Are Travel Rewards Credit Cards Worth It?

Learn how to choose the best ones to save money on travel

an airplaned overlaid on a credit card that's splitting in half to reveal benjamin franklin on the $100 bill

Free flights, upgrades, lounge access and more. Evaluate the many purported perks of travel rewards credit card offers to see if it might be worth adding one to your wallet.

Paul Spella (Getty Images 3)

Berit Thorkelson,

AARP

Published November 14, 2025

Even for the most casual travelers, travel rewards credit card offers are undeniably appealing. Typically, you score thousands upon thousands of miles just for signing up, then earn more for every dollar spent on the card.

Then there are firsthand user stories about glamorous perks, luxurious upgrades and nearly free trips. The Points Guy credit card editor Daisy Hernandez, for example, raves about the multigenerational trip to Iceland she took with her mom and grandma, made possible by the most expensive rewards card in her wallet. It covered most of the hotel, flight and rental car costs, she says.

Cheap or free travel appeals to anyone, including the 46 percent of travelers age 50 and older who planned to fly this year, according to AARP’s 2025 Travel Trends survey. Its attractiveness grows during tough economic times and when you’re on a fixed or tightening budget.

You’re probably thinking: Surely, it’s not that simple. Satisfy that healthy skepticism with a breakdown of the mysterious world of travel rewards cards to explore whether using one could be worth it for you.

Who should consider a travel rewards card?

Anyone who travels once or twice a year, or is considering doing so, could benefit from a travel rewards card, says Jason Steele, a credit card and travel rewards expert and author of the book Travel for Free.

Sara Rathner, credit cards expert at NerdWallet, agrees. “Maybe you’re retiring and you’re looking at traveling more, and you’d like to save money so you can take more vacations for the same price. It absolutely could be beneficial to look into travel rewards credit cards,” she says.

Both Steele and Rathner caution that travel rewards cards tend to have high APRs, so be sure you’ll be able to pay off the balance in full monthly. Any interest charged could quickly offset the card’s benefits. You should have a strong financial standing, with good or excellent credit and no existing credit card debt.

What’s the best travel rewards credit card?

Rathner’s pat response to this question: “I don’t know. What are you looking for?” She’s not being snarky. One travel rewards credit card does not fit all. Analyze your spending habits and travel goals first, then find the right-fit card for you.

Weigh these key aspects:

Sign-up bonus. Our insiders see value in getting a card for the large influx of initial miles or points. Steele’s father, for example, was able to take Steele’s daughter on a grandpa-granddaughter trip to Europe thanks to an especially generous bonus — traveling in business class, no less. Ensure the initial spending mandate — typically a specific amount of money within a definite timeframe — is achievable for you without having to carry a balance.
Spending rewards. Do not manufacture spending, Hernandez says. Instead, consider where you already spend, and pick the card that nets you the most points or miles for that existing spending.
Annual fee versus card benefits. Think of the annual fee as prepayment toward the card’s provided benefits, but only if they are ones you’ll actually use or enjoy, Rathner says.

If you’re new to the travel credit card game, starting with a card that has a low fee or one that’s waived for the first year is a safe way to explore the options. “If you’re getting your first car, you’re not going to buy a Ferrari. You’re probably going to buy an economy sedan,” Steele says. “I’d start modestly and see how that goes.”

No-fee cards exist, but you “get what you pay for,” he says. Better to try one that has some benefits to evaluate. A few solid intro options to look into, each with an annual fee of $95: the Capital One Venture Rewards Card, the Chase Sapphire Preferred Card and the Citi Strata Premier Card.

Top benefits of travel rewards cards

Here are some of the cardholder benefits prized by the three experts we spoke with:

Airport lounge access. “Airport food is so expensive,” Hernandez says. With “the cost of what I eat and drink in the lounge, I would have spent well over $100 every time.” Be sure the airport you use most frequently has the card-provided lounge.
Travel insurance. This buys peace of mind and negates the need for add-on trip insurance. Think: lodging in the event of delays, reimbursement for nonrefundable tours, and clothes if your bags are delayed or lost. “I travel a tremendous amount.… I’ve never purchased a travel insurance policy,” Steele says. “I’ve always relied on the benefits of my credit cards to cover me.” These cards often offer protection on non-travel purchases as well.
Rental car insurance. Steele considers this the most valuable perk, since it allows you to skip the protection offered by rental companies, which averages around $30 a day.
Travel credit. Make an eligible travel-related purchase, such as car rentals, train tickets, hotels or airfare, according to the card’s terms and conditions, and you get a reimbursement in the form of a statement credit. For example, Rathner’s card recently reimbursed her $300 for high-speed train tickets in Spain, which alone offset over half her credit card’s annual fee.

Will applying for travel credit cards hurt my credit score?

If you can pay off the cards on time each month, you could improve your credit score. Keep in mind that your credit score may take a temporary hit with a hard credit pull; however, if you space out the openings, maintain good credit and are responsible, your score could improve. Steele appreciates being able to mix and match card benefits. “If you can manage juggling multiple cards and keeping an eye on the card’s terms and conditions as things change, if that’s enjoyable for you, then do it,” Rathner says. “If you find it annoying or confusing, then I would caution against it.” Also: Put some time between openings. “We typically say, two to three months,” Hernandez says.

Are travel rewards cards worth it?

Probably yes.

If you have no existing credit card debt and can pay your balance in full each month, take the time to find a travel rewards card that aligns with your current spending and offers a good return on the annual fee. Plan to keep it for a year, Steele says. “They’re giving you this bonus, and ... you can take this card for a test drive.... After a year, if it’s worth it, keep it. If it isn’t, cancel.”

But keep in mind that it’s OK if the world of points and miles isn’t your thing. “My mom asks me about travel cards all the time, and I give her these lengthy answers, and then she says, ‘Yeah, but I really just like my cash-back card.’ And then she changes nothing. And that’s fine,” Rathner says. “It’s your money, it’s your time, it’s your effort. And if [keeping track of travel rewards cards] doesn’t bring you joy, then don’t do it.”

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Berit Thorkelson is a travel writer and editor for aarp.org. She has also written for publications such as National Geographic Traveler, Better Homes & Gardens and The Minnesota Star Tribune’s travel section.

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