1. Credit Cards Offering Travel Purchase Credit
Credit cards that offer travel purchase credit enable cardmembers to earn points or miles for their card use and later redeem these points/miles for different travel purchases. With this sort of cards, users don’t have to deal with award flights or airline loyalty programs. Instead, you use the card to book through any online booking site or directly with the travel vendor and redeem points for statement credit at a 1 cent per mile/point rate toward those travel purchases. It’s that simple.
2. Co-branded Travel Credit Cards
Frequent guests of major hotel chains or those often flying with some airline may want to get that hotel/airline’s co-branded credit card (if it’s available). These products are made to reward loyalty and will thus award frequent purchases with more points/miles than other cards. This way cardmembers can earn themselves free stays at hotels, or free flights and upgrades. Also, these cards also include additional benefits while staying in the hotel or while flying. For instance, cardmembers can get late (or even free) breakfasts in the hotel or free WiFi, while those with an airline-branded card could benefit from free checked bags and priority boarding.
3. Credit Cards Offering Travel Discounts and/or Points Transfer
The situation is more complicated with these credit cards as they offer two ways to redeem travel rewards: by booking travel through their travel portals, or by transferring points to loyalty programs. Each card issuer has partner airlines and hotels that you can only get flights and stays with. For instance, Chase works with such companies as Southwest, United, British Airways, Hyatt, and IHG; while American Express’ partners include Air Canada, Cathay Pacific, JetBlue, Virgin America, Starwood Preferred, Hilton, etc. Redeeming points through their travel portals can get you more value for your points, or you can transfer points to their partner programs, and book award flights/stays through that. This process can take more time to master but it could be more rewarding, with a single cent getting more value at the time of booking.
4. Credit Cards with Premium Benefits
At the end, we have premium credit cards that typically have an annual fee north of $400, but offer VIP treatment in return. We are talking about things like airport lounge access, elite status with hotel programs, a statement credit towards the application fee for the Global Entry program or TSA PreCheck, annual travel credit and more. There are just a few such cards and VIP travelers will easily justify the high annual fee with extra comfort and premium perks included with their cards. Most of these cards offer travel discounts and the ability to transfer points, but there are also a few airline/hotel branded cards in this category.
Now that you have learned about 4 types of travel rewards credit cards, you should determine which card works best for you. Start by browsing different cards from the link below and select the one that fits your needs. Good luck.