What is a travel credit card?
A travel credit card is a credit card that offers airline miles, hotel points or other travel-oriented rewards. Some are affiliated with specific airlines and hotel chains, while others are equally rewarding for all travel. The best travel credit cards typically offer large initial rewards bonuses and high ongoing earning rates and don’t charge foreign-transaction fees.
What can you do with frequent flyer miles?
Frequent flyer miles can be used to pay for pretty much any air–travel expense. This includes airfare itself, as well as cabin upgrades, airport-lounge fees, and in-flight refreshments and entertainment. WalletHub’s loyalty rewards calculator can help you find the best frequent flyer program for your travel plans: https://wallethub.com/edu/best-frequent-flyer-program/25943/
What are bonus miles?
In general, bonus miles are extra rewards earned with a credit card or airline loyalty program. For example, many travel rewards credit cards offer a base earning rate (e.g. 1 mile per $1 spent) on most purchases and then give you bonus miles (e.g. 2 or 3 miles per $1) in certain spending categories. It’s also common for travel credit cards to offer initial rewards bonuses to new users who spend a certain amount within the first few months of account opening.
With that being said, the meaning and redemption value of “bonus miles” can vary from issuer to issuer and even card to card. Among airline credit cards alone, the value of a mile ranges from less than half a penny to more than six cents, according to WalletHub research.