How to work your way up to a travel credit card

Travel credit cards usually have elevated benefits. For example, they might help you pay for checked bag fees, get you into an airport lounge, cover a night or two at a hotel or turn everyday purchases into travel points—depending on the card and program terms. Those great perks are one reason many premium travel cards are geared toward people who have a stronger credit history. That means there aren’t many travel credit cards for bad credit available. 

If your credit isn’t at the high end of the range yet, that’s okay. There are steps you can take to build your credit and help improve your odds of getting approved. We’ll help you find out what it typically takes to qualify for a premium travel card and the steps many people take to get there. Here’s what we’ll cover:

• What are travel credit cards?
• Why credit scores matter for travel rewards cards
• Common steps to take to work up to a travel card
• Habits that help build credit
• What to do when you’re ready for a travel credit card

What’s a travel credit card?

A travel credit card is a credit card that rewards purchases with points, miles or statement credits you can apply toward flights, hotels and other travel costs. Instead of getting cash back on everyday spending, a travel credit card helps you build up rewards that can cover some expenses on your next trip. Some travel cards can come with benefits like access to airport lounges, no foreign transaction fees and travel credits. Benefits vary by card, so be sure to review the terms before applying.

Travel credit cards generally fall into 3 categories:

Why credit scores matter for travel credit cards

Because travel credit cards often offer stronger rewards than standard cards, issuers typically review applicants’ credit profiles closely and reserve their top travel cards for applicants who have good to exceptional credit. Many travel credit cards require applicants to have a FICO® Score of at least 670, according to Bankrate.com. That’s at the low end of FICO®’s range for “good” credit. 

How a lower credit score can affect your card options

FICO® Scores in the “fair” or “poor” ranges usually result in higher interest rates, lower starting credit limits and limited access to top-tier cards. Your score is only one factor, though. Your income, debt-to-income ratio and existing relationship with a lender can be considered, too.

The credit-building ladder: How to work toward a travel credit card

Building the credit it takes to qualify for a premium travel card takes some time. Many people move through the process in stages—starting small, building a track record and gradually taking on more credit as their score grows.

Step 1: Start with a secured card

A secured credit card is often the starting point for people who are building or repairing credit. Your credit limit on this type of credit card is tied largely to the refundable security deposit you provide, along with the card issuer’s eligibility requirements. The deposit lowers the lender’s risk, so secured cards tend to be more accessible to people with no credit or bad credit. 

When choosing a secured card, look for one with no annual fee that reports your payment activity to all 3 major credit bureaus: Equifax®, Experian® and TransUnion®. Reporting that good payment behavior helps build your credit history over time.

Step 2: Use preapprovals and card graduation

Once you’ve built some payment history, prequalification or preapproval tools can help you find travel credit card options that could be a good fit—before you apply. They don’t guarantee approval, and final decisions depend on a full application review. 

Getting prequalified or preapproved typically involves a soft credit pull, which doesn’t affect your credit score. A hard pull is the type of credit check that can temporarily lower your score.

Many secured card issuers occasionally review accounts to see if cardholders qualify to upgrade to a traditional, unsecured credit card. This can include getting a security deposit refund and a higher credit limit. This upgrade is often a sign that your credit-building efforts are paying off.

Step 3: Move to entry-level rewards cards

After moving up to an unsecured card, many people use an entry-level or mid-tier rewards card as a bridge before applying for a premium travel card. These cards—which usually offer cash-back rewards or low fees—help build a track record of on-time payments. Responsible usage is a positive factor when you’re ready to apply for a premium travel credit card.

This table can help you see the role of each of these credit-building steps. Your path may look different, but the general idea is to build a steady record before applying for a premium travel card.

2 habits that can help improve your credit score

Lots of things factor into a credit score, but on-time debt payments and credit utilization carry the most weight. Focusing on these first is one of the most effective ways many people work toward eligibility for a premium travel card.

1. Pay bills on time every month

Lenders want to see a consistent record of on-time debt payments. That’s why payment history makes up 35% of a FICO® Score—more than any other factor. You can build your on-time payment record by making at least the required payment by the due date. Paying the full balance also can help you avoid paying interest and manage your credit utilization.

2. Keep your credit utilization low

Credit utilization makes up 30% of a FICO® Score. Many experts suggest keeping credit utilization under 30% of your available credit. For example, if you have a credit card with a $1,000 limit and you’re carrying a $300 balance, then your credit utilization ratio is 30%. Some experts recommend staying closer to 10% for an even stronger credit profile. Keep in mind, these are general guidelines, not strict requirements.

When you’re ready for a premium travel rewards credit card

Once your credit score is in the good-to-excellent range and the rest of your application is in good shape, a premium travel card may be a more realistic option for you. At this point, the question shifts from “Can I qualify for a travel credit card?” to “Which travel credit card fits my lifestyle?”

How to decide which travel credit card to apply for

With stronger credit, you’ll likely have several options. Take time to compare a few things when choosing a travel credit card. Here are some questions that can help you evaluate your choices: 

• Do I tend to stick to certain airline or hotel brands, or do I look around for the best deal? 
• Would I use the card’s perks often enough to justify the annual fee? 
• How easy would it be to redeem points or miles for trips I plan to take? 

It’s also important to look at a travel credit card’s terms and benefits before you apply. These questions can help you decide if the card might be a good fit for you:

• What are the eligibility requirements, and do I think I can meet them?
• What annual percentage rate (APR) and fees might apply if I carry a balance on the card?
• Are there any rules or limits that might cap my potential to earn rewards?

Frequently asked questions about travel credit cards

What’s the minimum credit score needed to qualify for a premium travel rewards credit card?

Many premium travel cards are geared toward applicants with good credit, which is a FICO®^{Footnote [3]} Score of 670 to 739. Requirements vary by card and issuer, and application approval depends on more than just your credit score. Check a specific card’s guidelines before applying.

Can you get a travel credit card for bad credit?

It’s uncommon for premium travel cards to be available to applicants with a fair-to-bad credit score. If you have no credit or bad credit, building it up with a secured card or entry-level rewards card can help you work toward eligibility for a travel credit card.

How long does it take to increase your FICO® Score?

Credit scores tend to improve gradually because they reflect a track record over time. Some individual factors can shift faster, though. For example, lowering your credit utilization may help lift your score after the updated balances are reported, which could happen within 1-2 billing cycles. Consistent good habits like on-time payments matter most for lasting improvement.

Is a travel credit card with an annual fee worth it?

It depends on how you travel and how you’d use the card’s rewards. For frequent travelers, the points, miles or statement credits can add up to meaningful savings on flights, hotels and other trip costs. Comparing a card’s annual fee against its perks can help you decide if it’s a good fit.

Are there other ways to get travel rewards without a travel credit card?

Yes. Airline and hotel loyalty programs let you earn points or miles directly, even without a co-branded card. Cash-back credit cards are another option because the rewards can help offset some travel costs.

See how Navy Federal can help you build your credit

No matter which step of the ladder you’re on, Navy Federal can help you improve your credit health. Our cashRewards Secured credit card offers a straightforward way to build a positive payment history. When you’re ready to compare travel cards, you can check out our Flagship Premier Visa Signature® Credit Card and its current terms, benefits and eligibility requirements. 

You can also explore our full lineup of credit cards to compare options at any stage or visit the credit and debt hub to find more information about building and maintaining your credit health. And, members can use our free Mission: Credit Confidence® Dashboard^{Footnote [4]} to easily monitor credit scores, view credit reports, set goals, track progress and get real-time notifications.