A good travel rewards card can pay for flights, add protection and save you money overseas. A bad fit can quietly cost you more than it earns.

This guide explains what to compare. It is general information, not financial advice, and offers differ by country and card issuer, so check the current terms with your bank.

Start with how you travel

A traveller who flies one airline several times a year needs something different from someone who takes one big trip every two years. Think about where you go, how often and what you spend on flights, hotels and everyday purchases.

What to compare

• Annual fee: is the benefit worth more than the fee in your hands?
• Foreign transaction fees: these can add a few percent to every purchase abroad.
• Earning rates: how many points or miles per dollar, and in which categories.
• Redemption value: flexible points are often easier to use than a single airline’s miles.
• Protections: some cards include trip delay, baggage or rental car cover. Check the conditions.
• Acceptance: carry cards on more than one network, as acceptance differs by country.

Smart habits

• Pay in the local currency, not your home currency, when given the choice.
• Tell your bank you are travelling if they ask for it.
• Keep a backup card in a separate place.
• Pay your balance in full every month.
• Do not count on rewards to replace proper travel insurance.

Cards and travel planning

Rewards are a bonus, not a reason to take a trip you do not want. Pick the journey first, then see whether a card helps pay for it. We are always happy to talk through the cost of a trip so you can plan your spending.

Frequently Asked Questions

Are travel rewards cards worth the annual fee?

Only if you use enough of the benefits to outweigh the fee. Add up what you would realistically earn and use.

What are foreign transaction fees?

A percentage charged by some cards on purchases made abroad or in another currency. Some travel cards have none.

Should I use points for flights or hotels?

It depends on the redemption rates available to you. Compare the value per point before you decide.

Can I pay for a Melissa Tours booking with a credit card?

Payment options are confirmed in your quote. Ask your specialist about the methods available for your booking.

Keep Reading

• Top 11 Insider Tips for Seamless International Travel
• Common Travel Scams to Avoid Abroad
• Why You Need Comprehensive Travel Insurance