How to consolidate credit card debt
Consolidating your credit card debt can help you organize everything into a single monthly payment and save money with a lower overall interest rate. Two popular strategies include using balance transfer credit cards and debt consolidation loans.
Debt consolidation is combining all your existing debt in one place. You can consolidate credit card debt with a balance transfer credit card or loan from a bank or another financial institution.
Related: Best ways to pay off credit card debt
Credit card debt consolidation is right for you if it helps pay off your debt. The point of debt consolidation is to lower your interest charges and organize your debt in one place so it's easier to track. If available debt consolidation strategies can't lower your overall interest rate, consider other debt-payoff strategies, including budgeting.
Credit card debt consolidation pros
It can organize your debt into one monthly payment
It can save you money with a lower interest rate
It can help you get out of debt quicker
It can improve your credit score with on-time payments
Credit card debt consolidation cons
It can temporarily impact your credit score if you apply for new credit accounts or have a high credit utilization
It might not help you get out of debt
You might not qualify for the best offers
You can transfer existing debt from multiple sources to a balance transfer card and then manage your debt in one convenient location. This typically only makes sense if the card you're transferring debt to is a 0% APR credit card.
A credit card with a 0% introductory APR (annual percentage rate) offer on balance transfers lets you avoid paying any interest on transferred balances for a certain amount of time. You still have to pay a balance transfer fee on most cards, but it could be worth paying if you save more money on interest.
Consider the difference between paying off credit card debt with and without using a balance transfer card with a 0% intro APR offer.
Scenario A
Scenario B
Scenario C (0% APR offer and high payment)
No 0% APR offer and minimum payment
0% APR offer and minimum payment
0% APR offer and minimum payment
Debt
$10,000
$10,000
$10,000
Interest rate
20%
0% intro APR for 12 months
0% intro APR for 12 months
Balance transfer fee (5%)
N/A
$500
$500
Monthly payment
$265
$267
$850
Time to pay off
59 months
49 months
12 months
Interest paid
$5,893
$3,029
$0
Total paid
$15,893
$13,529
$10,500
The examples above show how a balance transfer offer could save you money, even if you don't fully pay off your balance during the 0% intro APR period. However, we recommend paying as much of your debt off as possible during the promotional period, as that will save you the most money on interest.
Check out our reviews of each card:
Chase Freedom Unlimited: How to get an extra $300 back in your first year
Capital One Savor Cash Rewards review: Unlimited cash back for no annual fee
Amex Blue Cash Preferred Card review: Big grocery rewards and more everyday savings
A credit card debt consolidation loan can be used to pay off your existing debt so you have one monthly payment and a lower rate.
Consider the following debt situation where you could use a debt consolidation loan:
Credit card 1
Credit card 2
Credit card 3
Balance
$20,000
$10,000
$5,000
Interest rate
20%
18%
25%
Average interest rate
21%
Total balance
$35,000
If you qualify for a sufficient loan amount and favorable loan terms, you could save on interest as you work to pay off your debt. Even better, you would only have one payment to worry about rather than three.
Debt consolidation loan requirements could include the following:
A valid Social Security number
Be at least 18 years old
A physical address
A minimum income that's determined by the lender (bank, credit union, or other financial institution)
A good credit history and/or credit score (it's common for lenders to issue credit checks, which can temporarily impact your credit score and show up on your credit report)
Personal loans can be used the same way as debt consolidation loans to organize your debt and save money on interest. Depending on the financial institution, a personal loan could be labeled as a 'debt consolidation loan.' That means they're the same thing and often have the same requirements.
A home equity loan or home equity line of credit (HELOC) lets you borrow money against your home's equity.
With a home equity loan, you receive a lump sum of money that you have to pay back with interest, typically at a fixed rate, over a certain number of years. A HELOC lets you borrow money from an open line of credit, and you pay interest on the amount borrowed. You can use either option to pay off credit card debt from multiple sources.
The strategy with using these options is to make sure the amount you pay in interest is lower than what you're currently paying on your credit card debt.
Home equity loan and HELOC requirements could include:
Home equity
A favorable debt-to-income ratio
A positive credit history
Sufficient income
Paying closing costs
A 401(k) loan lets you borrow money against your retirement savings. You have to pay the loan back with interest within a certain amount of time, and you could be on the hook for paying taxes and incur a penalty if you default on the loan (can't pay it back).
