Based on Instagram, it can seem like a ton of people are full time travelers or are “paid to travel”, but for the vast majority (myself included) blogging is truly a hobby in addition to a full-time job. The cost of travel can be intimidating but there are ways to make your regular day-to-day purchases help build your travel fund. There are a TON of travel and rewards credit cards out there and the options can be overwhelming. Below I provide some items to consider before adding a new card and break down a few options with pros and cons.

Know Your Credit

Know your credit score and how that number is generated before you consider adding a credit card. The cards I mention generally require a credit score of 670 or higher to be approved. This is a good primer on the five factors that determine your credit score. Opening a new line of credit can bring down your average length of credit history and adds a recent credit inquiry, both of which can lower your score slightly. Travel is fun, but going into debt or hurting your credit is never worth it.

If you have solid credit and are currently paying off your balance each month, a travel credit card could be a good way to get more out of your rewards.

You’ll see all of the cards below are general travel cards. I don’t personally prefer specific hotel or airline credit cards because they limit your options. You may end up paying more to earn points or the value of your redeemed points is lower because you have to fly a particular airline or stay in a particular hotel chain (which is why these companies offer credit cards).

Know Your Spending Habits

Reward rates vary based on different cards. Before looking at getting a new rewards card, take some time to review your current monthly spending. How much do you typically put on credit cards each month? Where do you spend the most on credit cards – restaurants, travel, shopping, groceries, etc? Card companies call these merchant category codes. Using a money tracking app like Mint can help make sense of this data. Knowing your spending habits will help you know if you spend enough to earn the sign-up bonus (based on spending a certain amount within the first few months) and if you would benefit more from a card that gives the same rewards rate for all purchases or has different rates depending on the category code.

Lastly, consider how much of an annual fee you are comfortable with, which perks you want, and how you want to utilize your points. All of the cards I list have no foreign transaction fee and no blackout dates.

Best Rewards and Perks

Chase Sapphire Reserve

If your lifestyle involves extensive travel and you put more than $1,300 on credit cards each month, Chase Sapphire Reserve is the best value card. The only con is that to get the most out of your points, you need to book through the Chase Rewards portal, which is a small extra step when booking travel and somewhat limits flexibility.

Annual fee: $450 (this seems high but the value of the perks far exceeds this)

Reward rate: 3 points per dollar on travel and restaurants, 1 point per dollar on everything else

Sign-Up Bonus: 50,000 points if you spend $4,000 in the first three months (this is equivalent to $750 when redeemed on travel in the Chase Rewards portal)

Perks:

• $300 annual travel credit, so the first $300 you spend on travel is erased as if it never happened
• Free Priority Pass, giving you (and any authorized card holder) free access to over 1,200 airport lounges around the world. This is a fantastic perk if you travel often. Without the pass, a one-time visit to an airport lounge can run you $30-50.
• Reimburses the cost of Global Entry/TSA Pre-Check ($100 every four years). Again, extremely worth it if you travel often to skip security and customs lines in the US.
• Canceled/Interrupted trip insurance, lost/delayed luggage insurance, and rental car insurance on any travel booked with the card

Best Overall

Capital One Venture

If you are an off-the-beaten-path or budget traveler, this is a great card. The appeal of the Capital One Venture is how easy it is to earn and redeem points. Capital One functions by ‘erasing’ travel purchases. After you put a purchase that is coded as travel on your card, you can go back and erase the purchase from your bill and it’s as if it never happened. This allows you to decide after the fact how you would like to use your points. It also means you can redeem for expenses like Uber and Lyft, small regional airlines that aren’t typically on large rewards portals, or local travel experiences.

The annual fee is $0 the first year, so you could conceivably use the card, get the sign-up bonus and Global Pass, redeem all your points, and then cancel before you ever pay an annual fee.

Annual fee: $95 (waived the first year)

Reward rate: 2 points per dollar on every purchase, 10 points per dollar at Hotels.com

Sign-Up Bonus: 50,000 points if you spend $3,000 in the first three months (this is equivalent to $500 when using the purchase eraser)

Perks:

• Reimburses the cost of Global Entry/TSA Pre-Check ($100 every four years).
• Travel accident insurance, lost luggage insurance, and rental car insurance on any travel booked with the card

Sign up here: https://capital.one/3B0xUeN

Best Cards with No Annual Fee

Discover it Miles

Discover it functions similar to Capital One, there is no redemption portal, you are able to erase purchases after the fact. You are also able to redeem points for cash back. This card has an interesting sign-up bonus structure that matches the miles you earn in the first year. So if you are anticipating a year of big spending (planning a wedding or doing home renovations), this could be a great value with $0 fee. Most travel cards allow for 1 to 1 transfer to airline miles programs, this does not, so it may be better for road-trippers than frequent flyers.

Annual fee: $0

Reward rate: 1.5 points per dollar on everything

Sign-Up Bonus: Matches miles earned in the first year

Perks:

• 0% interest for the first 14 months. Not necessarily a perk but is good if you plan to make a large purchase and want time to pay it off. After a year, the interest rate jumps to 14% or higher

Bank of America Travel Rewards

Bank of America Travel Rewards is another no-fee card with flexibility to book travel how you want, though booking through their portal gets bonus points. If you have checking or savings accounts with Bank of America totaling at least $20,000, you can earn a higher reward rate.

Annual fee: $0

Reward rate: 1.5 points per dollar on everything, 3 points per dollar on travel purchases booked through Bank of America Travel Center

Sign-Up Bonus: 25,000 points if you spend $1,000 in the first 90 days (this is equivalent to $250 of travel credit)

Perks:

• 0% interest for the first year. After a year, the interest rate jumps to 17% or higher