Standout Benefits: Earn 2 points per dollar on all travel purchases and on dining at restaurants and 1 point per dollar on everything else. Transfer points to 13 different travel partners. Primary auto rental insurance, trip cancellation coverage and no foreign transaction fees.
Annual Fee: $95 (waived the first year)
Why it’s worth it: It doesn’t offer the bells and the whistles of the much more expensive Chase Sapphire Reserve card, but the Chase Sapphire Preferred is still a great pick for earning bonus points on travel and dining, and for enjoying some solid travel protections in the process. Whether you simply don’t want to spend $450 a year to get the Sapphire Reserve or if your credit score currently isn’t high enough to qualify for that premium card, the Sapphire Preferred remains a very solid option — and the $95 annual fee is even waived for the first year.
Current Bonus: Earn 50,000 Ultimate Rewards points after you spend $4,000 in the first three months.
Standout Benefits: Earn 3 points per dollar on travel and dining at restaurants and 1 point per dollar on everything else. You can redeem points directly through the Ultimate Rewards travel portal at a rate of 1.5 cents apiece. $300 annual travel credit, Priority Pass Select lounge access, a Global Entry/TSA PreCheck application fee credit, no foreign transaction fees, trip cancellation coverage and primary car rental insurance.
Annual Fee: $450 (The annual fee may be $450, but you get $300 back each year — that means the fee is effectively just $150)
Why it’s worth it: The Chase Sapphire Reserve won our battle of the premium credit cards for a reason: It offers a stellar selection of perks, from a $300 annual travel credit that can be used toward a wide variety of purchases, to the ability to redeem points for 1.5 cents apiecethrough the Chase travel portal. Best of all, if you have this card, the Ultimate Rewards points you earn on other Chase cards can also be redeemed at the 1.5-cent rate. You also get an impressive 3x points on travel and dining purchases, which equates to a 6.3% return based on my valuations. This card is a prime example of benefits more than making up for a steep annual fee.
Capital One Venture Rewards Credit Card
Current Bonus: Earn 50,000 miles after you spend $3,000 on purchases within the first 3 months.
Standout Benefits: Earn 2 miles per dollar on all purchases, and 10 miles per dollar on hotel rooms when booked at Hotels.com through the dedicated link and paid for with the card. Get a Global Entry/TSA PreCheck application fee credit every four years. The card also has no foreign transaction fees.
Annual Fee: $95 (waived the first year)
Why it’s worth it: The Capital One Venture Rewards card has always been a popular choice for folks who prefer to keep things simple and don’t want to chase award availability. The card’s “Purchase Eraser” feature allows customers to use their Venture Rewards miles to offset the cost of any travel purchases made on their card in the previous 90 days at a rate of 1 cent per mile. But the addition of Capital One’s partnership with Hotels.com has made this card a true standout when it comes to hotels, since you can effectively earn 20% back on all your hotel stays by stacking the Hotels.com Rewards program with the 10x miles earned on those stays with the Venture Rewards when booked and paid through Hotels.com/venture.
Wells Fargo Propel American Express Card
Current Bonus: Earn 30,000 points after you spend $3,000 on purchases within the first 3 months.
Standout Benefits: Earn 3 points per dollar on a broad array of categories, including travel, transit, eating out and ordering in, gas stations and select streaming services. The card also comes with cell phone protection, which covers the cost of replacing your phone up to $600 if it’s stolen or damaged when you pay your cell phone bill with the Propel Amex. The card has no foreign transaction fees.
Annual Fee: $0
Why it’s worth it: The Wells Fargo Propel Amex was recently revamped by Wells Fargo, and the issuer has added enough new features to make this no-annual-fee card worth a good long look. The Go Far Rewards points you earn with this card can easily be redeemed for cash back at a flat rate of 1 cent per point, which puts the Propel Amex at the top of the list when it comes to welcome bonus value on cards with no annual fee. Also included in the card’s 3x bonus categories is select streaming services, a category you simply won’t find on many other credit cards. But the real secret of the Propel Amex is the one-two punch it delivers when you pair it with the Wells Fargo Visa Signature Card. Combining the points from both cards increases their value to 1.5 cents apiece when redeemed for airfare. That pushes the 3x categories to a return of 4.5 cents per dollar, making the Propel Amex one of the best cards on the market in its bonus categories.
Citi ThankYou Premier Card
Current Bonus: Earn 60,000 ThankYou points after you spend $4,000 in the first three months.
