Time to Start Using Your Travel Rewards Cards Again?
With the end of the travel restrictions pandemic, it looks like it’s around the corner and you might be wondering if this is another good time to get a credit card for travel rewards. Some companies are offering bigger welcome bonuses than ever, but safe travel may not be a viable option until the end of 2021. Can you get by with the benefits available until then, or should you wait until you feel more confident?
Reasons to Get a Bonus Travel Card Now
Since credit cards can be a dangerous debt trap , there is really no need to get a travel card – that is, if you are not sure if the balance can be repaid every month, travel benefits pay off and getting them is consistent with your expected spending habits. Usually card buyers are looking for:
- Achievable welcome offer or high cash value bonus.
- The cost of the benefits outweighs the cost of the annual fee, which can be hundreds of dollars.
- Cards offering transferable, easily redeemable reward points.
Travel cards are ideal for people who travel a lot already as they offer travel-based points as well as other travel-only perks such as travel insurance, priority boarding, lounge access, and free upgrades. Of course, without travel, most of these perks are useless, which is why credit card companies have moved on to reward bonuses on meals, groceries, and online shopping during the pandemic.
These perks are generous in many cases, but they can also affect how you use your cards, especially if you already have dedicated cards for grocery and online shopping. On the other hand, travel is picking up and there are some really good deals on travel rewards cards right now, so it makes sense to at least consider buying the card again.
Is travel generally a good idea?
How safe is it to travel right now? The short answer is “not really,” as the CDC currently only recommends important trips (check out this Lifehacker post on this topic). However, as the rate of vaccinations has increased, it is reasonable to assume that safe travel will be possible in the second half of 2021.
So, in order to know if the time is right to get your travel reward card or not, you have to be realistic about how much you actually intend to travel, whether you will actually use non-travel benefits, and whether those benefits will cost an annual card fee.
What cards are offering great travel deals right now?
As if sensing a renewed interest in travel, credit card companies are making the most of their welcome bonuses. Here are the most important recent general travel card deals.
Chase Sapphire
Chase currently offers record high welcome bonuses of 80k and 60k points on its reserve and preferred cards, respectively, if you spend $ 4,000 within three months of opening an account. The Points Guy rates the 80K points bonus at $ 1,650 based on the ability to maximize points with hotel and airline transfer partners.
The Preferred Card has an annual fee of $ 95. It includes:
- $ 50 credit for grocery shopping.
- 5 points on Lyft rides through March 2022, 2 points on travel and meals worldwide, and 1 point on all other purchases.
- 25% more surrender value for restaurants, grocery stores, and home improvement stores.
There is an annual fee of $ 550 for a backup card. It includes:
- $ 300 statement credit for purchases at gas stations and grocery stores.
- 10x points on Lyft rides through March 2022, 3x points on worldwide travel, 3x points on dining at restaurants including eligible delivery and takeaway services, 1x on all other purchases.
- Shipping cost $ 0 when using DoorDash.
- $ 120 return on eligible Peloton Digital or All-Access memberships until 2021.
- Access to over 1,300 airport lounges worldwide.
American Express Platinum
The AmEx Platinum card is a premium travel card that is usually stingy with welcome bonuses. However, you can currently earn 100,000 points for your membership as long as you spend $ 5,000 within the first six months of opening an account. This amounts to about $ 2,000 . The annual card fee is $ 550. It includes:
- 10 points for eligible purchases at gas stations and US supermarkets (up to $ 15,000 on combined purchases within the first 6 months), 5 points for flights booked directly with airlines or American Express Travel, 5 points for prepaid hotels, booked with American Express Travel, 1x point on all other purchases.
- Amex offers a wide range of loans, including: $ 200 loan for airline incidentals such as checked baggage, free Uber Eats membership for one year, $ 100 loan for hotels, $ 100 loan US for TSA or Global Entrance Fees, Saks Fifth Avenue Credit of US $ 100.
- Access to over 1,300 airport lounges and complimentary memberships to premium car rental programs.
Of course, these are not the only options. The Points Guy has a nice breakdown of other current offerings of 100,000 bonus points or more .