How to use a credit card for travel? There are numerous travel credit cards available in the market. Before selecting one, ask yourself questions such as what your travel goals are. For example, are you looking for sign-up bonuses to redeem for certain redemptions? Or are you looking for luxury travel perks that allow you to attain elite status with specific hotel brands? Also, do you want to earn points toward specific categories such as airline and hotel spending?

Benefits of travel rewards credit cards

One of the biggest advantages of a travel rewards credit card is that you can transfer your points to different loyalty programs. The American express gold benefits are a classic example and are over 10 years old. It has the standard travel bonus categories - dining, flights, and streaming services - and the flexibility to transfer points to multiple travel partners. Moreover, it gives 5 points per dollar spent on dining and Lyft rides through March 2025 and has a generous sign-up bonus of 80,000 points.

Travel rewards credit cards can also help you earn cashback. For example, the American Express Gold Card offers a rewards program that's designed specifically for travellers. The credit card has a $250 annual fee, but you'll benefit from perks like annual statement credits and luxury rewards. You can also earn credit on your card by dining and staying at participating hotels. This card has no foreign transaction fees, so you can use it abroad without worry.

Transferable rewards

When using your credit card for travel, consider transferring points earned through a loyalty program to your favourite airline. Among the top, transferable reward programs are the American Express Membership Rewards and Chase Ultimate Rewards. In addition, you can transfer your Capital One miles to the airline of your choice. Both programs have recently expanded transfer partnerships with select travel partners. Amex Membership Rewards and Chase Ultimate Rewards offer frequent flyer benefits for most airlines and allow you to book tickets in first or business class.

The benefit of transferable points is worth it for some travellers, but they are not the only factor to consider. People who travel frequently may want to consider a co-branded credit card with the airline of their choice. However, if you rarely travel, a cashback credit card might be more suitable. In these cases, you can transfer the points to your preferred airline or hotel if your travel plans don't involve frequent international flights.

Easy to use

When looking for a credit card designed for frequent travellers, it's important to choose one that offers a low-interest rate and no foreign transaction fees. A travel credit card may be a good option, but not everyone will find it useful. Instead of opting for a credit card that has higher interest rates, consider a dining, gas, or hotel card, which might provide more valuable rewards. Some cards even give 6% back in rewards!

Some travel credit cards offer travel rewards, such as 0% introductory APR on balance transfers. These cards allow cardholders to refinance debt and get a low-interest rate while doing so. Some cards even offer benefits such as airport lounge access. Whether you use this benefit for free or at a discounted rate, it will definitely make travelling easier. While choosing a card, remember that there are also annual fees and foreign transaction fees to consider.