up travel card pros and cons

Are Prepaid Travel Cards a Good Idea?

They can help with budgeting but compare them with other debit and credit card options before you go.

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A prepaid travel card can offer fraud protection, with your liability limited to $50 if you report it within two business days of learning of the theft.

Whether you're planning a trip to Bali or Boston, staying on a budget and keeping your money safe is essential. A prepaid debit card can help.

Prepaid travel cards function similarly to general-purpose prepaid debit cards but offer extra perks that can make your life a little easier when you're abroad. However, they also come with limitations and other drawbacks that may give the casual traveler pause.

What Are Prepaid Travel Cards?

Prepaid travel cards, also sometimes called international prepaid cards, can make spending easier when you're outside the country.

There are two primary types of prepaid travel cards:

Multicurrency prepaid travel cards. These cards allow you to load cash in specific currencies onto your card before you go on your trip, letting you lock in your exchange rate instead of paying the current rate at the ATM or point of sale.

You can then use the card wherever its payment network, such as Visa or Mastercard, is accepted.

You can't load cash with just any currency, though. Even major prepaid cards may be limited to only a handful of currencies. For example, some have only six currencies available: the euro, British pound, Australian dollar, Canadian dollar, Japanese yen and Mexican peso.

General travel prepaid cards. These cards don't differ much from traditional prepaid debit cards. However, they're more likely to offer certain features that can come in handy when you're overseas.

Examples include chip and PIN capability, emergency cash and card replacement, and international ATM use.

Not all prepaid cards have a chip though, and that can be a problem, says Quentin Telep, director of financial services for AAA National. "In many countries, especially in Europe, they've had the chip functionality for many years."

You may have difficulty using a chipless card at unmanned kiosks and other automated payment points.

What Are the Benefits of Having a Prepaid Travel Card?

If you're planning a trip within the U.S., you likely won't need a travel prepaid debit card. But if you're traveling internationally, you may gain some benefits from doing so.

It can help with budgeting. Sticking to your vacation budget can be tough. Traveling is a time to let loose and live a little, and it can be easy to spend more than you originally planned.

"It's a little easier perhaps to overrun the credit card when you're on vacation and you're not really thinking about how much you're spending," says Mike Clark, co-founder of PrepaidCards123, an online tool for comparing prepaid debit cards. "You may want to set aside a specific amount for your spending money while you're on your trip, and people use prepaid cards for that purpose."

You'll be protected from fraud. Prepaid debit cards are required to give cardholders the same level of fraud protection as traditional debit cards.

This means that if someone uses your card without your permission, your liability is limited to $50 if you report it within two business days of learning of the theft.

Some prepaid cards may go above and beyond this standard, providing a zero-liability policy that protects you from losing any money, even if you don't report the theft before charges show up on your account.

Prepaid cards offer a buffer for your accounts. If you're wary about using your debit or credit card on your trip, a prepaid card can help. While all three types of cards offer some level of fraud protection, it might take time to recover.

A thief who gets access to your debit card could do serious damage to your bank account right when you need funds the most. For example, you may not be able to get reimbursed right away, or it may take some time to receive a replacement credit card . If any kind of theft happens with your prepaid card, the stakes are much lower.

What Are the Disadvantages of Using a Prepaid Travel Card?

While prepaid travel cards can have their perks, watch out for some potential pitfalls, too.

They can cost more. General prepaid debit cards typically charge foreign transaction fees on purchases made in a foreign currency. And though many travel credit cards waive that fee, prepaid travel cards don't. That means you may be paying 3% on top of every purchase you make on your trip.

Even if you exchange your currency before you go with a multicurrency card, you can expect to pay a premium. For example, you may pay a fee of 5.5% to exchange U.S. dollars to an available currency.

Prepaid travel cards could be a more expensive option than other methods of obtaining foreign currency, such as withdrawing cash from an ATM at your destination. "The exchange rate is not nearly as favorable as you would even have if you prepurchase currency at a bank," says Clark.

And if you don't use all the money on the card, you may be subject to a fee to get a refund of your remaining balance.

Prepaid travel cards can also come with other costs, such as fees to load money onto the account, inactivity fees, ATM fees and even a fee to set up your account.

They don't provide rewards or perks. If you're a disciplined spender and can stick to your budget while traveling, a travel rewards credit card may give you a lot more value than a prepaid travel card. Not only do most travel credit cards charge no foreign transaction fees, but you could get access to rewards and other perks such as statement credits for select travel-related expenses, travel insurance protections , complimentary airport lounge access and more.

Most benefits aren't unique. There are some clear benefits of using a prepaid travel card when you're out of the country, but other products could offer the same benefits.

For example, both traditional debit and credit cards offer fraud protection, and you can also avoid debt by using your regular debit card. And while prepaid travel cards come with a built-in limit as to how much you can spend, it's possible to do the same thing with your checking account – you'll just need to make sure your overdraft protection is disabled to avoid nonsufficient funds charges.

You may run into limitations. If you're hoping to get a multicurrency card, you'll only be able to use it if you're visiting a country that uses an eligible currency.

"It's kind of limited in terms of the geography where it's viable," says Telep, "and it also is really only suitable for frequent international travelers or people who are on very extended international trips."

Should You Consider Using a Prepaid Travel Card?

Prepaid travel cards may sound appealing because they're geared toward travel use. But they don't always provide more than what you get from using your regular debit card and a travel rewards credit card.

And while a multicurrency prepaid travel card sounds like it can make your life easier, you'll pay a premium to preload the currency of your choice. Credit and debit cards may assess fees, but many of them are easier to avoid than on prepaid card fees.

Some prepaid cards charge high monthly fees, for example, which may feel unnecessary if you're only using it when you travel. If you're thinking about using a prepaid debit card when traveling overseas for the forced budgeting feature, avoid limiting your search to cards that brand themselves as prepaid travel cards. Instead, also consider general-purpose prepaid cards that allow for international ATM withdrawals and don't charge a lot of fees.

"Look for a card that has a fee structure that's not going to penalize you if you only use the card two or three times a year when you’re going on various vacation trips," says Telep.

You'll also want to make sure you don't run into limitations on how and when you can use your card while you're traveling.

"If I'm traveling abroad, I have to make sure that my prepaid card is going to work for both cash access and for purchases abroad," says Clark. "And you're always going to want to go with a Visa or Mastercard network because of the acceptance abroad."

Consider Using a Mix of Payment Methods

Instead of focusing your vacation spending on just one form of payment, consider using more than one. For example, a travel rewards credit card may be best for most purchases because you can avoid the foreign transaction fee and earn valuable rewards on each transaction. Then use a traditional or prepaid debit card to withdraw cash from ATMs, since credit card issuers will charge a cash advance fee on these transactions.

By having multiple payment options, you can judge which one is the best every time you need to make a purchase. It can also help if one of them gets stolen. While some credit cards and prepaid debit cards offer emergency cash and card replacement services, having a backup ready to go can be a major stress reliever.

Whatever you do, take some time to compare your options to make sure you're getting the most value out of your trip.

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What to know about prepaid travel credit cards

Prepaid travel cards are one more way to access cash while traveling the globe

Published: December 15, 2022

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Prepaid travel cards can make it easy to access cash while you’re traveling abroad, but remember that convenience comes with limitations.

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Finally ready to take your next international trip? Whether it’s a business meeting in Brussels or a foodie’s tour of Florence, you might consider packing a prepaid travel card for your trip.

Prepaid travel cards let you access cash in your destination’s local currency without the risk of using your debit card. They also let you avoid the high fees of credit card cash advances or the hassles of scrounging up traveler’s checks before you depart.

But, be careful — despite the convenience of prepaid travel cards, they come with their own set of fees and limitations (most notably ATM withdrawal and purchase amount caps that could put a damper on your vacation).

“A prepaid travel card is one tool in a diverse travel wallet,” said Julie Hall, internal communications manager for Hilton Grand Vacations and former public relations manager for AAA, in a previous interview. “It’s one of the most convenient ways to get money while traveling.”

Let’s take a look at everything you need to know about prepaid travel cards — from how they work to the pros and cons of using them for your travels.

• How do prepaid travel cards work?

Prepaid travel cards work much like general-purpose prepaid cards, except that they typically offer special features and perks designed for travel — which can vary based on the issuing bank.

In general, to use a prepaid travel card, you purchase the card and simultaneously load it with the funds you want to spend on your trip, up to the maximum amount allowed on the card. (For example, the PayPal Prepaid Mastercard® , a general prepaid card, allows a maximum balance of $15,000.)

Once you’ve arrived at your destination, you can use your prepaid card to make purchases directly (much like you would with a debit card). You can also use it at an ATM to get cash in that destination’s currency.

Depending on the card issuer, you’ll be able to log in to a mobile app or your online account to check the balance, review your purchases and see any any account charges.

• What are the benefits of a prepaid travel card?

Why not just take cash, your credit cards and your debit card the next time you travel to an international destination? Why would you also take a prepaid credit card?

If you lose your card, thieves only have access to the loaded cash

If a thief gains access to your prepaid card abroad, they’ll only have access to whatever funds are loaded onto the card (unlike debit cards, which can provide thieves access to your bank account, or credit cards, which a thief can charge up to a certain limit).

Further, the network through which a prepaid card is offered may provide a zero liability policy , though, overall, prepaid cards don’t offer the same breadth of protections as debit and credit cards (think chargebacks and fraud alerts).

More convenient than traveler’s checks

Prepaid travel cards also provide more convenience than, say, traveler’s checks (which, yes, still exist). Getting traveler’s checks before you go can be a hassle, and you might also be surprised at how many retailers across the globe no longer accept them. As a result, prepaid cards are often a better option than these paper checks.

• What are the drawbacks of a prepaid travel card?

Like most financial products, prepaid travel cards come with pros and cons. Here are some of the drawbacks of using one:

Foreign transaction fees, among others

Travelers should be wary of the fees connected to prepaid cards, as they can add up to a lot of money during an international trip. Many prepaid cards carry foreign transaction fees. Today, it’s far easier to find credit cards with no foreign transaction fees than to find prepaid cards without them.

Further, prepaid travel cards may also charge a card purchase fee, ATM withdrawal fee, higher foreign ATM withdrawal fee, inactivity fee and a fee to get any remaining balance back by check.

No help for your credit score

If you charge restaurant meals, souvenirs and tickets to a traditional credit card and pay your bill on time, your three-digit credit score will receive a boost. This doesn’t happen with purchases you make with prepaid travel cards, because your prepaid card activity isn’t reported to the national credit bureaus .

If you don’t keep track, you could run out of funds

If you’re used to swiping a credit card without much thought, there’s a chance a prepaid card could leave you high and dry when you go to make a purchase. Just be sure to keep tabs on the amount of money you’ve loaded — and spent — on your card.

