Should You Get A Travel Rewards Credit Card If You Only Take One Trip A Year?

If you’ve seen videos of travelers snagging first-class seats to far-flung destinations for next to nothing thanks to credit card rewards, you probably wonder whether you should get one of those cards too. 

As a frequent traveler, I (mostly) love my travel reward credit cards. But I don’t recommend them to everyone. 

If you’re someone who only takes one trip a year, is it worth it to get a travel reward card? Here’s my take:

Need an extra push: Travel rewards may help you get to places where you otherwise might not be able to go. With so many expenses competing for your dollars, travel may feel like an optional expense that you may keep pushing off to “someday”. 

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With a travel rewards credit card, you can turn your regular spending into rewards that may be just what you need to finally book that trip. 

Love to learn about travel: Finding and getting the best deals with points or miles can take work. If you want to fly first class on an economy budget, you’ll have to be willing to invest some time learning about how reward travel works. (Just check out the glossary on this subreddit if you don’t believe me.)

When you’re new to travel rewards, it’s easy to find the number of choices — and decisions to be made — overwhelming. I still feel that way at times when deciding how to use my rewards, and I’ve written about credit cards for years.  

Still, researching dreamy destinations can be half the fun, and you’ll find entire communities of people who are happy to share their experiences and insights. Then there’s the excitement of finally booking that flight or hotel with points. It can be almost as fun as the trip itself. 

Don’t mind paying an annual fee: Annual fees on some of the most coveted travel rewards cards are pricey and going up. Chase Sapphire Preferred is now $795, and the American Express Platinum Card is an eye-popping $895, for example. Whether those fees are worth it will depend on the benefits you earn and use. 

If you’re not ready to spend that much, there are travel reward cards with relatively low (or no) annual fees. You may not get as large a menu of benefits as you would with a pricier card, but it may be a smart choice if you aren’t sure you can justify the higher fee. 

Feel comfortable using credit cards for everyday spending: Welcome bonuses (also called sign-up bonuses) are one of the best ways to rack up points or miles quickly. With these offers, you’ll often need to spend $3,000 to $6,000 in the first three months on the card to earn the bonus. 

Combining sign-up bonuses with points earned through spending is a common way to earn the points needed for a free getaway. 

Want a little luxury: Popular uses for points include upgrades from economy class to premium, business, or first-class seats on flights. If you’re in the same camp as credit card guru Jason Steele, who says, “Never leave the continent in economy,” then travel points can be the way to get those coveted seats without paying an arm and a leg. 

These cards can also help you get status with airlines, hotels, or car rental companies, making travel more comfortable and enjoyable with potential upgrades or other perks. 

Many premier travel reward cards also offer airline lounge access, which can provide a welcome escape from crowded boarding areas. Lounge offerings vary, but often you’ll find a quieter space with free food and beverages. 

If you’re only traveling once a year, though, you may not find this perk as valuable as frequent travelers. 

Have good to excellent credit. Premium cards often require good to excellent credit scores. That often means 680-plus FICO scores. If your credit scores are low, you may need to start with a card for fair or poor credit and improve your credit scores first. 

Lack flexibility: Do you go on vacation when everyone else does because that’s the only time of the year the kids are out of school? If so, you’ll have fewer options than a traveler who can take advantage of last-minute deals or travel outside peak season. Being flexible in terms of where and when you travel can be key to maximizing rewards. 

May not use your points right away: Points programs can change unexpectedly, and points may be worth less tomorrow than they are today. Even if that doesn’t happen, availability varies. 

Hotel rooms with the best redemption rates, or business class seats that don’t require a gazillion points, often get booked fast. If you don’t grab them quickly, you may miss out. 

Carry a balance: Credit card debt is climbing in the U.S. as many Americans struggle to keep up with increased living expenses.

If you carry a balance on your travel rewards card, the interest you pay will often outweigh the rewards you earn. 

It can also be tempting to overspend to earn a welcome bonus, then find yourself with balances you can’t pay in full. For those who carry balances, a low-interest-rate credit card would be a better bet. 

Prefer simplicity: For some people, chasing and maximizing points can feel more like work than fun. If that’s you, a straightforward cash back card may be the easiest choice. Save your cash back for your trip and spend it however you like.

Whether you choose a card designed specifically for travel rewards, a cash back reward card, or a more basic no annual fee credit card, the following benefits may save you a lot of money, depending on how and where you travel:

No foreign transaction fees: Purchases outside the U.S. may incur a foreign transaction fee of 2% to 3% of the purchase amount. Paying this surcharge is basically the opposite of getting your trip on sale. If you will be traveling outside the U.S., look for a card that doesn’t charge foreign transaction fees. 

Car rental insurance: Driving a car in another country can be stressful enough without wondering what you may owe if you’re involved in an accident or the vehicle is damaged. A travel credit card may offer excellent car rental coverage if you charge the rental to your card and decline the rental agency’s coverage. 

Some even offer primary coverage, which means it may cover damages without requiring you to first submit it to your auto insurance company. Again, read the fine print so you know what it does and doesn’t cover before you decide. 

Travel Insurance: Trip cancellation or interruption insurance may reimburse you for certain expenses if your luggage is lost, travel is delayed or cancelled, and more. You may be able to forgo the expense of purchasing travel insurance if your card coverage is sufficient. (Read the fine print to make sure you know what it covers.)

Ultimately, you’ll have to decide whether or not a travel rewards card makes sense for you, even if you only take one trip a year. If you do decide to get one, just be warned: You may find it so rewarding that one trip a year is no longer enough.