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The Best Credit Cards for Travelers

Whether you’re actually traveling or working your way toward a trip, the right credit card can be a big help in getting you there.

There are three things that rewards credit cards can do for you, and it’s important to know why you’ve taken a particular card, and to use it accordingly.

Some are best for the initial bonus miles. They’ll give you a ton of points for taking the card, but there’s not really a reason to keep the card after you’ve earned the bonus.

Some are best for ongoing spending. They reward you with valuable points, and lots of them—bonuses for spending on travel, dining, groceries, and the like.

Some are best for the valuable perks. If you fly an airline a lot but not quite enough to earn elite status, the airline’s co-branded credit card will give you many of the same perks, such as priority boarding and free checked bags. Still others get you lounge access or special discounts on airfare. You want to carry these cards, but you don’t necessarily want to put spending on them.

The Chase Sapphire Reserve Card became the ‘it’ card on the market when it launched three years ago with a 100,000-point sign-up bonus, though that’s been dialed back to a still-generous 50,000 points. Ongoing spending is rewarded generously with triple points on travel and dining. The points can either be used to purchase airfare directly at 1.5 cents in value per point or transferred to a variety of airline and hotel frequent-flier programs. And though the annual fee was just increased to $550, the card’s perks are still generous: a $300 travel credit, credit of the application fee for Global Entry, TSA PreCheck, or NEXUS, and a Priority Pass Select card with unlimited visits and privileges for two complimentary guests each time, providing lounge access in over 30 U.S. airports and to about 1,300 airport lounges around the world. In terms of travel protections, you’ll get primary collision-damage coverage when you rent cars, along with coverage for lost bags and long flight delays (something Citibank cards lack), and there are no foreign-transaction fees. However, along with the increased fee there have been some nips and tucks to the benefits: The trip cancellation coverage no longer includes when a travel provider goes bankrupt; you’re limited to two guests in airport lounges, they no longer give points on the spending that’s rebated to you as part of the $300 travel credit, and they no longer give you the travel credit twice in your first year. On the other hand, the card now offers Lyft benefits (ten points per dollar) and a complimentary DoorDash DashPass for discounted food delivery.

Here are some of the best cards in each category:

Cards With the Best Bonuses for Signing Up

Chase Sapphire Preferred Card: You’ll earn 80,000 points after spending $4,000 on the card within three months. This isn’t the biggest number bonus you’ll ever see, but the points are among the most valuable out there, transferring to airlines including United, British Airways, Air France KLM, Emirates and Singapore, and to hotel programs including Hyatt and Marriott. The card has a $95 annual fee.

If you have a small business, then the Chase Ink Business Preferred Credit Card will be very tempting. You’ll earn 100,000 points after spending $15,000 on purchases within three months of opening your account. This card earns the same transferable points as the Chase Sapphire Preferred and Sapphire Reserve, so they transfer to various airlines and hotels.

Cards that are Best for Ongoing Spending

All of these cards earn flexible points that can be transferred to a variety of different airline or hotel programs. That way you aren’t locked into a single program—you can choose where to put your points once you know where you’d like to travel and who has the best award availability at that time. The flexibility of points alone makes them more attractive than airline-specific credit cards, and they often earn points at a faster rate, too.

Chase Sapphire Reserve: The card earns a valuable currency that transfers to several airline and hotel programs, and it also earns triple points on all travel and all dining. It’s a Visa card, so it is accepted almost everywhere, and there are no foreign-transaction fees either.

American Express Gold Card: American Express renamed the “Premier Rewards Gold” card and really improved it. It earns 4 points per dollar at U.S. restaurants and supermarkets (the latter on up to $25,000 in spend annually), and 3 points per dollar with airlines. It has a $250 annual fee, which is somewhat offset by a $120 annual dining credit with certain food delivery services and restaurants and $120 annual Uber credit.

