How do travel credit cards work?
Travel credit cards reward you for the purchases you make on everyday expenses, but you’ll earn even more points if you spend on the card’s bonus categories.
Travel credit cards enable you to earn points or miles that you can redeem for travel, but specific cards reward you in different ways. You can either earn:
- Transferable credit card points from a general-purpose travel credit card, or
- Miles or hotel points from an airline or hotel credit card.
General-purpose travel credit cards
General travel credit cards allow you to transfer points to a wide range of airlines and hotels. You could transfer some to one airline partner, then a few months later transfer more points to a different airline partner, and then transfer points to a hotel partner. (More on transferring to airline partners in tomorrow’s email—stay tuned!)
Type of points earned: Transferable credit card points
Who it’s best for: Travelers who fly or stay with multiple airlines and hotels
Example: This beginner-friendly card
Co-branded airline or hotel cards
These cards earn airline miles or hotel points exclusive to that airline or hotel. Premium airline credit cards may offer extra perks like a free checked bag, priority boarding, airport lounge access, a leg up on elite status, or a free night’s stay at a hotel’s property. Just remember, these perks are usually tied to that airline or hotel chain.
Type of points earned: Airline miles or hotel points
Who it’s best for: Travelers who are loyal to a specific airline or a hotel
Example: This card
Business travel credit cards
Business travel credit cards can be either general-purpose travel credit cards, earning flexible travel points, or co-branded with an airline or a hotel. Perks and earning rates tend to vary depending on the annual fee the business card charges. Of course, to be eligible for a business travel credit card, you’d need to be a small business owner, freelancer, or entrepreneur—but it may be easier to qualify than you think!
Type of points earned: Either transferable credit card points, airline miles, or hotel points
Who it’s best for: Business owners or entrepreneurs who want to earn travel rewards on their business spending
Example: This premium business card
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