We don't generally recommend taking out a loan against your 401(k) without careful consideration because it could derail your retirement savings plan. You would have to thoroughly review the situation to see if paying off debt with the money you'll likely need when you retire makes sense.
Credit counseling organizations can offer debt management or debt repayment plans where you pay the organization and they make payments to your creditors. This could be a useful debt consolidation option for paying off different types of debt.
That would only be the case if the organization negotiates with your creditors to lower your interest charges or balances due or negotiates other favorable terms of debt relief.
Things to be aware of with credit counseling organizations:
You might have to pay a fee for these types of services. Be sure to review the plan's terms and conditions, including repayment terms.
Not all organizations are reputable, and scams do exist within this industry. The U.S. Department of Justice has a list of approved credit counseling agencies you can browse.
Debt consolidation isn't the only way to take control of your debt and eventually become debt-free. As you consider your financial situation and options, keep these popular budgeting strategies in mind.
The debt avalanche method focuses on paying off the debt with the highest interest rate first. As you pay off one debt, you move to the debt with the next highest interest rate. The point of this strategy is to save money by paying off the high-interest debt first and as fast as possible.
Credit card 1
Credit card 2
Credit card 3
Balance
$10,000
$5,000
$3,000
Interest rate
18%
25%
20%
Using the debt avalanche method in this example, you would put your payments toward the balance on credit card 2 first, then credit card 3, and then credit card 1.
The debt snowball method is similar to the avalanche method but focuses on paying off the smallest amount of debt first rather than the debts with the highest interest. This strategy aims to build momentum as you move from paying off one balance to another. It might not save as much money as the avalanche method, but it can help keep you motivated.
Credit card 1
Credit card 2
Credit card 3
Balance
$10,000
$5,000
$3,000
Interest rate
18%
25%
20%
Using the debt snowball method in the same example, you would put your payments toward the balance on credit card 3 first, then credit card 2, and then credit card 1.
Related: What's more important — Saving money or paying off debt?
Debt consolidation can hurt your credit score if you apply for a new balance transfer card or debt consolidation loan. Your score could also go down from high credit utilization on a balance transfer card, as well as a new credit account lowering the average age of your accounts.
However, these effects are typically temporary, especially if you make on-time payments as you work to pay off your debt.
Debt consolidation can be worth it if it helps you pay off your credit card debt. The purpose of debt consolidation is to organize all your debt in one place at a lower interest rate than what you were collectively paying before. It's likely worth it if you can do this with a balance transfer card or loan, owing less money overall and making it easier to track payments.
Consolidating credit card debt has two purposes: it lowers your overall interest rate on all your debt and organizes it in one place. This makes tracking your payments easier and lowers the interest you pay throughout the debt-payoff process.
It depends on the financial institution and their requirements, but you typically need to provide personal and financial information, often including your Social Security number and income. Your credit history and debt can also factor into the qualification process, so having a good credit score is typically beneficial.
Some of the best methods to consolidate credit card debt include using balance transfer credit cards and loans. With either of these options, you can consolidate your debt in one place, making it easier to track. However, debt consolidation typically only saves you money if it also lowers your overall interest rate.
