Travel credit cards are a MUST for anyone who wants to travel/is traveling! It is the easiest way to make your money work in your favor so that you can travel more.
By putting your expenses (whether in daily life ex. gas, groceries, rent, etc. or while traveling) on your travel credit card, you can use the money you’re already spending to save money, get travel perks and rewards like travel insurance, free hotel stays, or points to use for future flights- depending on what card you get.
All of the credit cards that will are mentioned below are primarily geared towards budget travelers and those who are newly introducing themselves to the credit card world–all with annual fees with $0-$100/year only.
Credit Cards 101:
According to the Consumer Financial Protection Bureau (CFPB), annual percentage rate (APR) represents the price you pay on the money you borrow from the bank aka the money you spend on a credit card. The APR in credit cards is basically like an interest rate; its calculated differently with every credit card but it usually depends on the balance you carry in your account from month to month= you are charged (based on the APR) for the unpaid portion or outstanding balance in your account. For example, if I spend $1,000 on my credit card and dont pay it off right away you are charged a percentage rate of the 1K you have outstanding on your credit card bill.
If you pay off your balance on time every month, you won’t be charged any interest so make sure to pay it off as early as possible!
GOOD CREDIT CARD PRACTICES:
- Don’t spend more than you can afford- does your normal spending meet the minimum spending requirements for the sign up bonus?
- When dealing with credit cards it is ALWAYS best to pay your balance in full (or the most you can) and on time every month so you don’t have to pay extra interest
- Stay organized and set reminders or automated payments so you always pay bills on time (this will help your credit score)
- Avoid exceeding your credit limit
- Start with a credit card with 0 annual fee to use as an anchor for your credit score
Check your credit score for free here.
Table of Contents
MY TOP PICKS
After reading through all of the rewards I now have a better sense of what each can offer and wish I did more research before I opened accounts with some cards, but thats why I am writing this post so you don’t have to make the same mistakes!
Start small and work your way up so you’re not overwhelmed by how many credit cards you have. When you get used to it, you can organize your cards in a way like the PointsGuy so you can take full advantage of all the perks each card provides. Below are just the ones I have picked as the best bang for your buck but I encourage you to read through all the benefits of each card in this post to choose one that is best for your lifestyle.
TOP 0 ANNUAL FEE CARD(s): Bank of America Travel Rewards, Discover It or Chase Freedom Flex\Unlimited
The Bank of America is great for beginners since there is a sign up bonus and you do get 1.5 points for every $1 however the benefits are lower compared to other cards’ earning potential.
Discover It is a great card because you get the same 1.5 points for every $1 however I think the earning potential may be higher since they match the points you get over a year. So if you spend at least $16,667 in one year you will earn more with the Discover It card.
The Chase Freedom Flex & Unlimited cards (yes, both if you can!) offer more ability to gain travel points when paired with a premium card (such as the Chase Sapphire Preferred). Although they are more like cash back cards-earning 1.5% cash back for every $1- these are great because you can actually transfer the cash back to a premium card to turn your cash back into more travel points. Compared to the Bank of America Travel Rewards Card, you are spending $500 less in the first 3 months and the only difference is $50 worth of travel points. However to maximize potential, this also means you will have to get a premium Chase card in order to do this but an annual fee of $95 is literally just $7.91 every month which is less than your Netflix subscription.
TOP ANNUAL FEE CARDS: Chase Sapphire Preferred card and the Capital One Venture card
Both of these cards offer auto rental collision insurance, 5x the points when travel is booked through their travel centers, no foreign transaction fees and offer additional opportunities to earn more points with certain brands.
A benefit of the Chase Sapphire Preferred card (like I mentioned above) is that you can add your cash back points from other cards like the Chase Freedom Flex and covered on more travel (baggage delays and trip delays/cancellations).
A benefit of the Capital One Venture card is that it offers the best flat rate for everyday benefits and also offers car rental insurance and gives you $100 towards Global Entry and TSA Precheck!
Comparison of sign-up bonuses for all beginner travel credit cards:
| CARD: | BONUS WITHIN FIRST 3 MONTHS: | ANNUAL FEE | Benefits: | Additional Benefits: |
| Discover It | – | 0 | ||
| Capital One Venture One | 0 | |||
| Chase Freedom (Flex or Unlimited) | 0 | Can transfer the cash back to a premium Chase card to use for travel points | ||
| Bank of America Travel Rewards | 0 | |||
| US Bank Altitude Connect | 0/$95 after first year | |||
| Bank of America Premium Rewards | $95 | |||
| Capital One Venture | $95 | |||
| Citi Premier Card | $95 | |||
| Chase Sapphire Preferred | $95 |
Below I share the benefits of all the ones are worth getting and should be considered based on your lifestyle.
CREDIT CARDS WITH 0 ANNUAL FEES
Chase Freedom Unlimited (best for simple cash back rewards that you can transfer to points/ domestic travel)
Annual fee: $0 | APR: 0% Introductory, then 14.99% – 23.74% | Foreign Transaction Fees apply
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn unlimited 1.5% cash back on all other purchases, 5% cash back on travel purchased through Chase, and 3% cash back on dining at restaurants and drugstores
- Earn 5% on up to $1,500 on combined purchases in bonus categories each quarter you activate
- No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open & points do not expire.
- Offers Trip Cancellation/Interruption Insurance
- Get a complimentary 3 months of DashPass, DoorDash’s subscription service that provides unlimited deliveries for a $0 delivery fee on eligible orders over $12 on DoorDash and Caviar (other fees may apply).
