How to Choose a Travel Credit Card
Choose the best travel credit card for your travel style and financial situation.
Bottom Line Up Front
- When choosing a travel credit card, balance your travel goals and preferences with your financial situation.
- Airline- and hotel-specific cards reward travelers loyal to their brands, while general cards can give you more flexibility.
- Weigh the value of rewards against interest rates, annual fees and other fees to ensure they align with your specific needs.
Time to Read
7 minutes
June 17, 2025
Whether you vacation occasionally or are a frequent traveler, a travel rewards credit card can unlock a range of perks for your trips. These cards can help you earn points or miles toward your next flight, hotel visit, experience and more. But with so many options out there, how do you determine which travel card is right for you?
When choosing a travel rewards credit card, it’s important to look at your travel preferences and finances. Together, they can help you identify the best travel credit card for your situation.
How do travel rewards credit cards work?
Travel rewards credit cards function much like other types of rewards credit cards. As cardholders spend, they earn rewards that can be redeemed for discounted or free products and services. These may include gift cards, flights, hotel stays, car rentals and other vacation-related expenses.
Getting a travel rewards credit card can be great if you’re saving up for a dream vacation or travel frequently for business or pleasure. The perks that come with the right travel credit card—some available as early as account opening—can help you make the most of your money on your trips. Just remember to pay attention to terms and conditions and learn about the features to maximize travel rewards.
Types of travel credit card rewards
Travel credit cards typically offer 3 main kinds of rewards: points, miles and cash back.
Rewards
Points
Points can be redeemed for various travel options like flights and hotels as well as merchandise. They may also be transferred to travel partner programs and are often redeemable for cash back.
Travel credit cards typically offer different earning rates on your purchases. These rates translate to how many points, miles or cash back you earn per dollar spent. For example, a card might offer 2X points per dollar on travel purchases.
Bonus categories are spending categories where you can earn additional rewards. These can include travel, but may also extend to dining, groceries and even streaming services. Standard or rotating bonus categories can help you maximize your card rewards. Research your card’s bonus categories and plan your purchases to earn extra points.
Smart money tip
Don’t miss out on sign-up bonuses and brand partnership offers that can help earn you extra points. These incentives are usually only available for a short time!
Tips for choosing the right travel rewards card
Planning your next trip starts with finding a card that fits your travel style. The right card can turn your everyday spending into travel rewards while adding perks that could make your trips more affordable.
Tip #1: Consider your travel and spending habits
Your travel frequency and spending patterns should guide your card choice. Think about how often you travel and where your money typically goes.
“Ask yourself how often you travel, how much money you spend each year and what type of plans you tend to make when you travel,” says Drew Tsitos, Manager of Credit Card Products at Navy Federal Credit Union. “Keep in mind, different cards reward different types of spending, which can also help you decide which kind of travel credit card is best for you. If you don’t travel regularly, you may find more value in a card that earns you cash back on your everyday purchases.”
Here are some examples of different types of travelers:
- Frequent flyers/hotel loyalists: Spenders that typically use one specific airline or hotel chain will get more from co-branded cards. These cards can reward you with faster points, status perks and benefits like free checked bags or room upgrades.
- Flexible travel fans: Those who look for the best deals across different airlines and hotels should consider general travel cards. These offer points redemption to use with various travel companies, giving you the freedom to book the best deals for each trip.
- Big spenders on travel: These spenders should look for cards with valuable welcome bonuses that require higher initial spending. Cards with higher annual fees often have luxury perks that frequent travelers can use to make the cost worth it.
- Budget or occasional travelers: These travelers will typically do better with no-fee cards with simple rewards. Look for cards that offer rewards on everyday spending like groceries or dining to build up points even when you're not traveling.
- Military members: These are for those facing PCS moves or overseas duty and need flexibility and protection. Cards with no foreign transaction fees and travel insurance can save you money during moves and international travel.
Tip #2: Decide between general and co-branded travel cards
The first step in finding your perfect travel card is choosing between 2 main types based on your travel style:
- General travel cards: You earn points you can use with different travel brands, which works well if you like to shop around for deals. While they could give you more freedom, they might not have special perks like free checked bags.
- Co-branded travel cards: These cards partner with specific airlines or hotel chains to reward loyal travelers. If you often fly one airline or stay at the same hotel brand, these cards can give you bonus points and perks like priority boarding, room upgrades or special status. The downside is less freedom when booking with other travel companies.
Tip #3: Weigh the benefit of travel perks
Points and miles aren’t the only benefits that can make travel cards worthwhile. These additional perks can enhance your travel experiences further:
- Flight benefits: Turn ordinary trips into premium experiences. Look for perks like priority boarding, free checked bags and airport lounge access that can make flying more comfortable.
- Hotel perks: Some card benefits allow you to upgrade your entire stay. Many hotel cards can give you room upgrades when available, free breakfast or late checkout—extras that would cost a lot more otherwise. Some cards even offer automatic hotel elite status!
- Travel protection: Vacation security can give you peace of mind when plans change. Some cards may cover you if you need to cancel a trip, your bags are delayed, you need a rental car or you require emergency help.
- Statement credits: These can offset travel expenses directly. Navy Federal’s Visa Signature® Flagship Rewards Credit Card, for example, offers credits of up to $120 for Global Entry and/or TSA PreCheck application fees.Footnote 1
Smart money tip
Figure out what travel perks are really worth to you. A card with free checked bags only saves you money if you check bags when you fly.
