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Best Travel Credit Cards of 2025
Benjamin Richards
Personal Finance Expert
Imagine sipping champagne on a business-class flight to Tokyo or relaxing at a Maldives resort—all paid for with credit card points. This is possible because the best travel cards turn everyday spending into unforgettable memories.
But with hundreds of options available, finding that perfect card can be challenging. That's why we've rigorously tested over 150 cards based on rewards, fees, and benefits to bring you the seven best travel credit cards worth your consideration right now.
Let's get started!
Our pick: Capital One Venture X
The Venture X has fundamentally changed our view of what a premium travel card should be. On paper, its $395 annual fee places it firmly in the high-end category alongside Chase Sapphire Reserve and Amex Platinum. But look beneath the surface, and you'll find something astounding: a premium card that effectively pays for itself.
Here's the simple math that has impressed us: The card includes a straightforward $300 annual travel credit through Capital One Travel (genuinely easy to use for flights, hotels, or car rentals) plus 10,000 anniversary bonus miles worth $100 toward travel. That brings your effective annual cost down to -$5. Yes, negative.
For that non-existent cost, you'll enjoy Priority Pass membership with unlimited guests (a $429 value if purchased separately), access to Capital One's new airport lounges (which we've found superior to many domestic Centurion Lounges), primary rental car coverage, and comprehensive travel insurance.
The earning structure eliminates the mental gymnastics required by other premium cards: you get 2X miles on everything, regardless of category. This simplicity has real-world implications. One of our editors put all her wedding expenses on the Venture X and accumulated enough miles for a first-class honeymoon to Japan—all from purchases she would have made anyway.
When we compared the Venture X side-by-side with other premium cards, the contrast was stark. Chase Sapphire Reserve charges $550 annually for a similar package of benefits, while the Amex Platinum demands $695 and requires juggling multiple credits that often go unused. The Venture X delivers 90% of their benefits at what amounts to zero annual cost.
For any traveler taking at least two trips annually and looking for the best travel credit card, the Capital One Venture X card is a no-brainer.
Important note: The Capital One Venture X requires good to excellent credit. If your credit score could be better, we strongly suggest applying for the Capital One VentureOne card instead, which offers great benefits and provides a clear path to qualifying for a Venture X in the near future.
2. Chase Sapphire Preferred®
The Chase Sapphire Preferred earns our second spot through sheer consistency and particular strength in one key area: transfer partners. At $95 annually, it offers remarkable value for travelers who specifically value United, Southwest, or Hyatt redemptions.
Its 60,000-point welcome bonus remains among the most valuable in the industry, potentially worth $750 or more through strategic redemptions. The card's travel protections—including primary rental car coverage and trip delay reimbursement—rival those found on cards costing three times as much.
Where the Sapphire Preferred falls short is everyday earning. Its base rate of 1X points on non-bonus spending severely limits point accumulation compared to the Venture X's flat 2X on everything. For a typical household spending $2,000 monthly on general expenses, that difference amounts to 12,000 fewer points annually—enough to meaningfully impact your travel options.
For Chase loyalists or those who frequently stay at Hyatt properties (where points can routinely deliver 2-3 cents in value each), the Sapphire Preferred remains compelling. For everyone else, we've found Capital One's higher everyday earning rate provides better long-term value.
Not everyone needs or wants a premium travel card with a headline annual fee, regardless of credits that offset it. This is where the Capital One VentureOne truly shines, offering what we consider the strongest travel rewards proposition with no annual fee whatsoever.
The VentureOne earns 1.25 miles per dollar on everything—a rate that outperforms many cards charging annual fees. These miles work exactly like those earned on the premium Venture X, including the ability to transfer to airline partners or redeem at a flat rate against travel purchases.
What particularly impresses us is the accessibility. With approval possible in the "good credit" range rather than requiring excellent credit, the VentureOne opens travel rewards to a broader audience. The clear upgrade path to Venture or Venture X creates a logical progression as your travel needs evolve.
