How to Pick the Best Travel Credit Card | Allworth Financial

Choosing the right travel credit card is a little like dating in your 30s. The options seem endless, most look good on the surface, but the devil is in the fine print. And let’s face it: what works for your globe-trotting coworker who lives on Instagram and eats airport lounge sushi may be totally wrong for your family’s summer road trip through Kansas.

So how do you pick the travel credit card that actually fits your life and doesn’t just collect an annual fee?

Let’s break it down.

1. Know Thyself: What Kind of Traveler Are You?

Before you fall for a big sign-up bonus, figure out what you actually need. Your travel habits should drive your card decision, not the other way around.

Ask yourself:
- Do you fly multiple times a year or just once for that annual vacation?
- Are you loyal to a particular airline or hotel chain?
- Do you travel domestically or internationally?
- Do you care more about perks (like lounge access) or just earning free trips?

Here are the broad categories:
- Occasional travelers: Look for cards with no annual fee, simple earning structures, and flexible rewards.
- Frequent flyers: Consider cards with higher annual fees but premium perks—lounge access, free checked bags, TSA PreCheck credits.
- Road warriors: Some travel cards reward gas stations, rental cars, and roadside assistance.
- Loyalists: Airline- or hotel-specific cards offer benefits like upgrades and elite status but only if you’re loyal to that brand.

2. Crunch the Rewards Math

Most travel cards promise some version of the same thing: “Earn 2x points on travel and dining!” Sounds great. But what’s a point actually worth?

Generally:
- Flexible points cards (like Chase Ultimate Rewards, Amex Membership Rewards, or Capital One Miles) are versatile. You can use them for travel portals or transfer them to airlines or hotels.
- Cash-back-style travel cards (like Discover or certain Bank of America cards) give you fixed value. Easy to understand, but less valuable when it comes to travel.
- Co-branded cards tie you to one airline or hotel and may have blackout dates, clunky redemption processes, or poor point value.

Let’s say you spend $2,000/month on your card. A 2% effective cash-back rate means $480 in annual rewards. But if your card has a $250 annual fee, well… you see where this is going.

Pro tip: Use a points valuation site like The Points Guy or NerdWallet to estimate point values, and don’t get seduced by a giant bonus unless you’ll actually use the rewards.

3. The Sign-Up Bonus: Sweet or Sour?

Many cards dangle fat sign-up bonuses like candy: “Earn 80,000 points when you spend $4,000 in 3 months!” Great, unless that $4,000 spend is a stretch and you're justifying it with 17 trips to Costco and a Peloton you didn’t plan to buy.

If you can organically hit the bonus spend, then great.. But (obviously) don’t manufacture spending just to earn points. That’s how people end up in debt for a “free” vacation.

Also: mind the fine print. Some cards only count certain purchases.

4. Consider the Perks You’ll Actually Use

Travel cards come with all sorts of perks, many of which sound impressive until you realize you’ll never use them.

Ask yourself:
- Will I actually visit airport lounges?
- Do I fly often enough to need free checked bags?
- Do I rent cars regularly (and value the included insurance)?
- Do I travel abroad (and want no foreign transaction fees)?
- Would I use trip cancellation or lost baggage insurance?

For example, Priority Pass lounge access is lovely, but if you fly once a year with your kids to Orlando, you’ll probably spend more time at Auntie Anne’s than in a lounge sipping pinot noir.

On the other hand, TSA PreCheck or Global Entry fee credits can be worth $100 every five years. That can be a great perk if you fly even occasionally.

5. Annual Fee: Worth It or Waste?

Annual fees can range from $0 to over $700. The trick is to make sure the value you get from the card outweighs the fee.

A good rule of thumb:
- No-fee cards are great for casual travelers or as secondary cards.
- Mid-tier cards ($95–$250/year) usually offer enough perks to offset the fee if you travel 2–3 times a year.
- Premium cards ($400+) must earn their keep through lounge access, hotel credits, Uber credits, or elite status boosts.

If the card becomes “just another charge” and you don’t remember what perks it has, it’s probably not the right one.

6. Redemption Shouldn’t Require a PhD

Some card issuers treat redeeming points like solving a Rubik’s Cube blindfolded. If you want straightforward travel redemptions, test-drive the issuer’s travel portal or mobile app before you commit.

And beware of expiration rules. Some programs require ongoing activity to keep points alive. Others slap on blackout dates or surcharges.

7. One Card to Rule Them All? Maybe Not.

There’s no law that says you can’t carry more than one travel card. In fact, many seasoned travelers carry a flexible rewards card for everyday spending and a co-branded airline or hotel card for loyalty perks.

Just keep it manageable. Juggling seven cards to maximize points on “5x rotating quarterly categories” is a part-time job. And unless you moonlight as a travel blogger, it’s probably not worth it.

Final Boarding Call: Make Your Card Work for You

In the end, the best travel card isn’t the one with the most perks. It’s the one that fits your lifestyle and spending habits.

Think of it as choosing a travel companion. You want one that goes where you go, makes the trip smoother, and doesn’t surprise you with hidden costs.

Take your time, know your habits, read the fine print, and remember: rewards are only rewarding if you actually use them.

This information is meant for educational purposes and not as direct tax or legal advice. Rules and regulations can shift anytime, so it’s always best to consult a qualified tax advisor, CPA, or attorney for guidance tailored to your specific situation.