Prepaid travel card tips

Prepaid travel cards do come with some potential hurdles. Here are some tips for avoiding the most common downsides of these cards:

• Check the fees associated with your card (or potential card): Prepaid cards can charge fees that existing debit and credit card holders aren’t used to, so it’s important to read the fine print before swiping. For example, the Netspend® Visa® Prepaid Card charges a $5.95 inactivity fee per month after the card has been idle for 90 days.
• Verify the card will work at your destination: Double-check with your issuer that your prepaid card will be accepted where you’re traveling. Even a card that’s designed for international travel might not work in specific locations due to restrictions from U.S. trade sanctions.
• Know the limits: Prepaid travel cards typically have limits that could throw a wrench into your trip if you don’t understand them ahead of time. For example, some cards can have a daily reload limit as low as $500 (or as high as $7,500, in the case of the Netspend Visa card). Again: Be sure to read through your card’s fine print before embarking.
• Avoid holds at all costs: In a sense, prepaid travel cards work like debit cards. Be sure to avoid using a prepaid travel card to reserve a hotel room or a rental car, which can trigger a hold that could tie up hundreds of dollars of your cash for a week or longer. Instead, use a credit card to reserve these items, then use your prepaid card to pay the final charges.

Should you use a travel credit card instead?

If the drawbacks of a prepaid travel card outweigh the benefits, you might be better off signing up for a travel credit card  or using one you already have as your primary payment method while traveling.

Travel credit cards almost always have zero fraud liability, which can set your mind at ease in the event your card is lost or stolen . They also let you earn rewards for your spending, and many offer purchase and trip protection and have no foreign transaction fees. Some even offer perks such as access to airport lounges where you can get complimentary food and drink. And, depending on your credit limit, you may have more spending power with a credit card than a prepaid card.

That said, they can also have pitfalls. Not all travel credit cards are accepted in all countries. For example, Visa and Mastercard are widely accepted, while American Express and Discover have a smaller international presence. And, depending on your location, some merchants may require chip-and-pin cards or may not accept payment cards at all.

It’s advisable to carry a few different payment methods with you (credit, debit and prepaid) when traveling, along with some local cash. Also, notify your credit card company about your travel plans, lest they flag your card as stolen and cancel it.

Bottom line

A prepaid travel card doesn’t come without downsides, but if you want an easy way to access cash in your destination’s currency — and want a quick way to pay merchants once you arrive at your international destination — the ease of using them might make your trip a less stressful one.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Allie Johnson is an award-winning freelance writer covering personal finance, business and lifestyle. She loves tracking down tips, tricks and cautionary tales about credit cards and money.

Dan Rafter has covered personal finance for more than 15 years for publications ranging from The Washington Post and Chicago Tribune to Wise Bread, HSH.com and MoneyRates.com. His work has also appeared online at the Motley Fool, Fox Business, Huffington Post, Christian Science Monitor and Time.

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Airline cards vs. travel cards: What are the differences?

Travel credit cards: pros and cons, the verdict: which one is better, airline cards vs. travel credit cards: the pros and cons -- and which one’s better for you.

Before embarking on your next adventure, make sure you've got the right credit card.

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Dori Zinn loves helping people learn and understand money. She's been covering personal finance for a decade and her writing has appeared in Wirecutter, Credit Karma, Huffington Post and more.

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Savvy travelers make sure they earn reward miles every time they buy something -- whether it’s groceries, gas or anything else. Depending on how much you spend, you can earn enough to fly for free and perhaps then some. Within the realm of travel credit cards are two main kinds of cards: those offered by specific airlines and general travel cards. 

All of these credit cards feature  perks  and rewards. But should you apply for a credit card associated with a particular airline or a more general travel credit card, which earns reward miles compatible with a variety of carriers? Here’s how to choose.

Read more:  Best travel credit cards

There are so many different credit cards, each with its own terms and conditions and eligibility requirements.  Reward credit cards ,  cash-back cards  and many different types of travel cards. 

Specific branded cards by carriers can be used to make purchases anywhere -- but earn rewards miles that can be redeemed only for flights on that airline. That’s great if you’re loyal to one airline but less so if you tend to book flights on different carriers. That noted, the carriers’ credit cards tend to have a lower annual fee -- usually around $95 a year -- than general travel cards, which can exceed $500. 

Airline credit cards: Pros and cons

Airport perks like free lounge access

In-flight discounts

Free checked bags

Priority boarding

Can only be redeemed for flights

Limited or no cash-back options

Restricted to one airline

Some travel credit cards, however, are more versatile, earning reward points that can be redeemed with a variety of carriers as well as other travel-related purchases including hotel rooms and dining. If you tend to book flights (and trips on other modes of transportation), you’re better off with a more flexible travel credit card. There are drawbacks, however, including higher annual fees and more restrictive eligibility requirements.

Earnings on everyday spending

Flexibility in redemption

Big introductory offers through points or cash back

Hefty annual fees

Some foreign transaction fees

High credit score may be required

If you fly exclusively on one carrier, you may get the most value out of applying for its branded credit card. These types of cards often feature generous introductory offers of miles or points according to Ben Luthi, a travel and finance expert. Otherwise, he says, a more general travel credit card is your best bet: “You can use your points or miles for flights, hotel stays,  rental cars , cruises and a lot more,” he says. “With airline cards, you technically can redeem your rewards for more than just reward flights -- but you’ll rarely get good value with the alternatives, which effectively limits your options.”

More credit card advice

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First published on July 8, 2020 at 6:00 a.m. PT.

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Are travel credit cards worth it?

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Key takeaways

• Travel credit cards offer a variety of perks, but make sure to choose one that aligns with your spending so you can get a tangible benefit from it.
• Make sure to pay off your balances so that you don't incur interest, and also that the benefit you get outweighs any annual fee you will pay.
• Card perks such as free hotel stays, companion travel passes and credits for programs such as Global Entry may make a travel card worth considering.

For frequent travelers, it’s hard to avoid the allure of a great travel card. Since I got into points and miles a decade ago, the number of travel rewards cards seems to have quadrupled. And social media has only increased their appeal, with influencers flocking to sites like Instagram to show off their incredible travel experiences made possible by travel rewards cards.

Those magical pieces of plastic (or metal) can make your wildest travel dreams come true , so why wouldn’t you get as many of them as you can fit in your wallet?

For one, despite the hype surrounding travel cards, they’re not for everyone. Many travel rewards cards carry hefty annual fees and offer perks that, while impressive, might not be suitable for how you travel.

Here’s everything you need to decide whether travel rewards cards are worth it for you:

Types of consumers who benefit most from travel cards

Travel rewards cards are ideal for consumers who have good credit and pay off their balance every month. Travel cards tend to have higher interest rates than many other credit cards and the last thing you want is to pay more in interest than you earn with rewards.

If you’re not able to pay off your balance every month, you may benefit more from cards that offer 0 percent intro APR on new purchases or balance transfers. These will allow you to carry a balance without paying interest for a specified period.

Beyond this criteria, here’s a look at the types of consumers who benefit most from travel rewards cards:

Frequent travelers

Frequent travelers will benefit most from travel credit cards. That’s because they have more opportunities to maximize the travel perks and rewards.

Consider for example the co-branded Hilton Honors American Express Aspire Credit Card *. It carries a $450 annual fee but comes with an annual free weekend night award and top-tier Diamond status. A frequent Hilton traveler would have no problem justifying the annual fee. They would likely get significant value out of the free night, complimentary breakfast , room upgrades and bonus points offered to Hilton Diamond members.

Those who don’t travel often may not have as many opportunities to redeem the free weekend night for maximum value. In fact, loyalty programs often count on this to stay profitable.

Aspirational travelers

If you’ve ever scrolled through an Instagram travel account and thought, “I want that — without the price tag,” then travel credit cards may be a good fit for you. Travel cards can pay off nicely for aspirational travelers who learn how best to utilize rewards.

The primary function of a travel credit card should be to get outsized value in return for your spending . Redeeming points for an aspirational vacation, first-class ticket or five-star hotel is a sure way to do just that.

Small-business owners

Small-business owners have a lot of expenses that can generate a significant stash of points with the right credit card. For example, the American Express® Business Gold Card earns 4X points on advertising and shipping (among other bonus categories). That can be quite lucrative if shipping and advertising are big spending categories for your business.

The card has a $375 annual fee that might be hard to justify unless you have significant expenses in eligible categories. But you don’t have to pay high annual fees to benefit from travel rewards cards. For example, The Blue Business® Plus Credit Card from American Express has no annual fee but still earns 2X Membership Rewards points on all spending (up to $50,000 per year, then 1x). A small business that maxes out the 2X bonus every year would earn 100,000 Membership Rewards points, worth about $2,000 in travel redemptions. Meanwhile, most cash back cards would generate about $1,000 in rewards for the same amount of spending.

Big spenders

Big spenders can benefit substantially from travel credit cards, especially ones that offer annual spending bonuses . Travel cards offer generous incentives for substantial spending. Rewards range from airline and hotel elite status to free hotel nights and even companion passes .

These perks can offer hundreds (or even thousands) of dollars in value every year. But juggling large amounts of spending across multiple travel cards can be challenging. You don’t want to sacrifice rewards value by accruing interest on a balance you can’t pay off or taking on a late payment fee. Setting up auto-pay and tracking spending on an app like Mint can help you keep things organized.

Most valuable travel card benefits

Travel credit cards often come with annual fees, but they offer valuable benefits that can make them worth it. These perks come in handy long after you spend the card’s sign-up bonus. Here’s a look at the most valuable travel card benefits.

Global Entry fee credit

Global Entry is a trusted traveler program that makes navigating passport control a breeze, with a dedicated kiosk. Not only do you get to skip the long lines when returning from a trip abroad, but you also get TSA PreCheck . PreCheck provides access to a dedicated security lane that’s much faster and allows you to keep your shoes and a light jacket on.

The Global Entry application fee is reasonable at $100 for a membership that lasts five years. However, many travel cards provide Global Entry fee credits every 4-5 years to cover this fee. Here are a few examples:

• Capital One Venture Rewards Credit Card
• Chase Sapphire Reserve®
• The Platinum Card® from American Express
• United℠ Explorer Card *

Annual statement credits

Some travel cards carry hefty fees ranging up to $695. In return, you’ll get a slew of benefits to justify the annual fee, like annual travel statement credits. Some of these credits are valid for a wide range of travel purchases. Others are limited to specific airlines and hotels.

• Chase Sapphire Reserve® : $300 annual travel statement credit
• Amex Platinum Card : $200 annual airline fee credit, valid at a selected airline
• Hilton Aspire Card : $250 annual Hilton resort credit
• Marriott Bonvoy Brilliant® American Express® Card : Each Card renewal year, get up to $300 in statement credits per calendar year (up to $25 per month) for eligible purchases at restaurants worldwide.

