What are travel credit cards and how do they work?

Travel credit cards can help you earn rewards to use on things like airfare, hotel stays and more. And many come with exclusive perks and benefits that can help make your travel experiences smoother and more enjoyable.

But before you apply for a travel credit card, it’s important to know how they work. Find out about different types of travel credit cards, how rewards work and some ways to maximize your travel rewards.

What you’ll learn:

• Travel credit cards let cardholders earn rewards by making purchases. Some travel cards may only offer rewards for certain types of purchases. 
• Travel credit card rewards may be redeemed on travel-related purchases like airline tickets, hotel reservations, vacation rentals and more. Some travel cards may offer additional ways to use rewards. 
• Travel credit cards are often geared toward people with good or excellent credit scores. 
• Some common types of travel cards are airline, hotel and general travel rewards credit cards.

Generally with travel credit cards, you earn rewards, usually in the form of points or miles, by making everyday purchases. You can use them as you would any other credit card. Once the rewards add up, you can redeem them for travel-related purchases. Some cards also offer additional ways to earn and use rewards.

One important thing to note is that each travel card may offer a different rewards program. Some travel credit cards may only offer rewards for certain types of purchases, like gas, groceries or dining out. Others may let you earn miles on every purchase you make. 

Similarly, some travel cards may offer a flat rewards rate for all purchases, while others may offer a higher rate on travel-related purchases. 

Travel credit card miles and points often work similarly. In some cases, the main difference is what the credit card issuer chooses to call their travel credit card rewards. How you might earn and redeem rewards points or miles, and how flexible those options are, depends on the issuer.

The most common types of travel credit cards are airline, hotel and general travel rewards credit cards. Here’s how each type of travel card works:

With an airline credit card, you can earn rewards to use with a specific airline. Depending on the card, your miles could be redeemed for everything from plane tickets to travel benefits like free checked bags, priority boarding and in-flight purchases. 

Hotel cards reward loyalty to a specific hotel or hotel chain. With a hotel card, you may earn rewards to redeem for rooms, potentially giving you some free nights at the hotel. 

You may also get to enjoy benefits just for cardholders, like complimentary breakfasts, room upgrades and concierge service. Some other kinds of travel credit cards may let you transfer rewards to qualifying hotel loyalty programs.

With a general travel rewards credit card, you’re likely not tied to a single travel provider. That can give you more choices. You may be able to use your rewards at a range of airlines and hotels or for other travel purchases like car rentals, vacation rentals and train tickets.

That flexibility may also mean you can book flights and hotel rooms when you want them, without blackout dates and other restrictions. 

What about extra perks and benefits that help make travel more convenient? General travel credit cards may give you those too. Some offer a statement credit toward TSA PreCheck® or Global Entry, programs that can help you skip long lines at airport security or customs. Some cards may also waive foreign transaction fees to help you save money when you make purchases outside the U.S.

As with any credit card, it’s important to use your travel credit card responsibly. If you do, it can be a great tool, especially for frequent travelers. 

Here are a few ways to maximize a travel card’s benefits and rewards:

• Know how to earn your sign-up bonus. Some travel cards may offer a welcome bonus for spending a certain amount during a set period of time from account opening. Understanding the details, timing and spending requirements of your sign-up bonus could keep you from missing a good opportunity. 
• Make the most of your card’s benefits. Being familiar with your card’s travel benefits could help you get the most out of them. Benefits may include everything from travel insurance protections to savings on ride-hailing services or exclusive airport lounge access.
• Use your full range of redemption options. Your options for redeeming your points or miles may vary from card to card. Some may allow you to redeem rewards for cash back, for example. Others may let you transfer miles to qualifying hotel and airline loyalty programs. Just keep in mind that the value of your rewards may vary depending on how you use them.
• Book through the card issuer’s travel portal. Some issuers may have travel portals that let cardholders book trips and earn a higher rate on those purchases. If you’re a Capital One cardholder, Capital One Travel can help you get our best prices on flights, hotels and rental cars. Price prediction on flights can even help you save an average of 15% by alerting you when it’s time to book.* And depending on the card, you can earn up to 10X miles on hotels and rental cars and 5X miles on flights.

Here are answers to some frequently asked questions about travel credit cards:

Travel credit cards let you earn rewards to use on travel expenses like airline tickets, hotel stays and more. You also may be able to enjoy exclusive perks and benefits that come with many travel cards. 

The more you learn about general travel rewards credit cards, airline cards and hotel cards, the better equipped you could be to make the best choice. One place to start is by comparing Capital One travel credit cards to find the one that’s right for you. If you’re interested in Venture or Venture One, you can even find out whether you’re pre-approved without any harm to your credit.

Who wouldn’t want to get the most out of their credit card? Here are some things to know about Capital One travel rewards credit cards: 

• Get a one-time 75,000-mile bonus with the Capital One Venture X card and receive an additional 10,000 bonus miles every year, starting on your first anniversary. (View important rates and disclosures.)
• Earn unlimited 2X miles per dollar on every purchase, every day, and get 75,000 bonus miles upon sign-up with the Capital One Venture card. (View important rates and disclosures.)
• Earn unlimited 1.25X miles with no annual fee with the Venture One card from Capital One. (View important rates and disclosures.) 
• Explore travel rewards card options by comparing Capital One Venture cards. 
• Learn how Venture X cardholders can get access to a worldwide network of airport lounges thanks to a complimentary Priority Pass membership.