How to Find the Perfect Travel Rewards Card for You

Feeling overwhelmed by all the travel credit card options out there? 

You’re not alone. 

In this episode of the Lazy Budget Travel Tips podcast, host Genni Franklin breaks down how to confidently choose the right travel rewards credit card—for you. 

Not the one your coworker loves. 

Not the one influencers are pushing. 

The one that actually fits your lifestyle, travel goals, and budget.

We’re covering everything from the types of points you can earn to what to do after you get approved (or denied), so you’ll know exactly how to get started with points and miles the smart and sustainable way.

🧠 What You’ll Learn:

• The 3 types of travel rewards credit cards and who they’re best for
• How welcome bonuses work (and what to watch out for)
• Why annual fees aren’t always bad—and can sometimes save you more
• Application strategies for the best chance of approval
• What to do after you apply, whether you’re approved or not

Time Stamps
00:00 Introduction to Travel Credit Cards
02:51 Types of Travel Reward Credit Cards
07:27 Understanding Welcome Bonuses
14:05 Evaluating Annual Fees
17:11 Application Strategies for Approval
22:32 What to Do After Approval or Denial
29:14 Conclusion and Final Tips

Episode Resources:

• What is a Welcome Bonus?
• What is the 5/24 Rule?
• How to Meet a Minimum Spend
• Why credit card annual fees are worth it
• Do’s and Don’ts of Using Your New Travel Rewards Credit Card

Transcript

 How to Choose the Right Travel Rewards Credit Card

How to Choose the Right Travel Rewards Credit Card

[00:00:00]

Hey there, and welcome back to the Lazy Budget Travel Tips podcast. I'm your host Genni Franklin, 

And today we're diving into one of the most important questions I hear over and over again. How do I know which travel credit card is the right one for me? Not the right one for your coworker, not the right one for that influencer. With 40 credit cards, the right one for you. There's a ton of content out there about the best credit cards, but the truth is everyone's points a mile strategy is going to look different and it should.

Your income, your lifestyle, your travel goals, your comfort level with annual fees or spending requirements, it all matters. No matter what anyone tells you, it all matters. That [00:01:00] said. I do think that there are a few key cards that make great building blocks, especially when you're just getting started.

These help you build a strong foundation, something simple, sustainable, and not overwhelming. If you've listened to earlier episodes, especially Points of Miles 1 0 1, and the one about your credit score, you are already one step ahead. Now it's time to figure out which travel reward credit card makes the most sense for where you are right now.

So here's what we'll be covering in this episode. The different types of travel awards, credit cards, how welcome bonuses work, what to consider before you apply whether annual fees are worth it. Application strategies for getting approved and what to do once you've applied, whether you're [00:02:00] approved or not.

Yes, it's a jam packed episode, but by the end, you're going to feel confident and ready to take the next step. So quick disclaimer before we dive in. All the credit cards I'll be talking about in this episode and probably every other episode are US based. 

 So if you're listening from somewhere else around the world. Thank you. I know that we have a lot of Canadians in the community, we love the Canadians. I do plan on bringing on a guest in the future who can speak to those options and those strategies.

So please stay tuned and if you do know someone that you think would be perfect for the podcast, let me know. All right, so. The first question, when you are considering travel rewards, credit cards should be, what kind of points do you [00:03:00] want to earn? 

You might think all travel credit cards are basically the same, and you'd kind of be right, but also there are a lot of nuances. Most of these credit cards are gonna fall into three main categories, flexible points, non flexible co-branded points. And cashback. So let's start with flexible points. These are my favorite.

Why? Because they give you options. You're not stuck with one airline or one hotel chain. You can transfer your points to a variety of travel partners or use them directly through travel portals. Some of my go-to flexible points credit cards are the Chase Sapphire Preferred, which earns Chase Ultimate Rewards the Capital One venture, which earns Capital One miles, 

And the Amex gold, the American Express gold, which earns you membership rewards. 

[00:04:00] they're especially great if you're flexible with how you travel. You're not locked into one airline or one hotel chain, or even one Style of travel. I love a fly business class, but stay in a three star hotel kind of trip. Or maybe it's economy flights and a five star hotel.

Sometimes it's luxury all the way, sometimes it's all budget. It all works for me. And flexible points can make all of those combos possible, even if you're someone who is loyal to a specific airline or hotel. Flexible points can give you backup plans when availability is tight and or redemptions are high.