Capital One Venture X: The cards above all earn well in spending bonus categories. Consider the one that best matches your own spending patterns. But use it only for spending in those categories! You don’t want to earn just 1 point per dollar on the rest of your spend. If the opportunity cost of $1 in spending on a rewards card is $1 in spending on a 2% cash back card, then you’re effectively buying points at 2 cents apiece when using the rewards card for un-bonused spending. That’s too expensive! Earning with a card like Capital One Venture X for all of the rest of your spending makes sense, since it earns 2 points per dollar on all charges—and the points can either be redeemed directly against paid travel or transferred to airline and hotel loyalty programs. This card has a $395 annual fee, but comes with a $300 annual travel credit for bookings made at Capital One Travel (whether hotels, airline tickets, etc.) plus 10,000 bonus miles every account anniversary and comes with a Priority Pass membership for airport lounge access as well as access to Capital One’s own airport lounges. They have a partnership that provides Hertz Presidents Club status, and authorized users of the card come at no annual fee—and these cards are entitled to Priority Pass and Hertz status as well.

Cards With the Best Perks and Benefits

Generally, airline co-branded credit cards are worthwhile for the benefits if you fly one airline most of the time but don’t fly enough to earn elite status. You’ll get waived checked-baggage fees and priority boarding (so you can avoid having to gate-check your carry-on when the plane runs out of overhead-bin space). With United’s card you’ll also get two annual airline lounge passes. These cards aren’t as rewarding as the others on this list, though, for your ongoing spend. So consider getting them for the benefits, but put your spending on other cards.

American Express Platinum: This card is great for lounge access. It gets you into Delta lounges when flying Delta, as well as into American Express’s own network of Centurion lounges and it comes with a Priority Pass Select card, which provides access to lounges around the world (but not credit at Priority Pass airport restaurants). You also get National Car Rental’s Executive status (that means you can pick from better cars when you rent), Hilton’s Gold status (good for upgrades and breakfast), and Marriott’s Gold status (which enables you to avoid unfortunate rooms and get 2pm late checkout). You also get an annual credit of $200 for airline fees, an annual Uber credit of $200 and an annual credit of $100 at Saks; $240 Digital Entertainment Credit; $179 CLEAR credit; $300 Equinox credit and more. That all, to me, makes this card’s $695 annual fee worth paying.

Alaska Airlines Visa Signature: This Bank of America card comes with the unique benefit of a $99+tax companion ticket that isn’t like most companion tickets in travel—it really is good for any seat on any of their flights. If you pay for an economy ticket on Alaska, you can book a companion for only slightly more than $100. I consider the companion ticket to be worth the card’s $75 annual fee, since it’s good throughout Alaska’s route network—even for trips between the U.S. East Coast and Hawaii.

Be a smarter traveler: Use Wendy’s WOW List to plan your next trip. You can also follow her on Facebook and Twitter @wendyperrin, and sign up for her weekly newsletter to stay in the know.

Airline Miles and Points: How to Get the Best Award Flights in 2020

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The major U.S. airlines haven’t had to work very hard to win our business over the past several years. With the economy growing and the number of carriers shrinking (thanks to mergers), their planes have been packed. And since they’re able to sell their seats, they aren’t too interested in making them available for award travel. That’s why your best bet for using miles in 2020 is to look abroad to these airlines’ alliance partners, many of whom fly to the U.S. and do have empty seats. On these partners, you’ll get the greatest value exchanging your miles for international business and first class. Here are five more ways to get the most out of your miles this year:

Be flexible…and persistent.

The key to getting the award ticket you want is to be willing to consider a range of dates or at least connecting flights. If your heart is set on the only non-stop flight on your route and there’s only one day you can travel, it might work out, but the odds aren’t in your favor. Airlines don’t always make it easy to find the awards either: American Airlines features only some of its partners on its website, and Delta.com and United.com frequently throw errors. Pick up the phone and call, but know that the agents aren’t always incentivized to be helpful either. I never assume that no means no in air travel until I’ve heard it three times.

Here are just a few of my go-to routes for redeeming premium-cabin award travel where I find a great deal of success:

•Air France business class using Air France’s own miles (transfers from major bank programs)
•Singapore Airlines business class using Singapore’s own miles (transfers from major bank programs)
•Emirates first class (Emirates is an American Express and a Chase transfer partner)
•Korean Air first class using Korean’s miles (transfer from Marriott)
•Cathay Pacific business class for four passengers if booking 6–11 months in advance (American or Alaska miles)
•Asiana business class (United partner, bookable with miles from any Star Alliance program)

Your credit card choice matters more than your airline choice.

Miles aren’t about flying anymore. About two-thirds of miles are sold to and awarded by third parties, largely credit-card–issuing banks. There’s intense competition for credit-card customers. Use that to your advantage. These are my picks for the best credit cards for travelers.

