Are travel credit cards worth it?

A travel credit card may be worth it if you travel regularly and can maximize its rewards and benefits.

Depending on the card, you may enjoy benefits like a welcome bonus, statement credits for eligible travel expenses and airport lounge access.

What you’ll learn:

• Travel credit cards let cardholders earn rewards, such as travel miles, on purchases.

• With travel cards, travel-related purchases and bookings may earn more rewards than everyday purchases.

• Travel rewards cardholders may be able to redeem miles for flights, hotels, rental cars and more. They may also be able to get a statement credit or transfer miles to a travel partner.

• When choosing a travel credit card, it can help to consider things like fees, APR, credit score requirements, rewards and bonuses.

Travel credit cards generally fall into three categories:

1. Hotel credit cards: These cards are often associated with a particular hotel chain. Rewards may accrue faster when you use the card at partner hotels, and they can typically be redeemed for things like hotel stays and room upgrades.

2. Airline credit cards: Airline cards are similar to hotel cards but are aligned with specific airlines. Rewards might include free or discounted flights, seat upgrades or free checked bags. 

3. General travel credit cards: General travel cards reward everyday spending and may offer more flexible rewards. For instance, travel rewards cards from Capital One let cardholders earn miles every time they spend. Cardholders can redeem miles for things like flights, hotels, vacation rentals, rental cars, activities, gift cards or statement credits or transfer miles to a partner loyalty program.

Thinking about adding a travel card to your wallet? Here are a few common benefits of having one.

Travel credit cards can turn everyday purchases into travel rewards that you can use to fly home for the holidays, book an overnight stay or take the vacation of your dreams.

Typically, you earn rewards by putting purchases on the card. The rewards may come in the form of miles or points. But there’s no single answer to how miles work. Ways to earn or redeem rewards vary by issuer and the type of travel card.

New travel cardholders can sometimes kick-start their rewards by spending a certain amount within an initial time frame to earn an early spend bonus. By earning bonus miles from the get-go, your next weekend away might already be covered.

It’s worth checking your budget for how much you might expect to spend in the first several months of having a travel credit card and whether you could take advantage of a new cardholder offer.

Some travel credit cards offer more than rewards. 

For example, Venture X primary cardholders can get access to 1,300+ lounges worldwide—including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment—with luxurious amenities, food and beverages.

Many travel credit cards also come with access to travel booking sites that offer trip booking options and amplified rewards. Eligible Capital One cardholders can use Capital One Travel to earn and redeem miles on thousands of trip options. Capital One Travel offers other benefits too—such as access to smarter tools like price prediction, price drop protection and more.

Once you reach your destination, travel cards are less likely to charge foreign transaction fees, saving you money when making purchases outside the United States. Capital One’s U.S.-issued credit cards and debit cards don’t charge foreign transaction fees. View important rates and disclosures.

And you may be able to skip the line for airport security with a credit card that pays for Global Entry or TSA PreCheck®.

Travel credit cards can come with features that bring travelers peace of mind. Capital One travel rewards cardholders have access to things like:

• Travel insurance
• Auto rental collision coverage
• Emergency card replacement
• Security features, including fraud alerts, card lock, $0 fraud liability for unauthorized charges and virtual card numbers
• Price-match guarantee on Capital One Travel

It’s exciting to think about where a travel rewards card might take you. But before applying for a credit card, here are some things to consider.

1. Credit score requirements: Credit cards typically have credit requirements that impact things like whether an applicant is approved and the card’s interest rate. If your credit isn’t quite where you want it, it’s possible to improve your credit scores by doing things like paying other credit card bills on time every month and keeping your credit utilization ratio below 30%.

2. Annual fees: Some travel cards charge an annual fee. The fee may mean the card offers greater rewards potential and benefits, like travel credits and other benefits. It’s worth considering whether you’ll earn enough rewards to offset the fee.

3. Foreign transaction fees: A foreign transaction fee is a charge that some credit card issuers add to transactions made outside the U.S. Foreign transaction fees can vary, but they’re typically about 1%-3% of every purchase. A travel-ready card with no foreign transaction fees can help you avoid extra costs. Capital One doesn’t charge foreign transaction fees, no matter where or when you travel. View important rates and disclosures.

You might find a travel credit card to be worth it if: 

• You travel often. Frequent travelers who book flights, hotels and car rentals often, for work or pleasure, can earn miles every time they spend. But anyone who’s got things to buy and places to go can make the card work for them. Plus, booking with Capital One Travel makes it easy to use miles and earn extra rewards. It also offers features like price prediction and price matching.

• Travel benefits are important to you. If flying through airport security and accessing lounges sound good to you, a travel rewards card might be a good fit.

• You’ll get enough value from the card. A card with more premium benefits may come with an annual fee and a higher annual percentage rate (APR). You can use a budget to estimate whether your monthly expenses will earn you enough rewards to offset the fee. And you can avoid interest fees by paying off the balance every month.

Travel credit cards can be a great choice for people who regularly travel for work or leisure. They can offer rewards and benefits that can help make traveling more enjoyable and save on your next trip.

Explore how you could get rewarded for travel with a Capital One travel rewards card like Venture X.