Welcome to the Points Pro, where I answer your credit cards and travel rewards questions each week. If you have a question you’d like answered, you can submit it here.
This week, reader Jessica asks:
What factors should I focus on when choosing a travel credit card that offers the best combination of rewards for flights, hotels, dining, and everyday spending while maximizing travel benefits and overall return?
(This question has been edited for clarity and brevity.)
With so many features, fees and other facets to consider, it’s easy to get lost trying to figure out which credit card to choose. But you can simplify the process by focusing on what you want to get out of a credit card and understanding that there are always trade-offs.
How to choose a travel credit card
Find your why
Before you dive into the details and do the math on the fees and benefits of the best credit cards, it’s important to think about why you want a credit card. Some cards can help you book a dream stay in a yurt in Mongolia, and other cards are available if you want to build your credit history from the ground up.
If you simply want to earn rewards for all your normal credit card spending because it’s better than getting nothing, then a 2% cash-back card could be a great fit. This type of card is great for everyday spending and is a good starter card, as they generally don’t charge annual fees.
Getting specific with your “why” can save you the heartache of realizing that the points you have won’t get you what you wanted. The more specific your answer is, the easier your decision will be. Don’t just look for the best travel credit card; look for the card that earns the best travel rewards for booking flights to Japan, for example. Instead of honing in on a great hotel credit card, find a hotel card that’s great for a specific place, property or hotel chain.
Accept the trade-offs
No credit card can do it all and is the best in every situation. Rewards credit cards that earn 3X or more on travel or dining typically only earn 1X on everyday purchases. Travel cards with exceptional benefits also tend to have exceptional annual fees.
With credit cards, the biggest trade-offs to consider are costs vs. benefits and value vs. simplicity. In general, lower annual fee cards have fewer benefits, and higher value rewards are usually far more complex.
Compare your options
To give you a basic idea of how to analyze credit card trade-offs, here are three cards I would consider if I were in Jessica’s situation.
Bilt Palladium
The value: The Bilt Palladium Card (see rates and fees) might be the only card that offers everything Jessica is looking for. It earns 2X Bilt Points on everyday purchases, but you can redeem $200 Bilt Cash to activate a Points Accelerator that earns an extra 1X points (3X total) on the next $5,000 you spend. You can activate this benefit up to five times per year, allowing you to earn 3X points on up to $25,000 in annual spending.
The rewards potential doesn’t stop there. Bilt provides options for earning rewards on housing payments, which can boost your effective earnings to over 3X everywhere. Bilt Points are arguably the most useful travel rewards because they transfer to an incredible list of travel partners. The card also comes with travel insurance, annual hotel credits and airport lounge access.
The trade-off: If there’s a rewards credit card that’s more complicated to maximize than the Bilt Palladium, I am unaware of it. Bilt allows you to earn rewards on housing, but you have to choose between earning flexible Bilt Cash or housing-only rewards. Bilt also offers ways to earn and redeem two separate types of rewards: Bilt Points and Bilt Cash.
Not only do you have to figure out two housing rewards options, but you also need to understand how to earn and redeem two types of rewards. On top of all that, the card has a $495 annual fee (see rates and fees), which can dramatically erode its value if you’re not making the most of the perks.
The Bilt Palladium Card earns 2X Bilt Points on everyday purchases, and your choice of up to 1.25X on rent and mortgage payments
- Earns ultra-valuable flexible rewards
- Simple flat-rate rewards earning
- Can earn up to 1.25X points on rent and mortgage payments
- Additional steps for no-fee rent payments
- High annual fee
- Bilt Cash redemptions are complicated
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn up to 1.25X points on rent and mortgage payments with no transaction fee.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 3 months + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.
- Earn additional points through Bilt Neighborhood Benefits™ when you use your card at Bilt’s network of 50,000+ merchant partners.
Balance transfer fee
Citi Double Cash® Card
The value: The Citi Double Cash® Card earns at least 2% cash back on all purchases (1% when you buy and 1% when you pay) with no spending caps and no annual fee. You won’t earn bonus points on specific purchases like dining or hotels, but other purchases will earn double the standard 1% back. While the Double Cash is technically a cash-back credit card, it earns cash back as Citi ThankYou® Points — which means you can transfer rewards to Citi’s travel partners, like American Airlines AAdvantage.
The trade-off: The Double Cash has few notable benefits, and the transfer ratios are lower than what you have with premium ThankYou® Rewards cards, such as Citi Strata Premier®Card or Citi Strata Elite℠ Card. In other words, the card prioritizes simplicity over maximizing rewards value.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- No annual fee
- Travelers face a foreign transaction fee
- Intro APR only applies to balance tranfer
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% – 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
Chase Sapphire Preferred® Card
The value: The Chase Sapphire Preferred® Card (see rates and fees) is a popular travel credit card for good reason. It offers an amazing array of travel protections, 2X points on travel (including flights and hotels) and 3X points on dining, online groceries and select streaming services. And you can transfer those points to any of Chase’s 14 travel partners at a 1:1 ratio.
The trade-off: You’re only earning 1X on purchases that fall outside of the card’s bonus categories, so it’s not great for everyday spending. It also has a $95 annual fee, which isn’t outrageous, but it doesn’t offer many benefits outside of travel insurance. It does, though, offer a $50 annual statement credit valid toward Chase Travel Hotel bookings.
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.
- You can transfer rewards to all of Chase’s travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Long list of travel and shopping protections
- $50 annual Chase Travel hotel credit
- Has an annual fee
- Requires a high credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase TravelSM, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase TravelSM
- 10% anniversary points boost – each account anniversary you’ll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
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