Airline credit cards are for benefits, not spending.

If you don’t fly one airline enough to earn frequent-flier elite status, but you do fly one several times a year, get their credit card. At a minimum, that will entitle you to free checked bags and priority boarding It also means you won’t be forced to gate-check your carry-on, and you will be able to bring on a carry-on even if you’re booked on a dreaded Basic Economy fare on United. But don’t put any unnecessary spending on the airline credit card, because….

Bank programs that transfer to miles earn rewards faster and give you greater flexibility.

Even if you want to collect Delta miles, the Delta card doesn’t earn the most SkyMiles. American Express Membership Rewards cards transfer to SkyMiles and to other airlines too, and they earn points faster than the Delta card. The same is true for the United card and Chase’s Ultimate Rewards products, such as the Sapphire Reserve.

Use an airline card for the benefits, but put your spending on a card whose points—like American Express Membership Rewards or Chase Ultimate Rewards—transfer to a variety of mileage programs. You’ll earn more points, and you’ll have the flexibility to put them where you need them later, once you know the trip you want and which airline has availability.

Consider buying your ticket (with money, not miles).

Even though planes are full, fares are lower than they were just a few years ago. First, there’s competition from ultra-low-cost carriers such as Spirit and Frontier in the U.S. and Norwegian across the Atlantic. Second, airlines are now better able to offer lower first-class fares because of changes to the technology they use—especially for premium cabins. Domestic first class used to be several times more expensive than coach; now it’s frequently less than 50% more.

Business class and premium economy go on sale. In addition, British Airways will give $200 off even a sale-fare business-class ticket to AARP members (and this is stackable with a 10% discount for Chase British Airways credit-card customers). There are great deals out there. Take advantage of them when they pop up, rather than searching for award trips that require greater flexibility (and sometimes too many miles). Consider premium economy—akin to domestic first class—rather than business class, especially for daytime flights when you don’t need that bed. Norwegian, especially, sells it at bargain prices to Europe.

Once coronavirus concerns subside, be on the lookout for cheap business class fares to and through China. China Eastern, Hainan, Sichuan, and Xiamen all run sales and sometimes their U.S. counterparts will match pricing. Once you’re in Asia, buying cheap tickets to your final destination or redeeming miles to local destinations can make great sense.

There’s still tremendous value in frequent-flier programs, but that value is only really achieved by using miles to fly on non-U.S. airlines—or by transferring miles to the programs offered by those international airlines, if you’re willing to venture into the less familiar.

Gary Leff is the points-and-miles expert behind View from the Wing and the award-flight booking service BookYourAward.com. Follow him for smart takes on airlines, credit cards, points and perks on Facebook and Twitter, and sign up for his newsletter at View from the Wing.

Overseas Credit Card Purchases: Which Currency Should I Pay With?

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Keeping track of currency exchange rates is a necessity when traveling. Thankfully, there are many apps for that task, so we don’t have to spend too much of our time doing the research (I like Easy Currency Converter; leave your favorite in the comments below). But while it’s helpful to know the rough exchange for your home currency, the actual conversion rate varies from bank to bank, credit card to credit card, and even local merchant to local merchant.

As a result, when you’re overseas and you use a credit card, you’ll often see that the payment machine asks whether you want to pay with U.S. dollars or the local currency. Which one should you choose, and why?

Overseas credit card machines offer currency options. Which should you choose? Photo: Lindsay Lambert Day

First: Use the right credit card.

Having a credit card that’s ideal for travelers is your first line of defense against currency pitfalls: The good ones waive all foreign-purchase fees. “When you make purchases abroad, you should be using a card that doesn’t add foreign transaction fees to your bill (which can be as much as 3%),” says credit card expert Gary Leff, of View From the Wing. “All cards are going to convert foreign currency to your home currency, and you’ll get the prevailing rate. Some cards, though, will charge you a fee on top of the conversion rate to do it.”

Second: Pay in local currency.

“When a merchant outside the U.S. asks whether you want to be charged in U.S. dollars or your local currency, always say local currency,” advises Gary. “That’s because [the merchant is] going to hit you with their own conversion rate (likely unfavorable, but certainly not as good as the one you will get from your card company). And then, if your credit card hits you with foreign transaction fees, they’re going to charge those fees anyway, even if you paid in U.S. dollars, because it’s a foreign-made transaction.”

