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What are travel credit cards, and how do they work?
Travel credit cards are financial products that offer various rewards and benefits geared towards frequent travelers. They typically earn you points or miles for every dollar spent on eligible purchases. These rewards can be redeemed for flights, hotel stays, car rentals, and other travel-related expenses. Travel credit cards may also include perks like travel insurance, airport lounge access, and no foreign transaction fees.
How do I choose the best travel credit card for my needs?
Choosing the best travel credit card depends on your travel habits, spending patterns, and preferences. Consider factors like the type of rewards offered (points, miles, or cash back), the card’s annual fee, sign-up bonuses, earning rates, redemption options, and additional travel perks. Analyzing these features will help you find a card that aligns with your lifestyle and offers the most value.
What are the benefits of using a travel credit card over other types of credit cards?
Travel credit cards provide unique advantages for travelers, such as earning rewards specifically tailored to travel expenses. Additionally, many travel credit cards offer travel-related perks like free checked bags, priority boarding, and travel insurance. Some cards also waive foreign transaction fees, making them ideal for international travelers.
What is a sign-up bonus, and how can I qualify for it?
A sign-up bonus is a promotional offer provided by the credit card issuer to entice new cardholders. To qualify for a sign-up bonus, you usually need to meet specific spending requirements within a certain timeframe after opening the account. The bonus can be in the form of points, miles, or cash back, and it’s a great way to jump-start your rewards earning.
Do travel credit cards charge foreign transaction fees?
Not all travel credit cards charge foreign transaction fees. Many of the top-tier travel cards waive these fees, making them ideal for international travel. However, it’s essential to read the card’s terms and conditions to confirm this before using it abroad.
How can I maximize the rewards earned with my travel credit card?
To maximize rewards, use your travel credit card for everyday expenses and large purchases. Take advantage of bonus categories and special promotions to earn more points or miles. Consider combining your travel credit card with loyalty programs to stack rewards and get even more value out of your purchases.
The Platinum Card® from American Express delivers, without question, the most potential value of any travel rewards card (we’re talking multiple free flights). From its enormous welcome bonus to its thousands of dollars in annual statement credits (literally), this card can justify its $695 annual fee (see rates and fees) without breaking a sweat.
From incredibly extensive airport lounge access to elite status at some of the world’s largest hotel chains, we’ll break down this card’s myriad of benefits and evaluate if it’s a good complement for your lifestyle.
- Best for: Luxury Perks
- Annual Fee: $695
- Pay Over Time APR
- Reward Rate: 5X
- Recommended Credit: 670-850
The Platinum Card® from American Express
80,000 Membership Rewards® Points
Offer Details:
80,000 Membership Rewards® Points after you spend $8,000 on purchases in your first 6 months of card membership
Why we like it
The Amex Platinum was once the sole dominating force in the luxury credit card space. While it now faces some stiff competition, it still offers unbeatable perks like unprecedented airport lounge access, elite status at Hilton and Marriott, and some outstanding statement credits making the mammoth $695 worth it for some.
Reward details
5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
Pros & Cons
Pros
Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
$200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings through American Express Travel using your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
$240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.
The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
$155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
$200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
$200 Uber Cash: Platinum Card® Members can get out and about and explore their local area with $15 in Uber Cash for US rides each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings. Simply download the Uber app and add your Platinum Card® to your Uber account to get started. Available to Basic Card Member only. Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
$199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
Receive either a $120 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That’s up to $50 in statement credits semi-annually. Enrollment required.
Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
Cons
The $695 annual fee is brutally high. Too high for many that can’t, or don’t want to take full advantage of its benefits.
Points-earning rates are low unless spending directly on flights or with the Amex Portal.
Some of the benefits, like travel credits, are more limited and are harder to use than competing cards’ offerings.
How to earn the Amex Platinum Card bonus
The Amex Platinum Card currently offers 80,000 bonus points after spending $8,000 on purchases within the first six months from account opening.
American Express Membership Rewards® is arguably the most valuable travel rewards currency—and 80,000 points is a lot. We estimate that the bonus is worth about $1,600 toward travel—enough to score you multiple free flights. But if you know how to expertly wield them (and, if you read the Smart Points Newsletter, you do), you could squeeze a whole lot more from those points. We’ll show you in a second.
