So you’ve decided to get a travel credit card — congratulations. Now comes the hard part: finding the card that makes the most sense for your wallet.
With so many options on the market, it can be difficult to choose which type of credit card will provide you with the most value based on your lifestyle and spending habits. To help you decide which is best for you, follow these four simple steps.
Decide between a cobranded or generic travel rewards card
First and foremost, you want to consider the type of The travel card you want and the type of reward you want to earn. There are two main categories: cobranded travel credit cards and general travel rewards credit cards.
Cobranded travel credit cards are tied to a specific airline or hotel and often come with brand-specific travel benefits. For airline cards, that means perks like free checked bags, priority boarding and inflight discounts. Hotel cards may include annual hotel credits or automatic hotel elite status.
Cobranded cards help you earn rewards in specific travel programs, so they’re best suited for frequent travelers loyal to a specific brand, like United Airlines or Marriott.
Common travel rewards credit cards allow you to earn rewards in credit card rewards programs with a variety of redemption options. With a general travel card, you can transfer your rewards to multiple airline and hotel loyalty programs or use them to book travel through your card issuer’s travel portal. You’ll also be able to redeem your rewards for statement credits, gift cards and select merchandise.
General travel credit cards are generally better for those who want flexibility in their rewards without being tied to a specific airline or hotel brand.
RELATED: How (and Why) You Should Earn Transferable Credit Card Points
Find a valuable welcome offer
Next, you’ll want to identify cards with hefty — yet achievable — The welcome offer, which can sometimes single-handedly justify owning your card for years.
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Take stock of your ability to meet the minimum spend requirements on a given offer. For example, the popular Chase Sapphire Preferred® Card has a welcome offer of 60,000 bonus points when you spend $4,000 on purchases in the first three months of account opening. Spending $4,000 in three months isn’t a high bar, but make sure you can reach that spending level if you’re considering getting a card.
Rewards cards with higher welcome offers usually come with higher minimum spending requirements. You’ll also want to keep an eye on card offer history and potentially take advantage of any elevated welcome offers on cards that interest you.
Related: Best welcome offers this month
Maximize bonus categories
If you’ve got a card with a nice welcome bonus, make sure it has it Bonus categories are tailored to your spending habits so you can make the most of them.
If you spend a lot in a given category, such as restaurants, groceries or travel, look for a card that earns multiple points or miles per dollar spent at those locations. Predictably, most travel cards also offer bonus rewards when you spend on travel, for example, Marriott Bonvoy cards offer bonus rewards at Marriott properties, or more commonly when you book travel through Chase Travel℠. Chase cards offer bonuses.
Welcome offers and bonus categories will significantly affect how you earn rewards, so choose wisely.
Related: 10 Easiest Credit Card Welcome Bonuses to Earn
Support the annual fee
Finally, we recommend only considering accompanying cards Benefits that will make a difference to you, benefits that will help you justify the annual fee (if the card has one) and you can get value the next time you book a trip.
For example, such as premium offers Platinum Card® from American Express Offer lavish benefits that seem never-ending. Amex Platinum has a varying number of perks and statement credits, mostly to offset its $695 annual fee (see Rates and Fees), but if you can’t take advantage of those perks and find yourself paying around $700 for benefits If you don’t take advantage of it, the card will not have value.
There are plenty of cards with no annual fee, which is a good place to start. That said, most annual fees on cards are reasonable and can be more than offset if you use the card and its benefits wisely.
Related: The Complete Guide to Credit Card Annual Fees
The bottom line
With so many cards on the market, we know it can be difficult to find the right one for you, especially if you New to the world of points and miles.
Our advice is to go for a general travel rewards card if you are a free agent or a specific airline or hotel card if you are loyal to a specific brand.
Follow the simple steps in this guide to help narrow down your options, and keep it locked to TPG for more advice on finding the right card to fund your next big trip.
Related: Best Travel Cards
For Amex Platinum rates and fees, click here.