Are Travel Cards Worth It? The Truth From a 10-Year Card Holder

Are travel cards worth it when annual fees can range from $95 to a staggering $695? After carrying various travel credit cards for over a decade, I've discovered the answer isn't straightforward. Despite these hefty fees, many cards offer substantial value through benefits like $300 annual travel credits and welcome bonuses worth $1,000 or more.

I've learned firsthand that travel credit cards can be incredibly worthwhile, even for occasional travelers. For instance, benefits such as complimentary checked baggage, airport lounge access, and no foreign transaction fees have significantly enhanced my travel experiences over the years. However, the true value depends on your spending habits, travel frequency, and ability to navigate redemption rules. With some airline miles worth up to 2 cents each when strategically redeemed, these cards can deliver exceptional returns—but they typically require good to excellent credit scores (670+) for approval.

In this article, I'll share my decade-long journey with travel rewards cards, the surprising benefits I've actually used, and the honest drawbacks that most promotional materials conveniently overlook. Whether you're considering your first travel card or wondering if your current one is still worth the annual fee, my experience will help you make an informed decision.

What I’ve Learned After 10 Years Using Travel Credit Cards

My relationship with travel credit cards began out of necessity rather than strategy. Looking back at my decade-long experience, I've collected numerous insights that might help you decide if these cards align with your lifestyle and goals.

How I started with my first travel card

Back in 2013, I was preparing for my first international trip to Europe when a friend suggested I look into travel rewards cards. At that time, I knew nothing about points, miles, or the potential value they offered. Initially, I was skeptical about paying an annual fee just to use a credit card.

Nevertheless, I applied for a mid-tier airline card that offered a 50,000-mile signup bonus after spending $3,000 in three months. The card had a $95 annual fee, which was waived for the first year. Though I didn't fully understand the value proposition, those initial 50,000 miles ended up covering my round-trip flight to Barcelona the following year.

What truly sold me was experiencing the tangible benefits firsthand. Skipping the checked bag fees saved me $60 on my first round-trip domestic flight. Moreover, boarding earlier meant I never worried about overhead bin space. These seemingly minor perks added up quickly, especially considering I only needed to fly twice that year to offset the annual fee through baggage savings alone.

What changed in my travel habits over time

Throughout the years, my approach to travel credit cards evolved significantly. During my first three years as a cardholder, I focused primarily on a single airline ecosystem. Subsequently, I discovered the flexibility of transferable points currencies, which fundamentally changed my strategy.

As my travel frequency increased, my priorities shifted. Originally, I valued simple benefits like free checked bags and priority boarding. Later, airport lounge access became essential during long layovers, as discussed in my article about overlooked travel card perks.

Additionally, my spending patterns adapted to maximize rewards. I began strategically using different cards for various purchase categories:

• Travel and dining on my premium travel card (3x points)

• Groceries and gas on my everyday spending card

• Large purchases on cards offering signup bonuses

Perhaps the most notable change was my willingness to juggle multiple cards. I started with one but eventually maintained a portfolio of four complementary cards that created a comprehensive rewards ecosystem.

The biggest surprises I encountered

The most unexpected revelation was how travel credit cards fundamentally changed my approach to trip planning. Before, I selected destinations based solely on interest and budget. Afterward, I found myself considering where my points could take me, often discovering incredible places I might otherwise have overlooked.

Furthermore, I was astonished by the actual monetary value these cards provided. Beyond the advertised perks, I benefited from less-discussed protections like travel insurance that saved me thousands when flights were canceled during a snowstorm.

Another eye-opener was realizing how Global Entry transformed my international travel experience. The time saved bypassing long immigration lines after exhausting transoceanic flights proved invaluable, especially when making tight connections.

Lastly, I was surprised by how card benefits adapted to my changing lifestyle. When I traveled frequently for work, airport lounge access and upgraded hotel stays were most valuable. Later, as family obligations reduced my travel frequency, the flexible redemption options and extended purchase protection became more important.

Overall, these cards exceeded my expectations, though they required more active management than I initially anticipated. The key lesson: the question "are travel cards worth it" depends entirely on how willing you are to learn the systems, track your benefits, and strategically use each card's strengths.

Types of Travel Credit Cards and How They Work

Understanding the various types of travel credit cards has been crucial to maximizing my rewards over the past decade. Each category serves different travel needs, and knowing how they work can help you choose the right card for your lifestyle.

Co-branded airline cards

Airline credit cards result from partnerships between financial institutions and specific airlines. These cards typically earn miles within that airline's frequent flyer program, which can be redeemed for flights with that carrier and its partners.

The primary appeal of airline cards lies in their travel-specific perks. Most offer free checked bags, which can save up to $70 on a round-trip flight per person. For a family of four, that's potentially $280 in savings per trip—easily offsetting annual fees that typically range from $95-$150.

