Travel Rewards Credit Cards

There are three types of free American Express travel insurance available on most Amex credit cards: travel accident insurance, baggage insurance and rental car insurance. To be eligible for coverage, cardholders must either pay their entire travel fare with an Amex credit card or pay at least part of it with Amex rewards.

Amex travel accident insurance reimburses you when a travel provider causes a death or serious injury. All currently available Amex cards have it. The coverage amounts vary by card. But they can be as high as $500,000.

American Express baggage insurance pays you back for baggage that a travel provider damages or loses. You can get it on most Amex card offers. The coverage is as high as $3,000 per person per trip.

Amex rental car insurance pays for damage to and theft of rental cars. Most Amex cards have it. And the coverage is as high as $75,000 per vehicle.

The best Chase travel card is Chase Sapphire Preferred because it offers 80,000 bonus points when you spend $4,000 in the first 3 months. That’s worth $1,000 in travel booked through Chase Ultimate Rewards. Sapphire Preferred also offers 2 points / $1 spent on travel and dining, and 1 point / $1 on all other purchases. And it comes with well over $500,000-worth of travel insurance. Sapphire Preferred has a $95 annual fee.

But if you’re a big spender who’s looking for more prestigious perks, another good Chase travel card to consider is Chase Sapphire Reserve. It has a $750 initial bonus for spending $4,000 in 3 months and a $300 annual airline credit. Sapphire Reserve also provides access to 1,000+ airport lounges and rewards you with 3 points / $1 spent on travel and dining. Plus, Reserve offers up to $1,000,000 in insurance benefits. That’s why it costs $550.

There are plenty of other good Chase travel cards, too. Unlike Sapphire Preferred and Reserve, they are co-branded with the loyalty programs of airlines and hotels.

Best Chase travel cards:

• Best Overall: Chase Sapphire Preferred
• Best for Frequent Flyers: Chase Sapphire Reserve
• Best Airline Card: British Airways Credit Card
• Best for Hotel Points: IHG Rewards Club Premier

Chase Sapphire Preferred is the best Chase travel credit card overall due to its bonus rewards and relatively low fee. It also lets you transfer your points at a 1:1 ratio to 13 airline and hotel loyalty programs.

The British Airways credit card is the best Chase travel card affiliated with an airline. It offers 50,000 points for spending $3,000 in the first 3 months. Plus, you can get an additional 50,000 points for spending a total of $20,000 in the first year. You’ll also receive 3 points / $1 spent on British Airways, Aer Lingus, Iberia and LEVEL purchases, 2 points/$1 on hotel accommodations when booked directly with the hotel and 1 point / $1 on everything else. Lastly, the British Airways Card gives you a “Travel Together Ticket” for a companion to use when you spend $30,000 in a calendar year. The card requires good credit and costs $95 per year.

The IHG Rewards Club Premier Card is the best Chase travel credit card for hotel points, thanks to its 140,000-point bonus for spending $3,000 in the first 3 months and the free night you’ll get after every account anniversary. You can also earn another reward night when you redeem points for any stay of 4 or more nights. In addition, you’ll get 10 points per $1 spent on IHG purchases, 2 points per $1 at gas stations, grocery stores and restaurants, and 1 point / $1 on everything else. On top of that, cardholders receive complimentary IHG Platinum Elite status. The IHG Rewards Club Premier card requires good credit and costs $89 per year, with the fee waived the first year.

You need good or excellent credit to get any of these Chase cards. If you have fair or limited credit, consider Capital One QuicksilverOne or Capital One Platinum as alternatives. For bad credit, some good choices include the Bank of America Cash Rewards Secured and Discover it Secured.

The best Discover travel card is the Discover it Miles card because it offers unlimited 1.5 miles per $1 spent on all purchases. Discover also matches all miles earned during the first year. Discover miles are worth 1 cent in travel each, and cardholders can use their miles to pay for any travel purchase made with the card. Cardholders can also book travel accommodations on Discover’s travel portal using miles, with no blackout dates or restrictions. Plus, the Discover it Miles card has a $0 annual fee and a 0% foreign transaction fee.

Discover it chrome is another good Discover travel card, especially for road-trippers. It offers 2% cash back on $1,000 spent at gas stations and restaurants each quarter, plus 1% back on all other purchases and a first-year rewards match. Discover it chrome also has a $0 annual fee and a 0% foreign fee.

All Discover cards can be useful for travel. That’s because Discover is one of the few issuers to not charge foreign transaction fees on any credit cards.

Here are the best Discover travel cards:

• Discover it Miles – Best for travel overall

• Discover it chrome – Best for gas and dining

• Discover it Student chrome – Best for students

• Discover it Secured – Best for bad credit

Students looking to get a Discover travel card can consider the Discover it Student chrome card. It gives 2% cash back on $1,000 spent per quarter at gas stations and restaurants, and 1% back on other purchases. It also has the Discover first-year rewards match. It’s available to students with limited history. And it has a $0 annual fee, with a foreign fee to match. Plus, as a special treat, the Discover it Student chrome card gives a $20 bonus each year your GPA is 3.0 or higher.

