Are points or airline miles better?

Flexible points that transfer to several airline and hotel partners give you the most options and protect you if one programme devalues. A co-branded airline card can be better if you are loyal to one carrier and use its perks such as free checked bags and priority boarding.

Does a travel credit card include travel insurance?

Some do, offering benefits like trip-delay, lost-baggage or rental-car cover when you pay with the card, but terms and limits vary widely and often require you to charge the trip to the card. Always read the benefits guide rather than assuming you are covered.

How to Choose a Travel Credit Card: A Practical Guide (2026)

Q: Is a travel credit card worth the annual fee?

It depends on how much you spend and travel. A card is worth its fee when the value you get from rewards, statement credits, lounge access or insurance comfortably exceeds the yearly cost. If you rarely travel or would carry a balance, a no-fee card or paying by debit may serve you better.

Q: What is a foreign-transaction fee?

It is a surcharge some cards add — often around 1–3% — on purchases made in a foreign currency or processed abroad. For frequent travellers, choosing a card with no foreign-transaction fee can save more over a year than most sign-up bonuses.

Reviewed by the ScanFlyGo team · Last updated: July 2026. This is general information, not financial advice — check each card's current terms and consider your own circumstances.

Quick answer

Choose a travel credit card by matching it to how you actually spend and travel: look for no foreign-transaction fees if you go abroad, weigh the annual fee against the perks you will really use, prefer flexible transferable points over locked-in miles unless you are loyal to one airline, and never carry a balance — interest wipes out any rewards. Read the insurance and benefits guide before you apply, not after.

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1. Start with how you travel

The best card is the one that fits your habits. Someone who takes two long-haul trips a year has different needs from a frequent short-haul flyer or a family that mostly spends on groceries and fuel. Before comparing sign-up bonuses, jot down where you spend the most and what a trip usually looks like for you.

2. Foreign-transaction fees matter more than you think

If you use your card abroad, a foreign-transaction fee of a couple of percent on every purchase quietly adds up — often to more than a flashy welcome bonus is worth. For regular international travellers, a card with no foreign-transaction fee is one of the most valuable features to prioritise.

3. Weigh the annual fee against real perks

Premium cards charge more but bundle benefits. Only count the perks you will genuinely use.

Perk	Worth it if…
Lounge access	You fly often and have long waits
Statement credits	You would spend on those categories anyway
Free checked bag	You fly one airline and check luggage
Travel insurance	You charge trips to the card and read the terms

If the usable value beats the fee, the card pays for itself; if not, a no-fee option may serve you better.

4. Points vs miles: flexibility usually wins

Flexible reward points that transfer to multiple airline and hotel partners give you room to find the best redemption and cushion you against any single programme devaluing. A co-branded airline card makes sense mainly if you are loyal to one carrier and lean on its perks like priority boarding and a free bag.

5. Understand the sign-up bonus rules

Welcome bonuses can be generous, but they usually require a minimum spend within a set window. Never manufacture spending you cannot afford just to hit a target — and factor in whether you can meet it comfortably before applying.

6. Check the insurance fine print

Card-linked travel insurance can be a real benefit, covering things like trip delay, baggage or rental-car damage — but coverage, limits and claim conditions vary a lot, and often require you to pay for the trip with the card. Treat it as a supplement to, not a replacement for, a proper policy. See our travel insurance basics guide for the essentials.

7. Protect your credit and your budget

Rewards only make sense if you pay in full each month; card interest rates far exceed the value of any points. Set up automatic payments, keep your utilisation low, and treat the card as a spending tool rather than a source of extra money.

However you pay, the fare itself is where the biggest savings live. Compare the whole market on a metasearch, stay flexible on dates, and once booked, use a live flight tracker to stay ahead of delays.

Frequently asked questions

Is a travel credit card worth the annual fee?

Only if the value you use — rewards, credits, lounge access, insurance — comfortably beats the yearly cost. Infrequent travellers often do better with a no-fee card.

What is a foreign-transaction fee?

A surcharge, often around 1–3%, on purchases in a foreign currency. Avoiding it can save frequent travellers more than most bonuses.

Points or airline miles?

Flexible transferable points give the most options; a co-branded airline card suits travellers loyal to one carrier.

Does it include travel insurance?

Some cards do, but terms and limits vary and usually require paying with the card. Read the benefits guide before relying on it.

The bottom line

A travel credit card is a tool, not a trophy. Pick the one that matches your spending, skip fees you won't offset, favour flexible points, and always pay in full. Do that and the rewards genuinely lower the cost of travel. Start a live search on ScanFlyGo and browse popular routes to see where your next trip could take you.

Some links on ScanFlyGo are affiliate links — we may earn a commission at no extra cost to you. This article is general information and not financial advice; card terms are set by the issuer and confirmed on application.