Annual free night awards

Some travel cards require spending to earn an annual free night award with hotels, but others issue them just for renewing your card.

• Hilton Aspire Card : Annual free weekend night
• Marriott Bonvoy Brilliant Card : Receive 1 Free Night Award every year after your card renewal month. Award can be used for one night (redemption level at or under 85,000 Marriott Bonvoy points) at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees.
• The World of Hyatt Credit Card *: Annual free night valid at a Category 1-4 hotel

Companion passes

You don’t have to spend thousands of dollars to earn an airline companion pass every year. With the right card, you get one annually just for renewing your card.

• Southwest credit cards : Earn a Southwest Companion Pass after earning 135,000 points in a calendar year. The welcome bonus and earnings from the Southwest cards count towards this requirement.
• AAdvantage® Aviator® Red World Elite Mastercard® *: Earn an annual companion certificate after spending $20,000 a year.
• British Airways Visa Signature® Card *: Earn a Travel Together Ticket after spending $30,000 in a year.

Elite status

Whether it’s through airlines or hotels, having elite status can make your travels much more comfortable (and save you a ton of cash). While status is usually reserved for frequent travelers, several hotel loyalty programs issue it outright to their co-branded cardholders. Some of these cards even let you earn additional status via credit card spending.

• Hilton Aspire Card : Top-tier Hilton Diamond Status
• IHG® Rewards Premier Credit Card *: Platinum status
• The World of Hyatt Credit Card : Discoverist status
• Amex Platinum Card : Hilton and Marriott Gold elite status

Is a travel rewards card right for you?

A travel rewards card is probably right for you if you want to — you guessed it — use points for travel.

But ultimately, everyone’s spending habits and goals are different. While some consumers can benefit from travel cards, others might be better off with one of the best cash back cards .

Here are some of the factors you should consider when deciding if a travel card is worth it for you:

Have a travel goal in mind

Your travel goals are the most important factor in deciding whether a travel card is worth it. Are you looking to book aspirational travel or are you more of an RVer? Travel cards are ideal for luxury travel since they carry annual fees and sometimes have complicated reward programs.

Dedicating yourself to understanding award charts and how best to use them will help you determine whether earning rewards points instead of cash back is a good idea. Regardless of what you decide, make sure you have a redemption goal in mind before getting a new credit card. Programs can devalue without notice and you don’t want to end up with a bunch of miles that can’t get you where you want to go.

Consider your spending habits

Your spending habits are crucial to determining whether travel rewards cards are worth it. If you’re only putting a few hundred dollars a month on your rewards card, you’re probably better off with cash back. These cards generally don’t charge annual fees and offer 1 percent to 2 percent cash back on all purchases.

If you can take advantage of category bonuses and then put your points to good use, then a travel rewards card might be a good option. Just make sure the value of the points you’re earning is higher than the annual fee you’re paying, and you can pay your balances down each month.

Consider the recurring benefits

Confession: I don’t put as much spending as I could on my Hilton Aspire Card, so I’m losing out in rewards value. The card has a $450 annual fee and offers generous category bonuses that I’m not utilizing. However, I will keep it in my wallet for two reasons: Hilton Diamond status and the annual free weekend night award. Both perks provide me with exceptional value.

Recurring benefits are crucial when considering whether you should get a travel card. If recurring perks can save you money on travel, then go for it.

Consider cheaper alternatives

Just because a card is loaded with perks doesn’t mean it’s the best option out there. When shopping for a travel card, always consider cheaper alternatives. For example, a lot of cardholders love The Business Platinum Card® from American Express for its many travel benefits. But if you don’t use them, it’s a waste of a $695 annual fee. You might be better off with the no-annual-fee Amex Blue Business Card instead.

Always explore your options. The higher-fee card that everyone raves about may not be the best option for your spending.

The bottom line

Travel rewards cards are a fantastic option for people who can put their various benefits to use. If you’re earning enough points or using those free night awards consistently enough to justify the annual fee, then it’s worth paying. If these cards are collecting dust in your wallet or you find yourself going over budget to earn incentives, then they’re not worth having.

Since you’re paying an annual fee on most travel cards, you should be coming out ahead. Analyzing your credit card usage will allow you to answer that question honestly.

* The information about these credit cards has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuers.

The pros and cons of travel credit cards

Should I get a travel credit card that earns points, miles or both?

5 steps to choose the best travel card

Best Travel Credit Cards of 2024

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Pros and Cons of Getting an Airline Credit Card

Smart for Airline Loyalists but Otherwise Not So Much?

Kelly Dilworth / Getty Images 

If you travel often, you’ve probably heard in-flight pitches for an airline’s co-branded credit card. Flight attendants often promote airline credit cards with promises of special perks for cardholders. 

But before you apply, consider your travel style and preferences. For instance, if you usually fly the same airline and prize boarding a flight early, an airline card that offers priority boarding may be worth the annual fee. But if you want your card to help fund your next vacation, then a general travel card’s sign-up bonus may get you a free flight faster. 

Here are the pros and cons of getting an airline credit card. 

Priority boarding

Complimentary seat upgrades

Free checked baggage

Discounts on in-flight purchases

Free or heavily discounted companion passes

Airport perks

Easy ways to earn miles

Potentially limits you to one airline

Less lucrative sign-up bonuses

Fewer opportunities to earn bonus miles

Complex reward redemption process

More likely to have an annual fee

Pros of Airline Credit Cards Explained

Here's why you should get one. 

Priority Boarding

If being one of the first to board a flight is important to you, an airline credit card could guarantee your spot. A number of airline cards offer priority boarding as a perk for cardholders—which you won’t find on a general travel card. 

Complimentary Seat Upgrades

Signing up for an airline’s rewards card can also boost your odds of landing a roomier seat towards the front of the jet, even if you only pay for an economy seat. Some airline cards offer free seat upgrades, under certain conditions, as a perk. 

Plus, many airline loyalty programs reward frequent flyers with free seat upgrades when available. You may need elite status to qualify, but an airline credit card could help you earn elite status faster on the airline if you meet certain spending thresholds.

Free Checked Baggage

Several airline credit cards also waive cardholders’ baggage fees. That could save you at least $60 on a round-trip Delta, for example (unless you have elite status and qualify for free checked bags).  

Some cards will even cover the cost of baggage for others flying on the same reservation as you. Just one group vacation could more than justify the card’s annual fee. General travel cards may offer credits that can reimburse you for baggage fees. But those credits are capped—at $100 or $200 per year, for instance, depending on the card—so you may save more with an airline card. 

Discounts on In-Flight Purchases

Some airline cards also offer discounts, commonly 20% to 25%, on in-flight purchases like food, drinks, and Wi-Fi.

Free or Discounted Companion Passes 

Companion passes are only available on a handful of airline cards, but they’re one of the most lucrative perks you can receive. Some airline cards automatically offer at least one free or deeply discounted companion pass a year, while others award them after you’ve spent a certain amount. You’ll pay taxes and fees on free companion passes, though the card may limit the amount you can be charged.

Airport Perks

Your airline card may also offer special benefits to make your airport stay less stressful, like airport lounge access and free food and drinks in the lounge. Cards with middle-of-the-road annual fees (around $100) typically offer limited or discounted lounge access, while more expensive cards will let you in anytime for free. In addition, some airline cards offer application fee credits for TSA Precheck or Global Entry so you can avoid long security lines. 

Easy Ways to Earn Miles

If you’re a member of an airline’s loyalty program and are looking for an easy way to earn more miles, charging purchases to an airline’s co-branded credit card is a good way to do it. While you can also transfer miles from a general travel card to your chosen airline, the process isn’t as straightforward. 

Cons of Airline Credit Cards Explained 

And here's why you might consider another kind of travel rewards card.

Potentially Limits You to One Airline

With a general travel card, you can typically book flights on a wide variety of airlines. When you choose an airline card, you commit to flying with just one carrier when using that card—though you can use rewards earned on some cards to purchase flights on partner airlines.

Less Lucrative Sign-Up Bonuses

General travel cards, such as the Chase Sapphire Preferred and the Capital One Venture, tend to offer plusher bonuses to new cardholders than airline cards. A few airline cards stand out for their generous sign-up bonuses, though, like the British Airways Visa Signature, the Delta Reserve Credit Card, and the Hawaiian Airlines World Elite Mastercard .

Fewer Opportunities to Earn Bonus Miles

Many airline cards also sharply limit the kinds of purchases that earn bonuses, making it tough to stock up enough miles to earn a free flight. For example, many airline cards only offer bonus points on airline purchases. Others are slightly more generous and offer a limited number of miles on everyday purchases, such as dining, groceries, or gas. 

Complex Reward Redemption Process

One of the biggest downsides to an airline credit card is that it can be a pain to book rewards travel through an airline’s loyalty program. Some airlines impose travel blackout dates, restricting when you can travel. Others limit the number of rewards seats that are available, making it harder to find an open seat. 

You also can’t count on an airline card’s rewards program staying the same: A number of airlines have retooled their loyalty programs in recent years, causing the miles frequent flyers earn to be less valuable when booking a flight with the airline. 

Annual Fees

Most airline credit cards charge an annual fee, often ranging from $75 to $95 a year or more. (Some waive the annual fee the first year.) A few luxury airline cards even charge upwards to $550 yearly in exchange for premium benefits. There are a handful of airline cards that don’t charge an annual fee, but they don’t offer as many perks, either. 

Who Should Get an Airline Credit Card? 

You typically need good to excellent credit to qualify for an airline credit card. Also, many airline cards’ APRs start at 15% and maximum APRs can reach 24.99% or more. That means they’re best for those who plan to pay off their balances in full each month to keep interest from piling up.

You’ll get the most value out of an airline card if you travel often enough to earn bonus points on airfare and earn back its annual fee. In addition, you may be a good match for an airline card if: 

• You spend a lot on checked baggage fees, particularly if you often fly with a group. 
• Being one of the first passengers on board is important to you. 
• You value comfort and convenience when you travel.
• You’d like a simple way to earn additional airline miles. 

The average airline credit card doesn’t offer as many flashy perks or plush bonuses as some travel rewards cards. But if you’re looking for an easy way to turbocharge your miles or save money on your next trip, then an airline credit card may be worth a closer look.

Delta Air Lines. " First Checked Bag Free ."

American Express. " Delta Skymiles Platinum Amex Card - Terms and Conditions ."

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Find the best credit card for you

Can't decide between an airline credit card or travel rewards card ask yourself these 3 questions, both types of credit cards can save you money on your next trip, but they have different strengths and weaknesses..

Terms apply to American Express benefits and offers. Visit  americanexpress.com  to learn more.