Beyond baggage benefits, these cards often provide:

• Priority boarding (typically after elite members but before general boarding)

• Discounts on in-flight purchases (usually 20-25%)

• Paths to elite status through spending

• Companion passes with certain cards

The Citi/AAdvantage Platinum Select World Elite Mastercard exemplifies this category, offering 2X miles on eligible American Airlines purchases, restaurants, and gas stations, plus free first checked bags on domestic flights.

One limitation, as I discussed in my article about choosing the right travel credit card, is that you're generally restricted to redeeming within that airline's ecosystem. Consequently, blackout dates and limited award seat availability can sometimes diminish the value of your miles.

Hotel loyalty cards

Similar to airline cards, hotel credit cards partner with specific hotel chains to offer brand-specific rewards and benefits. These cards typically award more points per dollar than airline cards, although each point is generally worth less.

The real value of hotel cards comes from their status benefits and free night certificates. Many automatically grant cardholders elite status—like the Hilton Honors American Express Aspire Card that offers complimentary Diamond status. This elite status unlocks valuable perks like:

• Daily food and beverage credits or free breakfast

• Room upgrades when available

• Late checkout options

• Executive lounge access at participating properties

Annual free night certificates represent another major benefit. The Marriott Bonvoy Boundless Card, for instance, offers one free night award annually (for rooms requiring up to 35,000 points). This benefit alone can often exceed the card's annual fee.

Hotel cards shine for travelers loyal to specific brands. To illustrate, during my years frequently staying at Marriott properties, their co-branded card helped me quickly accumulate enough points for vacation stays while enjoying Gold status benefits on business trips.

Flexible rewards cards

Unlike co-branded cards, flexible rewards cards aren't tied to specific travel brands. Instead, they earn points that can be redeemed in multiple ways, making them the Swiss Army knives of travel credit cards.

These cards typically offer several redemption options:

• Booking travel through the issuer's portal

• Applying points as statement credits toward travel purchases

• Transferring points to airline and hotel partners

• Redeeming for cash back, gift cards, or merchandise (often at lower values)

What makes flexible cards particularly valuable is their transfer capability. As I explained in my post about maximizing your benefits, transferring points to the right partner at the right time can significantly increase their value.

Major flexible rewards programs include American Express Membership Rewards (18 airline and 3 hotel partners), Chase Ultimate Rewards, Capital One Rewards (19 airline and hotel partners), and Citi ThankYou Points.

Which type worked best for me

After experimenting with all three types, I've found that maintaining a strategic combination yields the best results—specifically, one premium flexible rewards card supplemented by select co-branded cards.

In the beginning, airline cards provided immediate tangible benefits like free checked bags. As my travel patterns evolved, I realized that flexible rewards cards offered greater versatility, particularly for international travel where I could transfer points to multiple airline alliances.

First thing to remember: your ideal card mix depends on your travel patterns. For someone who flies one airline consistently, a co-branded card makes perfect sense. For diverse travelers, flexible rewards cards offer unmatched adaptability.

For me, the most effective strategy has been using a flexible rewards card for everyday spending while holding co-branded cards for specific benefits. This approach allows me to accumulate transferable points while still enjoying perks like free checked bags, priority boarding, and hotel status—benefits I detailed in my article about travel credit card perks you shouldn't overlook.

The question "are travel cards worth it" ultimately hinges on matching the right card type to your specific travel habits—something I explore further in my analysis of the pros and cons of travel rewards cards.

The Real Benefits I’ve Actually Used

Beyond the points and miles, what truly makes travel credit cards valuable are the tangible benefits you can actually use. After a decade of card membership, here's what has genuinely improved my travel experiences and saved me money.

Free checked bags and lounge access

Baggage benefits alone have justified my annual fees many times over. In fact, by avoiding the typical $30-35 fee per checked bag each way, I've saved approximately $560 annually just from four round-trip flights. This single benefit effectively pays for many mid-tier card annual fees multiple times over.

Airport lounges, meanwhile, have transformed my travel days completely. During an unexpected six-hour delay in Chicago, access to comfortable seating, free food, and private restrooms proved invaluable. Indeed, I typically value each lounge visit at $35-50 based on food, drinks, and comfort provided. As I noted in my article about overlooked travel card perks, these seemingly small comforts make a substantial difference during stressful travel situations.

Global Entry and TSA PreCheck credits

The $100 Global Entry credit (which includes TSA PreCheck) has been among my most-used benefits. As I detailed in my Global Entry guide, this membership has saved me countless hours at immigration. Notably, during one return from Europe, I bypassed a 90-minute immigration line while my travel companions waited.

For domestic travel, TSA PreCheck typically cuts my security wait times by 70-80%. Throughout the years, I estimate this benefit has saved me at least 30 hours of standing in airport lines—time better spent anywhere else!