People with bad credit aren’t left out, either. The Discover it Secured card is the best Discover travel card available to people with bad credit. Discover it Secured offers 1 - 2% cash back on purchases (doubled the first year) and has a $0 annual fee. Just bear in mind that this card requires a $200+ refundable security deposit, which becomes your spending limit.

The best Capital One travel card is the Capital One Venture Rewards Card because it offers 50,000 bonus miles for spending $3,000 in the first 3 months and gives at least 2 miles per $1 on all purchases. Capital One Venture’s initial bonus alone is worth $500 in travel, more than covering the cost of its $95 annual fee. For a limited time only, you can earn 100,000 bonus miles for spending $20,000 in the first 12 months. As a result, the Venture Card is more than just the best Capital One travel card; it’s one of the best travel credit cards from any issuer.

But in a sense, every Capital One credit card is a good travel card. Capital One is one of just a few credit card companies without foreign transaction fees on any of their cards. Plus, Capital One’s travel cards are special in the sense that cardholders can redeem rewards for statement credits to pay for any travel purchase charged to the account. This adds flexibility in travel booking without sacrificing any value.

Several of Capital One’s other offers do stand out above the rest, though. For example, the VentureOne Card is the best Capital One travel card with no annual fee. And the SavorOne Card’s dining and entertainment rewards are great for vacation fun. It just depends on what exactly you’re looking for.

Best Capital One Travel Cards:

• Capital One Venture Rewards – Best overall
• Capital One VentureOne Rewards – Best for no annual fee
• Capital One SavorOne Cash Rewards – Best for dining 
• Journey Student Rewards from Capital One – Best for students 

Capital One VentureOne Rewards is the best Capital One travel card for no annual fee because it combines a $0 annual fee with a sizeable bonus: 20,000 miles for spending $1,000 in the first $1,000. That’s worth $200 in travel. It also offers 1.25 miles per $1 on purchases. Venture One has a 0% intro APR on purchases for 12 months. The card requires good credit.

When it comes to dining, the Capital One SavorOne Cash Rewards card is the best because it gives 3% cash back at restaurants, 2% on groceries and 1% on everything else. There’s also a $200 cash bonus for spending $500 in the first 3 months. SavorOne has a $0 annual fee. Plus, it has a 0% intro APR on purchases and balance transfers for 9 months. SavorOne requires good credit.

Students looking for the best Capital One travel card will appreciate Journey Student Rewards. It offers 1% on all purchases to students with limited or fair credit. And that increases to 1.25% if you pay your bill on time. There’s a $0 annual fee.

You’ll need good credit to take advantage of Capital One’s best travel cards. But if you currently have bad credit, you’re not out of luck. The Capital One Secured Mastercard may not have rewards, but it doesn’t have an annual fee or a foreign transaction fee, either.

The Discover card rental car insurance benefit was discontinued for all Discover credit card accounts on February 28, 2018. The last day to file a claim was May 29, 2018 for incidents that happened on or before February 28. Prior to that date, Discover card rental car insurance provided up to $25,000 in coverage for rental cars that were damaged or stolen. Cardholders had to pay for the rental with a Discover card or Discover card rewards to be covered. They also had to decline the rental agency’s insurance offer to be eligible.

In addition to rental car insurance, Discover has cut several credit card benefits since February 2018. Discover dropped travel accident insurance, purchase protection, extended warranties and return protection.

The other three major credit card networks still offer rental car insurance. But credit card issuers are the ones that set the specific coverage terms. Discover, like American Express, happens to be both an issuer and a network.

The Chase Sapphire Reserve travel credit automatically reimburses cardholders for up to $300 in travel-related expenses each year. The credit applies to flights, hotels, trains, cruises, taxis, parking, Uber and Lyft. It can also help pay for vacation packages and airline fees. The Sapphire Reserve travel credit does not apply to in-flight goods and services (e.g. Wi-Fi, food), tourist attractions, or merchants within airports. But the $300 annual credit does cover two-thirds of the card’s $550 annual fee.

Chase Sapphire Reserve travel credits are applied to the account the same day qualifying purchases post. This happens until you hit $300 total for the year. For example, if you make a $100 travel purchase, Chase will apply a $100 credit as soon as the purchase processes. And you will have $200 remaining for other purchases during the year. On your monthly statement, your transactions will include both the original purchase and an extra item that says, “Travel Credit.” The credit subtracts the purchase amount from your balance. Chase determines whether a purchase is eligible for the travel credit based on a 4-digit code that businesses use to categorize transactions. Anything coded as “travel” qualifies.

Remember that the Chase Sapphire Reserve travel credit resets every 12 months on the first statement date after your account anniversary. If you submitted an application before May 21, 2017, the credit will reset on your December statement’s closing date. If you’re unsure when your credit will reset, you can call customer service at 1 (800) 432-3117 or the number on the back of your card. Simply enter your account number and ask a representative.

