Signing up for a travel rewards credit card could bring that bucket-list vacation one step closer to reality. With a big sign-up bonus and extra points earned in categories such as dining and travel, the points can quickly add up to a free flight or hotel stay. But why stop there? Savvy travelers know that the best travel credit cards offer a slew of other valuable perks, from access to swanky airport lounges to often-overlooked benefits including travel insurance. Here are five of the most valuable travel perks that come with credit cards.
Lounge Access
With ever-more-crowded terminals and long security lines, many travelers aim to arrive at the airport with plenty of time to spare. While there’s nothing wrong with passing the time before boarding at the gate, you may be looking for a more elevated experience to kick off your vacation on the right note. Enter: the airport lounge.
As part of their annual fee, many travel rewards credit cards offer cardmembers complimentary access to lounges, where travelers can relax in a comfortable environment and take advantage of amenities such as free buffets and free-flowing cocktails.
There are a few different types of airport lounges. In recent years, the major U.S. card issuers themselves have been building out their own network of lounges in an effort to attract new card signups. American Express pioneered this concept with its Centurion Lounges (access included with the Platinum Card), followed by Capital One (included with the Venture X Rewards card) and Chase (included with the Chase Sapphire Reserve card).
Airlines also operate their own branded lounges, such as the American Airlines Admirals Club or the Delta Sky Club. Many premium airline credit cards also offer access, though it’s typically available only when flying that airline or one of its partners. This perk can often represent a great value. For example, if you wished to purchase an annual membership to the United Club, it would set you back $650 a year (as of 2024), but if you sign up for the airline’s United Club Infinite Credit Card, unlimited access is included as part of the card’s $525 annual fee.
Looking for more lounge options? A Priority Pass membership is another valuable perk that comes with certain travel rewards cards such as the Chase Sapphire Reserve and Capital One Venture X Rewards cards. Priority Pass operates a network of more than 1,300 global airport lounges, so you shouldn’t have much trouble finding one to enjoy on your next trip.
Elite Status (or Elite-Like Perks)
To recognize their most loyal customers, airlines and hotels typically award elite status to those who meet certain spending thresholds. Elite status unlocks lucrative benefits such as free upgrades, priority boarding, and late check-out. But even if you don’t typically spend enough to qualify, a credit card can give you a jump-start toward status.
Some credit cards even offer elite status outright just for having the card. For instance, Marriott Bonvoy Brilliant cardholders receive complimentary Platinum Elite status, while the Hilton Aspire Card offers top-tier Diamond status. The Air Canada Aeroplan Card grants automatic 25K Elite status with Air Canada for the first two years of card membership.
Other cards will help you earn status faster. With American’s AAdvantage Executive World Elite Mastercard, every dollar you spend on the card counts toward earning elite status. Delta’s SkyMiles Reserve American Express Card offers a similar benefit.
And then there are cards which offer elite-like perks even if you don’t achieve elite status. Take the American Express Platinum Card — when you book a hotel that’s part of the Fine Hotels + Resorts collection, you get cardmember-exclusive perks including complimentary daily breakfast, room upgrades, guaranteed late checkout, and a resort credit.
Travel and Rental Car Insurance
Even the best-laid travel plans can sometimes go awry, which is why some people purchase travel insurance for upcoming trips. But did you know many travel rewards credit cards already offer travel insurance?
Depending on the card and policy, this would reimburse you for things such as lost or damaged baggage, trip delays or interruptions, car rental damage, and medical treatment. Holding a card with travel insurance (and, typically, using it to pay for all or part of your trip) means you don’t have to purchase a separate stand-alone travel insurance policy.
One of the most comprehensive travel insurance policies is found with the Chase Sapphire Reserve. Benefits include up to $20,000 reimbursement for trip interruption or cancellation and up to $3,000 per passenger for lost bags (accurate as of 2024). Other cards, even ones with lower annual fees, also offer travel insurance protections, but you’ll want to take a careful look before deciding if you need to purchase a more comprehensive policy.
Rental car insurance is another handy perk. Some cards, such as the Chase Sapphire Reserve, even offer primary insurance coverage, which means if you get in an accident, it applies before any other type of insurance coverage you might have. (Other cards offer secondary coverage, which means you’ll have to go through your existing provider first and possibly deal with multiple insurance companies.)
To be eligible, make sure you waive the insurance offered by the rental car company and pay with the rental using the credit card that offers insurance. And be sure to read through the fine print — for example, credit cards typically offer collision damage coverage but not liability coverage.
Travel Credits and Certificates
While it’s true that many of these travel perks come at a cost — premium card annual fees often exceed $500 — you can easily offset your out-of-pocket cost by taking advantage of the credits and certificates that some cards offer.
One of the simplest to use is the $300 annual travel credit with the Chase Sapphire Reserve. As a cardmember, you’ll automatically receive statement credits of up to $300 for any travel purchase — airline tickets, hotel rooms, cruises, and even parking, tolls, and taxi rides.
Capital One’s Venture X Rewards card also offers a $300 credit, but this applies only to bookings through the Capital One travel portal. And with the American Express Platinum Card, you’ll get a $200 credit for prepaid hotels booked through American Express Travel and $200 per year to offset airline fees such as those for checked baggage or seat selection.
Free hotel night certificates are another potentially useful benefit. The World of Hyatt Credit Card offers a free night redeemable at select properties for each cardmember anniversary; you can earn an additional free night by meeting certain spending thresholds. Similarly, the Marriott Bonvoy Boundless offers a free night award for each year you hold the card.
PreCheck and Global Entry Fee Reimbursement
Nobody likes standing in a long security or customs line, but fortunately, there are ways to reduce your wait. Start by enrolling in a Trusted Traveler Program like TSA PreCheck or Global Entry, which allows prescreened passengers to bypass certain parts of the process, such as removing your laptop or shoes in the security screening line.
These programs aren’t free, but that’s where credit card perks come in. A large number of credit cards will automatically credit cardholders the application fee ($78 for PreCheck or $120 for Global Entry, as of October 1, 2024). If you travel frequently, it’s a no-brainer.
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