NerdWallet’s Best Travel Credit Card Roundup, Winter 2012 Edition

Airport lounges, waived fees, signup bonuses worth hundreds of dollars: the best travel credit cards are better than ever. More convenient and safer than cash and more widely accepted than traveler’s cheques, an international credit card will ensure you receive compensation for your travels. Keep an eye out for new signup bonuses: In an attempt to entice high-spending, low-risk customers, credit card companies are continually raising the bar. Mark our words: 2012 will have some pretty exciting bonus offers.

Travel credit cards are an essential tool in any frequent flyer’s arsenal. But whether your biggest expense is airfare, hotels or car rentals, every traveler should have at least one card congruous with his or her spending habits. Each travel card possesses benefits specific to a certain set of needs, but if you’re traveling internationally, always make sure your card of choice has no foreign transaction fee before proceeding. Otherwise, you’ll likely end up paying an additional 3% on every out-of-country purchase.

Below you’ll find we’ve assembled a list of our favorite travel credit cards. They cover a wide array of benefits, and there is no single card that will be right for every traveler. Take a look at the details to determine which will aid you most on your next adventure.

Best rewards rate: the Capital One Venture Rewards

The Capital One Venture is the most well rounded travel rewards card available. It does not discriminate between where you can and cannot earn or spend rewards. No matter where or what you buy, you’ll earn 2% on every last purchase. Your rewards, which come in the form of No Hassle Miles, are redeemed as statement credits to offset travel expenses. You can fly on any airline or stay at any hotel without restrictions or blackout dates. After you spend $1,000 within the first 3 months, you’ll receive a 10,000-mile signing bonus, which is equivalent to $100 in travel. Like all Capital One cards, the Venture does not charge a foreign transaction fee. The only snag is the $59 annual fee (waived the first year). But if you’re a traveler, you’ve no need to worry. Your rewards will easily offset the cost.

Best hotel credit card: the Starwood American Express

One of the best cards for domestic travelers is the Starwood American Express. The signing bonus is 10,000 points after your first purchase and 15,000 additional points if you spend $5,000 in the first 6 months. With a possible 25,000 bonus points, you have the potential for 6 extra nights your first year. The rewards rate may initially appear a little underwhelming. You earn 1 point per dollar spent and 2 to 5 points spent at Starwood Hotels. This doesn’t sound impressive until you consider the fact that we value Starpoints at about 2.3 cents apiece—over double the norm. That puts its rewards rate at about 2.3% and its signup bonus at $575, both of which are hard to beat.

In all honesty, it’s not the best card for bargain travelers. It’s intended for people who like to sleep in style. But if you enjoy luxury hotels, the Starwood will serve you well. Aside from the $65 annual fee (waived the first year), the card’s biggest drawback is its 2.7% foreign transaction fee. You probably won’t want to take this one overseas. But of course, if you’re traveling domestically, you need not worry about it.

Best general travel credit card: the Chase Sapphire Preferred

The Chase Sapphire boasts a slightly ridiculous but totally awesome signing bonus of 50,000 Ultimate Rewards points. You’ll get the bonus if you spend $3,000 within the first 3 months, and it equates to about $625 in travel. When booking through Chase, you’ll earn points at 2 per dollar. All other purchases earn at 1 point per dollar. And when you book travel through Chase, your points are worth 25% more. One of the more unique and alluring feature is the Sapphire’s 7% rewards dividend. At the end of each year, you’ll receive a bonus equivalent to 7% of your total earned rewards over the past 12 months. All these factors work out to a rewards rate of about 1.28% on everyday purchases and 2.56% on travel booked through Chase. The Sapphire has no foreign transaction fee, but it does demand a slightly steep annual fee of $95 (waived the first year).

Best travel perks: the American Express Platinum

With a $450 annual fee, the American Express Platinum is for serious travelers with serious cash. If you do a ton of traveling and can manage to qualify, you’ll find the investment well worth it. For starters, you receive an annual $200 credit on your airline of choice to cover incidental charges, including checked-baggage fees. You’re given a 25,000-point signing bonus, Priority Pass Select lounge membership (valued at $400/year) and a $100 credit toward the Global Entry program, which allows you to skip customs lines. Additionally, you won’t have to pay a foreign transaction fee and you get a 20% point discount when you book travel through American Express.

Best airline credit card: the Southwest Airlines Rapid Rewards

Want a free flight right NOW? The Southwest Airlines credit card offers 25,000 Rapid Rewards Points after your first purchase. Typically, if you want an awesome signup bonus, you have to work for it. Most cards require you to spend a certain amount of money in a specified amount of time before they’ll fork over the rewards. But the Southwest card merely asks you make a single transaction—whether you’re buying a brand new laptop or a box of Tic Tacs, they only ask you use your credit card. On every anniversary of your signing, you’ll receive 3,000 bonus points, which, at a $50 value, nearly negates the $69 annual fee. The Southwest earns rewards at 2 miles per dollar spent at Southwest and 1 mile per dollar everywhere else. With waived check bag fees and no blackout dates, the Southwest Airlines card is the best airline card available.