A Guide to Travel Credit Cards: How They Work & Best Options for 2025

Written By alexa mcdonald

Introduction

Travel credit cards can be a game-changer for frequent flyers and occasional travelers alike. The right card can turn everyday purchases into free flights, luxury hotel stays, and exclusive perks like airport lounge access and travel insurance. But with so many options, how do you choose the best one?

This guide breaks down how travel credit cards work, what to look for, and which ones offer the most value in 2025. Whether you’re new to travel rewards or looking to upgrade to a premium card, understanding the key benefits will help you make the best decision.

What You’ll Learn in This Guide

  • Real-life success stories - After reading these stories you’ll know what the hype is about!

  • What are points and miles? - Some of the essential terms to know.

  • Why No Travel Card is Perfect – Finding the best fit for your lifestyle.

  • 5 Key Features of a Great Travel Credit Card – What truly matters in a rewards program.

  • Does Applying Hurt Your Credit? – Understanding the impact on your score.

  • What If You Have Poor Credit? – Options for rebuilding and earning rewards.

  • Top Travel Credit Cards for 2025 – A breakdown of the best choices for different needs.

Now, let’s dive in and find the travel credit card that works best for you.

Real-Life Success Stories

Andy’s Journey

A 40-year-old frequent flyer named Andy has traveled extensively over the past decade, averaging 146 flights annually, primarily using airline loyalty points. By strategically leveraging sign-up bonuses from cards like the Qantas Amex Unlimited Card, he has enjoyed numerous premium class flights. Andy emphasizes the importance of promptly using accumulated points to avoid devaluation and suggests flexibility in travel plans to maximize reward seat availability. Check out the full article here.

Sarah's Southeast Asia Extravaganza

Sarah orchestrated a luxurious trip to Southeast Asia, valued at $38,000, for just $1,827 out-of-pocket. By opening specific credit cards like the Barclaycard Arrival Plus and Capital One Venture Card, she earned substantial sign-up bonuses. These rewards covered expenses such as a two-night cruise in Ha Long Bay, demonstrating how strategic card usage can make high-end travel accessible. Can’t believe it?! This article proves it!

What Are Points and Miles?

If you're new to travel credit cards, understanding points and miles is key to maximizing rewards. These are different types of rewards currencies that can be redeemed for travel expenses like flights, hotels, and even rental cars. Here are some essential terms to know:

  • Points and Miles – Rewards earned through travel credit cards or loyalty programs that can be used for free or discounted travel.

  • Redemption – The process of using points or miles to book travel-related expenses.

  • Award Flight – A flight purchased entirely (or partially) with points or miles instead of cash.

  • Loyalty Program – A rewards system tied to a specific airline, hotel, or credit card issuer that allows members to earn and redeem points or miles.

  • Elite Status – A higher-tier membership status in an airline or hotel loyalty program that comes with perks like free upgrades, priority boarding, and lounge access.

Why No Travel Card is Perfect

Before we jump into the best options, let’s be clear, there’s no such thing as the perfect travel credit card. Each one comes with different perks, earning structures, and fees, so the best choice depends on your travel habits.

For example:

  • If you travel often and love airport lounges, a premium card with lounge access might be worth the high annual fee.

  • If you prefer simple rewards with no hassle, a no-annual-fee card with straightforward cash-back might be a better fit.

  • If you only travel occasionally, a high-fee travel card might not justify the cost.

The key is to match the card’s benefits to how you travel and not just chase the highest bonus offer.

5 Key Features of a Great Travel Credit Card

Not all travel cards are created equal. Here are the top features to look for:

1. Sign-Up Bonuses

Many travel credit cards offer tens of thousands of points after meeting a spending requirement in the first few months. These bonuses can often cover a free roundtrip flight or few night hotel stay right away. Typically, 80,000 points is about $800 worth of travel.

2. Points & Miles on Everyday Spending

Each dollar spent earns points or miles that can be redeemed for travel. Some cards offer bonus rewards on specific categories like travel, dining, gas or groceries.

3. Airport Lounge Access

Premium travel credit cards provide free access to airport lounges worldwide, giving you a quiet place to relax, enjoy free food, and use reliable WiFi before your flight. Some lounges even have showers you can use.