This article was edited by Rebecca McCracken
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
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Yahoo
07-05-2025
- Yahoo
Preparing for a recession? Take advantage of these credit card benefits
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Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
Yahoo
05-05-2025
- Yahoo
Top travel credit cards for 2025
Travel credit cards aren't only for jet-setting world travelers. You can score deep discounts and valuable perks whether you only fly once per year or you're determined to check off multiple bucket list destinations. The key is choosing the right travel credit card for you. That means an annual fee that fits your budget and rewards that align with your regular expenses and travel preferences — as well as great benefits to keep maximizing value each time you travel. Why we like it: The Capital One Venture card is a winning travel card for earning and redeeming miles, no matter how you like to travel. The simple 2x miles on every purchase can help you earn toward future trips with everything you buy. And redemptions are just as far-reaching: You can use miles to book future trips through Capital One Travel, reimburse yourself for travel purchases you make with your card, or transfer miles to Capital One's 15+ travel partners. It has only a few added benefits, including a credit toward TSA PreCheck or Global Entry fees, Five Star Status with Hertz rental cars, and a $50 experience credit when you book a stay with the Lifestyle Collection hotels. But the Venture card's value really comes from how simple it is to maximize the miles you earn and redeem. If you're looking for a flexible way to get the best value on travel without committing to a booking site, travel brand, or type of trip, this card is tough to we like it: The Chase Sapphire Preferred Card has a solid welcome offer and rewards on a mix of travel and everyday categories, so you can rack up points no matter how often you vacation. On top of that, you'll get an anniversary points bonus worth 10% of your overall spending from the past year. But you'll get the most value from this card when it's time to redeem. Points redeemed for travel through Chase Travel℠ get a 25% boost — so 10,000 points would be worth $125, for example. Perks such as up to $50 in statement credits each anniversary year for hotels booked through Chase Travel and partner benefits with Lyft, DoorDash, and Peloton can also save you money at home or while traveling. And if you have a Chase cash-back card like the Chase Freedom Unlimited® or Chase Freedom Flex®, you can pool the rewards you earn with those cards with your Chase Sapphire Preferred and take advantage of the redemption boost across your we like it: Premium travel cards are often reserved for only very frequent travelers who can afford to pay high annual fees while still getting enough value from airport and travel benefits to make the cost worth it. We like the Capital One Venture X Rewards Credit Card because it has no shortage of great perks and rewards, but offers a relatively lower annual fee. Plus, it has the same straightforward rewards and flexible redemption options as the regular Venture card. As for those great perks, you'll get a $300 annual travel credit for bookings with Capital One Travel; 10,000 bonus miles each year after your first anniversary; a credit for TSA PreCheck or Global Entry fees; access to Capital One Lounges and partner lounge networks; a $100 experience credit when you book stays with the Premier Collection; Hertz President's Circle status; and more. Combined, these perks more than outpace the card's annual fee — but consider your travel plans to ensure you'll be able to take full advantage and get the maximum possible value from your Venture X we like it: You might not expect a travel credit card to offer some of the best rewards on your most frequent budget items, but the American Express Gold Card does just that. With 4x points at restaurants worldwide (up to $50,000 in purchases annually) and 4x points at U.S. supermarkets (up to $25,000 in purchases annually), it's easy to earn rewards on your year-round food spending to put toward an upcoming trip — in addition to travel rewards categories. The Amex Gold Card's added benefits can also help you save at home and while traveling. These include up to $50 in statement credits semi-annually (up to $100 per year, with enrollment) when you use your card at a restaurant on Resy in the U.S.; up to $7 in monthly statement credits (up to $84 per year, with enrollment) for U.S. Dunkin purchases; up to $10 in monthly statement credits (up to $120 per year, with enrollment) when you use your card at Grubhub, The Cheesecake Factory, Goldbelly, and Five Guys; and more. Combined with travel savings, travel rewards, and flexible redemption options (including transferring to Amex's partner travel programs), Amex Gold offers great value even if you travel only a few times per we like it: The U.S. Bank Altitude Connect may be a no annual fee card, but the rewards and perks it offers can bring just as much value as more costly options. Like the other cards on our list, you can earn rewards across a range of travel and everyday categories: 5x points on prepaid hotels and rental cars booked through U.S. Bank's Altitude Rewards Center; 4x points on other travel and at gas stations or EV charging stations (up to $1,000 spent per quarter); 2x on dining purchases, streaming services, and grocery stores; and 1x on everything else. Redemption options may be slightly more limited than other cards on our list, but you can redeem rewards for a deposit to