- Earn 5% back on Lyft rides through March 2022
- Access your credit score at any time and get no-cost identity restoration services with Credit Journey.
- This card can be used in conjunction to another Chase card: transfer the points you get from the Freedom Unlimited to a card like the Preferred which will be worth more travel points and avoid the foreign transaction fees
There are actually two Chase Freedom cards, the Chase Freedom Unlimited and the Chase Freedom Flex. If you get both and use the cards in conjunction with each other (both cost $0 to open) you can earn $400 in sign up bonuses, plus the usual cash back you’re getting on purchases, AND the 5% cash back you can earn from the rolling categories. Earning you about ~$500 per year if you get the Chase Sapphire Preferred as well and traded them into Chase Ultimate Rewards earning you even more (~$760).
The Chase Freedom Flex Card offers the same benefits plus 5% cash back on rolling categories and the cashback on all other purchases the Freedom Unlimited is 1.5% vs 1% on all other purchases on the Freedom Flex. When comparing the two, you can earn ~$200 more every year if you pay attention to the rolling categories (such as gas, grocery stores, phone and internet services). However if you can spend $1,000 total between the cards in the first 3 months you might as well get both! Compare the two here.
Learn how to turn your cash back into travel rewards.
Bank of America Travel Rewards Credit Card
Annual fee: $0 | APR: 0% Introductory, then 13.99% – 23.99% | No Foreign Transaction Fees
- Earn 25,000 online bonus points ($250 travel credit) after you make at least $1,000 in purchases in the first 3 months of account opening -points don’t expire
- Earn unlimited 1.5 points per $1 spent on all purchases and redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout
- Booking travel through the Bank of America® Travel Center, you’ll earn 3 points per $1 spent.
- If you’re a Preferred Rewards member, you can earn 25% – 75% more points on every purchase
Cons: low sign up bonus compared to other top travel cards
Discover It Miles (this card is mostly US based)
Annual fee: $0 | APR: 0% Introductory, then 10.99- 22.99% | No Foreign Transaction Fees
- Only Discover will automatically match all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up bonus, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
- Earn unlimited 1.5X Miles for every dollar you spend. Not just travel purchases — everything.
- Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more
- Turn Miles into cash in any amount, any time. Or redeem as a statement credit for travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more with no blackout dates. However you redeem, Miles keep the same value and Miles never expire even if you close your account
- You can use rewards/miles to pay for eligible Amazon and Paypal purchases
Cons: mostly US based card
CREDIT CARDS WITH ANNUAL FEES
Annual fee: $95 | APR: 16.99% – 23.99% | No Foreign Transaction Fees
- Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,250 when you redeem through Chase Ultimate Rewards®.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel, 3X points for Lyft rides, and earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards® and Pay Yourself Back℠. For example, 100,000 points are worth $1,250 when redeemed for travel purchases or when used with Pay Yourself Back, or $1,000 when redeemed for cash.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage or Baggage Delay Insurance and more- National Car and Avis discounts can be applied to the base rate at participating locations as well.
- Miles won’t expire for the life of the account and there’s no limit to how many you can earn
- Earn up to $60 in statement credits on qualifying Peloton purchases through 12/31/2021 and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Cons: no global entry/TSA precheck
Apply or learn more here using my referral link!
Annual fee: $0 for the first year, $95/year | APR: 17.24% – 24.49% | No Foreign Transaction Fees
- Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or still earn 50,000 miles ($500 in travel) if you spend $3,000 on purchases in the first 3 months
- Earn unlimited 2X miles on every purchase, every day
- Miles won’t expire for the life of the account and there’s no limit to how many you can earn
- Offers Auto Rental Collision Damage Waiver & Travel Accident Insurance
- Receive up to $100 application fee credit for Global Entry or TSA Pre✓®
- Redeem on travel—including flights, vacation rentals, car rentals and more. Plus transfer your miles to over 15+ travel loyalty programs
Cons: Chase and Amex have more partners
Apply or learn more here using my referral link!
US Bank Altitude Connect
- Earn 50,000 bonus points when you spend $3,000 in eligible purchases within the first 120 days of account opening. That’s a $500 value redeemable towards merchandise, gift cards, cash back, travel and more.
- Earn 4X points on travel and at gas stations.
- Earn 2X points at grocery stores, grocery delivery, dining and streaming services.
- $30 credit for annual streaming service purchases such as Netflix and Spotify®.
- Receive up to $100 in statement credits for reimbursement toward your TSA PreCheck® or Global Entry® application fee once every four years.
- 1X point on all other eligible purchases.
Citi Premier Card
Annual fee: $95/year | APR: 15.99% – 23.99% | No Foreign Transaction Fees
- Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
- Earn 3x per $1 spent at Restaurants, Supermarkets, Gas Stations, Air Travel and Hotels
- Earn 1x per $1 spent on all other purchases
- Enjoy the $100 off a single hotel stay of $500 or more
- 60,000 Points are redeemable for $600 in gift cards when redeemed at thankyou.com
- No expiration and no limit to the amount of points you can earn with this card
BRANDED CREDIT CARDS
| CARD | BONUS AFTER THE FIRST 3 MONTHS | APR | BENEFITS | ADDITIONAL BENEFITS: |
| United Explorer Card | 0/$95 after the first year | |||
| Delta Skymiles Gold American Express Card | 0/$99 after the first year | |||
| Alaska Airlines Visa Signature Card | $75 |
I hope this post helps in your decision making process for finding the right travel credit card so you can maximize your money to travel more!