Next up is non flexible points or co-branded credit cards. And these are gonna be credit cards that are tied to specific airline or hotel loyalty programs, but they're facilitated by our favorite banks and credit card companies. [00:05:00] So examples would be Southwest Credit cards that are facilitated by Chase or the Delta Sky Miles credit cards, which are facilitated by American Express. And then there's the Marriott Bonvoy credit cards, which you can actually get either through American Express or Chase. It just depends on which credit card you are looking at.

So if you get the Delta Sky Miles credit card, you're not actually earning American Express membership rewards. You're gonna be earning delta sky miles. And the same goes for those Marriott or those Hyatt credit cards. You would be earning hotel loyalty points with those credit cards. So what's the downside?

Well. You're pretty locked in. If that airline doesn't fly where you need to go or that hotel brand doesn't have a property where you're going, you're kind of stuck. So I usually recommend starting with [00:06:00] flexible points, unless you know you'll get strong value from a co-branded credit card. And lastly, are those cashback credit cards?

I know. I know these don't get the same hype, but they can still be useful, especially for beginners or people who just want to offset travel costs without learning. A whole new system Cashback rewards usually show up as statement credits, and some can be used to cover travel purchases. One example is the Bank of America Travel Rewards credit card, which is one of my first credit cards.

I still have it in my wallet as just, you know, a long, long-term keeper for my credit card history, but. It doesn't have travel transfer partners or fancy perks, but it's simple. It has no annual fee. I earn 1.5 points per dollar and can redeem for travel related [00:07:00] expenses. Not sexy, but it's solid for a beginner card.

If you just kind of wanna get into this without. Paying an annual fee. So remember, not everyone needs a $700 annual fee luxury card. Some people just wanna chip away at flight costs or save a few hundred bucks a year, and that's totally valid. All right, let's get to the fun stuff. Let's talk about welcome bonuses.

This is where things get really exciting. So welcome bonuses or signup bonuses, subs, whatever you wanna call them, are the fastest way to rack up points. They usually look something like. Spend $4,000 in the first three months and earn 60,000 points. Those 60,000 points depending on the program, they could get you round trip flights to Europe, multiple domestic flights, or several nights at a hotel.

Almost every travel credit [00:08:00] card that I will ever really be talking about will come with a welcome bonus. It's how the banks entice new cardholders to apply for those credit cards. They offer you a huge chunk of points when you meet a certain minimum spending requirement in the first few months,Some people ask,

How are banks just giving away all these points?

What's the catch? Well, here's the thing a lot of people don't realize. Banks make money every time you swipe your credit card, even if you pay your balance on time and in full. Which is a non-negotiable. These companies are still earning money from those merchant fees on your transaction. So no, these bonuses aren't too good to be true.

They're part of a business model. The banks are doing just fine. You don't have to worry about them. Now, sometimes you'll see what we call elevated welcome offers.These are limited time offers where the bonus [00:09:00] is higher than usual,

 And I get it. It's easy to feel that FOMO creep in. You might think, should I apply now even if I'm not ready, just so I don't miss out. But here's the truth, there is always a welcome offer out there.

Elevated or not. Most of these cards will have some kind of bonus. I actually had someone in my Lazy Budget Travel Tips,Facebook group, and they asked if they should apply even though they weren't ready. There was a really big welcome bonus happening and everybody was talking about it.

It was all over social media,and. Once we kinda like talked it through, they realized they didn't really have a plan to meet the minimum spend. And that's the whole point. If you're gonna apply for a credit card for a welcome bonus and you don't have a plan to meet the minimum spend, then that's just a recipe for stress or worse credit card debt.

So. Don't let what I call [00:10:00] and what a lot of people call shiny object syndrome take over. Yes, those big numbers can be tempting, but if you're not ready. Just wait. I promise there will be another great offer when you are ready and when that time comes, you'll be able to take full advantage without scrambling because there's no point in applying for a credit card to get a welcome bonus if you can't meet the minimum spend and then you don't get the welcome bonus.

 Now when it comes to evaluating a welcome bonus, there are a couple of things that you're gonna wanna consider. 

Number one, bonus amount and the point value. Now, I'm not talking about,calculating cents per point. But you have to realize that not all points are created equal. 150,000 Hilton points might sound super impressive, but it could be worth less than 60,000 chase points, 80,000 chase points, 90,000 chase [00:11:00] points.

And that is all gonna depend on how you plan to use those points. So don't just look at the number itself. Look at what those points can actually do for you. All right. Number two, minimum spend requirement to earn that welcome bonus. Most currents ask you to spend a certain amount, usually within the first three months.

Sometimes they'll give you six months. But this is what we call the minimum spend or men's spend, whatever people say these days. And it can range anywhere from, I've seen like 500 to $30,000 or more. It just depends. But most of the cards that I talk about are gonna be between 2000 and 10,000. Most of the time it's four and 6,000.

