How to Choose the Right Travel Credit Card for You

Congratulations on your decision to get a travel credit card! Now comes the tricky part: finding the card that offers the best value for your finances.

With countless options available, it can be challenging to determine which credit card provides the most benefits based on your lifestyle and spending habits. To help you make the best choice, follow these four straightforward steps.

Choose Between a Cobranded or General Travel Rewards Card

To start, think about the type of travel card you want and the rewards you’d like to earn. There are two primary categories: cobranded travel credit cards and general travel rewards credit cards.

Cobranded travel credit cards are linked to specific airlines or hotels and often offer unique travel benefits. For airline cards, this could mean perks such as complimentary checked bags, priority boarding, and discounts on flights. Hotel cards might provide annual hotel credits or automatic elite status at certain properties.

Since cobranded cards allow you to earn rewards within a designated travel program, they are ideal for frequent travelers who remain loyal to brands like United Airlines or Marriott.

General travel rewards credit cards enable you to earn rewards within a versatile credit card rewards program that offers various redemption options. With a general travel card, you may be able to transfer your rewards to multiple airline and hotel loyalty programs or book travel through your card issuer's travel portal. Additionally, you might redeem your rewards for statement credits, gift cards, and select merchandise.

General travel credit cards are generally more suitable for those seeking flexibility in their rewards without being tied to a specific airline or hotel chain.

Discover a valuable welcome bonus

Next, you’ll want to find a card that offers a substantial—yet attainable—welcome bonus, which can often justify your ownership of the card for many years.

Assess your ability to meet the minimum spending requirements associated with a particular offer. For instance, the popular Chase Sapphire Preferred® Card offers 60,000 bonus points after you spend $4,000 on purchases within the first three months of account opening, along with a $300 statement credit for Chase Travel℠ purchases made in the first year. Spending $4,000 in three months isn’t overly demanding, but ensure you can reach that spending threshold if you're thinking about applying for the card.

Rewards cards featuring higher welcome bonuses often come with elevated minimum spending requirements. It’s also wise to monitor card offer histories and potentially capitalize on any enhanced welcome offers for cards that pique your interest.

Maximize bonus categories

If you’ve discovered a card with an attractive sign-up bonus, ensure it includes bonus categories that align with your spending habits, allowing you to benefit from them to the fullest.

If you frequently spend in certain categories like dining, groceries, or travel, seek a card that offers multiple points or miles per dollar spent in those areas. Typically, most travel cards provide bonus rewards for travel-related expenses, with Marriott Bonvoy cards giving extra rewards at Marriott properties, for instance, or more general Chase cards offering bonuses when booking travel through Chase Travel℠.

Welcome bonuses and bonus categories will greatly influence how you earn rewards, so make your choices carefully.

Justify the annual fee

Finally, we suggest focusing on cards that offer perks meaningful to you, with benefits that can help justify an annual fee (if applicable) and provide value when you next plan a trip.

For instance, premium offerings like The Platinum Card® from American Express provide a plethora of luxurious perks. The Amex Platinum boasts over $1,500 in benefits and statement credits, primarily to offset its $695 annual fee (see rates and fees), but if you can't fully utilize those benefits and end up paying nearly $700 for unused perks, the card may not be worth it.

There are numerous cards with no annual fee, which can be a good starting point. However, many cards with annual fees are justifiable and can offer more value if you use them and their perks effectively.

Final Thoughts

With a plethora of cards available, we understand that finding the right one can be challenging, especially if you're new to the realm of points and miles.

We recommend opting for a general travel rewards card if you prefer flexibility, or a specific airline or hotel card if you are loyal to a certain brand.

Follow the straightforward steps outlined in this guide to refine your choices, and stay tuned to TPG for more tips on selecting the ideal card to help finance your next major trip.