Best travel credit cards for August 2021 – CNET

The best travel credit card overall for most travelers

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Chase

Reward rates: 3x points on travel and dining (3x on travel begins after earning $300 annual travel credit), 1x point on all other purchases
Annual fee: $550
Welcome bonus: 60,000 points
Bonus redemption threshold: Spend $4,000 in first three months
APR: 16.99% to 23.99% variable
Foreign transaction fees: None
Credit requirement: Excellent

Chase Sapphire Reserve offers great value for those who spend around $12,000 or more annually on travel. The credit card company lets you accrue rewards card points for flights, hotels, rental cars, trains, buses and either travel or dining. Consider the Platinum Card (for the frequent flyer) or the Gold Card (for high food budgets). Otherwise, I’m a big fan of the wide range of expenses that fall under the Chase Sapphire Reserve card’s bonus points categories. And it’s even better for those who value its additional travel perks like travel insurance, hotel discounts through The Luxury Hotel and Resort Collection and lounge access through Priority Pass Select.

Rewards details

The Chase Sapphire Reserve card gives you unlimited 3x points on travel and dining purchases, 1x points on all other purchases and 10x points on Lyft rides through March 2022. 

While the Chase Sapphire Reserve card’s $550 annual fee is steep, the yearly travel credit of $300 essentially brings the overall cost down to $250, making the annual fee more manageable. Plus, the 60,000 point bonus — earned after spending $4,000 in the first three months — is worth $900 toward travel through Chase Ultimate Rewards. Finally, card holders get a statement credit reimbursement for Global Entry or TSA Precheck (worth $100 for Global Entry or $85 for TSA precheck, both of which are valid for five years) plus a number of VIP-style travel perks. 

Redemption details

Chase Ultimate Rewards points can be redeemed in three main ways. 

• Cash redemption at a 1-cent per point rate effectively turns your card into a 3% cash-back card for travel and dining purchases. 
• Booking travel through Chase’s Ultimate Rewards portal gets you a rate of 1.5 cents per point, or $1.50 for 100 points, which represents a return of 4.5% on travel and dining purchases (well above most cash-back cards). 
• Transfer points to one of the Chase Ultimate Rewards travel partners at a redemption rate of up to 2 cents per point, a 6% total return according to The Points Guy’s most recent valuations.

The best for foodies and big grocery shoppers

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American Express

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Reward rates: 4x points on restaurants and on Uber Eats purchases, 4x points at US supermarkets (on up to $25,000 per calendar year, then 1x), 3x points on flights (booked directly with airline or amextravel.com), 1x points on other purchases
Annual fee: $250 (see rates and fees)
Welcome bonus: 60,000 points
Bonus redemption threshold: Spend $4,000 on eligible purchases in first six months
APR: See Pay Over Time APR (see rates and fees)
Foreign transaction fees: None (see rates and fees)
Credit requirement: Good to Excellent

As the only card on this list that offers a high rewards rate on both restaurant and US supermarket purchases, the Gold Card from American Express is a great option for those who don’t currently spend a ton on travel every year, but would like to travel at a discount with points earned by spending money on food. 

If you spend more than about $7,000 annually on restaurants and US supermarkets (including smaller grocery stores, but excluding big-box stores like Walmart or Target), the $250 annual fee is well worth it. Considering the average American household spent $7,923 on food in 2018, according to the US Bureau of Labor Statistics, many households could benefit from the Gold card. (If you spend a high amount on both food and travel each year, I recommend the Chase Sapphire Reserve instead.)

Rewards details

The Gold Card has a broad spectrum of rewards categories for a travel card, with 4x points on restaurants and US supermarkets (on up to $25,000 in US supermarket purchases each calendar year, then 1x) and 3x points on flights booked directly with airlines or through amextravel.com, the website where points can be redeemed. The $250 annual fee is partially offset by up to $120 in annual dining statement credits (up to $10 per month) at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations. The intro bonus is fairly standard at 60,000 Membership Rewards points after spending $4,000 in eligible purchases in the first six months, which is worth up to $1,000. (To determine the value of rewards, bonuses and points, we take the average of the most recent The Points Guy and NerdWallet valuations and apply it to the reward rate.)