When should you get your first travel credit card?
The best time to get your first travel credit card is when you're financially ready and have specific travel plans. Make sure you have a good credit score, can pay your balance in full each month and travel enough to offset any annual fee.
If you travel at least once or twice a year, enjoy travel-related perks and pay your balance in full each month, a travel rewards card could be a smart idea. It’s also a great tool for military families dealing with frequent moves or deployments. The flexibility and travel protections can be especially valuable.
Financial factors to consider for travel credit cards
Signing up for a travel credit card is a big financial decision. In addition to your travel preferences, it’s crucial to examine the financial implications of your new card. Factors like fees, spending minimums and credit requirements should all influence your choice.
Annual fees
Travel credit cards often have yearly fees from $0 to several hundred dollars. Cards with higher fees usually have better rewards and perks. If you don't travel much, look for a card with no fee or a low fee. Even if you travel a lot, make sure you value your rewards and benefits more than what you pay for the card.
Credit requirements
Travel rewards cards—especially those with premium rewards and perks—may have specific credit score requirements. Before you apply, check what credit score you need for the card. If your credit isn't strong yet, you could start with a secured card or another basic card with a lower credit score threshold to build it up.
Travel rewards worth
Look at how many points or miles you get for each dollar you spend. Some cards give more points for travel costs like flights and hotels. Others reward everyday spending on items like groceries. Pick a card that rewards what you already spend money on.
Interest rates
While rewards are great, credit cards charge interest on unpaid balances. To get the most from your rewards, try to pay your bill in full each month. If you believe you’re likely to carry a balance, choose a card with a lower interest rate (APR) to save on costs.
International fees
For international travelers, avoiding foreign transaction fees is crucial. Look for cards with no foreign transaction fees,Footnote 2 like Navy Federal’s Visa Signature Flagship Rewards Credit Card. These cards won’t charge an extra fee on top of the foreign exchange rate when you use your card abroad. This can help save you money if you travel frequently or make large purchases overseas.
The best travel rewards card can help you save
When it’s time to make a final decision, weigh your travel preferences and financial situation equally. Remember that the right travel rewards credit card will help you maximize on travel—not overspend. Most importantly, make sure you use your card responsibly by making timely payments.
Use Navy Federal’s Credit Card Comparison Tool to get a side-by-side look at different cards’ fees, interest rates, perks and more. With careful consideration and use, your travel rewards credit card could help you maximize rewards on your next vacation!
Disclosures
Receive up to $120 in statement credits for Global Entry or TSA Pre✓® charges that are processed after the Global Entry program application fee or TSA Pre✓® application fee is charged to your Visa Signature® Flagship Rewards Card. Visa Signature Flagship Rewards Cardholders are entitled to up to $120 in statement credits per eligible Visa Signature Flagship Rewards Credit Card number every 4 years per Global Entry or TSA Pre✓® program. The 4-year period is based on the date of the first qualified transaction. Statement credits are applied to application fee charges made on or after account opening. Please allow 6-8 weeks after the applicable program application fee is charged for the statement credit(s) to post to your account. Cardholders are responsible for payment of all charges until the statement credit(s) post(s) to their account. Visa® and Navy Federal Credit Union reserve the right to modify or cancel this offer at any time and without notice. Global Entry is a U.S. Government program, operated by U.S. Customs and Border Protection (CBP). TSA Pre✓® is an expedited airport security program operated by the U.S. Transportation Security Administration (TSA) that allows low-risk travelers within the United States to speed through security at select airports. Visa and Navy Federal Credit Union have no liability with regards to the Global Entry and TSA Pre✓® programs and have no control over either program, including, but not limited to, the application, approval process or enrollment, and fees charged. For complete details on the Global Entry program, including full terms and conditions, go to cbp.gov/global-entry/about. For more information about TSA Pre✓® and the application process, visit tsa.gov/precheck. The TSA Pre✓® trademark is used with the permission of the U.S. Department of Homeland Security.
↵As of 2/3/2025, rates range from 15.49% APR to 18.00% APR, are based on creditworthiness, and will vary with the market based on the U.S. Prime Rate. ATM cash advance fees: None, if performed at a Navy Federal branch or ATM. Otherwise, $0.50 per domestic transaction or $1.00 per foreign transaction. $49 annual fee for Visa Signature® Flagship Rewards.
↵Visa Signature® Flagship Rewards Credit Cards earn 3 points for every $1 of eligible purchases made on travel and 2 points for every $1 of other eligible purchases. Eligible purchases are purchases for goods and services, minus returns and other credits. Eligible purchases do not include fees, interest charges, balance transfers, gambling, convenience checks, cash advances, or other cash-equivalents (e.g., money orders, gift cards, prepaid cards). A travel purchase may only earn 2 points per dollar spent, depending on the merchant code used to process the transaction. Travel is typically categorized under merchant category codes such as airline, hotel, car rental, bus lines, taxis, cruise lines, time shares, parking and transit. Additional categories may be ineligible, in which case you will receive 2 points per dollar spent at these locations based on the merchant category codes. For more information, view the Flagship Rewards Program Description.
↵Certain terms, conditions, and exclusions apply. Please refer to the Visa® Benefits Site and Guide or the Mastercard® Site and Guide for more information.
↵All product and company names and logos are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.
This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.