Pick the best travel credit card like a pro

Before you go, we thought you'd like these...
Before you go close icon
A68PNE Passengers on board holiday jet in flight seated three each side of gangway aisle
Travel rewards have become about much more than just earning airline miles, and if you've been carrying the same card for years, you might be missing out on better rewards for the same or lower fee as banks and airlines fight for your business.

If you don't want to think much, and just want one card with a good offer, a comparison site like MileCards.com will let you enter your spending habits and tell you which cards earn you the most miles, or you can browse a list of the best travel credit cards.

But travel pros who have racked up millions of miles diversify their loyalty to reap the most rewards.

Gary Leff, an air travel expert who writes the View From the Wing blog, suggests three reasons to get a card. The first reason is the sign on bonus, which can offer significant value. The second is to take advantage of perks offered by the card, including free bags and priority boarding. And third, you should use a card that lets you rack up miles most quickly based on your spending pattern.

Very few cards offer do all three of these things well, so experts often hold more than one credit card to get the most out of things.

For example, many of the airline branded cards offer a first free checked bag. If you tend to use the same airline a couple times a year and check a bag, you can save the annual fee in bag fees, plus get perks like priority boarding. But these cards rarely offer you the most miles for every dollar you spend.

Instead, consider putting your spending on a card that earns transferable points, while keeping the airline card for the perks.

Transferable points are a favorite of Brian Kelly, founder of The Points Guy blog. They let you book travel two ways. First, you can transfer them into real airline miles with several airlines. Second, you can choose to use them like cash to book flights on any airline.

That makes them really flexible – you can add to the miles you've earned by flying, or you can use them like cash if you don't want to deal with the rules of airline miles for a trip. Chase, American Express, and Citibank each have cards that offer transferable points. Many offer special bonuses on spending categories like dining and gas, so they can earn points more quickly than a single airline card.

Regardless of what card you choose – get to know the benefits. Many travel credit cards offer coverage that's similar to the travel insurance airlines and travel agencies will try to sell you. You could be reimbursed if you need to cancel a trip because you get very ill, or get covered for a hotel if your flight gets delayed. There's no extra charge – just book your flight with the card to activate the coverage. These benefits aren't widely advertised, so read the benefits booklet that gets mailed with your card to see what you can use.

Best Travel Reward Credit Card Offers of 2016
Read Full Story

People are Reading