How to use the Amex Platinum Card bonus
It’s impossible to pin a specific value on American Express Membership Rewards points, because the return you get for them depends on how you redeem them. Let’s take a look at the most popular ways to use the rewards.
Transfer to travel partners (the best option)
American Express is partnered with 21 airline and hotel programs. Points transfer at a 1:1 ratio, though there are a few exceptions (as you can see below). Amex also frequently publishes promotions that improve the transfer ratio to some partners.
Aer Lingus | Choice Privileges | Iberia |
Aeromexico (1:1.6) | Delta | JetBlue (1:0.8) |
Air Canada Aeroplan | Emirates | Marriott Bonvoy |
ANA | Etihad | Qantas |
Avianca | Flying Blue (Air France and KLM) | Qatar Airways |
British Airways | Hawaiian Airlines | Singapore Airlines |
Cathay Pacific | Hilton Honors (1:2) | Virgin Atlantic |
There are virtually endless free flights you can enjoy with this card’s 80,000-point bonus. Here are a few thoughts to help you get started:
- Transfer 58,000 points to British Airways for two roundtrip flights between Charlotte, NC and San Juan, Puerto Rico ($1,400 in value).
- Transfer 75,000 points to Hilton for a night at the Waldorf Astoria Maldives ($2,200+ in value).
- Transfer 68,000 points to Iberia for a roundtrip business class flight to Madrid in a lie-flat seat on Iberia from the East Coast ($3,800 in value).
- Transfer 80,000 points to Avianca for two roundtrip coach flights from the US to Europe on a Star Alliance airline such as United, Turkish Airlines, or Swiss ($2,200+ in value).
With 80,000 American Express Membership Rewards points, there’s virtually no bucket list destination you can’t eliminate. Free flights and free hotels are yours for the taking.
Book travel through Amex Travel
Amex Travel is the official online travel agency of American Express. You can reserve flights, hotel stays, and more—and at checkout, you can use either cash or points (or a mixture of both).
You’ll receive a value of 1 cent per point when booking flights and hotel stays through Amex Fine Hotels & Resorts (a collection of luxury hotels only available for those who hold an Amex Platinum or Centurion card). You’ll get 0.7 cents per point for everything else.
In other words, this 80,000-point bonus from the Amex Platinum Card will earn you $800 toward flights and between $800 and $560 in hotel stays by using Amex Travel.
This is not the best way to use your Amex points, but it’s a more straightforward way to get more travel for your rewards. If you can’t find award availability for your desired travel dates, or if you’re simply not interested in the minor hassle of transferring rewards to a loyalty program, this could be the way to go.
Cash equivalents and merchandise
You can also trade your rewards for a statement credit or direct deposit at a rate of 0.6 cents each—or, you can redeem them at checkout with select stores (think Amazon and Walmart) for 0.7 cents each.
If you think you’ll be routinely using your points in this way, you are far better off spending with a cash back credit card instead of a travel rewards card like the Amex Platinum Card.
Is the Amex Platinum Card good for earning points after the intro bonus?
The Amex Platinum Card has two bonus categories where you can earn big rewards for your spend, but it’s nothing special when earning points for everyday purchases. You’ll earn:
- 5x points per dollar for flights booked directly with the airline or through Amex Travel (for up to $500,000 in spending per calendar year, then 1x)
- 5x points per dollar on prepaid hotels booked through Amex Travel
- 1x point per dollar on all other eligible purchases
With narrow bonus categories like these, the card isn’t a good daily driver unless the lion’s share of your spending is for airfare and hotel stays. Still, the card’s ongoing benefits make it worth keeping—even if you don’t use the card on a daily basis.
Ongoing benefits of the Amex Platinum Card
Again, the Amex Platinum Card is positively loaded with benefits that, if you can use them organically, will lead to mind-blowing annual value. But not all benefits may jive with your lifestyle. We’ve organized the Amex Platinum Card perks into three categories to help you better understand their value.
Perks you will use
Airport lounge access: Get access to thousands of airport lounges around the world, many of which offer free food and alcohol (and sometimes even showers!). These include luxurious American Express Centurion lounges and Delta SkyClubs when flying Delta on the same day.
Up to $200 in annual hotel credits provided in statement credits: When booking a prepaid hotel through Amex Fine Hotels & Resorts or Amex’s slightly less fancy The Hotel Collection (two-night minimum), you’ll receive a $200 rebate each year. This could likely cover a night or two if you find the right property.
