How Do Travel Credit Cards Work?
7 Min Read | Published: 2 December, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
How do travel credit cards work, and what is a good travel credit card for you? Get answers and learn how your travel card earns miles, points, and bonus perks.
At-A-Glance
- Travel credit cards earn miles or points every time you spend, helping you turn every purchase into your next trip.
- Benefits often include traveler-friendly perks like no foreign transaction fees, elite airport lounge access, and even annual credits for popular entertainment, shopping, and hotel options.
- The best card for you depends on your travel style.
Travel can be one of life’s greatest rewards, but between flights, hotels, and little extras, costs can add up quickly. A travel credit card can lighten the load by rewarding your everyday spending with points or miles that bring your next trip closer. From skipping foreign transaction fees to earning credits that make vacations smoother, these cards support your travel dreams.
What Is a Travel Credit Card?
Travel credit cards help frequent adventurers get where they’re going by earning travel points or miles when they spend with their cards. Plus, many popular travel cards can earn you annual statement credits, added trip insurance, or concierge services. You may even earn rewards on non-travel purchases, like groceries and streaming subscriptions, turning your everyday spending into future travel savings.
What Is a Good Travel Credit Card?
A good travel credit card depends on the user. Are you a dedicated road tripper, a luxury jet setter, or an adventurous backpacker? Travel credit cards can offer a range of different added perks in addition to points and miles so you can choose the right fit for you. Here are some of the programs and benefits you may find:
- Trip and delay insurance
- Upgraded hotel status
- Coverage for medical services abroad
- 24/7 concierge services
- Luxury airport lounge access
- Shopping and wellness statement credits
- No foreign transaction fees
- Statement credits for hotels and resorts
How Travel Credit Cards Work
Basically, a travel card supports your globetrotting needs by collecting points and miles when you use it. You may even earn more when you’re booking flights, stays, hotels, or rental cars. Later, you can typically redeem or transfer those rewards for an elevated travel experience. Sometimes, transferring points to qualifying flights and bookings can stretch reward value even further.1
Here are a few examples of travel cards in action:
- You book a flight or hotel through your card’s travel portal and redeem points instantly for a more affordable stay.
- You transfer your travel miles to an eligible frequent flyer program and score premium seats for less.
- You purchase bags for your flight, get the first checked bag free as a perk, and pay less in international travel fees for any extra bags.
- You use your card abroad, free of worry and foreign transaction fees.
Several American Express® Cards don’t have foreign transaction fees. You can explore their benefits to see if they might be a good fit:
Types of Rewards and Benefits
Travel card rewards and benefits can be as diverse as the world you’re exploring. But perks often have one thing in common. They can help you travel more confidently and luxuriously. Some rewards and benefits you might find include:
Points and Miles
- Points on prepaid hotels
- Points on flights through participating airlines
- Points on other eligible purchases
- Welcome offer bonus points when you spend a certain amount on your card after opening it
Travel Credits
- Hotel travel credits that you can use to book accommodations
- Credits toward rideshare apps and subscriptions
- Airline fee credits for more affordable in-flight purchases
- Credits toward memberships that help streamline security lines or identity checks
Perks
- Access to elite airport lounges worldwide
- Early boarding privileges
- Credits for your favorite stores and wellness products
- Credits toward shopping subscriptions at retailers or grocery stores
- Credits for select gym memberships
- Shopping, trip, and travel protections
Is a Travel Credit Card Right for You?
If you love exploring new places and favorite escapes, a travel credit card can reward your spending with points or miles that go right toward your next trip. But if you’re a bigger fan of kicking it at home, a cash back card might be a better fit. You can compare Amex® Cards to find the perfect card for you.
Frequently Asked Questions
A travel card could be your ticket to earning rewards when you spend, especially when you book flights, hotels, or adventures abroad. The more you use it, the more you can save on travel costs and unlock perks like airport lounge access or waived international fees, making every journey feel a little more first-class.
Use it for everything from coffee runs to plane tickets, but especially for travel-related spending to rack up points or miles faster. Then, redeem those rewards toward flights or hotel stays, or transfer them to hotel and airline partners for extra value.
It depends on where you’re headed and which airline you choose, and you may have to pay a very small fee for the flight. But you can usually expect to need at least 5,000 miles to get a one-way domestic flight, and earning and redeeming strategically could make that free flight come sooner than you think.2
The ideal card depends on how you like to travel. Some are built for frequent flyers chasing upgrades, while others focus on flexible points you can use for hotels or experiences. You can always explore different options and card issuers to find the one that matches your travel rhythm and rewards style.
The Takeaway
Travel credit cards can turn routine expenses into stories you’ll tell forever, but the right fit depends on your lifestyle. If you travel frequently and want to make the most of perks like miles, statement credits, and no foreign transaction fees, a travel card can be a game-changer. The key is knowing how to use rewards to your advantage so each purchase brings your next epic escape closer.
Liv Gillespie is a Philadelphia-based writer with a double M.A. in English Linguistics & Literature and Secondary Education. Her work focuses on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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