Travel insurance and purchase protection

In reality, card-provided travel protections have saved me thousands over the years. When a winter storm canceled my connecting flight in Denver, my card's trip delay coverage reimbursed $500 for my hotel and meals. Similarly, as I discussed in my article about credit card travel insurance, these often-overlooked benefits can make a significant difference when travel goes wrong.

Purchase protection has also proven surprisingly valuable. When my new camera was damaged three weeks after purchase, my card's protection benefit covered the $400 repair cost with minimal hassle—a benefit I hadn't even considered when applying for the card.

Free hotel nights and elite status perks

Undeniably, annual free night certificates from hotel cards deliver exceptional value. One certificate I received from a card with a $95 annual fee allowed me to book a room that would have cost $325 during a citywide convention.

Hotel elite status, often granted automatically with certain travel credit cards, has consistently enhanced my stays. As I explained in my comprehensive guide to travel credit cards, these status perks often include:

• Room upgrades (received on approximately 60% of my stays)

• Late checkout (saved me from awkward waiting situations countless times)

• Free breakfast (typically valued at $15-30 per person daily)

To answer the question "are travel cards worth it"—the concrete benefits I've regularly used have returned far more value than the annual fees I've paid. Certainly for frequent travelers, these tangible perks often provide significantly more value than the points and miles that typically get all the attention.

The Downsides You Don’t Hear About Often

While travel credit cards offer impressive benefits, they come with several drawbacks that rarely appear in promotional materials. Based on my decade of experience, here's what you should consider before applying.

Annual fees that aren't always worth it

Many people forget that premium travel credit cards require consistent usage to justify their cost. Admittedly, a $695 annual fee might seem reasonable when offset by travel credits and perks, yet this math only works if you actually use them. Throughout my journey, I've maintained cards that became temporarily unprofitable during years when my travel decreased.

As I discussed in my article about annual fees, these costs typically range from $95 for entry-level cards to $695 for ultra-premium options. Unless you're traveling at least 3-4 times yearly, these fees often exceed the benefits received.

Complicated redemption rules

Perhaps the most frustrating aspect of travel credit cards is navigating the labyrinth of redemption rules. In contrast to cash back cards, travel rewards involve complex award charts, transfer ratios, and seasonal pricing.

In reality, maximizing value requires substantial research time. I've spent countless hours studying redemption sweet spots and availability patterns. For busy individuals, this complexity can reduce the practical value of rewards, as I explained in my comprehensive guide to travel credit cards.

Devaluations and blackout dates

Importantly, points and miles depreciate over time. Unlike cash, rewards currencies routinely lose value through program changes. During my decade with these cards, I've witnessed numerous devaluations where airlines suddenly required more points for the same flights.

Additionally, blackout dates and limited award availability have occasionally prevented me from using points during peak travel seasons. Assuredly, this limitation represents one of the biggest drawbacks compared to more flexible cash back options, as detailed in my pros and cons analysis.

High APRs and credit score requirements

On top of everything else, travel credit cards typically carry higher interest rates—often 18-24% APR. This makes them potentially dangerous for anyone who might carry a balance. Even a month of interest can quickly erase your rewards value.

Credit score requirements present another hurdle. Most worthwhile travel credit cards require good to excellent credit scores (typically 690+). This effectively makes the best travel rewards inaccessible to those with average or rebuilding credit.

To determine if travel credit cards are truly worth it for you, consider these drawbacks alongside the benefits. For occasional travelers or those unable to fully utilize the perks, simpler cash back cards might provide better overall value with less complexity.

FAQs

Q1. Are travel credit cards worth the annual fee? Travel credit cards can be worth the annual fee if you travel frequently and take advantage of the benefits. For example, free checked bags, lounge access, and travel credits can often offset the fee. However, if you don't travel often or use the card's perks, it may not be worth the cost.

Q2. How do flexible rewards cards compare to airline-specific cards? Flexible rewards cards offer more versatility as points can be transferred to multiple airline and hotel partners. They're ideal for travelers who aren't loyal to a single brand. Airline-specific cards, on the other hand, provide brand-specific perks like free checked bags and priority boarding, which can be valuable for frequent flyers of that airline.

Q3. What are some hidden drawbacks of travel credit cards? Some drawbacks include complicated redemption rules, potential for point devaluation, blackout dates for rewards bookings, and high interest rates. Additionally, many travel cards require excellent credit scores, making them inaccessible to some people.

Q4. How can I maximize the benefits of my travel credit card? To maximize benefits, use your card for everyday purchases to accumulate points, take advantage of sign-up bonuses, utilize perks like free checked bags and lounge access, and strategically redeem points for high-value rewards. It's also important to understand and use travel protections like trip cancelation insurance.

Q5. Are travel cards suitable for occasional travelers? Travel cards can still be beneficial for occasional travelers, especially if they offer perks like free checked bags or annual travel credits that offset the annual fee. However, for very infrequent travelers, a cash back card might provide better value with less complexity.