We've witnessed numerous readers start with the VentureOne, accumulate meaningful rewards from everyday spending, and fund their first redemption-based vacation—often igniting a passion for travel they didn't know was financially possible.
No other no-annual-fee travel card offers this combination of earning power, flexibility, and accessibility. For anyone looking to earn meaningful travel rewards without annual costs, the application takes less than five minutes, with many applicants receiving instant approval.
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American Express Gold Card
The American Express Gold Card has carved out a unique position by focusing intensely on food spending—both dining out and groceries. With 4X points at restaurants worldwide and U.S. supermarkets (up to $25,000 annually), it generates substantial rewards for many households' largest expense categories.
At $325 annually, it's certainly not inexpensive. Amex partially offsets this through $120 in dining credits and $120 in Uber Cash annually. The catch? These credits come in monthly $10 installments that expire, requiring consistent attention to fully utilize.
In our experience advising cardholders, these monthly credits often go partially unused, reducing their actual value. When they are fully maximized, however, the Gold Card can deliver exceptional returns for food-focused spenders.
Where the Gold Card disappointingly falls short is travel protections and benefits. Despite its "Gold" premium positioning and travel-oriented marketing, it lacks trip delay insurance, baggage protection, and lounge access. We've found many Gold cardholders eventually add a dedicated travel card like the Venture X to their wallet for these critical benefits.
For households spending heavily on dining and groceries who don't mind tracking monthly credits, the accelerated earning in these categories can justify the complexity. For simplicity seekers, we continue to prefer Capital One's straightforward approach.
The Platinum Card from American Express
The Amex Platinum remains the undisputed champion of airport experiences, offering the most comprehensive lounge access available on any card. Beyond the Priority Pass network (which Venture X also offers), Platinum provides entry to coveted Centurion Lounges, Delta Sky Clubs when flying Delta, and numerous international lounges.
This exceptional airport experience, however, comes with an equally exceptional price tag: $695 annually. Amex provides numerous credits to offset this fee—airline incidental, Uber, hotel, entertainment, and more—but the complexity of maximizing these benefits has become almost comical.
Most credits are monthly, merchant-restricted, and easily forgotten. In our reader surveys, even financially-savvy cardholders typically utilize less than 70% of their available credits, significantly reducing the card's theoretical value.
The everyday earning structure remains the Platinum's greatest weakness. With just 1X points outside of flights and prepaid hotels booked through Amex, most purchases earn rewards at half the rate of the Venture X. This creates a card that's excellent in airports but underwhelming everywhere else.
For truly frequent travelers (10+ flights annually) who value premium lounges above all else, the Platinum can justify its cost. For everyone else, the Venture X provides 80% of the benefits at what amounts to zero net cost after credits.
Citi Premier Card
The Citi Premier offers one of the most impressive category bonus structures in the industry, with 3X points on dining, groceries, gas, air travel, and hotels for a reasonable $95 annual fee. For households with varied spending across these common categories, the Premier can generate substantial ThankYou points.
Its $100 annual hotel savings benefit (on stays of $500+) helps offset the annual fee, though in our reader tracking, many cardholders report difficulty using this credit consistently.
Where Citi Premier falls catastrophically short is travel protections. It lacks the trip cancellation insurance, baggage delay coverage, and primary rental car protection that both Capital One Venture X and Chase Sapphire cards provide as standard features.
We've heard from too many readers who discovered this protection gap only when facing a canceled flight or delayed baggage—exactly when these benefits matter most. This critical weakness makes it difficult to recommend as a primary travel card despite its strong earning structure.
7. Marriott Bonvoy Boundless
For travelers committed to staying within the Marriott ecosystem, the Bonvoy Boundless earns our recommendation through one standout feature: its anniversary Free Night Award, worth potentially hundreds of dollars at mid-tier properties. The automatic Silver Elite status and path to Gold status add tangible benefits to Marriott stays.
At a $95 annual fee, the math works easily for anyone who stays at Marriott properties 3+ times annually and can use the free night at properties costing 35,000 points or less. However, the card's value diminishes significantly for those who prefer flexibility across hotel brands.