With the right type of credit card , you could save serious money on your next trip. The tricky part is choosing the right one: a standard travel rewards credit card or an airline credit card .

There are some key differences between the two types of credit cards , and personal considerations that may affect your decision. To help you hone in on the right card for you, CNBC Select outlines three questions to ask yourself before applying.

Find the best credit card for you by reviewing offers in our  credit card marketplace  or get personalized offers via  CardMatch™ .

Airline credit cards vs. travel rewards credit cards

These two credit card categories may sound interchangeable, but they are in fact very different.

An airline credit card is a co-branded credit card for a specific airline, and its rewards can only be redeemed with that airline and its airline alliance partners. For instance, the miles you earn with the Delta SkyMiles® Gold American Express Card can only be redeemed with Delta or its SkyTeam alliance partners, such as Air France or Aeroméxico.

Though airline credit cards are less flexible in terms of award-redemption opportunities , they offer benefits catered to those who are loyal to a particular airline. These perks include airline lounge access , complimentary checked bags, waived foreign transaction fees and benefits designed to help you earn elite status faster.

For example, if you hold the Delta SkyMiles® Reserve American Express Card , you receive access to Delta Sky Club® lounges and free checked bags when you fly Delta. Reserve Card Members will receive four Delta Sky Club One-Time Guest Passes each year. After that, you may bring up to two guests at a per-visit rate of $50 per person, per location. Effective 2/1/25, Reserve Card Members will receive 15 Visits per year to the Delta Sky Club; to earn an unlimited number of Visits each year starting on 2/1/25, the total eligible purchases on the Card must equal $75,000 or more between 1/1/24 and 12/31/24, and each calendar year thereafter.

A travel rewards credit card , earns points that can be redeemed for a variety of travel. You can typically use travel rewards to book directly through the bank's travel portal or by transferring points to hotel or airline partners.

For example, the Capital One Venture X Rewards Credit Card (see rates & fees ) lets you earn Capital One miles, which can be redeemed through the Capital One travel portal for different travel purchases including flights, rental cars and hotels. You could also transfer your Capital One miles to one of its many airline and hotel partners .

Capital One Venture X Rewards Credit Card

10 Miles on hotels per dollar and rental cars, 5 Miles per dollar on flights when booked via Capital One Travel; unlimited 2X miles on all other eligible purchases

Welcome bonus

Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening

Regular APR

19.99% - 29.99% (Variable)

Balance transfer fee

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fees

Credit needed.

See rates and fees . Terms apply.

Read our Capital One Venture X Rewards Credit Card review.

3 questions to ask yourself when choosing between airline or travel rewards credit cards

Both types of credit cards present great opportunities to save money on travel , and one is not inherently better than the other. Everyone has different needs, travel habits and preferences, so it's best to analyze your travel style and find the card that works best for you .

For starters, ask yourself the following three questions:

1. How do you typically travel?

If you tend to fly more than three times per year, an airline credit card may be a solid fit, especially if you live in a city that serves as a hub for a particular airline. For example, Atlanta is a hub for Delta, so a co-branded credit card such as the Delta SkyMiles Reserve American Express Card could make sense if you live near Atlanta.

If your travel style varies — a mix of cruises , road trips , train rides, etc. — a travel rewards credit card may better suit you since you'll be able to accrue and redeem points for more than just airfare on one airline.

Delta SkyMiles® Reserve American Express Card

Earn 3X Miles on Delta purchases and 1X Mile on all other eligible purchases.

Earn 100,000 Bonus Miles after you spend $6,000 in purchases on your new Card in your first 6 months.

20.99% - 29.99% variable

Excellent/Good

See rates and fees , terms apply.

2. Where do you want to go?

Once you have a destination in mind, it's easier to know which credit card to get.

If you'd like to travel around Europe, you'll probably fly with more than one airline, use other modes of transport and stay at different hotels. In that scenario, earning transferable points such as Amex Membership Rewards® points or Chase Ultimate Rewards® points makes more sense than earning airline miles as they offer greater flexibility.

Some of the best cards for earning these points are the Chase Sapphire Preferred® Card and the American Express® Gold Card .

Chase Sapphire Preferred® Card

Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.

21.49% - 28.49% variable on purchases and balance transfers

Either $5 or 5% of the amount of each transfer, whichever is greater

Foreign transaction fee

Terms apply.

Read our Chase Sapphire Preferred® Card review .

American Express® Gold Card

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

See Pay Over Time APR

Read our American Express® Gold Card review .

On the other hand, if United Airlines flies everywhere you want to go and you're staying with friends, the United Club℠ Infinite Card is a great choice . It earns United miles, comes with United Club lounge access and gets you free checked bags.

United Club℠ Infinite Card

Earn 4 miles per $1 spent on United® purchases, 2 miles per $1 spent on all other travel and dining, and 1 mile per $1 spent on all other purchases

Earn 80,000 bonus miles after qualifying purchases

21.99% - 28.99% Variable

5%, minimum $5

Member FDIC. Terms apply.

3. What is your budget for an annual fee?

Many airline credit cards and travel rewards cards come with an annual fee . Some cards offer solid benefits for a fee that's under $100 . But cards that allow you to earn more points and miles and come with a wide variety of benefits can have a much higher annual fee .

While paying an annual fee isn't necessarily a bad thing, it's important to remember to stay within your budget and not pay for a new card when you won't be able to maximize all its benefits.

The best airline credit cards

Here are CNBC Select's picks for the top airline credit cards :

• Best for American Airlines: Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
• Best for JetBlue: JetBlue Plus Card
• Best for Delta: Delta SkyMiles® Platinum American Express Card
• Best for Southwest Airlines: Southwest Rapid Rewards® Priority Credit Card
• Best for United Airlines: United℠ Explorer Card
• Best for Alaska Airlines: Alaska Airlines Visa® credit card  
• Best airline card with no annual fee: American Airlines AAdvantage® MileUp®

The best travel rewards credit cards

Here are CNBC Select's picks for the top travel rewards credit cards :

• Winner:   American Express® Gold Card
• Runner-up:  Capital One Venture Rewards Credit Card (See rates and fees )
• Editor's choice:   Capital One Venture X Rewards Credit Card
• Best welcome bonus:  Chase Sapphire Preferred® Card
• Best for luxury travel:  Chase Sapphire Reserve®
• Best for lounge access:   The Platinum Card® from American Express
• Best for no annual fee:  Discover it® Miles
• Best for paying rent:   Bilt Mastercard®
• Best for low interest:   Choice Rewards World Mastercard®
• Best for students:  Bank of America® Travel Rewards for Students

Airline card and travel card pros and cons

When you're deciding whether to apply for an airline card or a travel rewards card, you need to consider the advantages and drawbacks of each choice .

Airline cards are helpful if you're loyal to a specific airline because you'll earn miles with that program. In addition, many airline cards can help you earn elite status more easily or may grant you elite-like perks like free checked bags, priority boarding and access to the airline's airport lounges . But there are downsides to earning miles with a single airline because it may not fly where you want to go or may not be the best deal for that particular route.

Travel rewards cards offer the most flexibility. Many travel cards allow you to transfer the rewards you earn to various airlines and hotels, allowing you to pick the best deals . This type of card also typically offers a variety of general travel benefits, such as trip delay insurance , lost baggage coverage and access to larger networks of airport lounges. On the flip side, with a travel rewards card, the best redemptions can be harder to find or complicated to book and you usually won't get airline-specific benefits.

Keep in mind, if you've assessed your situation and feel you can benefit from both types of cards, you can have one (or more) of each card type .

Airline credit card: Pros and cons

• Earn miles with your favorite airline
• Fast-track your way to elite status
• Unlock valuable benefits with a specific airline (priority boarding, free checked bags, airline lounge access, etc.)
• Locked into a single loyalty program
• Limited options for using rewards for other types of travel
• Fewer general travel perks, like travel insurance

Travel rewards card: Pros and cons

• Flexibility to use rewards for hotels, rental cars, flights and more
• Exceptional travel protections
• Versatile airport lounge access benefits
• Few, if any, airline-specific perks
• Certain redemptions are more complicated
• May not be able to transfer rewards directly to your favorite airline

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

Bottom line

When deciding between an airline credit card or a travel rewards credit card , ask yourself the above three questions to narrow down the best choice for your travel needs.

As long as you earn the welcome bonus , make the most of your card's travel benefits and stay within your budget , either type of credit card can enhance your travels while simultaneously saving you money on flights and other expenses.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

For rates and fees of the American Express® Gold Card, click here .

For rates and fees of The Platinum Card® from American Express, click here .

For rates and fees of Discover it® Miles, click here .

Information about the American Airlines AAdvantage® MileUp®, Alaska Airlines Visa® credit card, Bank of America® Travel Rewards for Students, Citi® / AAdvantage® Platinum Select® World Elite Mastercard® has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

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The Pros and Cons of Using Travel Cards

Just as purchasing cards (commonly known as P-Cards ) have become a convenient and safe way to handle business expenditures, the more specifically used travel cards (or T&E Cards) have also become popular with businesses as a method of payment. What exactly are travel cards, and what are their pros and cons, especially in terms of monitoring your business expenses?

What is a travel card?

A travel card is similar to a purchasing card, with the only exception being that its use is delegated specifically for travel expenses, often on a global scale. Typically, they are pre-paid cards: a certain amount of money is placed on the card for the cardholder’s use. But it’s also possible to have travel cards that are based on a credit or debit model.

The pros of using travel cards

They help with the management and monitoring of transactions. Because travel cards are being used specifically for travel (as well as dining and entertainment) expenses, they — by their very nature — assist with the organizing and categorizing of expenses. Having these expenses organized in clear, easy-to-view categories makes trends — both positive and negative — easier to track. With use of the data, budgets are better determined, while red flags of fraudulent behavior or misuse become more apparent.

They provide spend control. A handy tool for companies that use cards is the ability to block certain “merchant category codes” (more commonly called MCCs ). Doing so helps ensure that the card is used only for its intended purpose — namely travel expenses. Blocking MCCs helps limit misuse and fraud, and it eliminates needless categories when doing expense reviews.

They make tax compliance and deductions easier. The same tools that help transactions more secure and easier to track also help businesses when it comes to taxation. Travel cards make it more convenient to track the T&E deductions and discern tax obligations.

They’re secure. Travel cards offer a secure method of payment. They can be quickly and easily deactivated and replaced if lost, stolen, or damaged.  The transactions themselves are safer too, thanks in large part to modern technology — such as chips, PINs, and security monitoring.

Furthermore, some banks also offer other means of security as part of their benefits, such as T &E insurance and emergency travel assistance. When an employee is in a foreign country with limited resources, such added benefits can be extremely reassuring — and they have the potential of saving the company money when such services are necessary. Businesses should check with the bank that issues their travel card to determine if these benefits are available.