Up to $200 annual airline fee credits provided in statement credits: You’ll be refunded for expenses such as seat selection, baggage fees, pet fees, airport lounge day passes, etc. However, there are ways to trigger this credit to help you pay for airfare itself.
$200 Uber Cash: Platinum Card® Members can get out and about and explore their local area with $15 in Uber Cash for US rides each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings. Simply download the Uber app and add your Platinum Card® to your Uber account to get started. Available to Basic Card Member only. Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
Up to $240 in digital entertainment credits provided in statement credits: Receive up to $20 per month to offset the price of popular services such as Hulu, Disney+, Peacock, The New York Times, and more.
Cell phone insurance: Get up to $800 in coverage with a $50 deductible when you pay your phone bill with your card.
Travel protections: Trip delay insurance, trip cancellation and interruption insurance, baggage insurance, and rental car insurance all kick in when you use the card to pay for your travel.
Automatic Marriott and Hilton Gold elite status: Get bonus points, room upgrades when available, breakfast privileges, and more during your stays at Marriott and Hilton hotels.
Perks you might use
Amex Offers. Save money on purchases you’d likely make anyway with digital offers that you can add to your card from your online account. When you spend with specific merchants or complete certain activities, you’ll get bonus rewards or statement credits.
$155 in Walmart+ membership provided in statement credits: You’ll be refunded for a monthly Walmart+ membership, which costs $12.95. Walmart+ also comes with a free Peacock subscription.
These benefits are also worth potentially over $1,000, depending on how often you book stays through Amex Fine Hotels & Resorts.
Up to $100 in annual Saks credits provided in statement credits: Receive $50 in credit between January 1 and June 30 and another $50 between July 1 and December 31. These credits aren’t difficult to use, but they likely aren’t saving you money if you don’t normally shop at Saks.
Up to $300 in annual Equinox credit provided in statement credits: Equinox fitness clubs can cost hundreds of dollars per month, and they’re typically only found in big cities. This credit also works to offset the price of a subscription to the Equinox+ app.
$300 in annual SoulCycle at-home bike credit (for up to 15 bikes) provided in statement credits: If you’re launching a SoulCycle studio, the Amex Platinum Card can save you thousands. For everyone else, it’s quite a niche perk.
Terms apply and enrollment is required for some benefits.
The point
The Amex Platinum Card has no problem justifying its $695 annual fee. If you can use even a fraction of its many valuable benefits, it’s a no-brainer to keep year after year. Plus, its massive welcome bonus is reason enough to at least give the card a try for a year to score flights, hotels, and more using your points.
Here’s what you need to do: Pore over each Amex Platinum Card benefit and decide if its features will save you more than $695. Do you order $200 worth of Uber Eats each year? Do you spend money on food at the airport? Do you pay for checked bags when you fly?
If you think you’ll save more than you’re spending in annual fees, you’re effectively losing money by not opening the card.
For rates and fees of The Platinum Card® from American Express, click here.
- Best for: Luxury Perks
- Annual Fee: $695
- Pay Over Time APR
- Reward Rate: 5X
- Recommended Credit: 670-850
The Platinum Card® from American Express
80,000 Membership Rewards® Points
Offer Details:
80,000 Membership Rewards® Points after you spend $8,000 on purchases in your first 6 months of card membership
Why we like it
The Amex Platinum was once the sole dominating force in the luxury credit card space. While it now faces some stiff competition, it still offers unbeatable perks like unprecedented airport lounge access, elite status at Hilton and Marriott, and some outstanding statement credits making the mammoth $695 worth it for some.
Reward details
5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
Pros & Cons
Pros
Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
$200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings through American Express Travel using your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
$240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.
The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
$155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
$200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
$200 Uber Cash: Platinum Card® Members can get out and about and explore their local area with $15 in Uber Cash for US rides each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings. Simply download the Uber app and add your Platinum Card® to your Uber account to get started. Available to Basic Card Member only. Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
$199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
Receive either a $120 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That’s up to $50 in statement credits semi-annually. Enrollment required.
Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
Cons
The $695 annual fee is brutally high. Too high for many that can’t, or don’t want to take full advantage of its benefits.
Points-earning rates are low unless spending directly on flights or with the Amex Portal.
Some of the benefits, like travel credits, are more limited and are harder to use than competing cards’ offerings.
“Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/
by your friends at The Daily Navigator
