The Best Travel Rewards Credit Cards for Beginners
The best consumer credit cards are those that earn transferable points, such as American Express Membership Rewards, Chase Ultimate Rewards, Capital One Miles, Citi ThankYou Points, and Wells Fargo Rewards. Unlike co-branded credit cards that only let you earn points with a specific hotel or airline, transferable points can be used with various airline and hotel loyalty programs!
If you’re new to travel rewards credit cards, deciding where to start can be overwhelming. With so many options available, we’re here to guide you through the process and help you find the best card for your needs!
The Chase Sapphire Preferred® Card: Our #1 Choice
If you don’t have any other travel rewards cards and you’re looking for a good place to start, we often recommend the Chase Sapphire Preferred card. Here are a couple of reasons why we love this card:
- At 60,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first three months of being a cardholder, the Chase Sapphire Preferred has a strong welcome offer!
- The card also has high earning potential on daily spending thanks to its bonus points categories, such as 3x points per dollar spend on dining, select streaming services, and online groceries
- It offers reliable travel insurance (including trip cancellation/interruption, lost luggage insurance, and more), as well as primary rental car coverage against theft, damage and fees charged!
- Importantly, its annual fee is relatively low at only $95!
- Plus, you earn a $50 annual Chase Travel hotel credit!
The Capital One Venture Rewards Credit Card: The Best “No-Thinking” Card
We call the Capital One Venture Rewards the “no-thinking” card because it earns 2x miles per dollar spent on all purchases. This is the highest base rate of miles you can earn without any cap on your earning potential! If you want a single, low-annual-fee credit card that you can use for all your purchases, this card might be the perfect choice for you.
- This card earns 75,000 Capital One miles after you spend $4,000 in the first three months of being a cardholder.
- The card’s earning potential is incredibly strong: beyond earning unlimited 2x miles per dollar spent on all purchases, you also earn 5x miles per dollar spent on hotels and rental cars booked through the Capital One Travel portral
- Moreover, you receive an up to $120 credit for Global Entry or TSA PreCheck®! Just this benefit alone offsets the $95 annual fee.
You can have both the Venture Rewards card and its “older brother”, the Capital One Venture X Rewards Credit Card, at the same time. Navigate here for a comparison between the two cards!
American Express® Gold Card: Our Top Pick for Foodies
If you’re a big foodie whose primary everyday spending categories include dining out and buying groceries, the American Express® Gold Card may be a perfect choice for you!
- The card’s welcome offers vary, but they’re generally high across the board. The standard public offer is 60,000 points after spending $6,000 in the first 6 months of being a cardholder; however, targeted referral links’ welcome offers may go up to 100,000 points! Don’t apply for this card at 60,000 points without “shopping around” to see if you’re eligible for a higher welcome offer.
- (“Plus, receive 20% back in statement credits on eligible purchases made at restaurants worldwide within the first 6 months of Card Membership, up to $100 back. Limited time offer. Offer ends 11/6/24!)
- Its earning potential is extremely high – you can earn 4x points per dollar spent on restaurants worldwide (up to $50,000 per year, then 1x point) and 4x points per dollar spent in U.S. supermarkets (up to $25,000, then 1x per dollar).
- See rates & fees. At $325, the annual fee is a little bit high for a beginner card. However, the card also earns a number of credits suitable for foodies: up to $100 annually in Resy credits split up in two $50 biannual credits at U.S. Resy restaurants, up to $84 annually in Dunkin credits, up to $120 annually in Uber Cash credits (which can also be used on Uber Eats; you must have downloaded the latest version of the Uber App and your eligible American Express Gold Card must be a method of payment in your Uber account. The Amex benefit may only be used in United States), and up to $10 monthly in dining statement credits when you pay with the Amex Gold Card at participating dining partners. Please note that terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Considering the higher annual fee and the numerous credits to manage, we recommend this card to beginners only if you’re confident in your ability to track all the monthly credits. Together, these credits provide $424 in value, which exceeds the annual fee. However, if you don’t leverage all the card’s credits, it’ll be more difficult to offset the cost of keeping it.
Bottom Line
The Chase Sapphire Preferred, the Capital One Venture Rewards card, and the American Express Gold card are amongst our top three most highly recommended card for beginners because of their relatively lower annual fees, the value of the welcome offers, and their high earning potential. Moreover, they all give you access to multiple airline and hotel transfer partners to maximize the value of your points! Nothing prevents you from keeping all three cards in your wallet at the same time, but if you had to choose, then we’d recommend:
- The Chase Sapphire Preferred card for anyone who favors Hyatt’s loyalty program and wants to earn bonus miles on restaurants, streaming services, and online groceries!
- The Capital One Venture Rewards card for anyone who wants a good “no thinking” card that allows them to earn bonus miles across all sorts of purchases without any upper earning limit.
- The American Express Gold card for all the foodies out there who spend a lot in U.S. supermarkets and restaurants worldwide – especially for those willing to keep track of all the card’s merchant credits!
Note: Opinions expressed here are ours alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