They can protect personal credit. One of the great things about travel cards is that they typically do not report credit activity to any consumer credit bureaus. So their usage rarely impacts personal credit lines. Again, check with the issuing bank to confirm whether or not it reports activity to consumer credit bureaus.

They pay — literally. Many travel card companies provide monetary value back to the company via cash rebates, frequent flyer mileage, and hotel points.

The cons of using travel cards

They are limited. While for monitoring and managing expenses this trait is a “pro,” the fact that travel cards are only used for T &E can also be a “con” for some businesses.

Since travel cards are — technically and practically speaking — strictly for travel expenses, this fact creates the necessity of an alternate payment source for all the other types of business expenses. Creating multiple expense payment systems can be challenging for many businesses, as it can place an overwhelming burden on a company’s resources.

They don’t always cover all travel expenses. As ironic as it might seem, there are some expenses that companies with T &E cards exclude that are “travel” in nature. These can include flight upgrades to first or business class, “non-preferred” hotels, car rental upgrades to luxury lines, extra luggage, and memberships for business-lounge access. To prevent confusion on what to purchase with a travel card, companies typically have cardholders comply with a travel policy that will outline the purchases that are prohibited or allowed on the travel card.

They still require monitoring and reviews. Yes, travel cards do inherently assist with organizing expenses. But the key word here is “assist.” The cards alone cannot provide assurance against internal fraud and misuse. Only a stringent system of statement and receipt reviews can do that.

So the assumption that, due to the nature of T &E , monitoring is unnecessary is a dangerous one. Without internal controls, compliance goes unchecked, savings are not realized, and spend categories can become vague, misleading, and downright inappropriate.

Reviewing travel expenses can also be a huge undertaking. Travel cards can carry thousands of data transactions to review. And if your company is still handling reviews manually, that can be a daunting task.

They don’t stop misuse.   Travel cards cannot, on their own, stop personal purchases from happening. Nor can they end business purchases that might be out-of-policy, prohibited, or conducted with non-preferred suppliers. Without constant, consistent communication and deliberate training of card users, a greater possibility of misuse on unauthorized charges exists.

That risk of confusion runs for both the travel card and any other methods of payment that might be in use. Without proper orientation of procedures, employees might use the travel cards for non- T&E expenses and likewise, other payment methods for travel.

Another trend worth noting is the extension of business trips into personal travel. Hotel stays and meals that are actually personal in nature can show up on travel card statements. Termed “bleisure trips” (for business and pleasure combined), these trips don’t necessarily have to be condemned — they are often a beneficial perk for employees — provided that the “pleasure” portion doesn’t creep its way onto their travel cards.

Again, monitoring and conducting reviews, with included targeted controls, need to be put into place to keep these transactions from occurring.

They can be pricier. Travel card fees tend to be higher than the typical credit/debit card. There can be fees for:

• Loading and reloading pre-paid cards
• Rate conversion
• Cash back at the time of purchase
• Card replacement
• Closing the card’s account

So, to avoid these fees, research a number of financial institutions and their fee structures before choosing a travel card for your organization.

They’re used on a bigger, wider scale. As discussed in our article “ Taking on the world: the challenges of a global card program ,” the more far-reaching a card program, the more issues that program can potentially face. Namely, these would include the necessity of unique policies and procedures, dealing with international law and compliance, establishing and maintaining good business relationships with international vendors, and reviewing the global spend data. A T &E program will face all these challenges. Click HERE to read and learn more.

Is a travel card right for your business?

So is a travel card right for you and your company or organization? As with anything else in business, you have to weigh the pros and cons — and then decide for yourself, taking into account your organization’s unique wants, needs, and priorities.

But remember when making that decision that Card Integrity can handle the massive, often global aspects of a T &E program. The issues of monitoring all those international transactions, creating and communicating special program policies, and training employees on new card usage are no longer a part of that consideration. Problems solved!  

To learn more about how Card Integrity can be an integral part of your travel card program, call us today at 630-501-1507 or contact us by clicking HERE .

For More Tips, Download the Complete T&E Best Practices eGuide

Card Integrity’s T&E card expense review  best practices eGuide  will provide your organization with a clear and detailed outline of best practices that can be implemented into your program today.

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Pros and Cons of Joining Multiple Airline Loyalty Programs

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Whether you're just starting or have earned airline miles for decades, travelers need to ask themselves: "Is it better to earn miles across several airlines or concentrate earnings on just one airline?” Let's discuss the pros and cons of joining multiple airline rewards programs.

» Learn more: The best airline credit cards right now

Earn miles on every flight

The most straightforward reason to join multiple airlines rewards programs is to be rewarded for every flight you take. After all, even if you earn just a couple of hundred miles from a flight, those miles can add up over time.

Many U.S.-based airlines — including Delta , Southwest and United — have eliminated mileage expiration . On these airlines, you can accumulate miles toward a reward flight as slowly or quickly as possible without worrying about losing miles due to inactivity.

Also, over the past few years, airlines have added redemption options that require fewer miles. For example, you no longer need to accumulate 12,500 miles to book a one-way award flight. Instead, you can now book award flights with just a few thousand miles through dynamically priced awards.

» Learn more: The cheapest airline awards you can book with miles

Score bonus miles for joining as a new member

Although U.S.-based airlines rarely offer new member bonuses, many international airlines will offer new members bonus miles. Sometimes these are paid as a bonus just for signing up. For instance, TAP Portugal offers all new members 200 bonus Miles&Go miles just for joining.

Other new member bonuses require that members complete flights before earning a bonus: New Etihad Guest members earn 500 bonus miles after their first flight.

Just be sure to have a utilization plan for that airline rewards program before signing up. Earning bonus miles in these programs doesn't get you anything if the rewards expire.

» Learn more: The best hotel promotions right now

Earn miles from non-flying activities

Another reason to join multiple reward programs is to open more ways to earn miles.

In addition to earning miles from flying, airline loyalty programs let members earn miles through online shopping portals, hotels and car rental partners, dining programs, and other activities. These partnerships and promotions vary between programs, so being a member of multiple programs can pay off.

For example, Delta is unique among the major U.S. airlines in partnering with Instacart, Lyft and Airbnb. If you want to earn airline miles through these partners, you'll need to be a SkyMiles member.

Meanwhile, American Airlines and Hyatt have partnered to give World of Hyatt members 1 World of Hyatt point per $1 spent on American flights. But, you'll need to be an AAdvantage member and link your accounts to gain more rewards on your flights.

Another example: Southwest Airlines recently offered a mystery bonus to earn up to 1,000 bonus miles for spending $300 through its Rapid Rewards shopping portal.

No other airline shopping portal offered a similar bonus that week. That meant the only way to earn bonus miles from online shopping that week was to be a Rapid Rewards member and shop through the Southwest Rapid Rewards shopping portal.

Unlock perks for linking accounts

Scoring more perks by connecting accounts is another reason to join additional airline rewards programs.

Marriott Bonvoy Titanium Elite or Ambassador Elite members can claim United Silver elite status by linking their Marriott and United accounts. That's enough to get perks like free extra-legroom seating at check-in, upgrades to first class, free checked bags and bonus miles.

If you don't care about earning United miles, linking your accounts and claiming reciprocal elite status also unlocks the ability to transfer any United miles you have to Bonvoy points.

» Learn more: How United and Marriott elites can status match

The downsides

No (immediate) incentive to do so.

Unless you plan to earn miles in the program or earn a new member bonus, there are no other incentives for joining multiple airline rewards programs.

Unlike hotel loyalty programs, airlines don't provide members perks like free Wi-Fi or waived fees just for being a member. So, the only reason to join multiple airline rewards programs is if you're going to start earning miles through that program.

It takes time to enroll and manage accounts

Joining airline rewards programs takes time — from going through the enrollment process to dealing with all of the account statements and promotional emails that you'll start getting once you're enrolled.

Focusing your earnings may lead to more perks

Sure, you can earn a couple of hundred miles in several programs. However, if you want to build up a usable balance sooner, you should focus your earnings on one or two programs. In addition to using reward miles sooner, concentrating your earnings may also yield more perks faster.

Even entry-tier elite status can provide some nice benefits. For example, American Airlines AAdvantage Gold status members earn perks such as:

Upgrade eligibility on all domestic American Airlines flights.

Netting 40% bonus miles on flights.

A free checked bag.

Obtaining extra-legroom seats at check-in for free.

Delta and United offer similar perks for their entry-tier Silver elites.

Scoring perks like these can justify focusing your mileage earnings on one program, even if you might get a few more miles or a slightly cheaper flight on another airline.

Increased risk of data leaks

Another downside to joining multiple airline rewards programs is the potential of having your personal data leaked. When you join an airline loyalty program, you need to provide personal information generally including:

Date of birth.

Email address.

Phone numbers.

Unfortunately, we've seen data leaks occur at overseas airlines from Air India to British Airways. While data breaches seem ubiquitous nowadays, signing up for another airline rewards program can increase the chances of your data being leaked.

Should you join multiple airline rewards programs?

Joining multiple airline rewards programs can open the door to earning miles on every flight, some non-flight activities and partnerships, from hotel stays to shopping on Instacart. Airlines sometimes even offer a new member bonus to incentivize you to join their program.

However, joining several airline programs has its downsides. It takes time to enroll and manage accounts and having your personal information in more places increases the potential for your data to be leaked. Plus, there's no incentive to enroll in yet another program unless you plan to utilize it.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-5x 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®.

1.5%-6.5% Enjoy 6.5% cash back on travel purchased through Chase Travel; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

$300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

Credit Card Travel Insurance vs Travel Insurance: A Comparative Guide

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The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Our experts answer readers' insurance questions and write unbiased product reviews ( here's how we assess insurance products ). In some cases, we receive a commission from our partners ; however, our opinions are our own.

• Travel insurance and some credit cards can protect you from financial loss while traveling.
• Travel insurance offers more comprehensive coverage that includes emergency medical expenses.
• Credit card travel protection has more gaps but comes at no additional cost for cardholders.

Anything can happen while traveling. Flight delays, lost luggage, or even unexpected injury or illness can interrupt your vacation. When these things occur, travel insurance or the travel protections included with your premium credit card may be able to help, providing medical coverage, offsetting your financial losses, or even reimbursing you fully.

But do you need both travel insurance and credit card travel protections? Here are details on both and tips for deciding what the best travel protection is for you.

Introduction to credit card travel insurance and stand-alone travel insurance

Many credit cards offer travel protections that can help you in certain unexpected travel situations. But they aren't exactly the same as a separate travel insurance policy.

