Choosing a travel credit card takes some considerations. 🤔 But let’s begin with why am I even considering applying for a new credit card? Well, imagine you could earn free flights and hotels just by using your credit card for everyday purchases you already make! This is the basic idea behind using travel credit cards for “travel hacking”. Let me break it down further:

• Regular credit cards: You earn points for using the card, but usually just one point per dollar spent.
• Travel credit cards: These cards reward you with more points or miles specifically for travel-related purchases like flights and hotels. Sometimes they even give bonus points for other categories like groceries or gas. They often come with a high sign on bonus 75,000 to 100,000 points. They also offer travel perks airport lounge access, travel insurance, no foreign transaction fee, airport lounge access, reimbursement for TSA PreCheck or Global Entry application fees plus free night stays at different hotels!

Benefits of using a travel credit card:

• Free flights and hotels: By accumulating points/miles, you can redeem them for free or discounted flights and hotels, saving you a significant amount on travel costs.
• Travel perks: Many travel cards offer additional benefits like airport lounge access, travel insurance, or statement credits towards travel expenses.
• Rewards work like cash-back: You can often use points/miles for other travel-related purchases or even cash them in for statement credits, although this is not often recommended due to the low value offered.

Here’s the key for someone new to the idea:

• Choose a card based on your travel habits: If you travel occasionally, a card with a lower annual fee and decent points might be suitable. For frequent travelers, a premium card with a higher annual fee might offer more points and valuable travel perks, making the fee worthwhile.
• Use the card strategically: Focus on using the card for your regular purchases to maximize points, but always pay your balance in full each month to avoid interest charges. This is a non negotiable. Treating these credit cards like a debit card is imperative to the strategy.

Remember: Travel hacking isn’t about getting something for free without paying. It is about using these cards for your regular, normal expenses (nothing outside your budget just to earn the points). It’s about using a smart strategy to earn rewards that can significantly reduce your travel expenses.

Factors to Consider When Choosing a Travel Credit Card:

• Sign-on bonus: Consider the points or miles offered and the spending requirement to qualify.
• Rewards program: Choose a program that aligns with your travel goals and preferred redemption options (e.g., booking flights, hotels, transferring to travel partners).
• Earning rates: Compare points/miles earned on different spending categories, especially travel and dining.
• Travel benefits: Look for airport lounge access, travel statement credits, travel insurance coverage, and other perks that suit your needs.
• Annual fee: Weigh the annual fee against the value of the rewards and benefits you’ll receive.
• Foreign transaction fees: Choose a card with no foreign transaction fees if you travel internationally frequently.
• Your creditworthiness: Different cards have varying credit score requirements, so consider your creditworthiness before applying.

Below are three of my most recommended options for best travel credit card to consider when looking to travel on points and miles:

Travel Credit Cards I Recommend:

1. Chase Sapphire Preferred® Card:

-Offers a generous sign-up bonus (currently 60,000 points after spending $4,000 on purchases in the first 3 months from account opening).

-Earns points on travel and dining purchases, with additional points for booking through Chase Ultimate Rewards travel portal.

Provides valuable travel benefits like airport lounge access, statement credits for travel purchases, and travel insurance coverage.

Consider this card if: You value a good balance of points earning, travel benefits, and a reasonable annual fee ($95).

2. Capital One Venture X Rewards Credit Card:

Offers a high annual fee ($395) but justifies it with airport lounge access, travel statement credits, and various travel insurance coverages.

Earns unlimited miles on all purchases, transferable to various travel partners for maximum flexibility.

No foreign transaction fees, making it ideal for international travel.

Consider this card if: You prioritize flexibility in using points/miles, travel frequently internationally, and are comfortable with a higher annual fee.

3. Citi Premier® Card:

Offers a reasonable annual fee ($95) and a welcome bonus (currently 80,000 points after you spend $4,000 on purchases in the first 3 months from account opening).

Earns points on travel and dining purchases, with additional points for booking through Citi ThankYou travel portal.

Includes airport lounge access through select partners and travel insurance coverage.

Consider this card if: You want a balanced card with good points earning, travel benefits, a moderate annual fee, and are open to using the Citi ThankYou travel portal.

Remember: Don’t just focus on the “best” cards. Research and compare different options based on your individual needs and travel goals. Utilize resources like NerdWallet or The Points Guy for in-depth reviews and comparisons of various travel credit cards.

Remember if your goal is to actually travel do not get too caught up in which card to get. Pick one that works well and start earning those sign on points. We do the research so you can do the travel!