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Maximizing credit card points is practically its own subculture, with various ways to get the best value to match your lifestyle and spending habits. One such way to make your purchases work for you is with a travel credit card.
Top credit card issuers and networks—including Chase, American Express, Capital One, Citi and more—offer benefits like travel credits to offset their annual fees. Options that offer the biggest and broadest benefits typically have the highest upfront costs.
For example, the Amex Platinum costs a steep $895 per year, but frequent travelers will likely recoup that fee simply by living as they normally do. The card offers a $600 annual hotel credit (with stipulations), $200 airline incidental fee credit, free access to more than 1,550 airport lounges and more.
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Cards with lower fees may have fewer opportunities for statement credits or other forms of built-in value. For example, the flagship annual benefit of the $395 Capital One Venture X card is a $300 travel credit through Capital One’s portal. So if you’re someone who travels, but infrequently, this lower-fee option may make more sense for you.
The best travel credit card for you depends on your spending and lifestyle. Are the benefits in line with purchases you’d make regardless, or would you have to buy things you wouldn’t normally just to offset the fee?
Below, get guidance for selecting a travel credit card that will give you the greatest benefit rather than lead you to spend even more.
Breaking Down Annual Fees and the Value of Statement Credits
The whole premise of annual credit card fees may seem counterintuitive. After all, the point of a credit card is to allow you to make purchases conveniently while building credit. Why, then, sign up for a card with a fee—sometimes one that’s quite high—and put yourself in the red before you even buy anything?
“Some cards offer valuable benefits, and the cost of offering these benefits necessitates a higher annual fee,” Jason Steele, journalist and expert on credit cards and award travel, told Newsweek. “These benefits can include travel insurance, purchase protection, airport lounge access and statement credits towards purchases from featured merchants.”
Sometimes statement credits can be merchant-specific. For example, American Express Platinum offers a $75 quarterly statement credit for eligible Lululemon purchases. Statement credits can also be restricted to purchases made through specific portals or be flexible, applying to a whole category of spending, like any airline or hotel.
If you’re likely to use many of the benefits, a premium card may be worth it to you. If not, perhaps less so. While a $300 travel credit may sound great—and it probably is—it’s only worth $300 of value to consumers who will use it, so you’ll want to make sure you understand the specifics of redemption requirements.
Which Cards Offer TSA PreCheck or Global Entry Reimbursement?
A common benefit of premium travel credit cards is reimbursement for a TSA PreCheck or Global Entry application, programs that streamline the process for navigating airport security. Deciding which option is best for you depends on your travel habits.
TSA PreCheck is helpful for people who mostly travel domestically, as its main benefit is entry into the “fast” lane at security in United States airports. Also, minors on the same flight reservation as an adult who has TSA PreCheck are welcome to use the faster lane (with specific stipulations by the child’s age), which is especially convenient for families.
Current new application fees for TSA PreCheck run between $80 and $85, and renewals cost between $59 and $85, depending on the enrollment provider you choose. TSA PreCheck memberships are valid for five years.
Global Entry costs $120, and memberships are also valid for five years. While Global Entry costs more, it includes all of the benefits of TSA PreCheck and adds quicker U.S. Customs screenings. Unlike with PreCheck, though, minors without Global Entry who are traveling with adults in the Global Entry program don’t automatically have the ability to access those benefits.
You likely don’t need to join both programs, and whether TSA PreCheck or Global Entry is best for you depends on your travel habits. However, most top credit cards will cover the fee of either.
See a summary of the requirements below of three top options from American Express, Chase, and Capital One. For any credit card, though, be sure to read the fine print about how to access the reimbursement or credit for either travel program application.
Are Premium Travel Cards Actually Worth It?
Unfortunately, there’s no simple test to gauge whether or not a premium travel credit card is worth getting.
“Consider travel rewards if they will be more valuable to you than a competing cash-back card,” says Steele. But as far as which option to get, you’ll want to consider the annual fee compared to the credits and benefits.
From there, consider the specifics of your spending and travel habits and how likely you are to maximize all that the card stands to offer you. You might realize that while a travel card could make sense for you, perhaps a lower-fee option is the most sensible. Ultimately, the goal is for your credit card to work for you rather than the other way around.
Contact Newsweek editor on this story: Catherine Clark.
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