Forbes Advisor considered airline, hotel and flexible reward credit cards both within their own categories and compared to other types cards. We rated cards based on their fees, rewards potential, value of rewards earned, ongoing benefits and more. The top airline, hotel and flexible rewards cards were chosen for this list.
How many miles do you need for a free flight?
The number of miles you need for a free flight depends on different factors including which airline miles you are using, where you are flying to and from, when you are traveling and other factors. Domestic flights in the U.S. will generally require fewer miles than an international flight. Typically, count on spending between 4,000 and 20,000 miles for a domestic one-way flight in economy.
Long-haul international flights can cost quite a bit more. Plan on spending between 20,000 to 30,000 miles each way to fly to Europe and even more for flights to Asia, Africa, and Oceania.
Don’t forget to consider the cost of checked bags and fuel surcharges before booking your ticket.
What’s better: cash back or travel rewards?
Whether you should earn cash back or travel rewards depends on your personal preferences including when and where you want to travel, how much work you want to put into a redemption and how often you want to be able to use your rewards. As a general rule, using cash back rewards for travel-related purchases would be unwise. Travel rewards typically offer a higher rewards rate for travel-related purchases then a typical cash back rewards card.
The inverse is also true. If you are using a travel rewards credit card and redeeming your points for statement credit, you are typically losing out on a higher rewards rate than if you had used a cash back card instead. Therefore, if you’re a frequent traveler, choose a travel rewards card. If traveling is not your thing, a cash back rewards card would be a wiser choice.
Keep in mind, you can have both types of cards in your wallet.
Are travel rewards credit cards with an annual fee worth the cost?
Credit cards with annual fees typically are packed full of benefits that can make paying the annual fee worthwhile as long as you use the benefits offered. Before applying for a card with an annual fee, and regularly while you have the card, look at the benefits that you actually use and weigh those benefits against what you are paying to keep the card open.
How do travel rewards credit cards work?
A travel rewards credit card accrues miles or points for each purchase made with the card. Often, these cards have an enticing sign-up bonus that typically requires spending a certain amount of money within a specific time period after opening the card. After earning miles or points, there are typically a few redemption options including redeeming for airline tickets, gift cards or statement credits. As a general rule, redeeming miles and points for travel will result in the most value.
Why types of travel cards are there?
There are two types of travel credit cards.
Branded credit cards are specific to one airline or hotel chain. They typically offer less flexible rewards but sometimes offer greater value, especially when considering additional perks of the card like free checked bags or complimentary elite status.
Non-branded travel cards typically offer more flexible rewards that can either be transferred to a number of different airlines and hotels or redeemed at a fixed cash-value for travel, gift cards, and/or statement credits.
It makes sense to consider the rewards rate, additional perks, you travel patterns and your goals before determining if a branded or non-branded credit card is the best choice for you. It could also make sense to have one (or multiple) of each.
What credit score do you need to get a travel rewards credit card?
A travel rewards credit card will typically require good to excellent credit in order to qualify. Plan to have a credit score of at least 700 to get approved by the top credit cards on the market. Some of the top travel cards on the market might even require applicants to have a credit score of 720 or higher.
