Travel for work or pleasure will probably be ramping back up before we know it. If you haven’t already, be prepared to receive daily offers – email, flyers and ads with promotions for travel rewards credit cards, each claiming to be better than the others. Are you using one? Are you using the best one? Maybe it’s time to ask yourself whether you’re getting the benefits you deserve.
The Best Travel Rewards Credit Cards for You
Credit cards, and not just travel cards, are divided into two types: business and personal. If you travel for business, it’s tempting to use the individual card you already have. There are good reasons, however, to obtain and use a business card even if your business is a small one such as freelance consulting or selling on Etsy. For starters, your business credit line is separate from your personal credit line. Big purchases on your business credit card won’t run up your utilization rate (i.e., how much of your credit limit you’ve used) and lower your FICO score. A business card establishes credit for your business. Business travel cards often offer air travel perks such as lounge access and free or discounted Wi-Fi access. This can help separate business and personal expenses for record-keeping and taxes. Some card providers provide extra rewards for business purchases such as phone service and office supplies.
Reveal the forgotten perks that only the best credit cards offer, by downloading our free guide:
Travel Rewards Credit Cards for Miles
While you’ve probably heard of people who accumulated miles and got a flight “for nothing,” know that this takes work and spending to accomplish. Consider this: you typically need 7,500 to 20,000 miles to earn a main-cabin domestic flight. Even if your credit card pays double miles on all purchases, you’d have to charge between $8,000 and $40,000 for one trip for a family of four, and you still have to pay taxes and fees for your “free” tickets. Some miles can be accumulated with bonuses – some travel rewards credit cards give up to 25,000 miles for signing up and 50-70,000 bonus miles for spending a specified amount in the first few months. With planned card usage, the trip can be yours but be wary of maintaining a credit card balance. Most travel rewards cards have interest rates around 20 percent so if you don’t pay them off monthly, your interest can wipe out what you might have saved.
Travel Rewards Credit Cards for Points
Some credit cards offer points instead of miles. While miles credit cards are usually issued by an airline and are only good for trips on that airline, points cards come from financial institutions and many can be redeemed at airlines, hotels, and restaurants. In many cases, one point equals one mile, but there are exceptions. You may get less for a point than for a specific carrier's miles.
What is the Best Travel Rewards Credit Card?
The best travel rewards credit card is like the best shoe: it’s the one that fits you. If you travel on a specific airline regularly, that carrier’s card might be best. If you expect to spend a lot of money as soon as the credit card is active, consider one with a bonus for use in the introductory period. If your spending is more spread out over time you'll probably be better off with a sign-up bonus. If you’re not sure how you’ll spend your points or miles, a regular cash-back credit card might be a better choice, even if it’s not specifically for travel. And, most important, if you won’t be able to pay your balance monthly, look for low interest rate credit cards, because rewards can be costly if you’re paying extra money to the credit card company each month.
Peach State offers a variety of VISA® credit cards to fit your life, including cards with travel rewards!
For tips on what features to look for in your search for the best travel rewards credit card, review our “The Best Credit Cards Always Offer These Hidden Benefits" complete guide!"