Here's how the two differ at a high level:

• Travel insurance:  Travel insurance is coverage that you purchase for a single trip or multiple trips in a year. It typically covers the costs associated with trip cancellation, trip delays, medical emergencies, and other unforeseen events that may occur while traveling.
• Credit card travel protections:  These are benefits automatically included with certain consumer credit cards. They often provide coverage for delays, lost baggage, rental car collisions, and other events during travel. Credit cards sometimes advertise these protections as a type of travel insurance, though they're not a separate insurance policy.

Generally speaking, designated travel insurance is more exhaustive than the protections offered by a credit card. Still, it's worth it to compare both options, particularly if you're taking an expensive trip. 

"It is always wise to check your credit card protection against a travel insurance plan," says Carol Mueller, a vice president at Berkshire Hathaway Travel Protection . "Credit card protection may not include the full, bundled, comprehensive coverage a travel insurance plan would."

What is credit card travel insurance ?

Many premium credit cards offer travel protections to cardholders, but the exact coverages depend on the credit card. Typically, only trips booked with that card qualify for coverage.

"Credit card travel insurance has one big advantage that interests travelers: it's usually free or included in the card's annual fee," says Daniel Durazo, director of external communications at Allianz Travel Insurance , a travel insurance provider. "Credit cards' travel benefits can be useful for smaller things, like travel delays or lost bags, but only travel insurance provides reliable protection in real emergencies, like expensive medical emergencies such as hospital visits and evacuations."

In some cases, however, a credit card may cover catastrophic accidents. The Chase Sapphire Reserve, for example, offers up to $1,000,000 worth of coverage for an accident that causes loss of life, speech, hearing, or use of a hand, among other life-altering injuries.

Note: The Chase Sapphire Reserve® is just one of many popular credit cards that offer travel protections. Others include the The Platinum Card® from American Express , the Bank of America® Premium Rewards® credit card , and the United Club℠ Infinite Card . Most cards with travel benefits charge an annual fee.

Additionally, credit card coverage limits tend to be much lower. The Chase Sapphire Reserve® offers up to $20,000 per trip in cancellation coverage, while a basic travel insurance plan from Travel Guard offers five times as much coverage.

Pros and cons of credit card travel protection

What is stand-alone travel insurance .

Travel insurance protects you from financial losses related to travel. "There are three main areas of coverage: protecting yourself, protecting your personal items, and protecting your investment," says Christina Tunnah, general manager of Americas and global marketing at World Nomads Travel Insurance , a travel insurance and safety services provider.

Important:  While travel insurance policies may be more comprehensive than credit card protections, it has limitations. They typically won't cover non-essential medical expenses, high-risk sports or activities, or pre-existing conditions — at least without paying for add-on coverage.

Travel insurance works  much like any other insurance policy. When a covered event occurs, like your trip is canceled or you're hurt while traveling, you file a claim with your insurer. If accepted, the company reimburses you for the costs up to your coverage limits.

"Most people have no idea that their health insurance does not cover them abroad," says Shane Mahoney, founder of Lugos Travel , a travel advisory. "So, a broken arm from a slip and fall or a heart attack can be financially devastating."

Travel insurance customers typically have 90 days to file their claim. But once the event occurs, there's no waiting period, meaning travelers should file as soon as possible.

A major factor when filing a successful claim is proof of financial loss. You can use something as simple as a medical clinic receipt or a doctor's medical statement. Once the claim has been reviewed and approved, your insurer will reimburse you via check. Some modern travel insurance companies offer immediate payment via a debit card mailed to travelers before their trip.

Travel insurance providers go beyond your standard credit card or airline coverage. You can buy policies that cover sports equipment, medical, and other coverages. You can also buy Cancel for Any Reason insurance , which covers trip cancellations regardless of the reason. The best CFAR insurance can cover 100% of your costs, but many only cover a percentage. 

Buyers can also price out annual travel insurance plans , which cover all of your trips within a 12-month period. Meghan Walch, director of the InsureMyTrip website, estimates a 4% and 10% travel insurance cost based on your total prepaid, nonrefundable trip costs. If you're buying an annual policy, this figure will change.

Note:  Factors including your trip duration, age, and total expenses influence the cost of individual plans. Add-ons like Cancel for Any Reason (CFAR) coverage or coverage for risky activities like skydiving can increase your cost exponentially. We recommend getting at least three quotes for comparison.

Pros and cons of stand-alone travel insurance

Credit card travel protection vs. stand-alone travel insurance.

Deciding between stand-alone travel insurance and credit card travel protection can be difficult. That said, it's worth mentioning that these choices aren't mutually exclusive. Even if you have a credit card that provides travel protection, you can still opt for additional coverage with a stand-alone travel insurance policy.

Cost considerations

The obvious difference between credit card insurance and a stand-alone policy is the cost. While credit card insurance is usually included in the cost of the card, traditional travel insurance is an additional expense, usually between 5% to 6% of the trip's worth, though rates can range from 4% to 12%.

However, travel insurance may pay for itself, covering emergency medical expenses and evacuation."Most people have no idea that their health insurance does not cover them abroad," says Shane Mahoney, founder of travel advisory company  Lugos Travel . "So, a broken arm from a slip and fall or a heart attack can be financially devastating."

On the other hand, credit card travel protections don't come at any additional costs. However, many of the best travel credit cards come with annual fees. Additionally, a credit card's travel protection only applies to trips you book with that credit card. If you don't pay off the credit card immediately, you'll pay interest on your trip. 

If you don't already have a credit card with travel insurance included, you'll also have to determine if the coverage is worth applying for a new credit card.

Get Travel Insurance Quotes Online

Protect your trip with the best travel insurance . Compare travel insurance quotes from multiple providers with Squaremouth.

Comparing coverage and benefits

In most instances, traditional travel insurance policies will have more comprehensive coverage than credit card travel insurance. They'll cover more reasons for trip cancellation, and some may cover cancellations for no reason. They'll also cover medical emergencies, while credit card travel protections don't.

"Some travel insurance policies also provide epidemic coverage endorsements, which provide coverage to customers who become ill with COVID-19 or a future epidemic, are individually ordered to quarantine, or are denied boarding due to a suspected illness," says Durazo.

Separate travel insurance policies also tend to offer more robust cancellation coverage. Credit card protections often cap reimbursement at just $10,000 a trip, while travel insurance usually goes up to $100,000. Most credit cards will only cover trips purchased with the card or reward points.

Situations best suited for each

Both travel insurance and credit card protections can prove helpful if your trip is canceled or you experience some other loss while traveling, but the right choice will depend on the specifics of your exact trip and budget. "Every trip is different, and every traveler has different needs and concerns," Walch says. 

For example, travelers with more health concerns may opt for stand-alone travel insurance. Longer, more expensive, and international trips may also warrant greater coverage that credit card travel insurance can't provide. Additionally, it may be a good idea to insure trips to high-risk areas, either politically unstable regions or areas with inclement weather.

On the other hand, Walch says, "For a short trip to a family member's house in the US, the travel insurance offered through the credit card may suffice."

Credit card travel insurance comparison frequently asked questions

Does credit card travel insurance provide sufficient coverage for international trips  .

Credit card travel insurance may offer basic coverage for international trips, but it often lacks comprehensive medical coverage.

Can I use both credit card travel insurance and a stand-alone policy for the same trip?

Yes, you can use both for the same trip. Stand-alone policies can supplement areas where credit card insurance is limited, such as medical coverage.

Are pre-existing medical conditions covered under credit card travel insurance?

Most credit card travel insurance does not cover pre-existing medical conditions. Many stand-alone policies don't cover pre-existing conditions , but you may find some coverage with certain stipulations.

How do I activate travel insurance on my credit card?

Credit card travel insurance is usually automatically activated when you pay for a trip using that card. However, it's important to read the card's policy for specific activation requirements.

Is it more cost-effective to rely on credit card travel insurance?

While credit card travel insurance can be more cost-effective since it's a benefit of the card, it may not provide as comprehensive coverage as a stand-alone policy. In the long run, you may end up losing money if you solely rely on credit card travel insurance.

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The pros and cons of balance transfer credit cards

Balance transfers are a lesser-known and potentially underutilized aspect of some credit cards. They allow you to move debt from a high-interest card to another with a much lower annual percentage rate — even as low as 0% APR.

But what are the pros and cons of balance transfers , and should you rely on them to save money? Here's what you need to know.

What is a balance transfer credit card?

In short, a balance transfer credit card allows you to move your credit card debt from one account to another to pay a lower APR on the receiving card.

Several credit cards offer an introductory 0% interest rate on balance transfers, so if you've accrued a lot of debt on another card, you can transfer the amount to one of these cards and pay it off over time stress-free. The introductory rate on these cards typically lasts 12 to 21 months, giving you plenty of time to reduce your overall debt load.

Pros of balance transfer credit cards

Here are the main benefits of executing a balance transfer:

Interest savings

Balance transfer cards allow you to save significant amounts of money on interest. If you've stacked up a lot of high-interest debt on another card, a balance transfer can act almost as a "get out of jail free" card if executed properly.

Of course, you'll want to pay off the debt on your new card before the interest rate kicks in. Otherwise you might find yourself back at square one.

Paying off debt more quickly

By reducing or eliminating the interest that accrues on your credit card balance, you can pay off your debt more quickly . This is because, during the 0% APR period, your entire credit card payment is applied to the principal balance, instead of being eaten up by interest charges.

Consolidating debt

Credit card debt can create additional stress if it's spread out across multiple creditors — for example, many people owe money on several different credit cards. Using a balance transfer credit card to consolidate your debt onto a single card at a lower rate can help lower your stress levels.

You can then focus on paying off that single debt at your own pace, moving one step closer to being debt-free.

Cons of balance transfer credit cards

Balance transfers can be a smart move, but there are some downsides to be aware of.

Transfer fee

Most balance transfer cards charge a balance transfer fee of 3% to 5% of the amount transferred. As such, you'll want to make the necessary calculations and decide if transferring your balance is worth it or if it's better to keep your debt where it is and pay it off from there.

Also, a minimum balance transfer amount may be required, so read the fine print of any balance transfer card you're considering.

Lower interest rates are temporary

The low APRs offered by balance transfer cards are always temporary. If you don't pay off your debt by the end of the promotional period, your APR will revert to the higher standard rate — putting you right back where you started .

Risk of falling further into debt

If you continue accruing debt on your high-interest card after processing the balance transfer, you could end up with more debt than before. Balance transfers should be limited to emergency situations and should not become routine. Adopt smart spending habits to avoid a vicious cycle of constantly accruing and transferring high-interest debt.

Higher credit score requirements

Lastly, most balance transfer cards require a good credit score . If you have a lower credit score, a balance transfer card may be a non-starter and you may want to consider an alternative, such as a debt consolidation loan, instead.

Is a balance transfer worth it?

