My 2020 travel plans were a bust, but I’m still dreaming about all the places I’ll go once it’s safer to get on the road again — and I’m not alone.
According to the American Express Travel: Global Travel Trends Report, 76% of travelers are creating their destination wish list for future travel, even though they might not be able to travel yet.
If you count yourself among those people, it's probably exciting to think about all of the places you plan on visiting. You may be planning a long-overdue trip to visit family or finally rescheduling a getaway with your significant other.
While you’re creating your destination wish list, you should also consider how you plan to pay for a vacation. The cost of travel can add up, and 61% of survey respondents plan to spend more than they normally would on a trip this year, since they couldn’t travel in 2020.
Using the right credit card can save you a great deal of money on travel and allow you to benefit from robust benefits, like airport lounge access and dining credits.
Below, we break down the best travel credit cards that can take your next vacation from basic to luxurious.
Best travel credit cards for 2021
Best overall
American Express® Gold Card
Rewards
4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
Welcome bonus
60,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 6 months of card membership
Annual fee
$250
Intro APR
Not applicable
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees and our methodology, terms apply.
Pros
- Up to $120 dining credit annually ($10 a month) for purchases made with Grubhub, Seamless and eligible restaurants (after a one-time enrollment)
- Up to $120 Uber Cash annually ($10 a month) for U.S. Uber Eats orders and U.S. Uber rides (card must be added to Uber app to receive the Uber Cash benefit)
- Strong rewards program with 4X points earned at restaurants and 3X points earned on flights booked directly with airlines or amextravel.com
- Baggage insurance plan covers up to $1,250 for carry-on baggage and up to $500 for checked baggage that is damaged, lost or stolen
- No fee charged on purchases made outside the U.S.
Cons
- No introductory APR period
- $250 annual fee
- Estimated rewards earned after 1 year: $1,074
- Estimated rewards earned after 5 years: $2,969
Rewards totals incorporate the points earned from the welcome bonus
Runner-up
Capital One Venture Rewards Credit Card
Rewards
5X miles on hotel and rental cars booked through Capital One Travel℠, 2X miles per dollar on every other purchase
Welcome bonus
Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening
Annual fee
$95
Intro APR
N/A for purchases and balance transfers
Regular APR
16.24%, 21.24% or 24.24% variable
Balance transfer fee
3% for promotional APR offers; none for balances transferred at regular APR
Foreign transaction fee
None
Credit needed
Excellent/Good
See our methodology, terms apply.
Pros
- 5X miles on hotel and rental cars booked through Capital One Travel℠
- Global Entry or TSA PreCheck application fee credit up to $100 every 4 years
Cons
- No introductory APR
- There’s a $95 annual fee
Best welcome bonus
Chase Sapphire Preferred® Card
Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 2X points on all other travel purchases, and 1X points on all other purchases
Welcome bonus
Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Intro APR
None
Regular APR
16.24% - 23.24% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
See our methodology, terms apply.
Pros
- Points are worth 25% more when redeemed for travel via Chase Ultimate Rewards®
- Transfer points to leading frequent travel programs at a 1:1 rate, including: IHG® Rewards Club, Marriott Bonvoy™ and World of Hyatt®
- Travel protections include: auto rental collision damage waiver, baggage delay insurance and trip delay reimbursement
- No fee charged on purchases made outside the U.S.
Cons
- $95 annual fee
- No introductory 0% APR
- Estimated rewards earned after 1 year: $1,506
- Estimated rewards earned after 5 years: $2,528
Rewards totals incorporate the points earned from the welcome bonus
Best for luxury travel
Chase Sapphire Reserve®
Rewards
Earn 5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025
Welcome bonus
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening
Annual fee
$550
Intro APR
None
Regular APR
17.24% - 24.24% variable
Balance transfer fee
5%, minimum $5
Foreign transaction fee
None
Credit needed
Excellent
See our methodology, terms apply.
Pros
- $300 annual travel credit for travel purchases
- Global Entry or TSA PreCheck application fee credit up to $100 every four years
- Priority Pass™ Select lounge access at 1,000+ VIP lounges in over 500 cities worldwide
- Points are worth 50% more when redeemed for travel via Chase Ultimate Rewards®
- Special benefits at The Luxury Hotel & Resort Collection
- Complimentary year of Lyft Pink membership
Cons
- High annual fee, but it can be offset by taking advantage of all the card’s perks
- No introductory APR
- Estimated rewards earned after 1 year: $1,469
- Estimated rewards earned after 5 years: $3,346
Rewards totals incorporate the points earned from the welcome bonus
Best for low interest
TD First Class℠ Visa Signature® Credit Card
Rewards
3X miles earned on every $1 spent on travel and dining, plus 1X mile earned on every $1 spent on everything else
Welcome bonus
25,000 miles when you spend $3,000 within the first 6 billing cycles
Annual fee
$89, waived for the first year
Intro APR
0% APR for the first 12 billing cycles on balance transfers
Regular APR
14.99% variable
Balance transfer fee
$5 or 3% of transfer, whichever is greater
Foreign transaction fee
None
Credit needed
N/A
See our methodology, terms apply
Pros
- 3X miles on every $1 spent on travel and dining
- 25,000 miles when you spend $3,000 within the first 6 billing cycles
- 0% APR during the first 12 billing cycles on balance transfers
- No fee charged on purchases made outside the U.S.
Cons
- No additional travel credits, like TSA PreCheck/Global Entry application credit
- Points aren’t worth more if you book travel through a special portal
- Estimated rewards earned after 1 year: $752
- Estimated rewards earned after 5 years: $2,403
Rewards totals incorporate the points earned from the welcome bonus
Bottom line
Dreaming about future travel can be exciting, but paying for a vacation can take some of the fun out of it. If you use one of the travel cards mentioned above, you can earn lucrative rewards that can offset the cost. And if you choose a premium travel card, you can save money on flights, hotels and food with annual travel or dining credits — helping you lower your total bill but hold on to the good memories.
Our methodology
To determine which cards will put the most money back in your pocket, Select evaluated 35 popular travel credit cards offered by major banks, financial companies and credit unions that allow anyone to join. We compared each card on a range of features, including travel rewards (points and miles), annual fee, welcome bonus, introductory and standard APR, one-time perks, annual perks, redemption rates, as well as factors such as required credit and customer reviews when available.
Select teamed up with location intelligence firm Esri. The company’s data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.
Esri’s data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.
We then estimated how much the average consumer would redeem over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee and assume that you are paying your credit card balance on time and in full each month so as not to incur interest charges.
It’s important to note the value of a point or mile varies from card to card and based on how you redeem them. When we calculated the estimated returns, we assumed that cardholders are redeeming points/miles for a typical maximum value of 1 cent per point or mile. (Extreme optimizers might be able to achieve more value.)
Our final picks are weighted heavily toward the highest five-year returns, since it’s generally wise to hold onto a credit card for years. This method also avoids giving an unfair advantage to cards with large welcome bonuses.
While the five-year estimates we’ve included are derived from a budget similar to the average American’s spending, you may earn a higher or lower return depending on your travel habits.
Read more
For rates and fees of the American Express® Gold Card, click here.