your U.S. Bank account, travel, gift cards, and more. Beyond rewards, added benefits also offer major value, especially for a no annual fee card. These include a statement credit toward TSA PreCheck or Global Entry fees and complimentary Priority Pass Select membership for airport lounge access (four free visits per year). Finally, a 0% intro APR on balance transfers for the first 12 billing cycles after account opening (17.25%-28.24% variable APR after that) could be useful if you're looking to pay down some existing debt over a few months but want a card that you can continue to use for travel longer-term. Why we like it: The Citi Strata Premier card is another travel card with a straightforward rewards structure but plenty of potential value. Earning rewards is simple — get 10x points when you book hotels, rental cars, and attractions through and 3x points across other hotel purchases, air travel, restaurants, supermarkets, gas stations, and EV charging stations (everything else earns 1x points). In addition to redemptions through and for gift cards, you can transfer points to Citi's partner airline programs. You might get the most value from this card if you stay at hotels often, but you aren't loyal to any single hotel chain and don't mind booking through Citi's travel portal. You can combine the 10x points on hotels booked through with the card's $100 annual hotel benefit, which gives you $100 off a single booking of $500 or more through each calendar year. Then, get the full redemption value for your points by using them to book future award stays through the portal. Why we like it: The Bank of America Premium Rewards Credit Card works a bit like a flat rewards card — with a boost. You'll earn 2x points on travel and dining with an unlimited 1.5x on everything else, which means you're still getting the 1.5x multiplier no matter what you use your card to buy at home or away. Even better, you may be eligible to increase your rewards earnings even more. If you're a Preferred Rewards member with Bank of America, you can earn 25% to 75% extra on every purchase, depending on your combined balances across eligible deposit and investment accounts. That could increase your travel and dining rewards to 2.5x to 3.5x and everything else to 1.87x to 2.62x per dollar. The Premium Rewards card's welcome bonus and annual fee align with the others on our list, but you'll also get some statement credits that can help increase your value beyond points. There's a credit toward TSA PreCheck or Global Entry fees every four years and an annual credit up to $100 for airline incidental charges like seat upgrades, in-flight purchases, and more. Bank of America has no travel transfer partners, but you can redeem your points for statement credits, gift cards, and travel purchases through the Bank of America Travel Center. General travel cards like the ones above can be great for scoring points and miles toward any type of travel. But if you always prefer flying with a certain airline or booking with a specific hotel chain, a co-branded travel card might be more rewarding. We included hotel and airline cards in our overall travel card ratings, and the cards below are the top-scoring options. Just remember: a co-branded travel card only makes sense if you fly often enough with that airline or stay frequently enough at the hotel to justify its value over a more general card. Make sure you look at your recent travel and any upcoming plans before deciding. The Alaska Airlines Visa Signature card has a solid welcome offer and rewards on a combination of everyday spending and Alaska purchases — plus it offers an affordable way to score Alaska's Companion Fare every year. You'll earn a $99 Companion Fare (plus taxes and fees) each account anniversary when you spend at least $6,000 in the year prior, or about $500 per month. With 3x rewards on Alaska Airlines spending and 2x on gas, EV charging, cable, streaming services, and local transit (plus 1x on everything else), you can meet that threshold with a combination of travel and everyday purchases while boosting your rewards. If you're already a Bank of America customer with an eligible Bank of America checking or savings account or an eligible investment account with Merrill, you can get even more annual value from a 10% annual rewards bonus on the miles you earn. Say you spent the $6,000 you need to earn Companion Fare on purchases in the 2x rewards category — you'd earn 12,000 points on your spending and an additional 1,200 with the relationship bonus to put toward a future Alaska you're planning a trip to Hawaii, the Hawaiian Airlines World Elite Mastercard can offer amazing savings on your trip. In addition to the bonus miles you'll get from the welcome offer, you'll also get a one-time companion discount for 50% off a roundtrip coach ticket between Hawaii and North America. Even after the one-time discount, you'll still save when you fly to Hawaii with a $100 companion discount every account anniversary which also applies to roundtrip travel between Hawaii and North America on Hawaiian Airlines. The purchases you make with the airline earn 3x miles per dollar. Even when you're not flying to Hawaii, you can earn miles toward a future trip with 2x miles on gas, dining, and eligible grocery store purchases (plus 1x on everything else).United and Chase offer multiple co-branded card options for frequent United Airlines flyers, but we like the The New United Quest Card for a few reasons. The annual fee is higher than some other options, but you'll get plenty of benefits that can help make up the cost if you fly United at least a few times per year. Perks you can use when you travel