For most travelers, we find that cards earning transferable points like the Capital One Venture X or VentureOne provide greater flexibility—these miles can be used for any hotel (including Marriott) through travel portals or transferred to airline partners for potentially even greater value.
Conclusion
The perfect travel credit card isn't simply about impressive welcome bonuses or flashy marketing—it's about consistently turning your everyday spending into meaningful travel experiences. After thoroughly evaluating the landscape, Capital One's offerings stand out for their exceptional combination of simplicity, value, and flexibility.
While the Venture X delivers premium benefits at an effectively zero net cost for frequent travelers, the VentureOne provides a no-risk entry point for those just beginning their travel rewards journey. Whether you're dreaming of business class flights to distant destinations or weekend getaways closer to home, the right card can bridge the gap between aspiration and reality.
Choose wisely, spend normally, and soon you'll find yourself enjoying travel experiences that once seemed financially out of reach—all while your card does the heavy lifting.
Real Stories: How These Cards Transform Travel
Beyond theoretical analysis, we've witnessed how these cards create real-world travel possibilities:
Emma, a nonprofit director from Boston, had been saving for years for a family trip to Hawaii. After adding the Venture X to her wallet and using it for everyday expenses for eight months, she accumulated enough miles to cover four round-trip flights that would have cost over $3,600. "The simple 2X on everything meant I never had to think about which card to use," she told us. "Every purchase brought Hawaii a little closer."
Marcus, a recent college graduate with limited credit history, started with the VentureOne to build his credit. After a year of responsible use, he had both improved his credit score and earned enough miles for a domestic round-trip flight to visit his long-distance girlfriend. "My friends thought I was rich to be flying so often," he laughed. "I didn't have the heart to tell them I was just being smart with my credit card."
Jennifer and David, parents of young twins, used their Venture X to book their first family vacation post-pandemic. When their connecting flight was canceled and the airline offered limited assistance, the card's travel insurance covered their unexpected hotel stay and meals. The next morning, they enjoyed the Capital One Lounge before their rescheduled departure—a sanity-saving amenity when traveling with toddlers.
Choosing Your Perfect Travel Card
After countless hours analyzing these cards and helping readers make their selections, our advice comes down to a few straightforward principles:
If you travel even semi-regularly (2+ trips annually) and have good-to-excellent credit, the Venture X represents the single best value in travel cards today. The effective zero annual cost after credits, combined with comprehensive benefits and simple 2X earning on everything, creates an unmatched value proposition.
If you're building credit or avoiding annual fees, the VentureOne delivers the strongest no-fee travel rewards program available. The 1.25X earning rate and flexible redemption options provide a surprising level of value without financial commitment.
If you're specifically loyal to Chase's transfer partners, particularly Hyatt, the Sapphire Preferred remains worthy of consideration despite its lower everyday earning rate.
For those whose spending skews heavily toward dining and groceries, the Amex Gold can work well—though we typically recommend pairing it with a dedicated travel card like the Venture X for actual travel benefits and protections.
In our years covering the credit card industry, we've never seen Capital One position itself so advantageously in the travel space. Through thoughtful benefit design, competitive transfer partnerships, and industry-leading simplicity, they've created cards that deliver exceptional value without requiring cardholders to become points optimization experts.
That's a refreshing development in an industry that often seems designed to confuse—and why Capital One has earned our strongest recommendation for most travelers in 2025.
Key features of top travel cards:
Valuable travel rewards: Earn points or miles that can be redeemed for travel. Some cards partner with airlines or hotels, while others offer flexible points transferable to multiple travel programs for maximum versatility.
Travel perks: Benefits can include airport lounge access, free checked baggage, priority boarding, hotel elite status, travel insurance coverage, and more – features designed for frequent flyers and globetrotters.
Sign-up bonuses: The best travel credit cards often come with large welcome bonuses (tens of thousands of points/miles) after you meet a minimum spending requirement in the first few months. These bonuses can be worth several hundred dollars in travel. (Example: A card might offer 60,000 points for spending $4,000 in 3 months, which could cover a round-trip flight.)
