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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: On This Page
Imgorthand/Getty Images August 18, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Many issuers shifted their rewards structures in 2020 and 2021 to focus more on rewarding cardholders for everyday purchases like groceries and takeout. Like other rewards cards, travel credit cards allow you to earn rewards for certain types of purchases, usually in the form of . You can redeem your travel rewards for things like flights, hotels or other travel purchases like car rentals or vacation packages. Some issuers also let you redeem travel rewards for and other non-travel-related options. Even in the pandemic, travel credit cards and their often lucrative rewards structures remain one of the most popular types of rewards cards. Becoming a can help offset the cost of travel purchases and enhance your overall travel experience. But first, you may wonder: How do travel credit cards work, and how can you earn and redeem rewards? How to earn points and miles
You can earn travel points and miles for all purchases you make with your . While some rewards cards come with a flat rewards rate for all purchases, many cards include enhanced rewards for specific types of category purchases you make with your card. For example, while you can earn 1X points or miles on all purchases, you could rack up more on select category purchases like 3X points or miles on travel purchases and 2X points or miles on grocery store and gas station purchases. How do travel points work
With travel points, you earn a certain number of points for every dollar spent using your travel card. The amount of points you earn per dollar depends on the card and the purchase. For example, a card might earn 3 points per dollar spent on airfare or hotels, while earning 1 point per dollar on all other eligible purchases. Co-branded vs non-branded points cards
Many points cards are co-branded , which involve a partnership between a credit card issuer and a particular hotel chain. These cards typically earn a high rewards rate for booking hotel stays. For example, the earns 6 Marriott Bonvoy points for each dollar of eligible purchases at hotels participating in the Marriott Bonvoy program. 3 points at restaurants worldwide and on flights booked directly with airlines. 2 points on all other eligible purchases. An example of a non-branded points card is the , which earns an unlimited 1.5 points per dollar spent on all purchases, including non-travel purchases. How do credit card miles work
(and some general-purpose travel cards) usually offer rewards in the form of miles. Much like points cards, a for every dollar spent on eligible purchases. For example, a card might earn 3 miles per dollar on travel purchases, 2 miles per dollar on grocery store and restaurant purchases and 1 mile per dollar on all other purchases. Co-branded vs non-branded miles cards
An example of a co-branded miles card is the , which earns 2X miles on restaurant, U.S. supermarket and Delta purchases and 1X miles on all other purchases. As an example of a non-branded miles card, the earns 10X miles on hotel and rental cars through Capital One Travel, 5X miles on flights through Capital One Travel and 2X miles on all other purchases. An example of a non-branded flat-rate miles card is the , where you’ll earn an unlimited 1.5X miles on all purchases. How to redeem points and miles
The kind of travel card you have and its respective rewards program will determine how you can apply your rewards. Redeeming travel points and miles is typically a simple process, as many issuers have online portals. The two primary are through an issuer’s online portal or by transferring your points or miles to an issuer’s travel partner. Redeeming rewards on an issuer s online portal
Your card issuer will typically have a portal on its website that lists redemption options and points values. Examples of redemption options include statement credits, travel purchases, gift cards and cash back. Rewards programs typically use a 1:1 conversion rate, meaning every 100 points or miles is worth $1. However, your rewards could gain or lose some value depending on how you redeem them. Some issuers, like Chase, offer boosted points value or other perks for travel purchases made through their online portal. To redeem your rewards on an issuer’s online portal, simply log in to your account and locate the appropriate rewards or travel section. Redeeming rewards by transferring to a travel partner
Some travel rewards cards let you transfer points or miles to an issuer’s travel partners, which may include airlines, hotels or cruise lines. If you choose the transfer option, be aware of conversion rates, as the value of rewards transferred to a travel partner can fluctuate. If it looks like you would lose value on a transfer, you’d probably be better off redeeming that batch of rewards through an issuer’s online portal for a statement credit. To redeem rewards by transferring to a travel partner, you should be able to directly transfer your rewards to an eligible partner through the issuer’s online portal. Points or miles are typically transferred immediately, but sometimes it can take longer. Note, once you transfer points or miles from an issuer to a travel partner, you won’t be able to transfer them back to the issuer. For example, Chase’s travel credit cards allow you to to one of their travel partners at a 1:1 ratio, but you may be able to squeeze even more value out of your rewards. Some of Chase’s travel partners include British Airways, JetBlue and Marriott Bonvoy. Other ways to redeem points and miles
If you don’t want to redeem your rewards for travel purchases, you may be able to redeem them for a statement credit, cash back, gift cards or merchandise. Explore your travel card account and see what your specific issuer offers. Best redemption option for maximizing value
Typically, the is to transfer your rewards to one of the issuer’s airline or hotel partners. But if you really want to get the most bang for your buck, consider redeeming your points or miles for a flight—particularly if you have a big vacation coming up. How to maximize your travel rewards
Here are a few tips to help you get the most out of your travel rewards. Take advantage of sign-up bonuses
Many travel cards come with . These welcome offers usually require you to spend a certain amount within the first few months of opening the account. Although these bonuses are often an attractive incentive to apply for a card, make sure the spending requirement is realistic for your budget and travel plans. Be aware of all fees before applying
Credit card fees don’t directly affect the rewards you earn, but the cost of the fees affects a to you. Take note of all the fees associated with any card you’re interested in getting. Annual fees
Not all travel cards come with an annual fee, but those that do typically range from $95 to over $500. If you’re interested in a travel card that has an annual fee, be sure that the rewards and benefits will offset the cost. Foreign transaction fees
Some credit cards charge a foreign transaction fee for overseas purchases. This fee is usually around 3 percent of a purchase, and you’ll pay this fee for every transaction. If you travel abroad frequently, you should consider getting a . Make sure you have the right card
It’s important to for your needs. For example, if you’re partial to a certain airline or hotel chain, a co-branded card can offer higher rewards rates, discounts and perks. Additionally, pay attention to a travel card’s rewards categories. For example, earning points or miles at restaurants won’t deliver a lot of value if you rarely dine out. But if you use services like Lyft or Uber a lot, you may want to look into a card that offers points or miles for rideshares. The bottom line
A travel credit card can help to significantly reduce the cost of your travel if the spending categories and redemption options align with your budget and habits. A large part of learning how travel credit cards work is simply knowing how to earn and redeem rewards in order to get the most value out of your card. Be sure to pick a travel credit card that will reward you for the type of purchases you make most often. Ideally, it won’t charge a fee that costs more than you’ll earn in rewards. By making strategic choices, you’ll get the maximum value from your travel card. SHARE: Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer.