What are travel credit cards and how do they work?

Travel credit cards allow cardholders to earn rewards on purchases. Depending on the card, those rewards can be redeemed for flights, hotels or car rentals and more. Many travel credit cards also offer extra benefits (travel insurance, airport lounge access and more) to help make traveling easier and more rewarding.

Learn more about how travel credit cards work and explore different types to find out how to make the most of rewards.

What you’ll learn:

• Travel cardholders can typically earn rewards by using their cards to make purchases. Some travel cards may only offer rewards for certain types of purchases.

• Travel cardholders can typically redeem rewards for travel-related purchases, such as airline tickets, hotel reservations and vacation rentals. Some travel cards may offer additional ways to use rewards. 

• Travel credit cards may come with benefits like welcome bonuses and other travel credits. 

• Common types of travel cards include airline, hotel and general travel rewards credit cards.

With travel credit cards, you typically earn rewards in the form of points or miles by making eligible purchases. You can typically use a travel card as you would any other credit card. Eventually, you can redeem your rewards for travel-related purchases. Some travel cards offer additional ways to earn and use rewards.

One important item to note is that travel cards may offer different rewards programs. Some travel cards may only offer rewards for certain types of purchases, like gas, groceries or dining out. Others may let you earn miles on every purchase you make. 

Some travel cards may offer a flat rewards rate for all purchases. Others may offer a higher rate on travel-related purchases.

Travel credit card miles and points often work similarly. Sometimes, the main difference is simply what the credit card issuer chooses to call their travel card rewards. The way that miles or points are earned and redeemed also depends on the issuer.

Three common types of travel rewards credit cards are: 

• General

• Airline

• Hotel

Here’s a quick look at how rewards and redemptions for each type of travel card might work:

With a general travel rewards credit card, you’re typically not tied to a single airline or hotel. So you’ll likely have options. For example, you may be able to use your rewards at a variety of airlines and hotels. Travel purchases like rental cars, vacation rentals and train tickets could be other options. 

The flexibility of general travel cards may also mean you can book flights and hotel rooms when you want, without blackout dates and other restrictions. 

General travel credit cards may give extra benefits, too. Some offer a statement credit toward TSA PreCheck® or Global Entry programs that can help you skip long lines at airport security or customs. Some cards may also waive foreign transaction fees to help you save money when you make purchases outside the U.S.

With an airline credit card, you can earn rewards to use with a specific carrier. Depending on the card, your rewards could be redeemed for everything from plane tickets to free checked bags and priority boarding.

Hotel credit cards reward loyalty to a specific hotel or hotel chain. With a hotel card, you may earn rewards to redeem for rooms, potentially including free nights at the hotel. 

You may also get to enjoy benefits just for cardholders. They can include things like complimentary breakfasts, room upgrades and concierge service.

Typically, you can redeem rewards by signing into your account online. Some issuers also maintain travel-booking sites. Capital One travel cardholders have options to:

• Book travel. With Capital One Travel, you can plan and book entire trips—from vacation rentals and popular activities to flights and hotels—all in one place. Plus, earn unlimited rewards on every booking.  

• Get gift cards. If travel’s not in your near future, you may be able to redeem your miles for digital and physical gift cards. 

• Redeem miles for cash back. Like the idea of having extra cash? Turn your miles into cash in the form of a check or statement credit on your card account.

• Shop with your miles. Use miles to pay for purchases at Amazon.com or online through PayPal®.

• Transfer rewards to a travel partner. Redeem rewards by transferring them to a transfer partner.

To maximize your travel rewards credit card benefits:

• Know how to earn bonuses. Some travel cards may offer a bonus to new cardholders. Understanding the details, timing and spending requirements could help keep you from missing a bonus opportunity. 

• Make the most of benefits. Being familiar with your card’s travel benefits could help you get the most out of them. Benefits may include everything from travel insurance protections to savings on ride-hailing services. Exclusive access to airport lounges could be another perk.

• Use your full range of redemption options. Redemption options vary from card to card. Some may allow you to redeem rewards for cash back, for example. Others may let you transfer miles to the loyalty programs of qualifying hotels and airlines. Just keep in mind that the value of your rewards may vary, depending on how you use them.

• Book through your card issuer’s travel portal. You could earn a higher rate on your purchases. If you’re a Capital One cardholder, Capital One Travel can help you save an average of 15% by alerting you when it’s time to book. And depending on your card, you could earn up to 10X miles on hotels and rental cars and 5X miles on flights, vacation rentals and activities.

If you’re wondering whether a travel rewards card is right for you, here are some advantages and disadvantages to think about. You read above about the potential flexibility to earn and redeem rewards, including potential bonuses if you’re a new cardholder.

Before you apply, you might also consider potential fees and credit requirements. For example, annual fees don’t have to be a deal-breaker if rewards and benefits outweigh the cost.

Here are answers to frequently asked questions about travel credit cards.

Travel credit cards enable you to earn rewards to use on travel-related expenses. These can include airline tickets, hotel stays and more. You also may be able to enjoy exclusive benefits and perks that come with many travel cards.

Capital One offers travel rewards credit cards with exclusive benefits and elevated rewards that can help make your travel experience more enjoyable.

• Explore Capital One travel rewards cards with unlimited miles you can actually use. 

• Earn a one-time 75,000-mile bonus and receive an additional 10,000 bonus miles every year, starting on your first anniversary, with the Venture X card.

• Earn unlimited 2X miles on every purchase, every day, and earn a one-time 75,000-mile bonus with the Venture card. 

• Earn unlimited 1.25X miles on every purchase, every day, with no hidden fees with the VentureOne card.