Credit card balance transfers can be the right financial choice in many situations, even after factoring in transfer fees and temporary promotional periods. However, try not to make a habit of relying on balance transfers. Ultimately, your goal should be to pay off your debt fully, not just move it around.

Check out TPG's 10 commandments of credit card rewards to ensure your credit cards earn money for you, not the other way around.

Bottom line

Balance transfer credit cards help you save money by allowing you to move debt from a high-interest credit card to one that charges as little as 0% APR for 12 months or longer. They can also help you consolidate your debt into a single payment if you owe money on multiple cards.

But keep in mind that you will need a good credit score to qualify for a balance transfer credit card. Other options include a debt consolidation loan.

Delta SkyMiles® Reserve Business Card: For business owners who fly Delta and want lounge access

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Our take: For business owners near a Delta Air Lines hub who travel frequently for work and value access to Delta Sky Club airport lounges (Centurion and Escape lounges too), as well as perks including free checked bags and a companion certificate, the Delta SkyMiles® Reserve Business American Express Card is likely well worth its $650 price tag.

Delta SkyMiles® Reserve Business American Express Card

See Rates and Fees

Intro Bonus

Reward rates.

• 3x Earn 3X miles on every dollar spent on eligible purchases made directly with Delta
• 1.5x Earn 1.5X miles on eligible transit, U.S. shipping, and U.S. office supply store purchases, plus all eligible purchases after you spend $150,000 in purchases on your Card in a year. If your purchase qualifies for a category that has a higher mileage accelerator, only the higher accelerator will apply
• 1x Earn 1X miles on other purchases
• Premium benefits for Delta flyers, like first checked bag free and access to the Delta Sky Club and Centurion Lounge network
• Companion certificate good for a round trip domestic Main Cabin, Comfort+ or First Class flight each year upon renewal of your card
• Statement credits potentially worth hundreds of dollars
• High annual fee
• Access to Delta Sky Club limited to 15 passes a year after February 2025
• Statement credits are granted in monthly increments
• 15% discount on Delta award flights
• Travel protections including accident insurance, rental car coverage, trip cancellation and delay insurance
• Upgrade eligibility, first bag checked free for you and up to eight companions on same reservation,

Delta SkyMiles® Reserve Business American Express Card Overview

Card type: Business

The Delta SkyMiles® Reserve Business Card is the creme de la creme of the co-branded business cards that Delta offers in partnership with American Express. With a $650 annual fee, this card isn’t for the business owner who rarely travels, nor is it for those who are airline agnostic. But business owners with a strong Delta preference will find it well worth the cost.

Earning SkyMiles is nice, though at first glance, you might dismiss this card as having almost the same rewards program as the cheaper Delta SkyMiles® Platinum Business American Express Card. The Reserve Business earns 3X miles on every dollar spent on eligible purchases made directly with Delta, 3X miles on every dollar spent on eligible purchases made directly with Delta, plus all eligible purchases after you spend $150,000 in purchases in a year, and 1X on all other purchases.

Where this card stands out is its luxury perks. Let’s start with the big one—Delta Sky Club access. While it’s sadly true most cardmembers won’t get unlimited Sky Club access as of February 2025, this card still provides you with 15 complimentary passes per year. If you spend $75,000 or more in a calendar year, you earn unlimited lounge access for the following year. 

Plus, if you tend to travel with companions, you’ll appreciate that you get four Delta Sky Club one-time guest guest passes each year.

Traveling via an airport that doesn’t have a Sky Club lounge? Don’t fret—the Reserve Business also gets you into The Centurion Lounge and Escape Lounge locations when flying Delta. 

Let’s come back to those who may need to bring an employee, a friend, or a family member along on business travel. This Reserve Business provides a companion certificate every year after card renewal, and unlike the one SkyMiles Platinum Business cardholders get, this one is good not only for main cabin but also extends to Comfort+ and even first class tickets. 

You can bring a travel buddy domestically or to the Caribbean or Central America with the companion certificate. Note that you’re still responsible for taxes and fees, which shouldn’t exceed $80 when flying domestically or $250 when flying internationally. 

Cardholders also enjoy free first checked bags for you and up to eight traveling companions on the same reservation, priority boarding, and complimentary upgrades.

Additionally, the Reserve card comes with a series of statement credits that can help you offset some of your purchases, like rideshare charges, restaurant charges through Resy, and even hotels and vacation rental stays when booked through Delta Stays.

To view rates and fees of the Delta SkyMiles® Reserve Business American Express Card , see this page To view rates and fees of the Delta SkyMiles® Platinum Business American Express Card , see this page  

Who is the Delta SkyMiles® Reserve Business Card good for? 

Delta is the world’s largest airline in terms of revenue, as of this writing. They have hubs in cities such as Atlanta, Boston, Detroit, Los Angeles, and more. And, they’re a founding member of the SkyTeam alliance, meaning your Delta SkyMiles can take you even further on partner airlines. 

If you’re a small business owner who flies often, and your boarding passes usually show the red triangle with a strip of white that is the iconic Delta logo, the Delta SkyMiles Reserve Business might be for you—as long as the $650 annual fee doesn’t scare you off, of course. 

Plus, with a whopping welcome bonus offer, this card can help you fill your SkyMiles rewards balance to bursting, so long as you can meet the spending requirement to earn it. 

Also, with perks like priority boarding and free checked bags (potentially a $60 savings round trip) the Reserve Business can make your travels more relaxing and help you save, if you’re diligent about maximizing its benefits. For example, evaluate the statement credits carefully. A $240 dining credit may sound great at first, but not if you realize you never dine at eligible Resy restaurants, or that the monthly $20 increments might make it difficult to use the full $240. 

In terms of lounge access, this card is a strong choice for those loyal to Delta. However, those who don’t want to be tied to one airline might consider the The Business Platinum Card® from American Express instead, widely considered to have the most extensive airport lounge access of any business card on the market. Or, the Capital One Venture X Business might be a worthy alternative, offering Priority Pass Select membership for just $395 per year.

To view rates and fees of the The Business Platinum Card® from American Express, see this page

Who shouldn’t get the Delta SkyMiles® Reserve Business Card? 

If any of the following apply, you might decide a different business credit card is best for you:

• You’re airline agnostic and fly Delta only when it’s the best bang for your buck. 
• You don’t need airport lounge access and its associated comforts. 
• You’re unlikely to be able to use the restaurant, rideshare, and Delta Stays credits. 
• You usually travel solo and don’t need the companion certificate. 
• Your business doesn’t require enough travel to justify a $650-annual-fee airline card.

Delta SkyMiles® Reserve Business Card: How to earn rewards

Your purchases with this card will help you earn Delta SkyMiles, and some categories earn at a higher rate, as follows: 

• 3X miles on every dollar spent on eligible purchases made directly with Delta
• 1.5X at transit, U.S. shipping, and U.S. office supply stores purchases, plus all eligible purchases after you spend $150,000 in purchases in a year.
• 1 mile per dollar spent on all other purchases.

On top of the potential mileage earned from swiping your card, new cardmembers have a chance to receive a welcome bonus of 110,000 Bonus Miles after spending $12,000 in purchases on your new Card in your first 6 months of Card Membership. Offer Ends 3/27/24.

How to redeem Delta SkyMiles®

Miles earned through your card spend can be redeemed just like the Delta SkyMiles you earn when you fly. You can use them multiple ways, but the easiest and most valuable redemptions are typically going to be award travel bookings on Delta and partner airlines.

Delta doesn’t provide a redemption chart, but rather uses dynamic pricing—what that means is that the number of miles you need for a flight can vary based on factors including the cash price of the ticket, how much demand there is at the moment, and even when you’re traveling. 

As Delta Air Lines is a member of the SkyTeam alliance, you can use your miles to book award flights on any of the airline’s partners. For example, you could book on Air France or KLM to fly to Europe, Aeromexico or Aerolineas Argentinas to get to South America, and Korean Air or Kenya Airways to get to Asia and Africa, respectively.

You can also use your miles for seat upgrades, pay for additional service fees like change fees and same-day confirmed fees or get a Delta Sky Club membership, among other uses.

Delta SkyMiles® Reserve Business Card rates and fees

• Annual fee: $650
• Foreign transaction fee: None.
• Purchase APR: 20.99%–29.99% variable.

To view rates and fees of the Delta SkyMiles® Reserve Business American Express Card , see this page

Additional benefits

• Up to $240 Resy Credit, earn up to $20 per month in statement credits for U.S. Resy restaurant purchases.
• Up to $120 rideshare credit, $10 back each month for U.S. rideshare purchases with select providers.
• Up to $250 Delta Stays credit annually on eligable prepaid hotels or vacation rentals booked through Delta Stays on delta.com
• Lounge access to the Centurion Lounge, Escape Lounge and Delta Sky Club to relax while waiting for your flights at the airport.
• Medallion® Qualification Dollars (MQD) Boost so you can accelerate toward your Delta medallion status by earning $1 MQD every $10 you spend with your card.
• Medallion® Qualification Dollars Headstart so every year you’ll start closer to your status with $2,500 MQDs.
• Companion certificate each year on card renewal, good for a first class, Comfort+ or main cabin round-trip flight to a domestic, Caribbean or Central American destination.
• Fee credit to reimburse Global Entry or TSA PreCheck so you can breeze past airport security or passport control when returning home.
• 15% discount when using your SkyMiles to redeem for award travel.
• First checked bag free for you and up to eight additional travelers on your reservation, helping you save potentially up to $60 per person round trip.
• Priority boarding along with everyone in Main Cabin 1 group so you can take time to settle into your seat while there’s still overhead bin space left.
• Complimentary upgrades after SkyMiles medallion members and Reserve cardholders, even if you have no status with the airline.
• Trip delay insurance to help you receive up to $500 for certain expenses if your trip is delayed by more than six hours for a covered reason.
• Trip cancellation and interruption insurance to help cover nonrefundable travel expenses paid with the card if your trip is canceled or interrupted by a covered reason.
• Baggage insurance to protect your luggage against damage, loss or theft when on a trip paid entirely with your card.
• Hertz President’s Circle® status when you enroll in the Hertz Gold Plus Rewards program and link your Hertz Gold Plus Rewards account number to your SkyMiles account.
• Car rental loss and damage insurance to cover your rental car against damage or theft when you’re on the road if you decline the collision damage waiver provided by the rental company. This benefit provides secondary coverage.
• Extended warranty for your purchases to receive up to one year of additional coverage past their original manufacturer’s warranty.
• Purchase protection to cover items you bought with your card in case they are accidentally damaged, lost or stolen for up to 90 days from the date of purchase.
• Cell phone protection covering your device up to $800 to repair or replace it if it’s damaged or stolen, provided you pay your monthly cell phone bill with the card. A $50 deductible per claim will apply.

