Credit Cards that Offer Annual Travel Credits and How to Use Them

It’s no secret that some travel cards come with hefty annual fees. And if you don’t use the card enough, it can easily become another expense that’s not worth it. 

But these credit cards often include credits that you can use toward travel and everyday expenses to offset the annual fee. You can use this “free cash” on in-flight beverages, seat upgrades, baggage fees, and more. But it depends on the credits and making sure you use them before they expire.

“Use them. Don’t save them for later,” says Brian Sumers, Editor at Large for Skift, a travel website. “If you save them for later, you may forget or you may not travel.”

With rising costs and fewer discounts, your credits can be the golden ticket to upgrading your seat on your next flight or having lounge access for the first time. Here are our favorite travel credit cards that offer credits to help you save money despite the annual fee: 

Travel Cards That Offer Travel Credits 

American Express Platinum Card 

The Platinum Card® from American Express is one of our top travel card picks. It has a steep $695 annual fee, but it can be worthwhile for frequent travelers, who can gain access to luxury perks and everyday savings. The card offers nearly $1,400 in credits. 

You’ll get a $200 annual airline fee credit to use toward baggage fees, seat upgrades, and other flight expenses. The Platinum card also comes with $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings, but it requires a minimum two-night stay and you have to pay with your card. 

There are also a few credits you can use for everyday expenses, including a $155 annual Walmart+ membership credit, up to $240 in digital entertainment credits on eligible purchases (up to $20 per month), and $200 in Uber Cash to use for rides or Uber Eats ($15 per month and a bonus of $20 in December). 

For other leisure activities, you’ll get $300 in annual statement credits on eligible Equinox memberships or a digital subscription to Equinox+, and a $100 annual statement credit toward Saks Fifth Avenue or saks.com (up to $50 every six months, per calendar year). 

If you have several upcoming trips, the card can help you earn points to save money on your next travel expense, and give you credits to maximize your Platinum Card’s value whether you’re home or traveling. 

Bank of America Premium Rewards Credit Card 

The Bank of America® Premium Rewards® Card comes with a $95 annual fee, and offers $200 in travel credits. You’ll get a $100 annual travel statement credit that can be used toward flight upgrades, baggage fees, and other travel expenses. You’ll also get a $100 credit for Global Entry and TSA Precheck membership. Even though this card doesn’t offer as many credits as other premium travel cards, you’ll still get more value in credits than the annual fee. 

Capital One Venture X Rewards Credit Card

The Capital One Venture X Rewards Credit Card is a new travel credit card with a $395 annual fee. But you’ll get $500 in travel credits to offset the yearly charge. The card also offers $300 in annual travel credits for purchases made with Capital One Travel. And for the first year, you’ll get $200 in credits to use toward eligible vacation rentals with Airbnb, Turnkey, Vacasa, and VRBO. 

Few cards offer credits that can be redeemed toward Airbnbs or vacation rentals, so if you prefer this kind of lodging over hotels, this card could come in handy instead of choosing a card that offers a hotel credit instead. 

Chase Sapphire Reserve Card

The Chase Sapphire Reserve® Card carries a $550 annual fee. But if you’re a fan of luxury travel, the perks and travel credits can be worth it. The card comes with a $300 travel credit and a $100 credit toward TSA PreCheck/Global Entry. Plus, you’ll get a complimentary DoorDash DashPass membership through Dec. 31, 2024. 

If you don’t think you’ll use the credits or travel enough to maximize this credit card, you may consider its sister card, the Chase Sapphire Preferred® Card. It still comes with travel perks and rewards, but has a lower annual fee. 

Citi Prestige Card

The Citi Prestige® Card comes with a $495 annual fee, but you’ll get $350 in travel credits within your first year.

The card comes with a $250 travel credit annually, and up to $100 toward Global Entry and TSA PreCheck every five years. It’s an ideal card for frequent fliers who enjoy upgrading seats, lounge access, or avoiding baggage fees to save more money on each flight.

And when you book four consecutive nights at a hotel through ThankYou.com, you’ll get the fourth night free. You can use this perk two times each year. This credit can extend your vacation an extra day without paying extra for a hotel stay. 

