Navigating the world of travel credit cards can feel overwhelming. You might be wondering if those enticing travel rewards are actually achievable without becoming a points and miles “hacker,” constantly opening and closing credit cards. The good news is, you absolutely can travel more for less by leveraging travel credit cards responsibly, just like I do. I’m not about chasing every sign-up bonus; my approach is simpler and sustainable.
I personally use two travel credit cards for all my everyday spending, and it’s been a game-changer for my travel adventures. Why two? It comes down to point redemption preferences, but both offer unique benefits that I find incredibly valuable for any traveler looking to maximize their rewards.
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How to Maximize Travel Rewards with the Best Credit Card Travel Strategy
My strategy is straightforward: use your travel credit card for absolutely everything you can. From paying bills to groceries, gas, holiday shopping, and of course, all travel expenses – swipe that travel rewards card.
The key takeaway is this: anything you’re already budgeting for should be charged to a credit card instead of a debit card. Debit cards offer zero rewards, leaving valuable points on the table.
Now, the crucial part for responsible credit card use: always pay your balance in full each month. Credit card interest rates are notoriously high, and negating your rewards with interest charges defeats the whole purpose. Only spend what you can afford to pay back immediately. This way, you’re essentially earning free travel rewards on your regular spending.
Do Travel Credit Card Points Really Add Up?
If you’re skeptical about the effectiveness of travel credit cards, you might be familiar with basic cash-back cards with no annual fees. While these offer some return, it’s often minimal compared to travel rewards cards. Cash back rewards frequently have lower payout rates, and no-annual-fee cards typically accumulate points so slowly it feels like you’re hardly making progress towards travel.
Travel rewards cards, especially those with annual fees, offer significantly greater earning potential. The rewards, primarily in points or miles redeemable for flights and hotels, far outweigh the benefits of standard cash-back cards when travel is your goal.
Real-World Point Accumulation Examples
Let’s look at my personal experience to illustrate the power of travel credit card points accumulation. The initial sign-up bonuses alone are substantial.
- Initial Bonus Power: Both of my cards offered an initial bonus of 75,000 miles after meeting a spending requirement within the first three months. Those 75,000 miles translate to approximately $750 in travel value – enough for a round-trip flight to Europe, depending on the destination and time of year.
- With two cards, that’s double the bonus, effectively funding 2-3 European trips just from sign-up bonuses.
- Plus, when my husband signed up for one of these cards through my referral, we gained even more rewards – his bonus trip, plus a referral bonus for me, adding another half to full trip to Europe to our potential travel fund. We’re talking potentially 4-5 round-trip flights to Europe just from strategic card sign-ups and referrals!
But the rewards don’t stop after the initial bonus. I opened my cards around 2019, and the ongoing point accumulation has been remarkable. Here’s a breakdown of redemptions from just one of my primarily used cards:
- 2021: Redeemed points for a flight and a half to Europe, valued at approximately $1,100, partially using initial bonus miles.
- 2022: Redeemed points for two flights to Spain at $350 each, totaling $700.
- 2023: Redeemed points for flights to Amsterdam worth $910, with $450 points remaining.
- 2024: Redeemed points for flights valued at $780, with $290 points left over.
And remember, this is just from one card! My second card, used less frequently, has also provided points for numerous shorter domestic flights, further reducing my out-of-pocket travel expenses.
How Much Monthly Spending is Needed to Make Travel Credit Cards Worthwhile?
You might think you need to be a massive spender to accumulate significant travel rewards. That’s simply not true. While I do put most of my expenses and travel bookings on my credit cards, you don’t need to spend thousands each month to see substantial benefits.
Consider this spending example:
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$2,200 Monthly Spending: At a standard 2x miles per dollar, this level of spending can earn you approximately 52,800 miles annually, equivalent to around $528 in flight value.
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Real-World Spending Fluctuation: In November (up to the 24th), my “normal” spending (groceries, bills, everyday items) totaled $1,446. This alone would generate roughly $348 in flight miles per year at a 2x rewards rate.
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Travel Spending Boost: However, in the same month, I also booked 4 hotel nights in Las Vegas, two flights to Austria, and 5 hotel nights in Austria, significantly increasing my total spending to $4,382.
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Higher Spending, Higher Rewards: While I don’t consistently spend $4,000+ monthly, if you do, you could accumulate around $972 worth of flight miles per year, based on 2x rewards.
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Bonus Categories: Many travel cards offer bonus multipliers like 5x miles on travel booked through their portals. Booking hotels directly through Capital One, for example, would earn 5x miles, accelerating point accumulation even faster.
Capital One and other card issuers often provide online tools or calculators to estimate your potential rewards based on your average monthly spending. Experiment with these to see the possibilities.
My Top Travel Credit Card Recommendations
With countless credit cards available, choosing the right one can feel daunting. Your credit score, spending habits, and point redemption preferences all play a role.
The two travel credit cards I personally use and recommend are the Chase Sapphire Preferred and the Capital One Venture cards. I selected these for several key reasons:
- Generous Rewards on All Purchases: Both cards earn 2x miles on all purchases, from groceries to gas, and offer even higher rewards (5x miles) on hotels and rental cars booked through their respective portals.