Annual fees: Travel rewards cards generally charge annual fees (ranging from around $95 to $500+ on premium cards). However, a higher fee usually signals richer benefits. For instance, a premium card with a $500+ fee might offer a huge points bonus, elevated rewards rates, and credits toward travel that justify the cost. Always ensure the value you get exceeds the fee you pay.
Who they’re best for: These cards are best for those who travel frequently or can fully utilize travel perks. If you fly multiple times a year or stay in hotels often, the rewards and savings from a travel card can far outweigh its fee. On the other hand, if you only travel occasionally (say once a year or less), a travel credit card might not deliver enough value to be worthwhile – you might earn rewards slowly and not fully use perks like lounge access or free bags. In that case, a no-annual-fee cash back card or a general rewards card could be a better fit.
Best Rewards Credit Cards
“Rewards” is a broad category, but generally the best rewards credit cards are those that earn flexible points or miles on your spending. Unlike travel-cobranded cards tied to a single airline or hotel, these general-purpose rewards cards (such as bank travel cards) let you redeem points in various ways – you might redeem for travel through the card issuer’s portal, transfer points to different airline or hotel partners, or even cash them out. This flexibility means you’re not locked into one brand, giving you freedom to find the best redemption value. In fact, some bank rewards programs allow both cash back and travel redemptions, making these cards extremely versatile. For example, you could use your points to book a flight or convert them to miles with a partner airline, whichever yields a better deal.
Key features of top rewards cards:
Flexible redemption: You’re often earning transferable points that can be converted to multiple loyalty programs or used for different rewards. According to experts, transferable points cards offer “ultimate flexibility” because you can redeem for cash or transfer to travel partners as needed. This means one month you might erase travel charges from your statement, and the next month transfer points to an airline for an award flight.
Bonus categories: Many rewards credit cards grant elevated points in popular spending categories like dining, groceries, gas, or travel. For instance, a card might offer 3X points on travel and 2X on dining. Choosing a card that aligns with your biggest spending categories will maximize your rewards. Tip: If most of your budget goes to groceries and dining out, look for a card that heavily rewards those purchases.
Sign-up bonuses and promos: Like travel cards, the best rewards cards usually feature generous sign-up bonuses (points worth $200+ in value) if you meet a minimum spend in the first few months. Some also come with intro 0% APR periods or other promotions, combining rewards with financing perks.
Annual fee vs. no annual fee: Rewards cards come in both no-annual-fee and annual-fee varieties. No-annual-fee cards are great for starting out or if you want to avoid fees; they often have solid flat-rate rewards or rotating 5% categories. Cards with annual fees (e.g. $95) typically offer higher rewards rates or extra benefits (travel credits, lounge access, etc.). Make sure the rewards you earn and perks you use will outweigh the fee. If not, consider a no-fee card or a cash back card instead.
Who they’re best for: A rewards credit card is an excellent choice if you want versatility in how you use your rewards. They work well for people who aren’t tied to a single airline or hotel chain, or who want the option to trade points for cash at times. They do require good credit (most top rewards cards require a credit score of around 690 or higher to qualify) and some attention to reward programs. If you enjoy finding the best ways to redeem points—like scoring a high-value flight or hotel stay—these cards can be extremely lucrative. If you prefer simplicity, you might lean toward a straightforward cash back card instead.
Best Cash Back Credit Cards
Cash-back credit cards are the kings of simplicity. Instead of points or miles, they reward you with cash (often as a statement credit, bank deposit, or check). The appeal is straightforward: you get a percentage of your spending back, and you can use that cash however you like. There’s no need to worry about award charts, travel blackout dates, or how to convert points to maximize value. In fact, cash back is the most flexible reward of all – it’s money in your pocket. According to The Points Guy, cash-back cards are great for people who “prefer to keep things simple… no rewards programs to track, and you never have to worry about a card issuer devaluing your rewards”. In other words, $1 in cash back is always worth $1, whereas points or miles can fluctuate in value or require effort to use optimally.
