Best Credit Cards for Travel Points in 2024

What are the Best Travel Credit Cards for Points in 2024?

Choosing the right credit card for travel points can make or break your dream vacation. Many credit cards offer enticing introductory benefits such as 0% intro APR, bonus points, or a statement credit for new card members after account opening.

With Summer 2024 here already, it’s time to get savvy about maximizing your travel rewards. If you have a low credit score, low income, or are just starting with credit, don’t worry. We have you covered with the best tips and tools to build your credit and earn those coveted points.

Understanding Your Credit Scores and Credit Reports

Before you start the search for your travel credit card, you need to understand your credit score and credit report. Your credit score is a numerical representation of your creditworthiness, influencing everything from loan approvals to interest rates.

There are different credit scoring models, but credit scores are calculated based on these factors:

  • Payment History: It accounts for 35% of your credit score. Timely payments are vital.
  • Credit Utilization: This is 30% of your credit score. Low utilization ratios are preferable.
  • Credit Age: It makes up 15% of your credit score. Longer histories are better.
  • Credit Mix: This is 10% of your credit score. A mix of credit types can be beneficial.
  • New Credit: Comprising 10%, frequent applications for new credit can hurt your credit score.

Understanding these factors is the first step to making informed choices when selecting travel rewards credit cards.

Top Travel Credit Cards for 2024

Chase Sapphire Preferred® Card

Annual Fee: $95

Earning Potential:

  • 3x points on online grocery purchases
  • 2x points on travel and dining
  • 1x points on all other purchases

With the Chase Sapphire Preferred® Card, frequent travelers can earn substantial rewards on travel and dining. The points are redeemable through the Chase Ultimate Rewards® portal, giving you 25% more value when booking travel with this credit card. Chase also offers promotions that give you extra points on eligible purchases through Chase Travel, like car rentals, hotel purchases, or dining purchases.

Capital One Venture Rewards Credit Card

Annual Fee: $95

Earning Potential:

  • 2x miles on every purchase

For those who love simplicity, the Capital One Venture Rewards Credit Card offers a straightforward earning system with 2x miles on every purchase. No rotating categories, no spending caps—just pure, versatile rewards.

American Express® Gold Card

Annual Fee: $250

Earning Potential:

  • 4x points at restaurants, including takeout and delivery in the U.S.
  • 3x points on flights booked directly with airlines or on amextravel.com
  • 1x points on other purchases

The American Express® Gold Card is a heavy-hitter for foodies and travel enthusiasts alike. Its high earning potential on dining and flights makes it exceptionally valuable for those who spend heavily in these categories.

Discover it® Miles

Annual Fee: $0

Earning Potential: 1.5x miles on all purchases

Offering the best of both worlds, the Discover it® Miles card has no annual fee and provides a steady 1.5x miles on all purchases. Plus, Discover matches all the miles you’ve earned at the end of your first year, making it fantastic for new credit users.

Bilt World Elite Mastercard® Credit Card

Annual Fee: $0

Earning Potential: 1.5x miles on all purchases

The Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional transaction fee. The ability to earn rewards on many peoples’ biggest monthly expenses makes this credit card worth a look for any renter.

You also get bonus points on dining and travel when you make at least five transactions on the card each statement period, and you can redeem rewards at partner brands with hotel loyalty program access.

More Info About Introductory Offers

Introductory offers for travel rewards credit cards can be a game-changer. These offers often include generous sign-up bonuses, such as a large number of bonus points or miles after making purchases in the first few months of account opening. Many travel rewards credit cards feature 0% introductory APR on purchases in the first months, allowing new cardholders to manage their expenses interest-free.

Some cards also provide a statement credit for purchases in the first few billing cycles after account opening, particularly for travel-related expenses. By taking advantage of purchases in the first months, cardholders can quickly accumulate points or miles. Many offers are designed to encourage higher spending on purchases in the first period, maximizing rewards. Making purchases in the first few months after getting a new credit card gets you the most out of your travel credit card.

Comparing Cards for Different Travel Styles

For Frequent Flyers

  • Chase Sapphire Preferred® Card: Offers valuable points on travel and dining, perfect for regular travelers who love to dine out.
  • American Express® Gold Card: High points on dining and flights, ideal for those frequently traveling for business or pleasure.

For Budget Travelers

  • Discover it® Miles: No annual fee and a 1.5x miles reward rate make this card perfect for budget-conscious travelers.
  • Capital One Venture Rewards Credit Card: Simple earning structure with solid rewards on every purchase.
  • For Those New to Credit
    • Kikoff’s Secured Credit Card: Helps build your credit history, making it easier to get approved for more rewarding travel credit cards down the line.

