One of the biggest considerations when deciding to travel is if you can afford it. There are other factors of course, but money is usually a sticking point. When you have a family, the travel expenses grow and so finding ways to cut these costs is really important. One way to reduce major trip expenses is to get a travel reward credit card.
The biggest costs you typically have in life are roughly:
- Housing (31%)
- Transportation (16%)
- Food (13%)
While these numbers skew during travel, these categories will often be the highest expenses of your trip as well. A great way to save on travel is to eliminate (or reduce) one or two of these costs by booking your hotel stays or your flights using points.
I want to point out that I’m not an expert on travel reward credit cards, but I am providing information that I have learned through my own experiences. I have also researched current travel card offers and have given my opinion on these offers below.
Some of the links in this post are affiliate links. When clicking on the links and booking travel, I receive a small commission with no extra costs for you. Please note, I only recommend brands I actually use and trust.
You may also like: 7 Simple Ways to Discover Cheap Flights and Save Money
Practical Considerations When Getting a Travel Reward Credit Card
Choose Only One Card to Start
When considering a travel reward credit card or two, you should be practical. Don’t sign up for 2 or 3 new cards at the same time. Why? Because there is a minimum amount you need to spend in the first 3 months of signing up to get the bonuses the credit cards offer. These bonuses are where you get the most out of your cards and save the most money!
If you sign up for more than one you might stretch yourself too far and buy things you don’t necessarily need just to meet that minimum spending limit. If you do that, you aren’t actually saving money.
Use your travel reward credit cards to purchase everyday items you would spend money on anyway, like groceries, gas, dining out etc… If you plan ahead and use your credit card on expected expenses, you should be able to meet these minimum spending amounts naturally.
You may also like: What Are The Safest Countries To Visit And How To Read A Travel Advisory
How to Pick the Best Travel Reward Credit Card
There are many cards out there, so how do you choose which one will be the best for you? When we sign-up for cards, we look at a few different factors.
Maximize the Sign-up Bonus
First, we look at the sign-up bonus. The bigger the sign-up bonus the better. This initial bonus can provide a significant boost to your travel rewards balance.
Annual Fee
Second, we look at the annual fee and weigh the advantages. Credit card annual fees vary from zero dollars to hundreds of dollars. If a card has a high annual fee, it is important that the benefits outweigh the cost. Most premium travel cards with higher annual fees offer valuable perks that can offset the expense. Be sure that those perks are ones that you will take advantage of.
Consider this scenario. Our Venture X card has a high annual fee of $395, but it also has a huge sign-up bonus that would equal a flight credit of approximately $750 dollars. In addition, each year we get a $300 travel credit, a Priority Pass membership, 10,000 points, and car rental insurance. The benefits of this card are much more than the annual fee itself making it a great value for the traveling family!
Plus, you can always cancel the card prior to your next annual renewal to avoid another hefty charge if you are unhappy with the card. You should still be able to use the points that you accrued during that year, but see the terms and conditions of the card to be sure. You might have to use them or transfer them prior to canceling the card.
Earning Rate
Another important factor that we look at is the earning rate. Some cards offer higher rewards for specific categories like travel, dining, or groceries. Choosing a card that aligns with your spending patterns can help you get the most out of your card.
Other Considerations
Some other considerations that you might want to figure in to choosing the right travel reward credit card are:
- Redemption Options: Check the redemption options for your earned rewards. Some cards offer flexibility in how you can use your points, such as transferring to airline or hotel partners, booking travel through the issuer’s portal, or redeeming for statement credits.
- Travel Partnerships: If you have specific airlines or hotel chains you prefer, consider a card that partners with them. This can enhance the value of your rewards when you redeem them with these partners. For instance, if you are a big Southwest Airlines fan, getting one of the Chase credit cards might be best. If you fly KLM/Air France frequently like us, Capital One partners with them.
- Foreign Transaction Fees: If you travel internationally, look for cards with no foreign transaction fees to avoid extra charges on your purchases.
- Travel Insurance and Perks: Check for travel insurance coverage, such as trip cancellation/interruption insurance, rental car insurance, and travel assistance. Additionally, some cards offer perks like airport lounge access, priority boarding, and statement credits for travel-related expenses.
- Credit Score Requirements: Understand the credit score requirements for the card. Premium travel cards may require a higher credit score.
- Introductory APR: If you plan to carry a balance, consider the introductory APR offer. However, it’s generally advisable to pay off your balance in full each month to maximize the value of rewards.
- Cardholder Reviews: Read reviews from other cardholders to get insights into their experiences with the card, including customer service, ease of redemption, and any issues they may have encountered.
You may also like: Easy Step-by-Step Guide: How To Plan The Best Family Trip
Money Saving Scenario
Here’s a hypothetical situation to show you the cost saving possibilities with getting a travel reward credit card. Let’s say you sign up for a Marriott Bonvoy Boundless® Credit Card from Chase and a Capital One Venture. You now have 75,000 miles and 3 free night stays with the bonuses alone.
To get the 75,000 mile bonus from the Capital One Venture, you must spend $4000 in the first 3 months of having the card. That means you also have at minimum 8,000 more bonus miles to work with.
To get the 3 free nights of hotel stays, equalling 150,000 points, from the Marriott Bonvoy Boundless® Credit Card from Chase, you must spend $3,000 in the first 3 months of opening the account. If you are only spending that $3000 on groceries and other necessities, you would have at minimum 9,000 more points.