includ a $200 United travel credit and 10,000-mile award flight discount on each account anniversary; a 10,000-mile award flight discount after spending $20,000 each calendar year; a $100 property credit when you book Renowned Hotels and Resorts for United Cardmembers; 1 Premier-qualifying point for every $20 you spend (up to 18,000 PQPs per calendar year) toward Premier status with United; and more. In addition, get a solid welcome bonus and a wide range of ongoing rewards, from 3x miles on United purchases, 2x miles on other travel, dining, and select streaming services, and 1x on everything else. For travelers who prefer to stay in IHG Hotels (which includes brands like InterContinental, Kimpton, Crowne Plaza, Holiday Inn, and more), the IHG One Rewards Premier Credit Card offers a solid balance of rewards potential and annual benefits. You can earn up to 26x points on IHG hotel stays; 5x points on travel, dining, and at gas stations; and 3x points on everything else. For the added benefits, you'll get more value the more you spend with your card and stay at IHG properties. Annual perks include automatic Platinum Elite status (qualify for Diamond when you spend at least $40,000 in a calendar year); an anniversary free night worth up to 40,000 points; a $100 statement credit and 10,000 points when you spend $20,000 in a calendar year; your fourth night free on eligible reward stays; and up to $50 United TravelBank Cash each calendar year when you connect your card to your United MileagePlus account. As one of the most extensive hotel programs in the world, a co-branded Marriott credit card can be a great tool for traveling the world no matter what type of property you prefer. With the Marriott Bonvoy Boundless Credit Card, you'll get benefits when you stay, like an annual free night award (worth up to 35,000 points) and a path to elite status with 15 Elite Night Credits each calendar year plus one additional Elite Night Credit for every $5,000 you spend. On top of that, get automatic Silver Elite status and Gold Status if you spend $35,000 in a calendar year. You'll earn the most points toward future Marriott stays when you make purchases with Marriott, at up to 17x points per dollar, but you can also get rewarded for everyday spending at home, with 3x points on the first combined $6,000 at gas stations, grocery stores, and on dining. Everything else earns 2x points per dollar. All information about the Marriott Bonvoy Boundless Credit Card has been collected independently by and is no longer available through Yahoo Finance. If you're a Hyatt traveler, the World of Hyatt Credit Card has plenty to offer for savings on your hotel and resort stays. For ongoing rewards, you'll earn up to 9x points on purchases at Hyatt hotels; 2x points at restaurants, on airline tickets purchased directly with airlines, local transit and commuting, and fitness club and gym memberships; and 1x points on everything else. Compared to other co-branded travel cards, this lineup of rewards categories is pretty unique, which could make it a good pick if those categories line up with your budget while at home or when you travel. Like the hotel cards above, the World of Hyatt card also has plenty of potential annual savings on your Hyatt spending. You'll get a free night each year after your account anniversary for any Category 1-4 hotel or resort, another free night at a Category 1-4 property when you spend at least $15,000 in a calendar year, automatic Discoverist status, five qualifying nights per year toward your next-highest status, and 2 more qualifying night credits for every $5,000 in purchases with your card. Travel credit cards offer points and miles rewards on your spending, which you can use toward travel-related redemptions, such as flights, hotel stays, and car rentals. You'll often earn the highest rewards rate on travel purchases with a travel credit card, though many also offer boosted rewards on everyday purchases like groceries, gas, and more. Many travel cards also provide travel benefits and perks, which could include airport lounge access, annual travel or airline credits, companion airfare, or elite status with an airline or hotel loyalty credit cards are worth it if you get enough value from the card's benefits and rewards to outweigh any potential costs, such as an annual fee. Unlike some other rewards cards, like cash-back credit cards, travel cards are more likely to carry annual fees in exchange for their high rewards rates and annual benefits. They might not be worth it if you don't travel enough to take advantage of these card benefits and rewards. However, a travel card can still be worth it if you're not a frequent traveler. Even if you travel only once or twice per year, you can accumulate points throughout the year to offset your airfare and hotel costs when you do go on a you're comparing travel credit cards, it can be useful to separate them into two distinct types: general travel rewards cards and co-branded airline and . With a general travel credit card, you'll have a number of flexible redemption options when you're ready to redeem your points and miles. You may also have a broader range of benefits. Some general travel credit cards include: Chase Sapphire Preferred Card Capital One Venture X Rewards Credit Card American Express Gold Card Travel card issuers generally have their own travel portals, like Chase Travel or American Express Membership Rewards. You can use these to book flights, hotels, rental cars, and more. They may also have a number of travel partners, to which you can directly transfer points or miles. For example, American Express Membership Rewards points transfer to