- No Foreign Transaction Fees: Essential for international travel, these cards can be used worldwide without incurring extra charges.
- Valuable Travel Benefits: Beyond points, both cards provide travel insurance benefits like rental car insurance, lost luggage coverage, and assistance with flight delays.
Both cards have a $95 annual fee, which I find easily justifiable given the significant point accumulation and travel benefits. They also typically offer similar sign-up bonuses when you spend $4,000 in the first three months.
Chase Sapphire Preferred: Pros and Cons
Chase Sapphire Preferred was my first travel card, attracted by its strong initial bonus and consistent rewards earning.
Pros:
- Excellent Travel Insurance Coverage: Chase Sapphire Preferred offers robust travel insurance, including rental car insurance, trip cancellation coverage (up to $10,000 per traveler), lost or stolen luggage coverage (up to $3,000 for replacement), and reimbursement for expenses due to flight delays.
- I experienced their trip cancellation benefit firsthand when a “non-refundable, basic economy” flight was canceled. Chase quickly confirmed the cancellation with the airline and refunded the money and points back to my account without hassle.
- Point Redemption Bonus via Portal: Points are worth 25% more when redeemed for travel through the Chase Ultimate Rewards portal. For example, 60,000 points are worth $750 in travel booked through their site.
Cons:
- Redemption Limitations: To maximize the 25% bonus, you must book travel through the Chase portal. While you gain extra value, this limits your booking flexibility compared to booking directly with airlines or hotels.
- Alternatively, you can transfer points to partner airlines and hotels, often receiving even greater value per point.
- No TSA PreCheck/Global Entry Credit: Unlike some premium cards, Chase Sapphire Preferred doesn’t cover TSA PreCheck or Global Entry application fees.
Apply for Chase Sapphire Preferred
Capital One Venture Card: Pros and Cons
I later added the Capital One Venture card primarily due to its more flexible point redemption method.
Pros:
- Flexible Point Redemption: Capital One Venture allows you to redeem points to “cover” any travel purchase made on the card. If you book a $500 flight with American Airlines on your Venture card and have $750 in points, you can simply apply $500 worth of points to offset the flight cost – offering ultimate flexibility.
- TSA PreCheck/Global Entry Credit: Capital One Venture provides a credit to cover the cost of TSA PreCheck or Global Entry application fees ($120 value), automatically applied to your statement.
- Price Drop Protection: When booking flights through the Capital One portal, they offer price drop protection. If the price of a flight you “watch” drops after booking, Capital One may refund you the difference (terms apply).
Cons:
- Less Transparent Trip Protection: While Capital One Venture offers trip protection, the details and coverage amounts are less clearly defined compared to Chase Sapphire Preferred. Chase explicitly states dollar amounts for coverage, while Capital One’s coverage details are somewhat vaguer.
Apply for Capital One Venture
Disclosure on Referral Links
It’s standard practice for credit cards to offer referral bonuses. The links provided above are indeed referral links. If you sign up for a card through these links, I may receive bonus miles – at no additional cost to you.
I’ve genuinely taken the time to write this guide because:
- a) Many readers have asked about the credit cards I use for travel.
- b) Travel rewards from these cards have been instrumental in making many of my recent trips a reality.
Therefore, if I’m sharing my experience and recommending cards I personally use, it makes sense to include referral links to potentially earn rewards for my efforts. 🙃
Important Note: If you currently have or have had a Chase Sapphire card within the past 48 months, or have received a new cardmember bonus from a Capital One card in the last 48 months, you may not be eligible for the sign-up bonuses mentioned above. Always check eligibility requirements before applying.
Exploring Upgraded Travel Credit Card Options
Since I initially got my Chase Sapphire Preferred and Capital One Venture cards, both issuers have introduced upgraded, premium versions. I haven’t personally upgraded yet, but here’s a summary of the enhanced benefits:
Chase Sapphire Reserve: Premium Rewards and Perks
Pros:
- Increased Point Redemption Bonus: The redemption bonus through the Chase portal increases from 25% to 50%. 60,000 points become worth $900 in travel (vs. $750 with Preferred).
- Enhanced Travel Credit: The $50 hotel credit with Sapphire Preferred is replaced with a generous $300 annual travel credit, applicable to various travel purchases made through the portal.
- Airport Lounge Access: A significant upgrade, Reserve cardholders gain access to airport lounges worldwide, offering comfort and amenities during travel.
- Bonus Earning on Travel: Earn 10x miles on hotels and car rentals booked through the portal (vs. 5x with Preferred) and 3x miles on all other travel (vs. 2x with Preferred).
- TSA PreCheck/Global Entry Credit: TSA PreCheck or Global Entry application fee credit is included.
Cons:
- Higher Annual Fee: The annual fee jumps from $95 to $550.
- However, considering the $300 travel credit and increased point value, the net annual fee is effectively lower, and the enhanced rewards and benefits may outweigh the cost for frequent travelers.