Key features of top cash-back cards:
Straightforward rewards: Earn a flat percentage back on purchases (e.g. 1.5% or 2% back on everything), or higher percentages in specific categories (like 5% on groceries or gas, up to a quarterly max). The earning structure is easy to understand, and redemption is usually as simple as applying a statement credit.
No reward expirations or gimmicks: Cash back doesn’t expire as long as your account is open, and there are typically no hoops to jump through. There’s no need to convert or transfer anything – it’s automatically valuable. This makes cash-back cards low-maintenance.
Low fees (often none): Many of the best cash back credit cards have no annual fee, making them free to keep long-term. Even those with an annual fee can be worthwhile if your extra cash back exceeds the cost. Additionally, some cash-back cards come with 0% intro APR offers on purchases or balance transfers, adding value for those looking to finance a big purchase or consolidate debt.
Moderate credit requirements: While the very top cash-back cards still require good credit, there are decent options for fair credit as well. If you’re still building credit and can’t qualify for a premium rewards card, a cash-back card can be a smart starter that still earns rewards.
Who they’re best for: Cash-back cards are ideal if you want easy, flexible rewards without having to think about point conversions or travel redemptions. They’re perfect for everyday spending on essentials – groceries, gas, bills – where you can literally get paid back for the money you’d spend anyway. If your goal is to get a bit of money back on everything and use it for anything (no restrictions), cash back is king. However, if you travel frequently and are willing to put in extra effort for potentially higher value (like using points for luxury travel), then a travel rewards card could yield more value. It really comes down to whether you value simplicity or maximizing travel perks.
How to Choose the Best Credit Card for You
Picking “the best credit card” can feel overwhelming because it really depends on your individual needs and habits. In fact, there is no single credit card that’s best for everyone – a card that’s perfect for one person might not fit another person at all. As one expert puts it, instead of chasing the one “best” card overall, focus on finding the right card for you. Here’s a step-by-step guide to narrow down your choices and choose the ideal credit card:
1. Check your credit score and report: Your credit score is a key factor in what cards you can get approved for. Premium reward cards usually require good to excellent credit (a FICO score of ~690 or above). If your score is lower or you’re new to credit, you may need to build credit with a starter card or secured card first. Tip: You can obtain your credit score for free from various sources online. Make sure your credit report is accurate, and address any issues (like disputes or unpaid accounts) before applying. This will improve your chances of qualifying for the top offers.
2. Define your spending habits and goals: Ask yourself how you plan to use the card and what you want from it. Do you travel frequently for work or pleasure? Do you spend a lot on dining out or groceries? Perhaps you just want to earn a little cash back on everyday purchases. Identifying your primary spending categories and rewards goals will point you toward a certain type of card. For example, if a large chunk of your spending is on flights and hotels, a travel rewards card that earns airline miles or hotel points (and offers travel perks) might be the best fit. On the other hand, if most of your money goes to groceries, gas and dining, a cash-back or general rewards card that gives bonus rewards in those categories will yield more value. Also consider what you want to get out of your card: free travel, simple cash rebates, building credit, or maybe a balance transfer to pay off debt. If your main goal is paying down existing debt or financing a big purchase, a card with a 0% introductory APR could save you more money than any rewards program. In short, choose a card type that aligns with your lifestyle and financial goals.
3. Research and compare card options: Once you know the type of card you need (travel, cash back, general rewards, low APR, etc.), compare a few of the top cards in that category. Look at their rewards rates, sign-up bonuses, annual fees, interest rates, and any special perks. Make a short list of 2-3 cards that seem like the best fit. It may help to read reviews or guides (like NerdWallet’s or The Points Guy’s card reviews) to get a sense of each card’s pros and cons. Pay attention to features that matter most to you: if you’re eyeing travel cards, compare things like airline transfer partners or lounge access; for cash back, compare reward percentages and caps. Also note the required credit level for each card so you apply within your range.
