Choosing the right credit card for travel rewards can feel overwhelming. Many people wonder whether a dedicated travel credit card is worthwhile, and the answer often depends on individual travel habits and spending patterns. To determine the best credit card for points and travel for you, consider how frequently you travel, your preferred modes of transport (air, rail, hotel, etc.), and how your travel spending compares to your everyday expenses. Are you looking for a single card solution, or are you open to managing multiple cards to maximize rewards?
For those who frequently stay in hotels, hotel loyalty cards can offer significant value. For instance, the Marriott Bonvoy Card from AMEX, despite a $95 annual fee, provides a 35K award night annually, which can easily offset the fee for frequent Marriott guests. This illustrates how a carefully chosen annual fee card can be beneficial.
For more general travel rewards encompassing both hotels and airfare, the GreenState Federal Credit Union Card stands out. While membership has a pseudo geographic restriction, joining an aligned association for membership is straightforward. Their World Mastercard offers 5X points on travel purchases, effectively providing a 5% cash back equivalent via statement credits, and importantly, it comes with no annual fee.
If your travel extends beyond flights and hotels, the PenFed Pathfinder card is another excellent no annual fee option, although it has some account requirements like parking $500 to establish membership. This card earns 4X points on a broad spectrum of travel categories. While redemption values might slightly decrease the cash equivalent to around 3.4%, the card compensates with benefits like Global Entry or TSA PreCheck reimbursement and even mobile phone coverage when your monthly plan is charged to the card.
For air travelers who occasionally utilize airport lounges, the US Bank Altitude Connect card offers a compelling package. It includes 4 complimentary lounge visits per year and initially waived its annual fee for the first year, which is permanently going away in September. This card also provides a TSA PreCheck or Global Entry credit, meaning a couple could potentially cover both their Global Entry/TSA PreCheck needs by strategically using the PenFed and US Bank cards.
For everyday, non-travel spending, with the decline of the AOD 3% cash back card, the Alliant Credit Union card offering 2.5% cash back (up to $10K monthly) with no annual fee becomes a leading choice. While personal experiences may vary, 2.5% cash back cards are becoming increasingly rare, making this a valuable option for daily purchases.
Generally, cards with annual fees are best approached cautiously unless you are confident in recouping the fee through benefits without forced spending. Cards like the Amex Platinum, for example, offer credits like a $200 Uber Eats credit. If Uber Eats is already part of your regular spending, this is beneficial. Otherwise, it can pressure you into spending to justify the annual fee. Considering travel cards that offer up to 5% rewards with no annual fee, the ROI on high annual fee cards becomes more nuanced. However, for individuals who travel extensively and utilize premium benefits, cards like the Amex Platinum can indeed be worthwhile. Ultimately, the best credit card for points and travel is deeply personal and depends on a thorough evaluation of your travel habits and spending patterns.