Redemption details

There are two main ways to redeem points with the Gold Card. The first is for travel purchases made through the American Express Travel portal, where one point equals 1 cent. The second option is to transfer your MR points to one of 18 airline partners or three hotel partners for a value of up to 2 cents per point, according to the most recent The Points Guy valuations. Since your points can be worth twice as much when transferred, we highly recommend transferring to a travel partner and looking for good redemption deals in order to maximize your earned points.

The best travel card for first-class fliers

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American Express

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Reward rates: 10x points on eligible purchases at restaurants worldwide and when you Shop Small in the US (on up to $25,000 in combined purchases) during the first six months of card membership. 5x points on flights booked directly with airlines or American Express Travel (on up to $500,000 on these purchases per calendar year) and 5x points on prepaid hotels booked on American Express Travel; 1x point on other purchases
Annual fee: $695 (see rates and fees)
Welcome bonus: 100,000 points 
Bonus redemption threshold: Spend $6,000 in first six months of card membership
APR: See Pay Over Time APR (see rates and fees)
Foreign transaction fees: None (see rates and fees)
Credit requirement: Good to Excellent

The Platinum Card is Amex’s top-tier travel card, offering the highest potential ongoing reward rate of any we’ve reviewed, topping out at 10%, depending on how points are redeemed (details below). This card is ideal for anyone who already spends more than $10,000 annually on flights and hotels alone and for those who value premium travel perks such as lounge access and hotel upgrades. The narrow ongoing rewards structure — which doesn’t include food or dining — and high annual fee of $695 make this a valuable card for a particular spending profile, so do the math before applying. 

Rewards details

The Platinum Card gives 5x Membership Reward points on flights booked directly with airlines or through the American Express Travel portal and hotels — which require prepayment — booked through the Amex portal. Flights or hotels booked through a third-party service or company, like Orbitz, don’t qualify. 

The high annual fee of $695 is offset by up to a $200 airline fee statement credit per calendar year for travel incidentals, such as a checked bag, in-flight food or beverage or Wi-Fi; a statement credit for Global Entry or TSA Precheck (worth $100 for Global Entry or $85 for TSA precheck, both of which are valid for five years); and up to $200 in Uber Cash per year for US rides and eats. The new-member bonus is on the high end at 100,000 points when you spend $6,000 in the first six months of card membership, worth up to $2,000 when transferred to a travel partner and redeemed at its maximum value (to determine the value of rewards, bonuses and points, we use the most recent The Points Guy valuations). The Platinum Card also offers a number of premium travel benefits, with hotel perks including room upgrades, complimentary breakfast, early check-in and late checkout on eligible hotel stays and access to the Global Lounge Collection.

Redemption details

The Platinum card offers three main methods of redemption:

• Travel purchases made through the AmEx Travel portal, where one point is equal to 1 cent, including flights and prepaid hotel reservations.
• Transfer your MR points to one of 18 airline partners or three hotel partners for a value of up to 2 cents per point, according to the most recent The Points Guy valuations. Given that there’s potentially a 100% value swing, we highly recommend transferring to a travel partner and looking for good redemption deals in order to maximize your points. 
• A statement credit, but the rate is variable and you’ll typically get less value out of your points with this method.

The best travel credit card for earning miles on everyday spending

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Capital One

Reward rates: Earn 2x miles on everyday purchases
Annual fee: $95
Welcome bonus: 60,000 miles
Bonus redemption threshold: Spend $3,000 in the first three months of account opening
APR: 17.24% to 24.49% variable
Foreign transaction fees: None
Credit requirement: Good to Excellent

The Capital One Venture travel rewards credit card is a straightforward, easy-to-use option for those who would like to book travel with travel reward miles generated from general spending and would rather not worry about eligible purchase spending categories. 

