There are a lot to things to consider when you’re looking for a new travel credit card, but the interest you’d pay on the balance shouldn't be one of them. With these kinds of cards, you don't want to be piling up debt in the first place.
The whole point of travel cards is, well, the points. You get these cards (and maybe put up with ridiculous annual fees) so you can earn rewards toward travel, or perhaps so you can travel like a rich person for the cost of an economy seat and a bunk bed in a hostel. But if you’re carrying a balance on these cards from month to month, the interest will likely be wiping out the value of your points before you even get to enjoy them.
Let’s say you have a card with a sign-up bonus worth $500, and you’re carrying a $5,000 balance that you racked up to qualify for that bonus. If your APR was 25% and you paid off the debt in equal payments over nine months, you’d have spent $535 on interest. That bonus went right back into your interest payments, not toward travel expenses.
But if you don’t carry debt on a credit card — if you pay in full every month — then the APR becomes irrelevant because interest never gets charged.
What to look for in a travel card instead
The average APR charged for credit card accounts that incurred interest was 22.15% as of May 2026, according to the Federal Reserve. That's already steep, and credit cards that earn points and miles tend to have even higher rates.
But travel credit cards aren't trying to compete on APRs. Their value proposition lies elsewhere, and ideally, you're not carrying a balance on these cards anyway. So here's what to actually look for when comparing them.
A good match for how you actually travel
The more loyal you are to a particular airline or hotel group, the more a branded credit card — one that bears the name of that business — can make sense. Not only will your spending earn points or miles that you can then redeem with those brands, but you can also get travel perks such as free checked bags, priority boarding, late checkout, room upgrades or an accelerated path to elite status.
I don’t live in a city dominated by a single airline, but I still find value in airline cards because of those additional benefits — especially with the rising cost of checking a bag. Hotel cards have not only gotten me free nights and nicer rooms, but even occasional access to VIP lounges with food, saving me on meal costs when traveling.
If you don’t want to be tied to a specific brand, a general-purpose travel rewards card is a more flexible option. The points you earn can be redeemed in multiple ways.
Rewards on your real-life spending
Before you apply for a card, ask yourself if the minimum spending required to earn a sign-up bonus is realistic for you. If you find yourself blowing your budget just to earn that bonus, you risk getting into debt. And, again, don’t do that on a travel card.
Look for a credit card that rewards you more in categories where you spend the most, whether that’s dining, groceries or travel. That way, your usual spending will work that much harder for you.
And keep in mind that a credit card isn't the only way to earn travel rewards. You can collect them via online shopping portals, dining programs and even certain debit cards.
Benefits you’ll actually use
In addition to the free checked bags and room upgrades you get with co-branded cards, travel cards often come packed with lots of potentially valuable statement credits that reimburse you for specific spending. The catch is that these extras are worth absolutely nothing unless you use them. When you’re carrying a card with a triple-digit annual fee, it’s all about offsetting that cost.
Coupon-book cards take effort. But if you can easily take advantage of the credits they offer at certain merchants, you can chip away at the annual fee, one free dinner or TSA PreCheck renewal at a time.
Redemptions that aren’t a huge pain
With some cards, redeeming points is as simple as requesting a statement credit. Other cards make you work for it — hunting down the highest point value you can get through the issuer’s travel portal, or transferring points to airline or hotel partners.
Points and miles — just like all those statement credits — are also worth nothing when left unredeemed. (Even worse, their value can go down over time). Choose a card that matches a level of complexity you’re comfortable with so that your points don’t sit idle forever.
Better ways to carry a balance
There are times when you’ll need to carry some credit card debt. Everyone faces large expenses, whether it's a job loss, an unexpected car or vet bill, or even major planned purchases — like a vacation — that you need to pay back over time. But most travel cards aren't the ideal tool for these situations, unless you pick one of the few that have a no-interest promotion.
Instead, choose cards that are more suited to financing purchases.
- A 0% APR card for new purchases. For those times when you have a home appliance to replace, it’s nice to have 12 months or more to pay for it before the card’s standard interest rate kicks in.
- A balance transfer credit card. If you have existing credit card debt, you can transfer it to a new card that has a no-interest offer. There are some catches: You’ll pay a fee of 3% to 5% of the transferred balance, and you can only transfer a balance as high as the new card’s credit limit. Much like 0% APR cards for new purchases, when the promotion ends, you’ll begin to owe interest on any unpaid balance.
- Buy now, pay later plans. These allow you to split a purchase into an installment plan. Fees, interest and repayment timeframes can vary based on the plan you choose and what you qualify for. Your credit card itself may already offer the ability to split a recent purchase into installments.
