As the nation continues to see dwindling cases of the coronavirus, interest in travel continues to rise.
Ninety percent of Americans have a getaway planned. Three-quarters of American travelers will take at least one vacation over the next three months, with a majority dashing to a beach destination, according to research conducted by market research firm Destination Analysts.
Bookings, particularly for hotels, vacation rentals and airfare, are climbing. But, as interest in post-COVID respites ramps up, so too do prices. The travel industry took a big hit in 2020 and early 2021. To compensate for those losses as travel rebounds, air carriers, hotel chains and short-term vacation rental owners are hiking up prices.
If you’re desperate for a vacation but concerned with costs, perhaps it’s time to consider a travel rewards credit card. Collecting and cashing in credit-card perks is a savvy way to save on airline tickets, hotel stays and other travel accommodations.
“The savings that a travel rewards credit card can provide are more important for consumers now than before the pandemic simply because COVID has hurt so many people financially. People need a vacation right now, and not everyone has the money to spare,” said Jill Gonzalez, an analyst for personal finance site WalletHub. “The best travel credit cards can save you $500-plus in the short-term and around $2,000 over the course of two years, based on the average person’s spending habits.”
The key to maximizing rewards and mastering the art of cheap travel is to study credit card offers and seek out those that offer the best initial bonuses, abundant ongoing rewards and, in some cases, access to your preferred airline carriers and hotel brands.
A word of caution before we dive into the best travel credit card deals: Travel and debt are a bad combination.
“Traveling out of town is a luxury, not a necessity, and you should not plan a trip if you cannot afford it without leveraging debt,” Gonzalez said. “There are plenty of low-cost or free ways to relax and have some fun while still sleeping in your own bed at night and saving up for next year.”
To help you find the right deal, WalletHub’s editors compared more than 1,000 offers in search of the best travel rewards credit cards in a variety of categories. Below are the best deals. Please note, these are bank-issued credit cards, best for those who travel based on price, not brand. Rewards are flexible and can be transferred to several different airlines and hotel groups.
Best overall travel rewards credit card: Capital One Venture Rewards
Current bonus: For a limited time only, when you spend $20,000 in the first 12 months you will get 100,000 miles. Or, spend $3,000 in the first three months to get 50,000 bonus miles, redeemable for a $500 statement credit that can cover any travel-related charges on your bill.
Ongoing rewards: Earn two miles per $1 spent on an ongoing basis, with no limits or expiration dates.
Annual fee: $95
Best travel credit card for bonus rewards: Citi Premier
Current bonus: Spend $4,000 in the first three months after opening, and earn 60,000 points worth $600 in gift cards.
Ongoing rewards: The card gives three points per $1 spent on travel purchases – including gas – as well as on supermarket purchases and at restaurants. All other purchases yield one point per $1. Those points can also be transferred to several airlines’ loyalty programs, including JetBlue and Virgin Atlantic.
Annual fee: $95
Best travel credit card for a big sign-on bonus: Chase Sapphire Preferred
Current bonus: If you spend at least $4,000 during the first three months your account is open, you’ll receive a 100,000-point rewards bonus that can be redeemed for $1,250 in travel booked through Chase or $1,000 as statement credit.
Ongoing rewards: Earn two points per $1 spent on travel and restaurants, as well as one point per $1 spent on everything else.
Annual fee: $95
Best travel credit card with no annual fee: Chase Freedom Unlimited
Current bonus: Receive a $200 statement credit when you spend $500 in the first three months.
Ongoing rewards: Earn 5 percent cash back on travel purchases made through Chase Ultimate Rewards, in addition to 1.5 to 5 percent cash back on other purchases. Plus, there’s a 0 percent intro APR on purchases for 15 months from account opening.
Annual fee: $0
Best travel credit card for road-trip rewards: PenFed Platinum Rewards Visa Signature Card
Current bonus: Receive a $100 statement credit when you spend $1,500 in the first 90 days.
Ongoing rewards: Earn five points per $1 spent on gas purchases at the pump and three points per $1 spent at the supermarket. Plus, receive a 0 percent promotional rate for 12 months on balance transfers made between now and Sept. 30, 2021.
Annual fee: $0
Best travel credit card for benefits and lounge access: Chase Sapphire Reserve
Current bonus: Get 60,000 points when you spend $4,000 in the first three months your account is open, redeemable for up to $900 in travel through Chase.
Ongoing rewards: Receive a $300 annual travel credit and access to more than 1,000 airport lounges worldwide through Priority Pass Select. Cardholders are also eligible to receive a statement credit of up to $100 to cover the cost of applying for faster airport screening via Global Entry or TSA Precheck. You’ll also earn anywhere from one to three points for every $1 spent.
Annual fee: $550
Best travel card for hotel rewards: IHG Rewards Club Premier
Current bonus: Earn 150,000 bonus points after spending $3,000 on purchases within the first three months of account opening.
Ongoing rewards: Enjoy a Reward Night after each account anniversary year at eligible IHG hotels worldwide, including brands like Intercontinental, Holiday Inn, Kimpton, Hotel Indigo, Staybridge Suites and more. Plus, enjoy a reward night when you redeem points for any stay of four or more nights. Earn two points per $1 spent on purchases at gas stations, grocery stores and restaurants, and one point per $1 spent on all other purchases.
Annual fee: Waived the first year; $89 after
