How to Choose a Travel Credit Card: 9 Factors to Consider

I evaluate current card offers every three months and decide on which card to get next. My strategy has evolved over the years and will probably continue to grow.  I will share the nine things you should consider when evaluating your next travel credit card choices.

9 Key Factors to Consider When Selecting A Credit Card

1. Better than usual Sign-Up Bonus

The main purpose for getting a new credit card every few months is for the sign-up bonus because SUBs are the fastest way to earn a large amount of points and miles. When I think there will never be another epic sign-up bonus, one of the banks surprises me. It’s an excellent time to be involved in points and miles; you never know what will happen next. This hobby is full of FOMO moments, so when you are eligible for one of these epic sign-up bonuses, it’s hard not to go for it.

2. Bank Rule Limitations

Every bank has rules regarding how many of their cards you can have or how often you can sign up for a credit card.  The one that matters most often for many people is the Chase rule called 5/24.  You cannot have been approved for five cards within the past 24 months.  The count of cards does not include business credit cards because they do not appear on your credit report.  I LOVE my Chase points, but I can never have enough. I always factor in my 5/24 status to determine if I will be getting a business or consumer credit card, and I try to ensure that either my husband or I are under 5/24. 

3. Travel plans and goals

If you need points for a specific hotel or flight, targeting a card that will get you to that goal should take priority. For example, I wanted to stay at the Waldorf Astoria Los Cabos Pedregal and needed 120k points per night or a Hilton Free Night Certificate.  I decided to get a Hilton card that offered a free night each year. I also earned the 150k sign-up bonus and spent $15k on the card to earn an additional free night certificate.  For the cost of the annual fee, I was able to book 3 nights at a hotel that regularly charges ~$1k per night.

4. Travel Perks

The airport travel experience can be stressful, expensive, and uncomfortable if you do not have certain perks included with travel credit cards. Long lines, crowded gates, overpriced snacks, oh my!  I love to travel, but I did not love the airport experience until I experienced the perks that came with travel credit cards.  You may want to consider a credit card that offers perks like free TSA Pre-Check or Global Entry.  A credit card with access to an airport lounge is even more valuable.  Trust me, lounge access can make all the difference to your airport experience.   

5. Running low on points?

I know that it’s better to earn and burn points and miles because, at any point in time, the issuer of the points can change their entire value structure.  I like having a stockpile of points in the event of an excellent deal or if I “need” a sudden weekend vacation. When I run low on the points, especially transferable points, that I find very valuable, I focus on replenishing my stockpile.

6. Major Travel News

Recently, airline companies have had some exciting changes, specifically the merger of Alaska Airlines and Hawaiian Airlines.  Alaska miles are challenging to earn, and the program includes fantastic redemption sweet spots, making the miles desirable. The merging inspired my husband and I to pick up a Hawaiian Airlines credit card and take advantage of the opportunity to transfer those not-so-valuable miles to extremely desirable Alaska miles. 

7. Special Referral Bonus

A few years ago, Amex Gold offered a referral bonus of 4x Membership Rewards for up to $25k in 3 months.  I couldn’t refer my husband fast enough. Because I wanted to focus our spending on my Amex Gold, the card I selected for him was the Amex Blue Business because it had a minimal threshold for the sign-up bonus. 

8. Upcoming large purchases

Towards the middle and end of each year, our property tax payments are due. This is when I look for credit cards with higher sign-up bonuses because those also tend to require higher spending requirements.     

9. Annual fees versus overall value

Travel reward cards can require an annual fee, and some have an outrageous $695 fee.  Before I get any credit card that includes an annual fee, I evaluate the benefits to ensure I can recoup the cost of the fee. I deep dive into the annual fee evaluation of one of my favorite cards, the Amex Gold Card, in another article, but the summary is that in exchange for the $325 annual fee, I am easily able to get $384 in various credits each year to recoup the fee.  This is without factoring in the value of the points earned and unquantifiable benefits of lost baggage insurance, trip insurance, and rental car insurance that comes with the Amex Gold Card.    

How Huge Is Your Wallet?

While you do not have to have a lot of credit cards to be successful at this points and miles game, it does tend to be a side effect of the hobby.  Don’t worry; you do not keep every credit card forever, and you do not need to carry around every credit card in your wallet. Once I receive the sign-up bonus, you can put the card in your sock drawer.  Every few months, use the card to make a small purchase to ensure the bank knows your account is still active and doesn’t administratively close the card.

Thanks for reading, friends. Happy Travels