Delta SkyMiles at a rate of 1: flexibility of general travel cards means you can travel with any number of different airlines or hotel brands and get the best bang for your buck. Each time you're ready to book, simply shop around between the portal or partners and compare the best options for your specific travel plans. These credit cards also allow other redemption options, such as statement credits, gift cards, and cash back. But you'll generally get the best value by redeeming points or miles for travel. Airline and hotel credit cards are typically co-branded between the card issuer and the airline or hotel chain. Here are a few examples: Alaska Airlines Visa Signature credit card United Quest Card Marriott Bonvoy Boundless Credit Card These cards are best suited for travelers who prefer to fly with a specific airline or stay at a certain hotel chain. Maybe you live near a hub airport, frequent a destination where a specific airline offers the most direct flight options, or you enjoy the perks of a specific hotel's loyalty program. Instead of flexible rewards points or miles, you'll earn points or miles within the airline or hotel rewards program, like Marriott Bonvoy points or American Airlines AAdvantage miles — and get a boosted rewards rate when you spend directly with the airline or hotel. These cards often offer a faster path to elite status tiers within these programs as well. You'll typically get the best redemption rate when you use rewards for flights with the airline or stays at a hotel, but many programs offer other redemptions, too. Some airline and hotel rewards programs may even allow you to transfer your points and miles to other travel partners like you can with general travel rewards programs. The added benefits of co-branded cards are designed to appeal to loyal airline or hotel customers. For example, your airline card may get you priority boarding, upgrades, free checked bags, and in-flight discounts. And your hotel card may offer early check-in or late checkout, annual free night awards, and on-site credits. Co-branded travel cards aren't for everyone, but they can add a lot to your travel experience if you have a strong airline or hotel preference. Here are a few key details to look for in any new travel credit card: No matter your budget, there's a travel credit card with an annual fee that fits. You can find solid no annual fee options, like the U.S. Bank Altitude Connect Visa Signature card. But there are also plenty of premium travel cards with steep fees — The Platinum Card® from American Express, for example, may set you back $695 per year (see rates and fees) but comes with an abundance of valuable benefits and perks that can potentially give you even more value back each year. The most important thing to keep in mind when deciding whether an annual fee is worth it for you is whether you can get enough out of the rewards and benefits to outweigh the cost — without spending more than you otherwise would or can afford. For new cardholders, a sign-up bonus can offer major first-year value. These bonuses may be worth anything from 10,000 to over 100,000 bonus points or miles — which can translate to hundreds of dollars in rewards value. However, you should compare the terms of the bonus to your own budget before you apply. For example, you may need to spend $4,000 within the first three months of opening your card before you can earn the 60,000 bonus points. If that's not within your typical spending, be careful not to take on debt to meet the spending threshold. Accruing high interest on balances can quickly outpace even the best bonus. One smart strategy is opening a new travel credit card when you're booking a trip you've been saving for. You may already be prepared to spend more than usual, which can help you reach the bonus requirement faster. Plus, you can earn rewards on those travel purchases to put toward future trips. Also look out for limited-time offers from top travel credit cards. Occasionally, issuers will increase the welcome bonus for a period of time — if you see a promotional offer that fits within your budget, that could be a great time to apply for a new card. Rewards are one of the biggest reasons for many people to open a travel credit card. Earning rewards with travel cards often works in one of two ways. You'll either earn rewards on your everyday spending (groceries, gas stations, restaurants) to redeem toward future travel, or earn rewards on your travel spending to put toward future travel. Some cards offer a combination of these rewards, but knowing which type of spender you are can be useful. If your monthly budget is largely dedicated to everyday spending, you may get more value from the former. But if you travel frequently and spend a lot of money on flights, hotels, and rental cars, you can quickly rack up more points with travel-based rewards categories. Many travel rewards credit cards — especially the most premium cards with high annual fees — really shine when it comes to added perks and benefits. These benefits can help you offset the annual fee and save money each time you travel. Take the $395 annual fee Capital One Venture X Rewards Credit Card, for example. Each year, you'll get a $300 annual credit for bookings through Capital One Travel and 10,000 bonus miles (equal to $100 towards travel) on your account anniversary. Already, that's enough to wipe out the annual cost — before accounting for any rewards and other benefits (like up to $120 in fee credits toward TSA PreCheck or Global Entry and Priority Pass Select airport lounge membership). Just remember: Choose a card with benefits that help you save on purchases you would still