What Credit Score Do You Need for a Travel Credit Card?
When it comes to unlocking the benefits of a travel credit card, your credit score plays a crucial role. Travel credit cards offer enticing perks like free flights, hotel stays, and access to airport lounges, but to get approved for one, you’ll generally need a good to excellent credit score.
Learn what you need to get approved, how to choose between cards based on different fees and promos, and explore the top 5 travel credit cards of 2024.
Understanding Credit Scores
Credit scores range from 300 to 850 and reflect your creditworthiness. The higher your score, the more likely you are to be approved for loans and credit cards, and to receive favorable interest rates. Here’s a quick breakdown:
- Excellent (750-850): You’re likely to be approved for almost any travel credit card with the best terms.
- Good (700-749): You have a high chance of approval for most travel credit cards.
- Fair (650-699): Approval is possible for some cards, but you might face higher interest rates or fewer rewards.
- Poor (300-649): Approval for travel credit cards is unlikely, and it’s best to focus on improving your score first.
Ideal Credit Score for Travel Credit Cards
For a given premium rewards credit card, such as those offered by Chase, American Express, and Citi, you’ll typically need a credit score of at least 700. Cards like the Chase Sapphire Preferred credit card or the American Express Gold credit card often require a score in the good to excellent range (700+).
However, there are travel rewards credit cards designed for those with fair credit, though they might not offer as many perks or may come with higher fees. If your score is in the mid-600s, you might still find credit card options available, but it’s essential to manage expectations regarding rewards and terms.
How to Improve Your Credit Score
If your credit score isn’t quite where it needs to be, don’t worry. Here are steps to help boost your credit:
- Pay Bills on Time: Your payment history is the most significant factor in your credit score. Ensure all bills are paid on time.
- Reduce Debt: Lowering your credit card balances can positively impact your credit utilization ratio, which is another crucial factor.
- Avoid New Credit Card Applications: Each new credit card application can slightly ding your score, so be selective about applying for new credit cards or other credit.
- Check for Errors: Regularly review your credit reports for any inaccuracies that might be dragging down your score.
- Keep Old Accounts Open: Length of credit history matters, so keep older accounts and credit cards open and active if possible.
Types of Credit Cards for Travel Points
Travel Rewards Credit Card
These cards are versatile and allow you to earn points on a wide range of purchases, which can be redeemed for travel expenses like flights, hotels, and car rentals. Examples include the Chase Sapphire Preferred and American Express Gold Card.
Airline-Specific Card
These cards are co-branded with airlines and offer benefits tailored to that airline’s frequent flyers. Perks often include priority boarding, free checked bags, and discounts on in-flight purchases. Examples include the Delta SkyMiles Platinum American Express Card and the United Explorer Card.
Flexible Points Card
These cards offer points that can be transferred to various airline and hotel loyalty programs, providing flexibility in how you use your rewards. Examples include the American Express Membership Rewards and Chase Ultimate Rewards.
Factors to Consider When Choosing a Credit Card
Annual Fees
While some cards come with no annual fee, others might charge upwards of $450 per year. Consider whether the perks and rewards justify this cost.
Point Redemption Options
Ensure the card offers a variety of redemption options that align with your travel goals. Some cards offer higher point value when redeemed for travel through their portals.
Sign-Up Bonuses
Many cards offer large sign-up bonuses that can give you a hefty amount of points right away. Make sure to check the spending requirement to earn these bonuses.
Best Credit Card for Travel Points
Top 5 Travel Credit Cards of 2024
The top 5 travel credit cards of 2024 include the Chase Sapphire Preferred® Card, American Express® Gold Card, Capital One Venture Rewards Credit Card, Citi Premier® Card, and Discover it® Miles. These cards generally require a credit score of 700+ and offer a range of rewards and benefits.
Annual fees range from $0 to $250, with rewards such as 2x-4x points or miles on travel, dining, and other purchases. Balance transfer fees vary, with some cards offering promotional rates.
Notably, none of these cards charge foreign transaction fees, and they feature various promotional offers, including bonus points or miles and introductory 0% APR on purchases for a set period of months after an account opening.
- Chase Sapphire Preferred® Credit Card
- Credit Score Needed: 700+
- Annual Fee: $95
- Rewards: 2x points on travel and dining, 1x points on all other purchases. Earn 60,000 bonus points after spending $4,000 in the first 3 months.
- Balance Transfer Fee: 5% or $5, whichever is greater.
- Foreign Transaction Fees: None.
- Promotional Offers: Occasionally offers bonus points for certain spending categories.