4. Weigh the costs and benefits: Before pulling the trigger, do a quick calculation of a card’s overall value to you. Estimate how much in rewards you could earn in a year based on your spending (and include the value of any big one-time sign-up bonus). Then subtract any annual fee to see your net gain. For instance, if a travel card would earn you an estimated $500 in flights annually but costs $95, that’s a great deal. Also consider intangible perks: a card might save you $15 each trip on baggage fees, or come with purchase protections or concierge services that add value. Don’t forget to factor in interest if you won’t pay in full – carrying a balance on a high-APR rewards card can wipe out the value of your rewards. In that case, a low-interest card might be the better choice until you can pay off your balance. Ultimately, choose the card that offers the best net benefits for your situation. If two cards are close, you might favor the one with the better sign-up bonus or the benefits you’ll use more often.
5. Apply strategically and responsibly: When you’ve decided on a card, submit your application (online applications often give you a decision within minutes). If your credit is on the lower end, consider starting with just one card and building up. It’s usually wise to avoid applying for multiple credit cards at the same time, as each application triggers a hard inquiry that can ding your credit score a few points. Space out applications a bit. Once approved, use your new card wisely: try to hit the spending threshold for the sign-up bonus (but never spend more than you can pay off just to get a bonus), pay your bill on time every month, and ideally pay in full to avoid interest. By using the card responsibly, you’ll not only earn rewards but also boost your credit for future approvals. And remember, you can re-evaluate over time – if your travel or spending habits change, or a new better offer comes along, you can adjust your strategy and even carry multiple cards to cover different needs. Many people use a combo of cards (for example, one travel card and one cash-back card) to maximize rewards in all areas. Find the mix that works best for you.
Frequently Asked Questions about the Best Credit Cards
What credit score do I need to get the best credit cards?
Most top-tier credit cards – especially travel and rewards cards – require good to excellent credit. This typically means a FICO credit score of around 690 or higher. If your score is in the mid-700s or above, you have an excellent chance of qualifying for almost any credit card (assuming your income and other factors meet the issuer’s criteria). If your score is lower (e.g. in the 600s), you may still have options, but they might be cards with lower rewards or specific cards for building credit. Tip: If you don’t yet have good credit, focus on improving your score before applying for a premium rewards card – pay all bills on time, reduce debts, and maybe start with a beginner card to build a positive history. As your score rises, you can upgrade to one of the best credit cards to reap those higher rewards.
Are travel credit cards worth it if I only travel occasionally?
Travel credit cards deliver the most value when you can take full advantage of their rewards and perks. If you travel infrequently (say one small trip a year), a travel card with an annual fee might not be worth it – the fee could outweigh the rewards you earn. For occasional travelers, a no-annual-fee travel card or a general cash back card could be a better choice, since you wouldn’t be pressured to use perks to justify a fee. However, if that occasional trip is expensive (international flight, big family vacation), having a travel card could still help via trip protections or not charging foreign transaction fees. Bottom line: If you fly a few times a year or more, a travel rewards card can pay off by earning you free flights or hotel nights and saving you money on baggage or other travel costs. But if you barely travel, consider a flexible rewards or cash back card so your rewards are easier to use for non-travel needs. You can also start with a cash back card now and later add a travel card when your travel frequency increases.
Which is better: travel rewards or cash back credit cards?
Neither is universally “better” – it truly depends on your lifestyle and how much effort you want to put into your rewards. Cash back credit cards are straightforward: they give you a rebate on your spending that you can use for anything. This makes them easy and great for flexible, everyday value. Travel rewards cards give points or miles that, when redeemed cleverly, can be worth more than straight cash – for example, you might get a $500 plane ticket for 25,000 points (a value of 2¢ per point, effectively beating the typical 1¢ per point cash rate). According to NerdWallet, cash back is flexible and low-effort, whereas points/miles offer the possibility of higher value (like paid-for vacations) if you’re willing to navigate redemption options. Travel cards often come with extra perks (airport lounges, upgrades, etc.) that cash-back cards usually don’t have. So ask yourself: would you rather have simplicity, or are you willing to put in a bit of work for potentially bigger rewards? If you don’t mind researching flights or hotel award charts to squeeze more value from points, a travel card could be very rewarding. If that sounds like a hassle, a flat-rate 2% cash back card might make you happiest. Some people even carry one of each – a travel card for maximizing trip value and a cash-back card for everything else.
