The Beginner’s Guide to Choosing a Travel Rewards Credit Card
If beginner choosing travel rewards is on your radar, this short guide cuts through the noise. Here is what is worth knowing, and how to put it to work today.
Key Takeaways
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Trying to find the perfect travel rewards credit card can seem overwhelming. So in this post, we’ll cover the five questions you need to ask before applying for a card, and then give specific recommendations for the best travel credit cards for beginners.
Here’s a rundown of our top choices:
- Best overall: Chase Sapphire Preferred
- Runner-up: Capital One Venture Rewards Credit Card
- Honorable mention: Bilt Rewards Credit Card
- Best no annual fee card: Capital One VentureOne
- Best hotel card: World of Hyatt Credit Card
- Best for freelancers and small business owners: Chase Ink Business Credit Card
Table of Contents
ToggleQuestions to Ask Yourself Before Applying
To make sure you’re applying for the right card, here are five questions to ask yourself.
#1. Will you keep this card long-term?
Practicing responsible travel hacking shouldn’t harm your credit score. However, frequently opening credit cards to earn the sign-up bonus and then canceling them soon after can damage your credit score, making it more difficult to get approved for future cards.
Closing a credit card account can decrease the average age of your accounts, which negatively impacts your score. If you continue this practice, it may eventually make you ineligible for new credit cards due to a poor credit history.
Therefore, choose a credit card you plan to keep for the long term. This is why I generally recommend that beginners avoid high annual fee cards, even though they frequently have some of the biggest bonuses and/or best travel perks.
#2. What is the recommended credit score for this card?
Before applying for a credit card, check to see if the credit issuer lists a recommended credit score. While they frequently won’t give you an exact score, they may say something along the lines of, “For Excellent Credit.” A Google search along the lines of “recommended credit score for Chase Sapphire Preferred” can also help here.
A general rule of thumb is that you should have at least a 690 credit score before applying for a premium credit card.
#3. Is the minimum spending requirement to earn the bonus within your budget?
Most credit cards with a sign-up bonus require minimum spending within a certain time frame to earn the bonus. When evaluating a new credit card, ensure the minimum spend requirement is achievable based on your usual spending habits.
Being a financially savvy travel hacker means using the card for regular expenses that you would normally make, like groceries or gas, and paying off the balance in full each month. This way, you can earn the bonus without overspending or taking on debt. If you carry a balance on your card, the interest will cost you far more over time than any rewards or bonuses you earn.
#4. What are you going to do with the points?
Having a plan for your rewards is key, as the sign-up bonus is typically the biggest opportunity to earn points (especially if you don’t spend a significant amount of money every month).
If you’re unsure where to start, our credit card recommendations below include information about specific programs and the best uses of the rewards. You can also explore our guides on booking free airfare with points and booking hotel stays with points to set your travel goal.
With a plan in place, you can ensure you get the most out of your rewards for flights, hotels and other travel expenses.
Best Travel Credit Cards for Beginners
If you’re a beginner looking for a travel credit card, it’s key to choose one that offers long-term benefits, a quality sign-up bonus, and reasonable minimum spending requirements.
We’ve curated a list of the best travel credit cards that meet these criteria to help you make an informed decision. These cards are also flexible in how you can use the rewards, making them worthwhile even if you don’t have a specific travel destination in mind.
#1. Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is our top choice for beginners because it offers:
- A reasonable annual fee of $95, making it a excellent value.
- A consistently excellent sign-up bonus worth hundreds of dollars in travel rewards.
In addition to these benefits, the Chase Sapphire Preferred Card offers flexibility in using rewards.
You can redeem your points at a rate of 1.25 cents per point within the Chase Travel Portal. For instance, you can exchange 70,000 points for $875 worth of travel through the portal. The portal offers comparable, if not identical, rates to popular booking sites like Expedia and Kayak for airfare, hotels, and car rentals.
Chase also offers the option to transfer your points to various airline and hotel partners, including
Final Thoughts
The bottom line: a little research on beginner choosing travel rewards goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.
Originally published at thewaystowealth.com.
R.J. Weiss
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