have made otherwise. If you tend to arrive shortly before takeoff and don't care about airport lounge access, you won't actually get the $200 potential value from that benefit. One unique aspect of travel credit cards is the protections you can get as a cardholder when you travel. Common protections offered by travel credit cards include trip cancellation and interruption insurance, car rental insurance, trip delay reimbursement, baggage delay insurance, access to emergency assistance services, and more. As long as you pay for your travel expenses with the card (booking flights, hotels, tours, etc.) you can qualify for these travel protection benefits. Like any coverage, though, you should make sure to read the fine print of what your individual card offers. These benefits can vary greatly between different travel cards, so make sure to look for details in your card rewards credit cards can make a great addition to your wallet, even if you only travel a few times per year. Be sure to compare different travel card options to find the combination of annual fee, rewards, benefits, and sign-up bonus that works best for your travel plans and spending. There may be a few reasons why a travel credit card isn't right for you, though: You're already in credit card debt. Avoid adding another card — especially one with a potentially high annual fee — to your wallet if you already have high-interest debt. Eliminating those balances will help you save a lot more in interest than any value travel rewards could offer. You don't want to keep up with a rewards strategy. Travel credit cards can be most lucrative if you maximize how you earn and redeem rewards. If you don't want to spend the time strategizing bonus categories and the best redemption options, a credit card with a simpler rewards structure may be better for you. You don't have great credit. Travel credit cards generally require a good-to-excellent credit score to qualify for approval. If your credit isn't in a great place right now, focus on improving your score before you apply for a new card. If you are ready to open a travel credit card, time your application wisely. The spending thresholds to earn your welcome bonus can be high, so you may want to plan your application around your next trip. The money you've already saved can help you score the bonus when you book your travel, and you'll also earn bonus points or miles for your next trip. If you're new to travel credit cards, the Capital One Venture Rewards Credit Card is a great place to start — you can earn 2x miles on everything, and it's easy to redeem your miles through Capital One's travel portal. Before you apply for any new travel card though, look at your frequent spending and travel to find the best one for your individual goals. When traveling abroad, look for credit cards that don't charge foreign transaction fees. All of the cards on the list above waive foreign transaction fees, so you won't have to worry about extra charges when you use them to travel internationally. One thing to keep in mind while traveling abroad is worldwide acceptance of your card. It can be useful to travel with more than one credit card on different card networks (these include Visa, Mastercard, American Express, and Discover). For a premium travel experience, the Capital One Venture X Rewards Credit Card is our top pick. However, there are other premium travel cards with valuable benefits for travelers — including annual credits, elite status, bonus rewards, and more — for higher annual fees. We began our search for the best travel cards with a list of 70 credit cards that offer travel rewards and benefits. This list includes general travel cards with flexible rewards programs, as well as co-branded hotel and airline cards that earn points and miles within a specific program. Our methodology focuses on cards that offer the greatest value to the broadest range of cardholders — without a significant annual cost. We start with each card's welcome offer, which we rate based on the value of the bonus, the spending required to qualify, and a ratio comparing the bonus points or miles earned to the card's annual fee. The more you're spending to own the card, the more value we believe you should get in return. Another large portion of the overall ratings is rewards and ongoing benefits. We give preference to cards with rewards categories that span both travel and everyday spending (gas stations, supermarkets, dining, streaming services, etc.) to help ensure you can maximize points even when you're not on-the-go. We also consider redemption options for each card, with the most flexible rewards programs earning higher scores. Finally, we compare travel benefits like annual statement credits, airline status and award nights, companion offers, and other ongoing perks that might make opening a travel card worth it over the long-term. We also look at each card's annual fee, ongoing APR, credit score access, and foreign transaction fees — as well as issuer-specific information like customer service contact information, mobile app user ratings, and fraud protections. These are details we evaluate for every type of credit card. The final picks on our list are the travel credit cards with the highest overall ratings given each of the criteria above. We sort out general travel cards first — these are the options that make up the primary list, because they are more flexible for a larger number of travelers. But we also include top-scoring hotel and airline co-branded cards. These are great options for some travelers, though you should consider how often you travel with the hotel or airline before you consider one of these cards.
