How do annual travel credits work?

Annual travel credits are reimbursements for certain travel expenses. They take the form of credits on the cardholder's statement. Each card has its own rules about which expenses can be reimbursed through travel credits.

Travel Rewards Credit Cards

Travel rewards cards are a smart choice for frequent travelers. With each purchase, you’ll earn points or miles that can be redeemed for flights, hotels, car rentals and more.

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Best travel cards with no annual fee

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How to pick your first travel credit card — in one minute

Daydreaming about your next adventure? Before you plan your trip, you may want to sign up for a new credit card to start earning points that can help you save on travel costs. Watch to see which three steps to consider when selecting a travel credit card.

Travel rewards cards FAQ

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

To decide between a travel rewards credit card that earns points and one that earns miles, consider your personal travel preferences and how you plan to use the rewards. Miles-based cards are typically best for those who are loyal to a specific airline, while points-based cards offer more flexibility and a wider range of redemption options.

How do credit card issuers define “travel?”

We spoke with major issuers that offer travel rewards or travel statement credit and found that all issuers surveyed included purchases from airlines, car rental agencies, hotels, bus lines, cruise lines, passenger railways, taxicabs and limousines, travel agencies and ferries in their definitions for proprietary cards (that is, not including co-branded cards).

Should I pay for a vacation with a credit card?

If you've saved the money and can pay back the credit card bill right away, then go for it! If you haven’t already saved the cash, using a card to finance your trip could be costly.

Guides

Travel rewards guides and strategies

How to Choose a Travel Credit Card

by Erin El Issa

A Guide to Travel Credit Cards for Beginners

by Carissa Rawson

4 Travel Card Perks That May Not Be as Valuable as You Think

by Melissa Lambarena

How to Choose a No Foreign Transaction Fee Credit Card

by Chanelle Bessette

Compare popular travel rewards cards

How Does the Capital One Venture X Stack Up Against Competitors?

by Sara Rathner

Capital One Venture vs. Chase Sapphire Preferred 2024: Sapphire Shines a Bit Brighter

by Lindsay Konsko, Sara Rathner

AmEx Gold vs. Chase Sapphire Preferred 2024: Gold Wins, If You Can Use Credits

by Claire Tsosie

Chase Freedom Flex vs. Chase Sapphire Preferred: Sapphire Shines for Travelers

by Erin Hurd

AmEx Green, Gold and Platinum: Which One Should I Get?

by Claire Tsosie

How the Wells Fargo Autograph℠ Card Stacks Up vs. Competitors

by Sara Rathner

Capital One Venture X vs. Chase Sapphire Reserve: Sapphire Outshines

by Sara Rathner

Chase Sapphire Preferred vs. Sapphire Reserve: Reserve Dethroned

by Claire Tsosie, Erin Hurd

Capital One Venture X vs. Venture vs. VentureOne: X Hits the Spot For Most

by Sara Rathner

AmEx Platinum vs. Chase Sapphire Reserve: Reserve Has More Mass Appeal

by Gregory Karp, Erin Hurd

Read our reviews of the top travel rewards cards

Discover it Miles Review: Travel Rewards With a Cash-Back Twist

3.8

NerdWallet rating

You get 1.5 miles per dollar spent on everything, with no annual fee. Miles can be redeemed for travel or converted to cash back at the same penny-per-mile rate.

Chase Sapphire Reserve Review: A First-Class Premium Travel Card

5.0

NerdWallet rating

The card earns bonus points for travel and dining-related spending, which can be redeemed for more value through Chase. It piles on the perks, too, but they come at a price.

Bank of America Travel Rewards Review: Easy Rewards for Easy Travel

3.8

NerdWallet rating

Earn 1.5 points per dollar on all spending. Redeem points for credit on your statement against any travel or restaurant purchase.

Chase Sapphire Preferred Review: Nearly a Must-Have for Travelers

5.0

NerdWallet rating

You get bonus points for spending on travel, dining and some everyday purchases. Points are worth more when used to book through Chase.

Marriott Bonvoy Business Review: Free Night, Rich Rewards

4.9

NerdWallet rating

Earn and redeem rewards at thousands of properties in the Marriott hotel group, with a free night every year and automatic elite status.

American Express Gold Card Review: Dining Rewards Royalty

4.6

NerdWallet rating

This card features rich benefits for foodies, including lucrative rewards at restaurants and U.S. supermarkets, plus various dining credits that can help offset its admittedly pricey annual fee.

Wells Fargo Autograph℠ Card Review: Big Rewards, No Annual Fee

4.5

NerdWallet rating

Cardholders can rack up triple points across a wide swath of common spending categories like dining, travel, gas stations and streaming — all while paying no annual fee.

Capital One Venture Review: Easy Earnings, Effortless Redemptions

4.7

NerdWallet rating

Earn 2 miles per dollar on purchases. Redeem miles (at 1 cent apiece) for credit on your statement against any travel purchase, with none of the restrictions of airline cards.