Apply for the Chase Sapphire Reserve
Capital One Venture X: Luxury Travel at a Lower Premium
Pros:
- Enhanced Bonus Categories: Earn 10x miles on hotels and rental cars booked through Capital One Travel (vs. 5x with Venture) and 5x miles on flights booked through Capital One Travel (previously no bonus on flights booked through their portal with the standard Venture card).
- Annual Travel Credit: Receive a $300 annual credit towards travel booked through Capital One Travel.
- Anniversary Bonus: Get a 10,000-point ($100 value) bonus each card anniversary year.
- Capital One Lounge Access: Access to Capital One Lounges (previously included with the Venture One, but no longer as of January 2025).
Cons:
- Increased Annual Fee: The annual fee rises from $95 to $395.
- Again, factoring in the $300 travel credit, the net annual fee is significantly reduced, and the enhanced rewards and lounge access can make it worthwhile for many travelers.
Honestly, after outlining the Venture X benefits, I’m tempted to upgrade myself! 😅
Apply for the Capital One Venture X
Other Popular Travel Credit Cards to Consider
While Chase Sapphire and Capital One Venture cards are my personal recommendations, several other excellent travel credit cards cater to different travel styles and preferences.
Southwest Companion Pass: Fly One, Get One Free Domestically
If you frequently fly within the US or to Mexico, the Southwest Airlines credit card and its Companion Pass are incredibly valuable.
Once you earn the Companion Pass (by earning 135,000 qualifying points or flying 100 qualifying one-way flight segments in a calendar year), you essentially get a “buy one, get one free” flight deal. When you purchase a Southwest flight, your designated companion can fly with you for just the cost of taxes and fees.
This is a fantastic perk for families or couples who travel together frequently, especially within the Southwest route network.
Southwest Credit Card Highlights:
- Tiered Card Options: Southwest offers multiple card tiers with varying annual fees (ranging from $70 to $150).
- No Foreign Transaction Fees (on Higher Tier Cards): The two higher-tier cards waive foreign transaction fees, making them suitable for international travel as well.
- Companion Pass Earning: Earn the coveted Companion Pass by accumulating 135,000 qualifying points in a calendar year. Sign-up bonuses and everyday spending contribute towards this goal.
Apply for Southwest Credit Card
American Express: Premium Travel and Luxury Perks
American Express (Amex) cards have become increasingly travel-friendly in recent years. While they were once known for foreign transaction fees, Amex now offers premium travel cards with no foreign transaction fees and exceptional rewards programs.
Two notable Amex travel cards are:
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American Express Platinum:
- Welcome Bonus: Often offers substantial sign-up bonuses (e.g., 125,000 points or $1,250 value after meeting spending requirements).
- Annual Hotel Credit: $200 annual credit for prepaid hotels booked through AmexTravel.
- Bonus Rewards: 5x miles on flights booked directly with airlines or through AmexTravel, 5x miles on hotels booked through AmexTravel.
- Travel Perks: Complimentary TSA PreCheck or Global Entry, Marriott Bonvoy and Hilton Honors Gold status for room upgrades and bonus points, car rental upgrades with select agencies, airport lounge access, and comprehensive travel insurance (car rental, luggage, trip cancellation/delay).
- Annual Fee: $695 (premium fee reflects premium benefits).
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American Express Gold:
- Welcome Bonus: Still generous, though typically lower than Platinum (e.g., 90,000 points or $900 value after meeting spending requirements).
- Bonus Rewards: 4x points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1x), 4x points at restaurants worldwide, 3x points on flights booked directly with airlines or on amextravel.com.
- Travel Perks: Baggage and car rental insurance.
- Annual Fee: $250.
American Express Card Recommendation
If you’re considering American Express, the Platinum card offers significantly more premium travel perks compared to the Gold card. However, to justify the high annual fee of the Platinum card, you need to travel frequently and take advantage of the luxury benefits like hotel credits, lounge access, and hotel/car rental status upgrades.
- Platinum for Luxury Travelers: If you prioritize luxury travel experiences and frequent travel, the Amex Platinum could be a worthwhile investment, especially with the 5x points on flights booked directly with airlines offering excellent earning potential.
- Gold as a Potential Alternative: The Amex Gold card might be considered if the Platinum fee is too high, but for dedicated travel rewards, the Capital One Venture X or Chase Sapphire Reserve often provide better overall value for a similar annual fee, despite potentially smaller welcome bonuses.
Apply for American Express
Travel Credit Card Summary: Unlock Your Travel Dreams
That was a lot of information, I know! 😅 But when you start researching “best travel credit cards,” you’ll consistently see Capital One Venture and Chase Sapphire Preferred at the top of those lists, particularly for travelers who aren’t necessarily road warriors. Upgrading to cards with $400-$500 annual fees typically makes sense for those who travel more frequently and can fully utilize the enhanced benefits.
No matter which card you choose, embracing travel credit cards can be a game-changer in making travel more affordable and accessible. By strategically using your spending to earn rewards, you can unlock free flights, hotel stays, and travel perks, turning your travel dreams into reality.
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