Marriott Bonvoy Brilliant American Express Card 

The Marriott Bonvoy Brilliant American Express Card is a solid choice for loyal Marriott members. It has a $495 annual fee and comes with a few credits to save money on hotel stays. You’ll get up to $300 Marriott Bonvoy statement credits annually. Plus, there’s a $100 Marriott Bonvoy property credit when you book an eligible stay of at least two nights at The Ritz Carlton or St. Regis properties. The Marriott Bonvoy Brillant card also gives a free night award credit each account anniversary. 

As a cardholder, you’ll automatically be upgraded to Gold Elite status with Marriott Bonvoy, but the card also comes with 15 elite night credits each calendar year to earn a higher rewards status and get more benefits. Aside from Marriott benefits, you’ll also get a $100 fee credit for Global Entry and TSA PreCheck every four years. 

How to Maximize Your Travel Credits 

Yes, travel credits can save money on your next vacation, but the big question is how much? 

Most travel credit card credits can range from $50 to $300, depending on the credit card, credit, and its conditions. And with airline and hotel prices on the rise this summer and a travel credit can come in handy.

“Certainly, you can offset some of those increases by using your credits that you have on your travel credit card,” Sumers adds. 

You can use the credit for a once-in-a-lifetime experience or you can cut the costs on an annual vacation. You may choose to pay less out of pocket by redeeming your travel credit to cover in-flight movies for your kids or seat-changing fees. Travel credits can also be used to upgrade your trip with a luxury perk such as a lounge access pass, a hotel stay upgrade, or a spa day — depending on your credit card’s rules. 

How you use your travel credits will depend on your trip itinerary and your travel preferences. For instance, you could use your travel credit to upgrade to first class, or you could use it toward baggage fees if your credit card doesn’t offer free checked bags.

“If you have a credit, I like to put things on there that you can’t use points to book,” says Lyn Mettler, travel journalist and founder of Families Fly Free, a travel program for families. “I will save credits for things like an Airbnb or vacation rental because you can’t book those in points.”

Keep in mind your credit card issuer may have limitations on what you can use your travel credits toward. For instance, the Amex Platinum Card’s travel credit can only be used toward Fine Hotels + Resorts and The Hotel Collection if you prepay. You won’t earn rewards when redeeming your travel credit, and you may forfeit any amount that you don’t use when you redeem it. 

Make sure you understand the terms and conditions of your travel credits, too. If you need to change or cancel your trip, you may lose your travel credit. Oftentimes, if you book with points and you have to cancel, the points are refunded to your account. But that’s not always the case with travel credits. 

“If you use your travel credit to book a nonrefundable hotel or a flight that you can’t change, then you’re stuck,” says Mettler. 

If you’re booking a trip in advance, you may choose to save your travel credit for when you’re on your trip to be on the safe side if you need to change or cancel your trip due to an unforeseen circumstance. 

What to Know Before Getting a Travel Card 

A travel credit card definitely has its benefits: namely rewards and luxury perks. But the credit card’s value really depends on your lifestyle and spending habits. 

Before you get a travel card, look at the card’s fees, rewards, perks, and credits before applying. If you’re not a frequent traveler or you don’t plan to use the travel credits to maximize the card’s value, you will likely be better off choose another card that aligns with your lifestyle and spending habits. 

A travel card can be a way to cut costs on flights, hotels, and attractions, but be careful to avoid just chasing rewards for your next trip, since the value of rewards can be quickly wiped out if you aren’t able to pay your balance off in full and on time each month. If you don’t travel often or use the perks, a card with an annual fee may not be worth it. A good cash back card might be a better choice, with rewards on everyday spending and even some travel perks depending on the card. And cash back cards typically don’t have an annual fee to weigh rewards and benefits against. 

For instance, the Platinum Card has nearly $1,400 worth of credits to use toward flights, hotels, and everyday spending. But the card has a $695 annual fee. If you don’t plan to use the majority of the credits, you may choose a credit card like the Chase Sapphire Preferred with its $95 annual fee, to still get a $50 hotel credit and redeem your points for travel at a boosted rate to save money on your next trip. 

But if you’re a frequent traveler that has 5-6 trips planned within the next year, you may choose to get a new card to take advantage of the welcome bonus, credits, and earn rewards to redeem for trips planned for next year. 

“If you want a few hundred dollars off of travel, just get a cash back card,” Sumers adds. “But if you can rack up these points and use them in the future for free or discounted travel, that’s another place you’re getting the value.”