Now let’s add this up to see your savings if you book your next trip using these points:
83,000 points for flights = $830*
159,000 points for hotels = $840**
Total savings on your next trip would be $1670.
*This is an approximate savings amount based on information provided on Capital One’s website.
**Hotel point values vary depending on the hotel. I used an example of a hotel in Paris, France that was exactly 50,000 bonus points at a rate of 256 Euros per night = 277 Dollars.
You may also like: Hotels vs Vacation Rentals: Which is Better For Your Trip
Best Options for Travel Reward Credit Cards
As mentioned earlier, you really need to consider your own situation for choosing a reward card. We have had a few different credit cards in our lives and each one has had its perks. We did a lot of research when choosing these cards and believe they still are the best available travel reward credit cards. Due to our travel lifestyle, these cards help with reducing our travel costs for flight tickets and hotel stays.
Capital One Venture X
If you are interested in a link to this credit card, send me an email at [email protected] and I’ll send you a direct link!
This is the best travel card that Capital One offers. It does have a high annual fee, but we like the benefits that it offers. We believe they definitely outweigh the costs.
Sign-up Bonus: 75,000 bonus miles
Annual Fee: $395
Earning Rate:
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
- Unlimited 5X miles on flights booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
Other benefits:
- Up to a $100 credit for Global Entry or TSA PreCheck®
- Enjoy unlimited complimentary access for you and two guests to 1,300+ airport lounges, including Capital One Lounges and their Partner Lounge Network.
- Complimentary Priority Pass™ membership
- Elevate every hotel stay from our Premier or Lifestyle Collections with a suite of cardholder benefits like an experience credit, room upgrades, and more
- Receive a $300 annual Capital One Travel credit
- 10,000 miles anniversary bonus
Please see the credit card’s website for terms and conditions.
Marriott Bonvoy Boundless® Credit Card from Chase
If you are interested in a link to this credit card, send me an email at [email protected] and I’ll send you a direct link!
For hotels, we opted for the Marriott Bonvoy Boundless Credit Card from Chase. With so many different partners around the world, we felt confident that we would be able to find a Marriott brand hotel almost everywhere that we travel.
Sign-up Bonus: 3 Free Night Awards totaling 150,000 points.
Annual Fee: $95 dollars
Earning Rate:
- Earn up to 17X total points for every $1 spent at hotels participating in Marriott Bonvoy®
- 6X points with Marriott Bonvoy Boundless® Credit Card
- Earn up to 10X points from Marriott Bonvoy® for being a loyalty member
- 1X points from Marriott Bonvoy® with Silver Elite Status
- Earn 3 points per $1 on the first $6,000 spent in combined purchases each year on gas stations, grocery stores, and dining
- 2X points per $1 spent on other travel purchases
- Earn 2X points per $1 spent on all other purchases
Other benefits:
- Receive 15 Elite Night Credits per calendar year and automatic Silver Elite status each account anniversary year as a cardmember.
- Earn one Elite Night Credit toward Elite status for every $5,000 you spend
- Path to Gold Status when you spend $35,000 on purchases each calendar year
- Enjoy a Free Night Award every year after your account anniversary, valid for a one-night hotel stay at a property with a redemption level up to 35,000 points.
- No foreign transaction fees
- Points don’t expire
- Baggage delay insurance
- Lost luggage reimbursement
- Trip delay reimbursement
- Purchase protection
- Visa concierge service
Marriott Bonvoy has other levels of their card as well. One with no annual fee and another more premium card with other benefits. The link above has all three with their benefits laid out in a very easy to understand way.
Please see the credit card’s website for terms and conditions.
Capital One Venture
If you are interested in a link to this credit card, send me an email at [email protected] and I’ll send you a direct link!
We have had this travel credit card for a long time and it was one of the first ones we got. It has a low annual fee and a very good sign-up bonus which makes it a great beginner travel card.
Sign-up Bonus: 75,000 bonus miles
Annual Fee: $95
Earning Rate:
- Earn unlimited 2 miles per dollar on every purchase
- Earn unlimited 5 miles per dollar on hotels and rental cars booked through Capital One Travel
Other Benefits:
- Up to a $100 credit for Global Entry or TSA PreCheck
- Enjoy two complimentary visits per year to Capital One Lounges or to 100+ locations through their Partner Lounge Network.
- Enrich every hotel stay from our Lifestyle Collection with a suite of cardholder benefits, like a $50 experience credit, room upgrades, and more.
Please see the credit card’s website for terms and conditions.
Chase Sapphire Preferred® Card
If you are interested in a link to this credit card, send me an email at [email protected] and I’ll send you a direct link!
The last travel reward credit card on the list is one we actually don’t have in our wallets. As I was doing research, some of its benefits stood out to me, so I wanted to share it as another option. In my opinion, the Capital One Venture card is very similar and offers a little better sign-up bonus, but I could see the case for the Chase Sapphire Card Preferred®.
Sign-up Bonus: 60,000 bonus miles
Annual Fee: $95
Earning Rate:
- 5x on travel purchased through Chase Ultimate Rewards
- 3x on dining
- 2x on other travel purchases
- 1 point per 1 dollar spent on other purchases
Other Benefits:
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®
- Annual $50 Ultimate Rewards hotel credit
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year
- Foreign transaction fee: 0%
Summary
So to sum all this up, a travel reward credit card is the best way to save money on traveling. You can save so much money on hotels and flights and earn more points as you travel to save up for your next trip. Comparing the sign-up bonuses, benefits and fees of cards will help you choose the right travel reward credit card for you.
Leave a Reply