Forbes
30-04-2025
- Forbes
Maximize Your Wallet: Best Cards To Use With Chase Sapphire Preferred
Batman and Robin, peanut butter and jelly—some things are just better in pairs, including the best credit card combinations. The Chase Sapphire Preferred® Card is one that, while powerful on its own, can give you next-level value when coupled with the right partner. There's a long list of attributes that make the Sapphire Preferred such a stellar product and one of the best rewards cards on the market, so let's get into it: For all the Sapphire Preferred's strengths, there's still room for improvement. For example: This is where pairing the Sapphire Preferred with another credit card can take your points earning to the next level. The Chase Freedom Unlimited® is a no annual fee card with simple yet versatile rewards earning: 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases. It's a solid card on its own, but when paired with the Sapphire Preferred, it becomes a powerful tool for maximizing every dollar you spend. What makes this pairing so effective is how well the two cards complement each other. The Sapphire Preferred shines in categories like travel and dining, while the Freedom Unlimited picks up everything else with a minimum above-average return of 1.5X. Instead of settling for the Sapphire Preferred's underwhelming 1X on nonbonus purchases, you can route that spending through the Freedom Unlimited and boost your base earnings by 50%. Since both cards earn Chase Ultimate Rewards® points, combining them means you not only earn more, you also unlock better redemption value through the Sapphire Preferred's 25% travel portal boost or its valuable airline and hotel transfer partners. The no annual fee Chase Freedom Flex® brings rotating 5% bonus categories to the table, making it a trusty sidekick for your Sapphire Preferred. While it earns just 1% back on most purchases, the real value lies in its quarterly bonus categories, where you can earn 5% back on things like gas, grocery stores and online shopping. You'll earn 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. The Sapphire Preferred doesn't offer rotating categories, so the Flex fills a valuable gap, especially if your spending habits shift throughout the year. And like the Freedom Unlimited, it earns Chase Ultimate Rewards® points that become far more valuable once moved to the Sapphire Preferred. That means you can earn 5X points on select categories and redeem those points at a boosted 1.25 cents through Chase Travel—or transfer them to travel partners for even bigger wins. On the surface, the Sapphire Preferred and Capital One Venture X Rewards Credit Card (rates & fees) may look like competitors, but together they cover nearly every rewards gap. While the Sapphire Preferred focuses on bonus categories and point transfers, the Venture X offers flat-rate simplicity with 2X miles on every purchase—plus premium travel perks like lounge access and annual credits. Where the Sapphire Preferred lacks luxury travel features, the Venture X delivers: Partner Lounge Network access, Capital One Lounge access and a $300 annual travel credit for bookings through Capital One Travel. That travel credit, plus a 10,000-mile anniversary bonus, help make up for the $395 annual fee (rates & fees). Access to Capital One's transfer partners means you have even more options when it's time to book your dream trip. If you don't mind managing two issuers, this duo gives you premium travel perks, solid base earnings on every purchase and access to two of the most valuable rewards ecosystems. The Chase Sapphire Preferred® Card is an impressive standalone travel card, but it becomes far more powerful when paired with the right partner—or two. Whether you want to earn more on everyday spending, take advantage of rotating bonus categories or enjoy premium travel perks, combining it with cards like the Freedom Unlimited, Freedom Flex or Venture X can help you earn more, redeem better and get the most from every dollar. Find the best Chase credit card for your needs. As long as you pay your cards on time, avoid carrying a balance and practice good credit habits, having multiple credit cards will not negatively impact your credit score. It can even help your score over time. You don't have to stop at two cards to maximize your rewards and benefits. Take the Chase Trifecta, for example, where you can combine some of Chase's best cards, like the Chase Sapphire Reserve® or Preferred, with the Chase Freedom Flex and Chase Freedom Unlimited. Having a premium Ultimate Rewards card paired with no-annual-fee cash-back cards can unlock better earnings and more valuable redemption options. Chase doesn't publish the exact score needed to be eligible for the Sapphire Preferred, but as a premium credit card, you'll need at least a good credit score (at least 670 on the FICO scoring scale).