Is it a good idea to have multiple credit cards?
It can be, yes – as long as you manage them responsibly. In fact, many savvy cardholders use a combination of cards to maximize rewards. For example, one might use a travel card for airlines and hotels, and a cash-back card for groceries and gas. No single card is best for every category, so having two or three cards covering different bonus areas can boost your overall rewards. The Points Guy gives a good illustration: a frequent traveler might love a premium travel card for lounge access, but still keep a cash-back card to save on everyday purchases. By using each card where it earns the most, you’ll get the highest rewards on all your spending. However, before adding cards, make sure you can handle them. More cards mean more payments to remember; missing a payment can hurt your credit (and incur fees). Also, every new card application causes a small, temporary dip in your credit score. It’s usually wise to space out applications rather than opening several at once. If you’re new to credit or rebuilding, start with one card, use it well for a year or so, then consider a second. There’s no magic number of cards to have – it’s personal preference. Just keep your accounts in good standing. When used wisely, multiple credit cards can actually help your credit score (by increasing your total credit limit and lowering credit utilization) and significantly amplify your rewards across all spending categories.
How do credit card sign-up bonuses work?
Sign-up bonuses (or welcome offers) are a one-time reward that new cardholders can earn. Typically, when a card advertises something like “50,000 points bonus,” it will also specify that you must spend a certain amount (for example, “$3,000 in the first 3 months”) to actually earn those points. This required amount is often called a minimum spending requirement. Once you meet it, the bonus points or cash will be credited to your account, usually in the next billing cycle. These bonuses can be extremely valuable – 50,000 points could be worth $500 or more in travel, and cash bonuses might be $150–$300 or more for meeting the spend. To make the most of a sign-up bonus, plan your spending: put your regular expenses on the new card (groceries, bills, etc.) to reach the threshold. Important: Do not overspend or buy things you don’t need just to get a bonus. And ensure you can pay off what you charge; otherwise, interest costs could wipe out the benefit of the “free” bonus. Also note, bonuses are generally for new applicants only and you usually can’t get the same card’s bonus twice within a short period (banks have rules about repeat bonuses). Always read the terms. But if used wisely, sign-up bonuses are one of the fastest ways to earn a large amount of rewards quickly – they’re a big reason many of the best credit cards are so enticing.
Is an annual fee credit card worth it?
It can be. Cards with annual fees (especially premium travel or rewards cards) usually offer richer rewards or exclusive perks that no-fee cards don’t. The key question to ask yourself is: Will I get value from this card that exceeds the fee? For a simple example, consider a card with a $95 annual fee that gives you 4% back on dining. If you spend $2500 a year on dining, that’s $100 in rewards – you’ve already offset the fee. Everything beyond that is net gain. For a more premium case, take a card with a $550 fee that offers airport lounge access, annual travel credits, elite status with hotels, and a big points bonus. If you use the lounges (which might save you $30 per visit on food and drinks), use the $300 travel credit fully, and enjoy the other perks, you could get well above $550 in value from it. As NerdWallet notes, high annual fees often signal major benefits; for instance, the $550-fee Chase Sapphire Reserve comes packed with a large sign-up bonus, elevated rewards, and an annual $300 travel credit that immediately offsets more than half the fee. The cardholder just needs to make sure they actually take advantage of those benefits. If you’re not utilizing the perks or spending enough in the bonus categories, then a no-annual-fee card might leave you better off. One strategy is to start with a no-fee or low-fee card, and only move to a higher-fee card once you see a clear benefit. Remember that you can often downgrade a card (switch to a no-fee version from the same issuer) if the fee no longer feels worth it. In summary, an annual-fee card is worth it when the rewards and perks you personally reap from the card are greater than the cost of owning it. Always do that math each year – if it no longer makes sense, it’s perfectly fine to cancel or downgrade and avoid paying for value you don’t use.
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