Rewards details

With unlimited 2x miles on every purchase, the Venture card is the broadest-earning travel card available. You can earn 60,000 miles after spending $3,000 in the first three months (compare that with $4,000 for most other cards). That’s significant — especially given the relatively low $95 annual fee. The Capital One Venture also gives cardholders up to a $100 statement credit for TSA Precheck or Global Entry, as well as travel accident insurance and rental collision insurance (more on that later). 

Redemption details

The best way to use your Capital One Rewards miles is to transfer them to one of more than 15 travel partners at a rate of up to 1.4 cents per mile, for a potential net rewards value of 2.8%. The exact reward rate depends on the particular flight you reserve. When compared with the dollar cost of a flight, some flights may get you closer to 1 cent per mile, while others get you the max rate of 1.4 cents per mile. It’s not clear how exactly the mile cost is calculated, but keep in mind sometimes the maximum rate is only available when booking business class or first-class flights.

You can also redeem your Capital One Venture rewards miles as statement credits against past travel purchases (at a rate of 1 cent per mile), use them to shop on Amazon at a rate of 0.8 cents per mile or use them to book travel through the Capital One travel portal.

How do travel credit cards work?

Travel credit cards turn purchases into points or miles that can be redeemed for travel purchases, like flights and hotel stays. Sometimes you can redeem those points for cash or a gift card, but you typically get the best rate when using them to book travel. The top cards have their own travel booking portals through which you can find flights, hotels and rental cars; sometimes, points are worth more when used in those credit card company portals.

Airline and hotel credit cards — which we didn’t include in this list — operate like loyalty programs in that you stay in a closed-loop rewards system. You earn rewards when you purchase flights or hotels through your chosen airline or hotel company, and you can use those points for perks or future bookings through the same airline or hotel group.

How do you choose the best travel credit card?

The points and travel benefits that you accrue through a travel rewards program are often redeemed through your credit card issuer’s website (or app) or appear as a statement credit that reimburses you for past travel-related and everyday purchases you made with your travel credit card. Points or miles can also be transferred to travel partners — mostly hotels and airlines — at a fluctuating conversion rate, where they can then be used to book a flight or hotel room.

To choose the best travel credit card, there are a few key factors to consider: 

• Annual fees: Every single travel rewards program reviewed here has annual fees, with some climbing as high as $695, but those fees are usually mitigated by monthly or annual credits. 
• Exclusive perks: Some of these travel rewards card options also grant access to exclusive travel perks, like airline lounges, priority boarding or VIP welcomes at hotels. The value of those perks is subjective and something you’ll have to evaluate based on your needs and wants.
• Foreign transaction fees: None of the best travel cards makes users pay a foreign transaction fee, so a foreign transaction fee is not something you have to worry about with any of the credit cards recommended here.

Other travel credit card benefits

Most travel credit cards — which carry hefty annual fees — include benefits that further add value to those cards. Benefits like rental car collision insurance and even lost luggage reimbursement have become standard. Here’s what’s offered for the cards chosen here:

Travel accident insurance: Reserve, CapOne Venture

Trip cancellation insurance: Reserve, Platinum

Trip delay reimbursement or protection: Reserve, Platinum

Lost luggage reimbursement: Reserve, Platinum, Gold

Rental car collision insurance: Reserve, Platinum, Gold, Venture

How we picked the best travel credit cards

To determine our recommendations for the best travel credit cards, we researched 20 of the most popular travel rewards credit cards (listed below) and selected based on the best monetary value for certain customer profiles, such as frequent travelers, those who spend a lot on dining and groceries or those who are looking for an easy way to travel at a discount with miles earned on everyday spending. We always hold overall net value paramount, since choosing the right rewards credit card is about saving money and being financially responsible, not being lured by perks or offers that are flashy or irrelevant.