I’m a big proponent of traveling with travel credit cards. That’s because I’ve seen so many of the benefits that come with having a card that delivers on the perks and security like some of the cards listed below.

Last year, I traveled to Spain and saved over $10,000 in flight and hotel costs because of my card’s rewards program.

At the time this post was originally published (February 2024), I am in Switzerland – again. I flew here for free (a flight that would typically cost $1,200) and am planning on redeeming a free night in a hotel worth $400.

Everyone Should Have a Travel Credit Card

Why a travel credit card?

A travel credit card helps you earn miles, perks, and points to go towards your next vacation. Additionally, the best travel credit cards offer advantages over normal cards, including foreign currency services, additional security, locked-in exchange rates, customer services, and emergency services among other benefits.

You can definitely travel without a travel-specific credit card, but why would you? If you’re going to use a credit card anyway, it might as well have extra perks!

Who This Post is For

When I’m talking to fellow travelers or coaching my travel clients about my travel ideas, people always wonder whether using credit cards to travel is worth it or not. Here are some common objections from people who don’t think they need a travel card:

• “I hardly travel – maybe once every one or two years.”
• “When I travel, I don’t fly first class or stay in the fanciest hotels.”
• “Most of my traveling is done on holidays or typical vacation days – going home and seeing family. I’m not going on extravagant vacations.”
• “I avoid staying in hotels whenever I can. I usually stay with friends and family at their homes.”
• “I prefer driving to flying.”

The bottom line is: no matter how experienced or luxurious of a traveler you are, it makes sense to get a travel credit card, start building up the rewards, and redeem them when you’re ready. Who knows? A free flight could be the incentive that you need to start your next travel journey.

Things to Consider When Choosing the Right Travel Credit Card

The travel credit card industry is HUGE. You can find a credit card for pretty much any need, from hotels to airlines to cash back, to pay for your travel expenses.

Because there are so many options, it’s important to zero in on exactly what you’re looking to get out of your card and make sure you’re choosing the right card for you.

Travel Credit Card Rewards, Benefits & Perks

All travel cards are going to come with some offering of benefits, card rewards, perks, and points. Some travel cards provide rewards in the form of points or flight miles. Others have preferred partner networks where card holders can get discounts, deals, and other benefits on things like lodging, rentals, or dining.

There are also cards that offer travel-specific perks, like statement credits for TSA PreCheck, airport lounge access, a free checked bag, and more.

Be sure you understand the perks package before you choose your travel card.

Travel Card Annual Fees

Some travel cards operate with APR interest charges on purchases, while some charge their customers annual fees.

Typical annual fees range anywhere from $95 to $695, according to CNBC. NerdWallet states that the average annual fee is around $105 per year.

For our purposes, most companies will typically recommend an annual fee of $0, but I tend to prefer credit cards with a $95 annual because of the benefits, and even an AMEX card with a $695 fee.

Travel Card Annual Percentage Rate (APR) on Purchases

The “APR” is how much interest you’re charged on your balance. The lower the better.

That means that you’ll be paying a lower monthly fee if you carry a balance on your credit card. According to Forbes Advisor, APR interest rates range anywhere from 19% to 28%.

In some cases, a credit card will have a grace period where they don’t charge you any interest on your balance, usually around 6 – 12 months.

As with any loan or credit request, your APR is probably the most important deciding factor in what card will be right for you. If you plan on carrying a balance, aim for a travel card that has a lower APR.

Travel Card Foreign Transaction Fees & Rates

When you purchase something out of the country with a travel card, you’ll typically incur a currency exchange fee of some kind.

The ideal travel credit card will give you a flat rate transaction fee, which means your rate isn’t changing based on fluctuating foreign currency exchange rates, but is a flat rate set by your credit provider.

According to HMS, a typical flat rate fee is 2.75% to 2.9% of the transaction cost.

Travel Card Holder Services

Some credit cards will offer additional account services like travel assistance (e.g. booking flights, helping you find accommodations, and more), concierge style services, and card account management.

Travel Card Security & Protection

Things can go wrong when you’re traveling and a good travel credit card can help you with card and account security benefits, trip insurance, and more. The best travel credit cards will offer you some kind of trip insurance and coverage if things go south.

Welcome/New Customer Bonuses

Last but not least, some cards will offer new customers advantages and bonuses. Most of the time, these come in the form of miles or points bonuses. This is extremely important and why I recommend getting multiple credit cards – it’s how you earn the most points.w