The final word:

“There is almost never any benefit to being charged by a merchant in your home currency,” Gary says. “You are best off having your credit-card-issuing bank do it at their rate. And you want to make sure you’re paying with a card that doesn’t charge you for the privilege of making purchases abroad.”

Be a smarter traveler: Read real travelers’s reviews of Wendy’s WOW List and use it to plan your next trip. You can also follow her on Facebook, Twitter @wendyperrin, and Instagram @wendyperrin, and sign up for her weekly newsletter to stay in the know.

Best Credit Cards for Canadian Travelers

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Using the right credit card is a smart way to maximize your travel booking power, and there are several that we recommend every traveler have in his or her arsenal. Some cards come with sign-up bonuses, others offer the potential to earn valuable points you can trade for hotel stays and flights, and others reward you with cash back.

We regularly update our Best Credit Cards for Travelers list, and every time we do, we are gently reminded by our Canadian readers that our advice is very useful…unless you live in Canada. That’s because Canadians can’t apply for a U.S. credit card unless they have a U.S. bank account and a U.S. address. In the interest of serving all of you globetrotters who reside in Canada, we reached out to our old friend and miles-and-points expert Gary Leff, who writes View from the Wing and founded BookYourAward.com.

“The Canadian card market isn’t quite as lucrative or competitive as the U.S. market,” Gary explained. “And it’s also somewhat in flux, because Air Canada is going to be ending its relationship with Aeroplan (the frequent-flier program that it spun off) and starting its own new program. As a result the value of accumulated unused Aeroplan miles is likely to fall. As a result my three favorite Canadian cards are American Express products.”

Here are Gary’s picks for the best credit cards for Canadian travelers:

• Starwood American Express: This has been a go-to in the U.S. for me for 16 years and is pretty similar in Canada.

• Gold Rewards: This one earns Membership Rewards points, which transfer to a variety of airline mileage programs (different programs than the U.S. cards have access to).

• Simply Cash Preferred: For cash back, this one gets you 2% rebates.

If you have any questions (for us or Gary), let us know in the comments below. And be sure to follow Gary on ViewFromtheWing.com for the latest insider info and explanations of the world of miles and points.

Photo credit: Plant Hide

5 Easy Ways to Avoid Airline Bag and Change Fees

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In the first three months of 2015, U.S. airlines raked in a record-setting $1.6 billion in checked-baggage fees and ticket-change fees. That’s up 7.4% from the same period last year. With the airlines’ profits at record highs, do you really want to give them an even bigger chunk of your trip budget? I didn’t think so. So here’s what you can do to avoid these fees:

How to avoid baggage fees

1. Get a credit card that exempts you from them.

The standard fee for checking a bag is $50 round-trip but, depending on the size and weight of your luggage, can be as high as $400 internationally. Each of the three major U.S. airlines offers a co-branded credit card that waives such fees when you fly that airline. And these credit cards cost nothing for the first year, so you have little to lose by trying one for 12 months. United offers the United MileagePlus Explorer Visa card from Chase; it provides one free checked bag to both the cardholder and one travel companion ticketed on the same reservation. American offers the Citi/AAdvantage Platinum Select MasterCard from Citibank; it provides one free checked bag for the cardholder and up to four travel companions. Delta offers the Gold Delta SkyMiles card from American Express; it lets you and up to nine companions check a bag for free. For all three cards, the $95 annual fee is waived the first year. The United and Delta cards charge no foreign-transaction fees.

2. Fly an airline that does not charge baggage fees.

Southwest charges no baggage fees, and some JetBlue fares still incur no baggage fees.

How to avoid or minimize ticket-change fees

1. If you think you may need to change an airline ticket, buy it with miles.

Change fees, which are typically $200 for domestic tickets and up to $450 for international flights, are more lenient for mileage-award tickets. American Airlines, for instance, lets you change mileage-award flight dates and times for free or, if your new departure date is within 21 days, for $75. United lets you change your travel dates for $75 or, if your new departure date is within 21 days, $100. Fees for changes to mileage-award tickets are lowered or waived for fliers with elite status.

2. Choose an airline that offers changes for free.

Southwest Airlines does not charge ticket-change or cancellation fees. Alaska Airlines offers free changes if you make them 60 days or more in advance.

