Maybe one day, while scrolling through your friend’s vacation-themed Instagram posts during your sad desk lunch hour, you start craving a travel adventure of your own. If you’re not sure how to finance your global goals, one way to do it is to apply for your first credit card that earns travel rewards.
Travel credit cards allow you to earn points or miles on everyday purchases, which you can redeem to offset travel expenses like flights, hotels and car rentals. If you’re shopping for your first travel credit card, here are some things to keep in mind.
| If this sounds like you… | …consider this credit card |
|---|---|
| You are not loyal to a particular airline or hotel brand. | Regular travel rewards card. |
| When you travel, you tend to stay with the same airline and hotels. | Airline or hotel card. |
| You don’t travel often and don’t necessarily want to buy points to travel. | Cash back cards. |
| You currently have credit card debt. | Low interest card. |
How to Choose the Best First Travel Credit Card
Find easy income and expenses
You might not become a travel expert overnight—and you probably never want to be. Looking for a travel card that’s perfect for beginners, doesn’t require you to be so careful about where to spend it, and can redeem points without having to deal with confusing fine print? That’s necessary, too.
The Bank of America® Travel Rewards Credit Card earns 1.5 points per $1 spent, which is an easy-to-remember metric, but there’s one exception: You’ll earn 3 points per $1 spent on eligible travel booked through the Bank of America® Travel Center. You can also earn 25,000 online bonus points, which can be used as a $250 statement credit toward travel purchases, after you spend at least $1,000 within 90 days of account opening. Bank of America Preferred Rewards® members can earn 25%-75% more points per purchase.
To redeem your rewards, simply use them for restaurant or travel purchases within the last 12 months to receive a statement credit (points redeemed for travel are worth 1 cent each). “Travel” includes airfare, hotel stays, car rentals, camping, cruises, tour operators, trains, buses, taxis, limousines, ferries, parking, fees, attractions, etc. Included. With an annual fee of $0, this is perfect if you’re just getting started.
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If you’re willing to pay the annual fee, the Capital One Venture Rewards Credit Card is another option for anyone looking to apply for their first travel credit card. You’ll pay $95, but a statement credit for the cost of applying for Global Entry or TSA Precheck can help ease the burden. Earn 2 miles for every $1 spent, plus a sign-up bonus: a one-time bonus of 75,000 miles, equal to $750 in travel, after you spend $4,000 in purchases within 3 months of account opening. Redeem your rewards for a statement credit for travel expenses you’ve paid in the past 90 days. “Travel” purchases include airline tickets, hotel stays, train tickets, rental cars, limousines, buses, cruises, taxis, travel agents and timeshares.
Neither card charges foreign transaction fees, so they make for great travel companions once you’ve used your points to book your travel.
Flexibility if you are not restricted to a specific brand
If you’re willing to fly any airline and stay at any hotel if the price is right, a more general travel rewards card like the two listed above can give you the freedom to create the travel itinerary of your choice.
Regular travel cards are particularly suitable for those who plan to use their points for multiple travel expenses or are not yet sure how they will use their points in the future.
If you’re loyal, you can find cards for your favorite airlines and hotels
Maybe you don’t want endless options. If you tend to stick with a particular airline or hotel chain when you travel, a co-branded credit card with both the bank and the brand name can give you extra benefits to compensate for your sacrifice.
Airline credit cards earn more points when you buy something with that airline, and those points are worth more when you use them to buy airfare. Depending on the credit card you choose, you can get valuable extras:
- Priority boarding.
- Enjoy discounts on food and beverages on board.
Your card will also allow you to start accumulating miles, which will qualify you for elite status.
Hotel credit cards can also enhance your travel experience with room upgrades, free breakfast and snacks, and access to exclusive hotel lounges (where you can usually find free snacks, by the way).
When should you get your first travel credit card?
You definitely don’t need to have a specific vacation in mind when shopping for your first travel rewards credit card, but it will certainly help you narrow down your choices. One thing you do want to do is plan ahead. Along the way.
Because it typically takes three months for a sign-up bonus to be credited, and it may take another billing cycle for the bonus to appear in your account, NerdWallet recommends applying for a credit card at least five months before your trip. This will give you time to qualify for the card, earn the bonus, and use the points for travel.
What if a travel rewards card isn’t right for you?
If you’re not a frequent traveler, or just want to keep things simple, you might find that a cash back credit card is a better fit for you. Here’s one way to convert a cash back card to a travel card: Redeem your cash back earnings and deposit an equal amount into a travel savings account so you have funds on hand when you’re ready to book.
🤓Cruel Tips
If you have credit card debt or are considering borrowing to make a large purchase, travel credit cards may not be the best choice. Their APRs are often higher than average, which means the interest you pay on your revolving debt will eat into your premiums. Instead, consider a credit card that offers early APR terms for balance transfers or purchases.
