The Best Travel Credit Card For 2020
Traveling is booming with improving the quality of life worldwide. Hospitality and financial industries understand this trend and have started to offer credit cards to cater to travelers’ needs pleasantly. Travel credit cards are rewards cards with perks like free travel or travel-related purchases, cashback, discounted travel, and many more.
How Does A Travel Credit Card Work?
Travel credit cards work on a points-based system where a traveler books travel, earns points or miles, and redeems them for free travel or travel-related purchases. Here is a breakdown of how travel credit cards work:
- Credit Card Miles: These are rewarded for credit card spending, which you can redeem for free travel or travel-related purchases.
- Frequent-Flyer Miles: It works like credit card miles, except it can be used only for air travel.
- Cashback: Cashback allows cardholders to redeem points toward non-travel purchases.
- Transferable Points: It allows cardholders to transfer their points or miles to different travel and hotel partners.
- Discounts: Some cards offer travel discounts.
How to Choose the Best Travel Credit Card For 2020?
We have learned how a travel credit card can help you earn free travel and perks without costing an extra penny. Before you choose one you should:
- Decide between a co-branded card and a general travel card.
- Choose a card that offers at least 2% rewards with an annual fee or 1.5% with no charge.
- Look for sign-up bonuses, rewards points, cash backs, and discounts.
- Consider perks like rental car coverage, lost luggage insurance, travel delay, and accident insurance.
- Purchase a card with zero transaction fees on purchases when you travel overseas.
Top 5 Travel Credit Cards
With so much to offer, one might quickly get confused over choosing the right card. Here we list the top 5 travel credit cards that would make your travel affordable and pleasant.
- Chase Sapphire Preferred Card
- Sign-up Bonus: 60,000 points for spending $4,000 (worth as much as $750) in the first three months of approval.
- Annual Fee: $95
- APR Rate: 15.99% – 22.99% Variable
- Rewards: 5X points on Lyft rides through March 2022 and 2X points on travel and dining at restaurants worldwide.
- Benefits: Zero transaction fees and primary car rental insurance.
- Capital One Venture Rewards Credit Card
- Sign-up Bonus: 50,000 points for spending $3,000 (worth $500 in free travel) in the first three months of approval.
- Annual Fee: $95
- APR Rate: 17.24% – 24.49% Variable
- Rewards: 5X miles on hotel and rental cars booked through Capital One Travel and 2X miles per dollar spent on all purchases.
- Benefits: Zero transaction fees, no expiration dates, and up to $100 credit for Global Entry or TSA PreCheck.
- Sign-up Bonus: 25,000 points for spending $1,000 (worth $250 value) in the first 3 months of approval.
- Annual Fee: $0
- APR Rate: 14.99% – 22.99% Variable
- Rewards: Unlimited 1.5 points per dollar spent on all purchases.
- Benefits: Zero transaction fees and free monthly FICO credit score access.
- Sign-up Bonus: 35,000 points for spending $4,000 in the first three months of approval.
- Annual Fee: $250
- APR Rate: See Rates & Fees
- Rewards: 4X Membership Rewards points on restaurants worldwide and the U.S. supermarkets.
- Benefits: Zero transaction fees, up to $100 credit in airline fees, and baggage insurance.
- Sign-up Bonus: 20,000 points for spending $1,000 in the first three months of approval.
- Annual Fee: $0
- APR Rate: 14.49% – 24.99% Variable
- Rewards: 3X points on dining out, gas station purchases and select streaming services, and 1x points on other purchases.
- Benefits: Zero transaction fees, cell phone protection, and lost luggage and car rental insurance
Travel credit cards have made travel less hectic and more affordable. Travelers not only can earn points or miles toward free travel but also avail several perks. The availability of more and more travel credit cards allows customers to choose one as per their preferences and needs. Whether you travel for business or pleasure, with just a little research, you can get great value from your travel credit cards.