Credit cards similar to the Delta SkyMiles® Reserve Business Card

If you’re intensely loyal to Delta, you might be ready to hit “submit” on your application for the Reserve Business. However, if you’re thinking you need a little more flexibility, there are other business travel cards that might be a better fit. We’ll cover two of them below.

To view rates and fees of the Delta SkyMiles® Reserve Business American Express Card , see this page To view rates and fees of the The Business Platinum Card® from American Express, see this page

The Business Platinum Card® from American Express vs. Delta SkyMiles® Reserve Business Card

The annual fee for the The Business Platinum Card® from American Express is even higher than that charged by the Reserve Business, but this card is pretty much unrivaled in terms of airport lounge access. Through the American Express Global Lounge Collection, cardholders enjoy access to The Centurion Lounge, Escape Lounges, Delta Sky Club (when flying Delta), Lufthansa Lounges (when flying Lufthansa), Plaza Premium, Priority Pass, and more.

For frequent travelers, the lounge access goes a long way toward justifying the $695 annual fee. And, instead of earning Delta SkyMiles, this card will help you earn valuable Membership Rewards, which can be transferred to multiple airline and hotel loyalty programs, including Delta, so your redemptions are suddenly more flexible. 

The Amex Business Platinum’s rewards rates are as follows: 5x points on flights and prepaid hotel stays booked through amextravel.com, 1.5x points on purchases in select business categories (currently construction material and hardware suppliers, U.S. shipping providers, U.S. electronics retailers, and software and cloud system providers), as well as 1.5x points on qualifying purchases of $5,000 or more in other categories, on up to $2 million of these purchases per calendar year, and 1x points on all other eligible purchases.

There are also numerous statement credits available to Amex Business Platinum cardholders, including a $200 airline fee credit to cover certain incidentals and a $189 CLEAR Plus credit. You also receive automatic Gold status with both Marriott Bonvoy and Hilton Honors and access to the Fine Hotels + Resorts program.

Check out our full review of the Amex Business Platinum Card .  To view rates and fees of the The Business Platinum Card® from American Express, see this page

Capital One Venture X Business vs. Delta SkyMiles® Reserve Business Card

If the $600+ annual fees for the Reserve Business and the Amex Business Platinum are too much to stomach, breathe a sigh of relief—it’s possible to get exceptional travel benefits at a lower price tag. The Capital One Venture X Business card will cost you $395 per year to carry, most of which can be recouped by using the $300 annual credit for booking through Capital One Travel . The card comes with lounge access and flexible rewards you can transfer to partners.

While you can’t transfer Capital One Miles directly to Delta, you can transfer them to Virgin Red, and potentially book a flight on Delta metal because Virgin and Delta are both members of the SkyTeam alliance.  

Lounge access is through Priority Pass Select as well as Capital One’s own network of lounges. As for rewards, you’ll earn 2X miles on every purchase (and when booking through Capital One Travel you’ll earn 5X on flights and 10X on hotels and rental cars). 

The welcome bonus is generous for those who can meet the high spend requirement, at 150,000 Miles once you spend $30,000 in the first 3 months from account opening. 

Venture X Business cardholders also receive a fee credit of up to $100 to reimburse the application cost for Global Entry or TSA PreCheck. Plus, receive a $100 experience credit for eligible stays at a luxury hotel or resort from the Premier Collection. 

Check out our full review of the Capital One Venture X Business Card .

Is the Delta SkyMiles® Reserve Business Card right for you?

As with all premium travel credit cards, the high cost of the annual fee is the true determining factor when you weigh it against all the benefits. If you are an avid Delta flyer and see yourself enjoying and taking advantage of all the perks, credits and travel and consumer protections this card has to offer for you and your business, then you should consider making room in your wallet for this card.

Frequently asked questions

Do i get 15% off of delta flights when i buy tickets with this card.

The 15% off discount, called TakeOff 15, is only good for award travel bookings on Delta flights when you use your SkyMiles, and does not apply to tickets paid for using your credit card. To leverage the 15% discount, just log in to your Delta account and choose “Shop with Miles” when you search for flights. The discount is applied automatically, but keep in mind that it does not cover partner-operated flights or taxes and fees.

Can I use the companion certificate for first class tickets?

Yes, the companion certificate you get through the Delta SkyMiles® Reserve Business Card is good for main cabin, Comfort+ or even first class tickets. Additionally, you can also use the certificate on domestic, Caribbean or Central American round-trip flights, making this benefit even more valuable. 

Do I get Delta elite status with the Delta SkyMiles® Reserve Business Card?

This card will not automatically confer Delta Medallion Status to you just by holding it, but it will help you get some of the way to qualifying for your status depending on how much you spend on it. Every $10 in purchases you charge to your card, you will earn $1 MQD. You also receive a head start of $2,500 MQDs to get you jump-started every year. Medallion Status comes with four tiers, ranging from Silver ($5,000 MQDs required) to Diamond ($28,000 MQDs required).

Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.  

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefits guide for more details. Underwritten by Amex Assurance Company.  

EDITORIAL DISCLOSURE : The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends ™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.

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NAB StraightUp Credit Card Review: Pros and Cons

Published: Mar 19, 2024, 3:07pm

Reviewed By

NAB’s Straight Up Card is a no-frills option for Australians that are looking for a simple, hassle-free credit card for everyday purchases. There are no interest charges with the credit card and, if you don’t use your card and have a $0 balance throughout the entire statement period, NAB will refund your monthly fee. Owing to these pluses, the card was Forbes Advisor’s top pick for best Australian credit cards .

• 0% interest rate
• No monthly fee if the card isn’t used
• No fees on international purchases
• No additional cardholders allowed
• Low maximum credit limit

Table of Contents

About nab credit cards, nab straightup card interest rates explained, fees and limits, nab straightup extras and offers, nab straightup card exclusions.

NAB is one of Australia’s big four banks, making it a trusted, household name for many Aussies. It offers a wide range of services as expected from a large lender, ranging from small personal loans to corporate business cards.

When it comes to personal credit cards, NAB has eight different cards on offer:

• NAB Rewards Platinum Card
• NAB Rewards Signature Card
• NAB Qantas Rewards Premium Card
• NAB Qantas Rewards Signature Card
• NAB Low Rate Card
• NAB Low Fee Card
• NAB Low Fee Platinum Card
• NAB StraightUp Card

Its most recent offer is its interest-free card, the NAB StraightUp Card. It was available to Australians from September 2020, making it the first interest free card available on the local market according to NAB.

The NAB StraightUp Card does not have an interest rate, meaning you will not be charged interest on the purchases you make. Because there is no interest rate, there is also no interest-free period to be wary of: your purchases are always interest-free.

While interest-free credit cards aren’t the most commonplace, they have gained popularity in recent years especially as Australians look for ways to combat inflation and the cost-of-living crisis—without facing the high interest rates of credit cards , either.

However, consumers still pay a fee in exchange for the interest-free deal. The fees and limits of the NAB StraightUp Card are explained in greater detail below.

Related: How Do Interest Free Credit Cards Work?

The minimum monthly repayment and monthly fee that you will be required to pay on your NAB StraightUp Card depends on your credit limit. These credit limit options and subsequent fees are outlined below.

Is there an annual fee?

No, there is not a set annual fee for the NAB StraightUp Card. Instead, NAB charges its StraightUp cardholders a monthly fee in exchange for not charging any interest. This monthly fee can then be multiplied by 12 in order to understand the annual cost, which can be convenient when comparing with other credit cards’ annual fees, especially frequent-flyer credit cards.

Credit Limit of the NAB StraightUp Card

You can choose from three different credit limits with the NAB StraightUp Card: $1,000, $2,000 and $3,000.

These are much lower than the standard credit card offering, which may deter some borrowers from the NAB StraightUp Card, but may also attract other customers who want to rein-in their spending or keep their credit score healthy. Additionally, cardholders should be aware of the following fees:

• The $1,000 credit limit has a $35 minimum monthly payment and a $10 monthly fee added to your balance;
• The $2,000 credit limit has a $75 minimum monthly payment and a $15 monthly fee added to your balance;
• The $3,000 credit limit has a $110 minimum monthly payment and a $20 monthly fee added to your balance.

NAB states that if a cardholder doesn’t make any purchases and has an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed.

Are Balance Transfers Offered?

No, the NAB StraightUp Card does not offer balance transfers or product transfers.

Related: Guide To Transferring Credit Card Balances

The NAB StraightUp Card is a simple card, meaning its additional extras and offers are minimal. Along with the perk of no interest rate and a simple, monthly fee, the NAB StraightUp Card can also be used on international purchases fee-free, whether abroad or online.

Is NAB StraightUp a Rewards Card?

Some credit cards offer cardholders the opportunity to earn points that can be redeemed for rewards, which are known as rewards credit cards . These also often offer additional perks, such as complimentary insurances, membership discounts and airport lounge access, and usually come with a hefty annual fee.

Since the NAB StraightUp Card is true to its name as a ‘straight up’, no frills card, it does not offer these perks and is therefore not a rewards card.

The NAB StraightUp Card does not offer balance or product transfers, and you are also unable to withdraw cash advances .

You also cannot take part in any gambling transactions using the card, nor will you receive any rewards from using the card.

Lastly, you can’t add any additional cardholders to the card, which is a standard offer with many credit cards.

It’s important to consider these exclusions against the perks of the NAB StraightUp Card to examine if it’s the best choice for you.

Related: Our Pick Of The Best Credit Cards For Australians

Frequently Asked Questions (FAQs)

How long does it take to get nab straightup card approval.

You can apply for the NAB StraightUp Card online and receive an answer within 60 seconds, the bank says. You will need to have the following information and documentation available:

• At least one form of ID (Australian driver’s licence, Medicare card, Australian passport or international passport) if you are not already an NAB customer;
• The maximum credit limit you would like to apply for;
• Employment details for the past three years;
• Your financial information: income, assets, debts and expenses; and
• Proof of income (such as payslips or bank statements).

Upon approval, your physical card will then take approximately five days to arrive.

To apply, you should complete the online application form .

Can I withdraw cash from NAB StraightUp Card?

No, you cannot withdraw cash with the NAB StraightUp Card. It does not offer cash advances, so therefore withdrawals are not possible.

What is the eligibility requirement for the NAB StraightUp card?

To be eligible for the NAB StraightUp Card, you must meet the following requirements:

• Be 18 years or older
• Receive a regular income
• Be an Australian resident for tax purposes
• Be an Australian or New Zealand citizen, Australian Permanent Resident or non-resident holding an acceptable
• Temporary Residency Visa.

Sophie Venz is an experienced editor and features reporter, and has previously worked in the small business and start-up reporting space. Previously the Associate Editor of SmartCompany site, Sophie has worked closely with finance experts and columnists around Australia and internationally. Sophie grew up on the Gold Coast and now lives in Melbourne.

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