Unused credit does not roll over from year to year, so make sure to keep track of how much of the Chase Sapphire Reserve travel credit you’ve used. That way, you’ll be able to make sure you take advantage of the whole thing.

You actually can’t set an American Express travel notification. Amex is one of the few credit card companies that doesn’t allow it. Most issuers want you to tell them ahead of time when you plan on traveling, so they won’t flag your purchases as fraud if they see you spending money in another country or state. Amex, on the other hand, is confident in their ability to recognize fraud without travel notifications.

This is what American Express has to say about travel notifications on their website: “We use industry-leading fraud detection capabilities that help us recognize when our Card Members are traveling, so you don't need to notify us before you travel.” While the exact nature of how they do this is an Amex secret, some Amex customers have been able to provide insight into the process. For example, some report that Amex sent them an email saying their recent purchases indicated they’d be traveling in the near future. So if you buy plane tickets, for example, Amex will reasonably assume you’ll be going somewhere.

So in the end, you don’t need to set an American Express travel notification, and there’s no way to do it even if you wanted to. You should just expect Amex to figure out when you’re traveling. But if your card ever is flagged for fraud, a call to the number on the back of your card should quickly sort things out. It’s also a good idea to make sure Amex has the right phone number on file for you, so they can let you know if there’s an issue.

The Capital One Purchase Eraser is a rewards-redemption option on some Capital One credit cards that lets cardholders choose recent travel-related purchases to “erase” with their earned miles. You can “erase” airfare, hotel, and transportation charges made in the last 90 days on the Venture, VentureOne, Spark Miles Business Select, and Spark Miles Business credit cards.

To use the Capital One Purchase Eraser, log in to your Capital One account online or through the mobile app. Click on your rewards miles, and then select the “Cover a Purchase” option. Your eligible travel purchases will show up, along with the number of miles required to pay for each in full. You can also erase a portion of a purchase, if you don’t have enough miles to cover the entire amount. Once you’ve selected the purchase(s) you want to erase, the miles will be immediately subtracted from your rewards balance. Your account will then be credited with the redemption within 7 days.

When redeemed with Purchase Eraser, 1 Capital One mile is worth 1 cent. However, if you redeem your miles for a non-travel statement credit (not using the Purchase Eraser), they’re only worth half a cent each. So it’s worth using Capital One miles rewards credit cards for travel expenses – you’ll have more eligible purchases to erase, and you’ll be able to get more value out of each redeemed mile.

Most travel rewards credit cards are much more restrictive when it comes to redeeming miles. But Bank of America is one credit card company that allows cardholders to erase travel purchases like Capital One.

There’s no need to set a Capital One travel notification, also known as a travel alert. Capital One discontinued its travel notifications in 2016.

A travel notice tells a bank that the cardholder will be away from home during a given time period. That way, charges made from places you don’t normally visit won’t trigger the fraud prevention system and cause the bank to freeze the card. Like many issuers, Capital One uses EMV chip-and-signature technology. But unlike most of them, Capital One believes chip technology has made travel notices obsolete.

Each time you make a payment with a chip card, the chip creates a unique code for the transaction that can only be used one time. That prevents account information from being stolen at the point of sale. And that’s why there’s no longer the need for a Capital One travel notice.

But chip-and-signature technology doesn’t help you if someone steals your physical card. And it’s always good to be prepared. So it’s important to know the numbers to call if you run into any problems using your card while traveling. For instance, if your card gets stolen, you can call to have it frozen and get an emergency replacement card overnighted to you. You can also get a cash advance by wire transfer in that situation.

Here’s what you need instead of a Capital One travel notification:

• Domestic customer service number: 1-877-383-4802
• International customer service number: 1-800-955-7070 (collect call)
• Card number or Social Security number: Enter your card number when you call to speak to a representative. If your card is lost or stolen, enter your Social Security number instead.

You don’t need to set a Capital One travel notification to use your card abroad with peace of mind. And that’s not the only way Capital One makes travel easy. You also avoid foreign transaction fees because none of Capital One’s cards charge them.

Discover card travel insurance is no longer available. Discover used to offer $500,000 in travel accident insurance and $25,000 in coverage for rental car collision or theft. But they discontinued those benefits for all Discover cards in February 2018. They also discontinued purchase protection, return protection and extended warranties. So overall, there are not too many perks for using a Discover card for travel. But every Discover card does have a $0 foreign transaction fee.

If you’re traveling, it’s more convenient to use a Visa or Mastercard. All Visa and Mastercard credit cards offer at least rental car insurance. Many also offer other types. Travel accident insurance reimburses you for death or serious injury caused by a travel provider. Trip cancellation and interruption insurance helps you get money back after your trip is stopped by factors out of your control. Baggage insurance can protect your valuables.

Some of the best Mastercard/Visa cards that have travel insurance include Chase Sapphire Preferred, Citi Premier, Chase Freedom Unlimited and the Wells Fargo Visa Signature card.