3. If the flight is not very expensive, look into booking two one-way tickets rather than one round-trip.

Time was when two one-way tickets cost significantly more than one round-trip. Nowadays, though, more and more, they cost the same. So, if you’re unsure about either your outbound or return date, consider buying two one-way tickets, especially if each one-way fare is less than the airline’s change fee. Say a round-trip costs $300 and the airline’s change fee is $200. If you bought two $150 one-way fares and you had to change the outbound or the return, you could simply throw out the $150 ticket (and buy a new one), saving yourself $50. If you’re unsure of both your outbound and return dates, you’re probably better off buying the round-trip because you can change both dates with only one change fee.

Do you have any suggestions I’ve missed? I’d love to hear them—as, I’m sure, would everyone else! Please weigh in below.

The Best Frequent-Flier Deals for American Express Points

The Best Chip Credit Card for Travel in Europe

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UPDATE: FOR OUR LATEST CREDIT-CARD ADVICE, READ THE BEST CREDIT CARDS FOR TRAVELERS.

Question:

Wendy,

We enjoyed hearing your talks about the “Secrets Every Smart Traveler Should Know” on an Oceania cruise in South America. We now need a credit card with an embedded chip to use in Europe at gas stations, in restaurants, etc. Do you have a credit card you recommend for this that we can also use in the U.S.?

Thanks,

—Jim and Anne

Answer:

I remember meeting you onboard, Jim and Anne! How great to hear from you again.

There are two types of credit cards with electronic chips: chip-and-PIN cards, where you punch in a PIN code rather than signing a credit-card slip, and chip-and-signature cards, where you need to sign (which means you can’t use them at unmanned kiosks). Chip-and-PIN cards are better for Europe because they work in more locations. They work at automated payment machines such as those you find in train stations, at gas pumps, and in parking garages. The problem is that few U.S. banks issue chip-and-PIN cards.

Here’s a handy-dandy Google Doc, compiled by frequent-traveling FlyerTalk members, listing chip cards that are available in the U.S. One of the chip-and-PIN cards listed, the Globe Trek Visa, is also recommended by Rick Steves; it has a magnetic stripe, so it can be used in the U.S., and it charges no foreign-transaction fees.

Personally, though, I use a chip-and-signature card in Europe and really haven’t been inconvenienced. At unmanned payment terminals, such as ticket machines or toll booths, I simply use cash. The card I carry, a Chase Sapphire Preferred card, charges no foreign-transaction fees, and the annual fee of $95 is waived for the first year. (That’s my own card in the photo above—with my name blacked out by my protective husband who took the photo.)

Jim and Anne, I remember that you and virtually everyone on that Oceania ship were savvy mileage collectors as well as frequent travelers and foodies, so I’m going to assume that loyalty points matter to you and that you spend a lot on travel and dining. Therefore, you should know that, for people who travel and dine out often, the Chase Sapphire card really pays off when it comes to points. It earns you double points for travel and restaurant purchases, as well as a 7 percent annual dividend on all miles earned every year, and the points give you flexibility too: You can transfer them into a variety of different airline and hotel programs, as well as into any of the three major international airline alliances, although it’s easiest to transfer them to United and redeem them on flights within the Star Alliance, since this gives you access to mileage-award seats on many different airlines and routes worldwide. If you’ve got most of your miles with American Airlines or Delta, this might not be the card for you: While you can transfer points to American’s partner British Airways with the goal of using them for flights within the Oneworld alliance, or you can transfer them to Delta’s partner Korean Air with the goal of using them for flights within the SkyTeam alliance, the process isn’t as easy as it is with United, in my experience.

Jim and Anne, if you like the sound of the Chase Sapphire Preferred card, I suggest you both get one because that way you’ll each earn 40,000 bonus points for signing up for the card. It won’t cost you extra, since the card is free for the first year. You can wait till after your trip to Europe to decide whether or not you want to keep the card; if not, you can dump it before paying the annual fee. (Just be sure to transfer your points to one of the airlines or hotels first.)

Does anyone have a chip card they think may be better than the two mentioned here? I’d love to hear about it.

Update: In July 2014 Chase made a few changes to this card’s benefits. Most notably, it discontinued the 7% annual dividend for new cardholders (and is phasing it out for existing cardholders by 2016). But it also beefed up the car rental collision damage coverage it provides, upgrading the coverage from secondary to primary. Here’s a description of the changes.

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