Tips for Maximizing Travel Rewards and Points

  1. Align Spending with Rewards Categories: Choose a credit card that aligns with your spending habits. If you dine out often, a credit card with high rewards on dining makes sense.
  2. Use Sign-Up Bonuses Wisely: Many travel credit cards offer generous sign-up bonuses. Plan your spending to meet the required threshold for these bonuses without overspending.
  3. Pay Off Balances in Full: To truly benefit from a travel rewards credit card, make sure to pay off your balance in full each month. This way, you avoid interest charges that can negate your earned rewards.
  4. Monitor Your Credit: Regularly check your credit score and credit report to ensure there are no errors. This is crucial for maintaining a good credit score, which is necessary to qualify for premium travel credit cards.
  5. Use Your Cardholder Benefits: Take advantage of additional perks offered by your credit card, such as travel insurance, priority boarding, and no foreign transaction fees. Cardholders can also use their points to offset travel purchases by applying them as a statement credit.

Foreign Transaction Fees: What You Need to Know

When traveling abroad, foreign transaction fees can significantly impact your expenses. These fees, typically around 3%, are charged by credit card issuers for purchases made in foreign currencies.

Selecting a travel credit card that waives foreign transaction fees can save you a lot of money. Here’s a closer look at how foreign transaction fees work and why you should consider them when choosing your travel credit card:

What are Foreign Transaction Fees?

Foreign transaction fees are charges applied to purchases made outside of your home country or in a foreign currency. These fees can quickly add up, especially if you travel frequently or make substantial purchases abroad.

Why Avoid Foreign Transaction Fees?

Avoiding foreign transaction fees can save you significant amounts of money. Many travel credit cards offer no foreign transaction fees, making them ideal for international travelers.

By using a credit card without these fees, you can ensure that every purchase you make abroad is more cost-effective.

Top Credit Cards with No Foreign Transaction Fees

Several top travel credit cards waive foreign transaction fees. Here are a few notable mentions among travel rewards credit cards:

  • Chase Sapphire Preferred® Card: No foreign transaction fees make it perfect for international travel.
  • Capital One Venture Rewards Credit Card: Offers no foreign transaction fees, along with 2x miles on every purchase.
  • Discover it® Miles: No annual fee and no foreign transaction fees.

The Importance of Good Credit

Every travel credit card we talked about above has great perks and can help make travel purchases easier on your wallet. Here’s the catch, every one of those travel credit cards recommends a good credit score before applying.

A lot of things can impact credit scores. Your FICO Score and VantageScore, the main two credit scores, look at several things in their credit scoring models when calculating credit scores, like your credit history, how much you use your credit card (credit utilization rate), and credit limit.

Building good credit and credit health is essential for your financial health in general, and specifically, if you want to unlock the best travel credit cards. A higher credit score increases your chances of approval and gives you access to credit cards with superior rewards and benefits.

How Kikoff Can Help

Before you can take advantage of these fantastic travel credit cards, it’s crucial to have a solid credit foundation.

This is where Kikoff comes in. Regardless of your credit score, Kikoff offers a specialized, reported tradeline (credit line) that’s intended exclusively for credit building.

Kikoff’s Secured Credit Card

Annual Fee: $0

Earning Potential:

  • Credit building and cash back through everyday purchases

While not a traditional credit card, Kikoff’s Secured Credit Card is essential for those new to credit or looking to build their credit score. It’s like a debit card and checking account that builds credit. 

With payments reported to all three major credit bureaus, it helps establish a consistent payment history, making it easier to qualify for higher-tier travel rewards cards in the future. Plus, you get cash back on your purchases. 

Conclusion

Choosing the right travel credit card can significantly enhance your travel experiences, making trips more affordable and luxurious. Whether you’re a frequent flier, a budget traveler, or someone new to credit, there’s a card out there for you.

Remember, building up your credit score is the ticket to top-tier travel cards, and Kikoff is here to help you build that strong credit foundation. Ready to explore the world? Start your journey today with the right credit card and Kikoff by your side.

Happy travels!

The information provided in this blog post is meant for informational purposes only and does not constitute financial advice. Kikoff Inc. is a financial technology company and not a bank. The Kikoff Secured Credit Card is issued by Coastal Community Bank, Member FDIC. Terms and conditions apply & individual results may vary. Make consistent on-time payments to maximize credit building potential.  Credit factors outside Kikoff, like other account balances or delinquencies, can have an impact on credit building progress.  Subject to approval via identity verifications and subject to terms and conditions. Kikoff Credit Account reported line of credit intended exclusively for credit building purposes & can be used to finance the purchase of monthly Credit Service plans and/or digital educational material via the Kikoff Store. For more information, visit our Terms and Conditions and Privacy Policy. We report to the major credit bureaus: Equifax, Experian, and TransUnion. Features, tradelines, bureau reporting, & pricing may vary depending on plan purchased. This post may contain marketing messages and advertisements in compliance with the CAN-SPAM Act. Please refer to our Secured Card and Credit Account Terms for detailed product disclaimers.

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Credit utilization, or the amount of credit used, greatly impacts your score—keeping it below 30% is ideal. Avoid myths like carrying balances to build credit faster. Pay in full and focus on strategies like the Snowball or Avalanche methods to manage debt effectively and improve financial health.