Choosing the Right Travel Credit Card

Select a card based on your primary airline or hotel loyalty, or choose a flexible, bank-issued points card if you want to transfer rewards to multiple partners. Focus on cards that waive foreign transaction fees and offer travel insurance benefits to maximize value.

1. Audit your spending habits. Look at your last 6 months of bank statements. If you spend more on dining and travel than on groceries, pick a card with a 3x-5x multiplier on travel and food rather than one geared toward general merchandise.
2. Choose between branded and flexible. If you are loyal to one airline or hotel chain, get their co-branded card for free checked bags or late checkout. If you want variety, pick a flexible points card (e.g., Chase Ultimate Rewards or Amex Membership Rewards) that lets you transfer points to various partners.
3. Compare the 'Net Cost'. Don't be scared by a high annual fee. If a card costs $550 but gives you a $300 travel credit, a $100 airline incidental credit, and lounge access worth $200, you are net-positive before you even use your points.
4. Verify travel protections. Ensure the card offers primary rental car insurance, trip delay reimbursement, and baggage insurance. These protections can save you hundreds if a flight is canceled or a rental car is dinged.

Does applying for a travel card hurt my credit score?

Yes, you will see a temporary dip of 5-10 points due to a hard credit inquiry. This typically recovers within a few months of responsible use.

Should I pay the annual fee?

Only if the credits, lounge access, and rewards earned outweigh the cost of the fee. If you don't travel at least twice a year, stick to a no-annual-fee card.