4. No Foreign Transaction Fees

If you travel internationally, a card that waives foreign transaction fees can save you 3% or more on every purchase.

5. Travel Insurance & Protections

Some travel cards cover trip delays, lost baggage, rental car damage, and emergency medical assistance, offering peace of mind while traveling.

Does Applying for a Travel Credit Card Hurt Your Credit?

When you apply for a new credit card, the issuer performs a hard inquiry on your credit report, which may cause a temporary dip in your score. However:

  • If you use the card responsibly (paying on time, keeping balances low), your score can actually improve over time.

  • The biggest impact on your score is your payment history and credit utilization, not just applying for new credit.

If you’re planning to get a mortgage or car loan soon, be mindful of applying for multiple credit cards at once. Otherwise, responsible credit card use can help build your credit in the long run.

What If You Have Poor Credit?

If your credit score isn’t great, you may not qualify for premium travel cards right away. But don’t worry, there are still ways to earn rewards while rebuilding your credit:

  • Start with a secured credit card – These require a refundable deposit but help establish good credit habits.

  • Look for travel-friendly cards for fair credit – Some cards have no annual fee and still offer travel rewards.

  • Use a card responsibly to build your score – Pay on time, keep balances low, and avoid carrying a balance whenever possible.

With patience and good credit habits, you can work your way up to premium travel rewards cards in the future.

Best Travel Credit Cards for 2025

Here are our recommendations for the top travel credit cards to consider in 2025, based on their rewards, perks, and value:

Just a heads-up - none of the recommendations in this post are sponsored. We recommend these products/services based on personal experience and independent research.

Chase Sapphire Preferred® Card

Best for: First-time travel credit card users

  • 75,000 bonus points after spending $4,000 in the first 3 months

  • 2x points on travel & dining, 5x on travel booked through Chase

  • No foreign transaction fees

  • Annual fee: $95

Capital One Venture X Rewards Card

Best for: Flexible rewards & all-in-one travel perks

  • 75,000 miles after spending $4,000 in the first 3 months

  • 10x miles on hotels & car rentals, 5x on flights booked through Capital One Travel

  • Access to Priority Pass & Capital One Lounges

  • Annual fee: $395

Chase Sapphire Reserve® Card

Best for: Luxury travel perks & premium rewards

  • 60,000 bonus points after spending $4,000 in the first 3 months

  • 3x points on travel & dining, 10x on hotels & car rentals booked through Chase

  • $300 annual travel credit, Priority Pass access, and more

  • No foreign transaction fees

  • Annual fee: $550

Marriott Bonvoy Boundless® Credit Card

Best for: Frequent Marriott hotel guests

  • 3 free nights (up to 50,000 points each) after spending $3,000 in the first 3 months

  • 6x points on Marriott stays, 3x points on dining, gas, and groceries

  • Complimentary Silver Elite status & Free Night Award every anniversary

  • No foreign transaction fees

  • Annual fee: $95

Bank of America® Travel Rewards Credit Card

Best for: No annual fee travelers

  • Unlimited 1.5x points on all purchases

  • No foreign transaction fees

  • Redeem points for flights, hotels, rental cars, or statement credits

  • Annual fee: $0

Chase Freedom Unlimited® Card

Best for: Everyday spending & flexible cash back

  • Earn an extra 1.5% on all purchases (up to $20,000 spent in the first year)

  • 5% cash back on travel booked through Chase, 3% on dining & drugstores

  • Unlimited 1.5% cash back on all other purchases

  • Annual fee: $0


How to Choose the Best Travel Credit Card

Not all travel cards are the same, so pick one based on your needs:

Final Thoughts

A good travel credit card earns you free trips, saves you money on fees, and gives you amazing perks while traveling. Whether you want the best rewards, access to airport lounges, or travel insurance benefits, 2025 offers some of the best travel cards yet—but they may not be the right fit for everyone, depending on spending habits and travel frequency. So choose wisely!


Do you have further questions? If so, please email hello@alexamcdonald.com! I’d be happy to offer you some personal tips!

Here are some of my favorite travel resources:











alexa mcdonald
Next

5 Digital Nomad Groups & Communities to Help You Land a Remote Job