Travel opens doors to new experiences, cultures and memories. But let's face it, traveling can also drain your wallet. Budget-savvy travelers have a secret weapon: credit cards offering travel benefits and cash back rewards!
These cards can transform your trips from budget-conscious into bold adventures...like my recent trip to Paris - which is something that I never thought I'd be able to do!
The Smart Traveler’s Guide to Credit Card Perks and Cashback Strategies
Choosing the Right Tool for the Journey
Travel credit cards come in two primary flavors: travel rewards and cashback. Each has its strengths and the "best" card depends on your travel style and spending habits.
Travel Rewards
What’s better than getting money back for what you spend? If you’re a jet-setter, consider a card with travel rewards – the more you travel, the more you’ll get to travel.
- Benefits – Earn points, miles, or hotel rewards to redeem for flights, hotels, car rentals, and more. Many offer airport lounge access, travel insuranceand statement credits for travel purchases.
- Ideal for – Frequent travelers prioritizing luxury experiences or specific airlines/hotels. Consider cards like the Chase Sapphire Preferred® Card or the Marriott Bonvoy Boundless® Credit Card.
Additionally, cards are often affiliated with certain companies if you’re brand-loyal to companies like American Airlines, Hilton, Delta, or Best Western.
I personally have FOUR different American Airlines credit cards that reward me with miles AND loyalty points that help me reach those far-out destinations just by using my miles and a small cash payment for taxes and fees. I paid $5.60 TOTAL for my recent roundtrip NONSTOP ticket to Europe in February!
Please don't even get me started on the 3 Hilton Honors American Express Cards...but I did get my girls and I two completely free nights at a Hilton in London by redeeming some of those points! Unfortunately, I landed in London with the worst case of Strep I've ever had, but I did drag myself out of the bed on day 2 for our Big Bus Tours trip all around London!
Cash back
If you like to travel but don’t do it often, you need a perk that makes your day-to-day life easier, like a credit card that earns you cash back.
- Benefits – Earn a percentage back on every purchase, which you can redeem for cash or statement credits. Often, these cards offer flexible redemption options.
- Ideal for – Travelers who value flexibility and want to apply rewards towards any travel expense. Cards like the Blue Cash Preferred® Card from American Express or the Fidelity® Rewards Visa Signature® Card are popular.
Beyond the Basics: Unveiling Hidden Gems
Credit card travel benefits go beyond standard rewards. Look for hidden gems like:
- Global Entry/TSA PreCheck fee credits. Expedite airport security and save time.
- Baggage fee credits to offset airline baggage charges.
- Hotel elite status that unlocks perks like room upgrades and complimentary breakfast.
- Purchase protection to safeguard your travel purchases in case of damage or theft.
Maximizing Cash Back Strategies
Cash back cards offer flexibility, but strategic use is critical. Target spending categories because many cards offer bonus cash back in specific categories like travel, dining, or groceries. This will align your card usage with your spending habits.
Additionally, capitalize on introductory offers that grant a large sum of points or cashback upon meeting minimum spending requirements. Some cards even have referral programs, so you can earn bonus rewards for recommending the card to friends and family.
Four examples of credit cards for the intelligent traveler are from Wells Fargo, Discover, and Citi. While these certainly aren’t the only travel credit cards out there, they provide an excellent framework to analyze other travel cards you may be considering.
Wells Fargo Autograph Visa® Card
If you’re more interested in travel rewards than cashback, explore the Autograph Visa® card’s many perks, such as:
- Earns 3x points on restaurants, travel, gas stations, transit, streaming services and phone plans.
- Offers cell phone insurance, auto rental collision damage waiver, and travel and emergency assistance.
- Annual fee: $0.
I actually have this card and it is a MUST HAVE for travelers, especially since there is no annual fee!
Discover It® Card
Another travel-focused credit card is the Discover It Card, which offers benefits like:
- Earn 1.5x miles on all purchases.
- Double miles earned in the first year.
- No annual fee.
- There are no blackout dates or expirations on miles.
- Travel accident insurance and no foreign transaction fees.
It also includes flexible redemption options for travel, cash back, gift cards, Amazon.comand PayPal purchases.
Wells Fargo Active Cash® Card
For those who want more options as to how their rewards are spent, a cashback-focused card like Active Cash® can offer:
- Earns 2% unlimited cashback on all purchases.
- No annual fee.
Citi Double Cash Card
Additionally, for flexible spending, you can consider the Citi Double Cash Card, another cashback card that provides:
- 2% cash back on all purchases
- No annual fee
- Balance transfer offer.
The Autograph could be a good choice for travelers who frequently spend on gas, transit, streaming services, and phone plans, even without an annual fee. However, the Wells Fargo Active Cash offers fee-free flexibility for value-conscious travelers with diverse spending habits.
Remember that no matter what card you end up picking, responsible credit card use is crucial. Only spend what you can afford to repay on time, avoiding interest charges that can negate any reward benefits.
Final Boarding Call!
Credit cards can be powerful tools for savvy travelers. By understanding your travel style, comparing card offerings, and employing intelligent strategies, you can unlock valuable perks, maximize cashback, and embark on enriched travel experiences without breaking the bank.
So pack your bags, choose your credit card wisely, and bon voyage!
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