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If you have good or excellent credit, which generally means a credit score of at least 660, it could be your ticket to a free (or heavily subsidized) trip a few months down the road. You just have to play your cards right - literally.
Credit card sign-up bonuses are more lucrative than they've ever been, offering an average of $101.48 in cash or 15,664 points/miles, according to WalletHub's latest Credit Card Landscape Report. And that doesn't even scratch the surface of what the market's elite have to offer. The best credit card deals will give you at least $400 in points, miles or cash for spending a few thousand dollars within a few months of account opening.
With the average person expected to spend $936 during this year's holiday shopping season, according to the National Retail Federation, this is the easiest time of year to meet a credit card's initial spending requirement. So if you want to take a spring or summer trip on a credit card company's dime, get cracking. To get you started, let's take a closer look at some of WalletHub's editors' picks for the best travel credit cards on the market right now.
- Best Initial Bonus:Chase Sapphire Preferred - Spending $4,000 during the first three months that you have this card will get you 50,000 bonus points, which can be redeemed for $625 in travel through Chase Ultimate Rewards or $500 in cash. The ongoing rewards aren't great, and a $95 annual fee kicks in during the second year, but if you're just looking for a big rewards score, you don't necessarily need to worry about either.
Chase Sapphire Preferred also happens to have the market's best travel insurance, according to WalletHub's editors. It gives you up to $3,000 in coverage for lost luggage, up to $500 for delayed luggage, up to $10,000 for canceled trips and up to $500 for significant delays, among other benefits. - Best For High-Rollers:Chase Sapphire Reserve - Sapphire Reserve's $450 annual fee might scare a lot of people off, but frequent travelers who can look past it are in for a plethora of perks. That includes 100,000 bonus points (worth $1,250 in travel) for spending $4,000 in the first three months, as well as a $300 annual airline credit and access to airport lounges.
- Best For Frequent Travelers:Barclaycard Arrival Plus & Capital One Venture - Two of the best all-around travel rewards cards on the market, Arrival Plus and Venture both offer hefty initial bonuses and the miles equivalent of at least 2% cash back on all purchases.
Arrival Plus is a bit more expensive, charging an $89 annual fee beginning in the second year, compared to Venture's $59 fee which kicks in at the same time. But Arrival Plus also gives you 50,000 bonus miles for spending $3,000 in the first 90 days, whereas Venture offers just 40,000 miles for spending $3,000 in the first three months. - Best For Rental Car Insurance: You can feel most confident in rejecting the rental agency's offer for supplementary insurance if you pay with a credit card from Citi, USAA or Chase. Credit cards provide complimentary coverage that's nullified if you buy insurance from the rental agency, and those issuers have the best policies, according to a 2016 WalletHub report. On the other hand, you'll want to take a closer look at the terms and conditions if you have a Capital One MasterCard or a card from Bank of America, as they have the shakiest coverage.
At the end of the day, it's also worth noting the folly inherent in going overboard with plastic during the holiday season. Overspending is popular this time of year, which is why we racked up roughly $52 billion in credit card debt during the fourth quarter of last year. There are few ways to throw away rewards faster than to pay interest on a credit card balance. So make a budget that allows room for something to look forward to in the warmer months. Enjoy!
EDITOR'S NOTE: This content is not provided or commissioned by any company. Opinions expressed here are the author's alone, not those of a credit card company, and have not been reviewed, approved or otherwise endorsed by any company.
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