What is a travel credit card?
What if your morning coffee, weekly grocery errands, gas fill-ups and Friday night dinners were quietly helping pay for your next vacation? The right strategy and travel credit card can make that a reality.
Travel credit cards allow cardholders to earn rewards on purchases. Depending on the card, those rewards can be redeemed for flights, hotel stays, car rentals and more. And many travel credit cards offer extra benefits—like travel insurance and airport lounge access.
What you’ll learn:
-
Travel cardholders can earn rewards by using their cards to make eligible purchases.
-
Travel cardholders may be able to redeem rewards for travel-related purchases, including airline tickets, hotel reservations and vacation rentals.
-
New cardholders may be able to earn rewards bonuses and immediately enjoy travel credits.
How do travel credit cards work?
Using a travel credit card is like using any other credit card. Eligible cardholders can earn rewards—often in the form of miles or points—by making eligible purchases. Then they can redeem rewards for travel-related purchases and more.
Rewards and redemption options vary from card to card and issuer to issuer. But benefits might include:
-
Rewards for purchases like gas, groceries or dining out
-
Miles on every purchase
-
Elevated reward rates on travel purchases
In addition to earning miles on purchases, travel credit cards can provide extra benefits like:
-
Statement credits to cover TSA PreCheck® or Global Entry programs
-
No foreign transaction fees
-
Access to airport lounges
How do credit card miles and points work?
Travel credit card miles and points often work similarly. Sometimes, the main difference is what the credit card issuer chooses to call its travel card rewards. How miles or points are earned and redeemed also depends on the issuer.
Types of travel credit cards
Three common types of travel rewards credit cards are general travel credit cards, airline credit cards and hotel credit cards. Here’s a quick look at how rewards and redemptions for each type of travel credit card might work:
-
General travel rewards credit cards: Aren’t tied to a single travel company, which could offer broader redemption options, including flights, hotel stays, vacation rentals, car rentals, train tickets and more.
-
Airline credit cards: Typically dedicated to a specific carrier. Depending on the card, you could redeem rewards for plane tickets, checked bags or priority boarding.
-
Hotel credit cards: Reward loyalty to a specific hotel or hotel chain. With a hotel credit card, you may earn rewards to redeem for rooms, which can also include free nights at the hotel, complimentary breakfasts, room upgrades and concierge service.
How do you redeem rewards earned with a travel credit card?
Most travel cards let you redeem online through your account. Some issuers also maintain travel-booking sites.
If you’re a Capital One travel cardholder, you have the option to:
-
Use Capital One Travel to book entire trips, including flights, vacation rentals and activities.
-
Redeem your miles for gift cards.
-
Redeem your miles for cash.
-
Use miles to pay for purchases at Amazon.com or online through PayPal®.
-
Transfer rewards to other loyalty programs.
Considerations for travel rewards credit cards
If you’re wondering whether a travel rewards card is worth it, here’s what to consider:
-
Fees: Some travel cards charge annual fees; others don’t. Estimating the rewards you could earn with a card in a year and weighing them against its annual fee can help you decide whether it’s worth it.
-
Credit requirements: Some travel credit cards may require a credit score that’s good or even excellent. But requirements may vary, and credit scores aren’t usually the only determining factor.
-
Bonuses: Some rewards cards may offer bonus miles or points for opening an account.
Travel credit card FAQ
Here are answers to frequently asked questions about travel credit cards.
What’s the difference between a travel credit card and a normal credit card?
Not all credit cards give you the chance to earn rewards for the purchases you make with them. But rewards credit cards typically do, and travel cards are a type of rewards card.
The benefits associated with travel cards may be different from those of other types of credit cards. Travel card benefits can include things like reimbursement for Global Entry or TSA PreCheck®, 24-hour travel assistance and access to airport lounges.
How do you choose the best travel rewards card?
Finding the best travel credit card for you depends on a few factors. They can include how often you travel, your spending habits and which travel credit cards you may qualify for.
Key takeaways: How travel rewards credit cards work
Travel credit cards enable you to earn rewards to use on travel-related expenses. These can include airline tickets, hotel stays and more. You may also be able to enjoy exclusive benefits 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 rewarding. 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 75,000 bonus miles with the Venture card.
-
Earn unlimited 1.25X miles on every purchase, every day, with no hidden fees with the VentureOne card.
