Cash Back Credit Cards

Cash back credit cards earn you a specific amount of cash back per transaction. The amount of cash back you earn depends on the cash back earning rate for that specific credit card. Usually the cash back is posted to the account as a statement credit. Note that some cash back cards will give you points which can be converted to statement credits.  

Some cash back credit cards have a standard rate across all transactions no matter what the purchase category is. For example, the Chase Freedom Unlimited earns 1.5% cash back on all transactions. This is great to have as part of your credit card portfolio if you don’t travel much and would find more utility in statement credits or cash. Other cards may have cash back with certain categories like groceries being higher in earnings.

However, something to keep in mind is that there may be a cap on how much cash back you can earn per year. Some cards such as the Blue Cash Everyday® Card from American Express have a cap of 3% cash back on the first $6,000 spent in U.S. grocery stores while others have an unlimited amount of cash back you can earn.

 Hotel Credit Cards

Credit cards that specifically earn hotel points are a great tool for any traveler that wants to earn free accommodations, earn hotel elite status, and enjoy upgrades such as nicer rooms and free breakfast. These credit cards typically earn points like many other cards out there. However, the points you earn are generally stuck within that hotel’s ecosystem and lack flexibility elsewhere.

Who Are These Cards For?

Hotel specific credit cards such as the Hilton Honors American Express Surpass® Card, World of Hyatt card, and Marriott Bonvoy Boundless™ credit card provide some level of elite status with their respective hotel brands. This is a great tool for travelers who are looking for upgraded service, enhanced stays, and even property specific perks. Not only does having hotel elite status enhance your stay but can save you money through their free perks and benefits.

Some valuable benefits with status include but are not limited to free room upgrades, free dining options, snacks, services, valet parking, early check in, late check out, and more. Some hotel specific cards even reward cardholders with a free night certificate each year which can hold great value.

Which Hotel Card Is Right For Me? 

This is completely dependent on you as an individual. The first thing to consider is where you currently live and want to travel to. Depending on where you want to travel to, some brands may be more available than others. Next, compare and contrast all available cards for that brand that you’re interested in. See which perks you value the most and determine if one card best fits your needs. Additionally, check out the bonus points category for the cards and see which will allow you to earn points faster through your normal everyday spend. Finally, ensure that the card you picked has an annual fee that fits your budget. Not all high end hotel cards are going to be the most useful for everyone. Make sure you pick a card that meets your needs that can grow with you as you travel. Zero annual fee credit cards may seem attractive but just remember that a lot of $95 annual fee cards provide an annual free night certificate that is easily double to triple the cost of that card. 

Airline Credit Cards

There are a plethora of airline credit cards out there. These credit cards go hand in hand with hotel credit cards as they are helpful not only with enhancing your travel experience but also allow you to travel for next to nothing. These credit cards earn airline specific miles that you can redeem for travel. Most airline credit cards do not give you airline elite status but can allow you to earn status quicker. 

Who Are These Cards For?

Airline credit cards like the Citi® / AAdvantage® Executive World Elite Mastercard®, Southwest Rapid Rewards® Performance Business Credit Card, and British Airways Visa Signature® Card are some great examples of cards that can enhance your travel and help you earn status quicker. 

If you’re a frequent flyer, airline specific cards are a must. They can both enhance your travels and save you money by providing you with early check-in, free upgrades, airport lounge access with free food and drinks, free checked baggage, and more. 

Which Airline Card Is Right For Me?

Just like hotel credit cards, airline specific cards are highly dependent on your location and goals. You should focus on airlines with hubs near you as these airlines are most likely going to be your most used for travel. Next, make sure that you compare and contrast each airline credit card if they offer more than one version. Finally, evaluating what perks and benefits you can take advantage of and what annual fee fits your budget will help you get more for less. There’s no reason to pay a high annual fee if you’re not able to utilize the benefits to the fullest. 

 Cards With Specific Points

Card specific points are in reference to the points that you earn within that card’s ecosystem. Chase cards all earn Ultimate Rewards points. The few exceptions are co-branded cards like the Hyatt cards, Southwest cards, Amazon card, etc. American Express generally cards earn Membership Rewards with a few exceptions as well. Citi also earns brand specific points called ThankYou points. 

What Can You Get?

These points are the bread and butter of traveling cheaper or even free as they have the highest utility within the credit card world. Across all brands, you can redeem these points in their respective credit card portal for things like airplane tickets, hotel accommodations, car rentals, various goods, gift cards, and more. 

Best Use

These points usually have a maximum value when redeemed through the card specific portal. For example, if you hold the Chase Sapphire Preferred, each point has a maximum value of 1.25 cents per point. You can book a hotel stay within Chase’s portal and redeem your points at the rate of 1.25 cents per point. 

But if you utilize transfer partners, you can maximize your value even more. You can read more about transfer partners and see an example with a math breakdown here.

Tips

Collecting points is easier than spending them. When traveling using points, you must book further in advance than with cash as reward availability may vary. You also need to be as flexible as possible to get the most value out of your points. It does take some time and practice to learn how to best use your points. But don’t ever feel bad for using points at their minimum value. Points are truly only valued at what you deem them to be. At the end of the day, if you’re happy with your redemption, that’s all that matters.