- American Express® Gold Credit Card
- Credit Score Needed: 700+
- Annual Fee: $250
- Rewards: 4x points at restaurants, 4x points at U.S. supermarkets (up to $25,000 per year), 3x points on flights booked directly with airlines or on amextravel.com.
- Balance Transfer Fee: Not a primary feature.
- Foreign Transaction Fees: None.
- Promotional Offers: Targeted offers and additional points for specific purchases.
- Capital One Venture Rewards Credit Card
- Credit Score Needed: 700+
- Annual Fee: $95
- Rewards: 2x miles on every purchase. Earn 75,000 bonus miles after spending $4,000 in the first 3 months.
- Balance Transfer Fee: 3% promotional offer within the first 18 months.
- Foreign Transaction Fees: None.
- Promotional Offers: Periodic spending bonuses.
- Citi Premier® Credit Card
- Credit Score Needed: 700+
- Annual Fee: $95
- Rewards: 3x points on air travel, hotels, and restaurants, 2x points on entertainment, and 1x points on all other purchases. Earn 80,000 bonus points after spending $4,000 in the first 3 months.
- Balance Transfer Fee: 5% or $5, whichever is greater.
- Foreign Transaction Fees: None.
- Promotional Offers: Introductory APR on purchases for the first 12 months.
- Discover it® Miles Credit Card
- Credit Score Needed: 700+
- Annual Fee: $0
- Rewards: 1.5x miles on every purchase. Discover matches all miles earned in your first year.
- Balance Transfer Fee: 3% intro fee for transfers that post to your account by a certain date, then up to 5%.
- Foreign Transaction Fees: None.
- Promotional Offers: 0% APR on purchases for the first 14 months.
Applying for a Travel Credit Card
Before applying, do your research. Compare various travel credit cards to find one that matches your needs and credit profile. Look at the rewards structure, annual fees, interest rates, balance transfer fees, foreign transaction fees, and additional benefits.
Use pre-qualification tools credit card issuers offer to see your chances of approval without it affecting your credit score.
Promotional Offers
Many travel credit cards offer promotional offers to attract new customers and reward their purchases in the first few months after account opening.
These promotions often include introductory 0% APR on purchases for a set number of months from account opening, making it easier to pay off big purchases without incurring interest. For example, the Discover it® Miles card offers a 0% APR on purchases for the first 14 months from account opening.
Intro bonus
The Capital One Ventures Rewards credit card has a high-quality travel benefit such as free access to airport lounges and protections. The annual fee for this product is about $300 lower than its competitors. You will earn at the rate of 10 x points which are redeemable on your travels, statements credits, and transfers to 15+ airline and hotel partner partners.
How Do I Max out my Travel Rewards credit cards?
Points per dollar
“Points per dollar” is a key concept in travel rewards credit cards that determines how many reward points you earn for every dollar you spend.
Typically, credit cards offer different rates of points per dollar based on the type of purchase. For example, a card might offer 2 points per dollar spent on travel and dining and 1 point per dollar on all other purchases. This means if you spend $100 on a qualifying travel expense, you would earn 200 points.
Bonus points
Travel credit card rewards often include enticing bonus points as a key feature to attract new cardholders. These bonus points are typically awarded after meeting a minimum spending requirement within the first few months of account opening. For example, a card might offer 60,000 bonus points after spending $4,000 in the first three months after account opening.
These bonus points can significantly boost your rewards balance quickly, allowing you to redeem them for free flights, hotel stays, or other travel-related expenses much sooner.
Additionally, some cards offer elevated bonus points in specific spending categories, such as travel and dining, further enhancing the value you receive from your purchases.
Case Studies
Real Stories of People Who Improved Their Credit to Get a Travel Credit Card
Case Study 1: Meet Sarah
Sarah started with a credit score of 580. She signed up for Kikoff’s Credit Account and followed a disciplined approach to paying off her debt. Within six months, her score climbed to 680, allowing her to secure a mid-tier travel credit card with excellent rewards.
Case Study 2: Meet John
John’s credit score was stuck at 620. By utilizing Kikoff’s Secured Credit Card and keeping his utilization rate low, he managed to improve his score to 720 within a year. He now enjoys the perks of a premium travel credit card, including access to airport lounges and travel insurance.
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
Using credit card points for travel is not just a dream but an attainable reality for anyone willing to put in the effort. The benefits are tremendous, offering budget-friendly ways to explore the world. Check out the [Best Credit Cards for Travel Points in 2024] to see which credit card can boost your travel power..
Start your journey today by building your credit with tools like Kikoff. With our helpful resources, you can embark on your travel adventures sooner than you think.
Ready to dive in? Check out Kikoff’s credit-building offerings and app and start paving the way to your dream destinations.
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