Standout Benefits: Earn 3 points per dollar on travel including gas stations, 2 points per dollar on dining out and entertainment and 1 point per dollar on all other purchases. Transfer your points to 15 airline programs, or book flights through the Citi travel portal at a rate of 1.25 cents per point. There are no foreign transaction fees.
Annual Fee: $95 (waived the first year)
Why it’s worth it: Citi ThankYou Rewards isn’t the most impressive loyalty program when it comes to transfer partners, especially since it no longer has a hotel partner after Hilton moved to an exclusive relationship with Amex. Still, programs like Avianca LifeMiles and Flying Blue can be great destinations for your points when you’re looking to book flight awards. The ThankYou Premier offers a solid return on travel — and unlike other cards with bonus rewards for travel purchases, it includes gas stations in its 3x category. Plus, you get a full year to test out the card before you have to pay the annual fee.
Airline Credit Cards
Airlines partner with credit card companies to offer cobranded travel rewards credit cards that earn the most miles when used for flights on that particular airline and spending with affiliate partners, typically double or triple the miles. Cardholders still earn miles for day-to-day purchases (with a few exceptions like cash advances and purchases of prepaid cards), only at a lower rate, typically one point per dollar. You can redeem earned miles with that airline or its affiliates.
Benefits: Perks and spending rewards
Airline cards can deliver a cheaper, more comfortable flying experience. Benefits often include free or reduced baggage fees, priority boarding, complimentary or discounted access to the airport lounge and discounts on in-flight purchases.
But airline cards can also save you money by offering sizable sign-up bonuses, waived foreign transaction fees and double or triple miles earned on airline and affiliate purchases.
Citi AAdvantage Platinum Select World Elite Mastercard
Current Bonus: Earn 50,000 miles after you spend $2,500 in the first three months.
Standout Benefits: Earn 2 miles per dollar on American Airlines purchases and at restaurants and gas stations and 1 mile per dollar on everything else. Earn a $100 flight discount after spending $20,000 in a cardmember year and then renewing. Get a free checked bag on domestic AA itineraries and enjoy preferred boarding.
Annual Fee: $99 (waived the first year)
Why it’s worth it: The Citi AAdvantage Platinum Select is the latest airline co-branded personal credit card to start offering bonus miles on purchases beyond airfare. Now, in addition to earning 2x miles on spending with American Airlines, with this card you’ll get 2x miles at restaurants and gas stations. It’s not the most rewarding card for these spending categories, but if earning American miles is your top priority and you use this card for most spending, this is welcome news, as is the just-added ability to earn a $100 flight discount after you spend $20,000 on the card in a membership year. Another reason to sign up now: The card’s offering an elevated sign-up bonus of 50,000 miles — 10,000 miles more than the previous offer. The card’s annual fee did increase from $95 to $99, but that’s easy to swallow especially given the favorable changes and elevated sign-up offer.
United Explorer Card
Current Bonus: Earn 40,000 miles after spending $2,000 in the first three months
Standout Benefits: You’ll get 2 miles per dollar spent on tickets purchased from United, and 1 mile per dollar on everything else. As a cardholder you’ll have access to enhanced award availability and will enjoy priority boarding and a free checked bag for you and one companion on the same reservation. Plus, get two United Club passes each year. No foreign transaction fees.
Annual Fee: $95 (currently waived the first year)
Why it’s worth it: Just as the Citi / AAdvantage cards make sense if you frequently travel on American, this co-branded option can make your life easier if you often fly with United. This United card is currently waiving the annual fee for the first year, so now could be an ideal time to add it to your wallet (though we have seen higher sign-up offers, without a waived fee). One of the most appealing benefits is the extra United award seat availabilityyou get access to, letting you book seats that non-cardholders can’t. Another solid perk is the ability to waive the Premier-Qualifying Dollar (PQD) requirement for United elite status (excluding Premier 1K) when you spend $25,000 on the card (or across multiple United cards) in a calendar year.
Strategies to Maximize Travel Rewards
Pick the right first travel card.
When you’re first starting out with travel cards, select one with a general miles program that gives you the flexibility to earn rewards for all spending and redeem with the largest variety of brands. Unless you spend large amounts on travel expenses with a particular brand, airline and hotel cards offer less flexibility and savings.
Combine an all-purpose travel card with a cobranded or loyalty card.
Used in tandem with an all-purpose travel card, an airline or hotel card makes sense for frequent travelers who are comfortable committing to one particular travel brand. This combination allows you to use the cobranded card to earn bonus points on the cobranded airline/hotel spending and use the all-purpose travel card to still earn bonus points in non-travel spending categories.