So make sure you're picking a card with a minimum spend. You can meet realistically through your everyday spending or that you [00:12:00] time your application around a big expense, like car insurance, medical bills, a home improvement project. Medical bills are a huge one. People don't realize that you can almost always use your credit card to pay those, even if you have a flexible spending account or a health.

Savings account. Use your credit card and then see if you can get reimbursed through your FSA or your HSA if there's an option for you. So before you pay with a credit card though, just make sure that that's something that you can do and that's something that can really help youwhen it comes to meeting a minimum spend.

So remember, you wanna plan in place before you apply for the credit card, so you're not panicking at the last minute or worst case scenario. Missing the bonus entirely, and let me be clear, never go into debt just to meet a minimum spend. Don't spend more money than you normally [00:13:00] would just to get a bonus.

That's not what this game is about. That doesn't make sense. Don't do it.

All right, so before you apply, just ask yourself these three things. Can I realistically meet the minimum spend requirement? Is the bonus actually valuable for my travel goals? And what's the timeline? The three month clock, or if they give you six months, if they give you one month, that's gonna start the day you're approved, not when the card arrives in the mail.

So be ready to go with that plan to meet the minimum spend. And one more thing. Don't fall for fomo. 

I've seen people panic apply for credit cards just because they sawa hundred thousand point bonus instead of 60,000, but they just weren't ready and then they couldn't meet the minimum spend and then they missed out entirely. So [00:14:00] make sure you are being intentional. All right. What about annual fees?

A lot of the best cards do have annual fees, and that can be a turnoff at first, especially if you're just getting into this. I've seen annual fees range from as low as $35 to as high as $5,000, and so you may be thinking, why would I pay a fee to spend money that's so dumb. Well, let me give you an example that I think will resonate with many of you.

Do you pay for a Costco membership? Now? Why on earth would you pay for a membership fee just so you could go to a store and spend more money?And the answer is. Because you know you're getting way more value than that membership fee, and it's the same for credit cards.

Now, does that mean that all credit card annual fees are gonna be worth it? [00:15:00] Well, not necessarily. just like a Costco membership, may not make sense for everyone, no matter how much you love those hot dogs.

So take my Chase Sapphire Preferred, for example, the fee is $95. Per year, but in one year, I've easily saved over $5,000 in travel just by the perks, and especially earning that welcome bonus. Right now that card gives me a $50 hotel credit, 10,000 anniversary bonus points. And solid travel protections. So if you're brand new, you can totally start with the new annual fee card, but once you get more comfortable, I challenge you.

To get into those cards with annual fees, because I think you're gonna find pretty quickly that paying an annual fee is actually gonna be saving you more money down the [00:16:00] line, A lot more money. And another thing you want to consider is, is this credit card that you're applying for gonna be a long-term keeper.

So after the first year, you always wanna reevaluate. I'm gonna have an episode about, reevaluating your credit card portfolio, but just, as something to consider when you're applying. Just think about it. Some cards are gonna be great for the welcome bonus, but not really worth keeping long term.

Others have great earning bonus categories for everyday spend and are worth hanging onto. So we like to keep cards that earn us. 2x on everything, or at least 3x on bonus categories that we use for everyday spending, like groceries, dining, gas, stuff like that. but if the annual fee is no longer worth it to us, if it's not really [00:17:00] serving our travel goals, which can change, 

Then we can just reevaluate. All right, let's get into application strategies. So what are some smart application strategies to boost your chances of getting approved when it's time to apply for that travel rewards credit card? Because knowing what credit card to apply for is one thing, but when to apply is just as important. Now every bank has its own set of rules and quirks, but here are some key things to keep in mind. Credit score, I usually recommend having a credit score of at least 700 before applying.

For most of these travel rewards credit cards, some cards may approve you with a slightly lower credit score, but 700 is a solid benchmark that gives you the best shot at getting approved, [00:18:00] especially for those cards with big welcome bonuses and premium benefits.

And then there's the 5 24 rule, which I'm sure you've heard of, but if not, the 5 24 rule is really something that pertains. To chase when you're applying to chase credit cards, it means if you've opened five or more credit cards from any bank, not just Chase in the past 24 months, they're probably gonna deny your application.

Even if you have excellent credit, this, I've heard conflicting things about this rule, but I still think that it's something that you should keep in mind. Some people will report, uh, that they applied while they were over 5 24 and still got approved, butI don't think it's something that's consistent.

So just something to keep in [00:19:00] mind, But again, this applies for when you're applying for Chase credit cards, and that includes co-branded credit cards. So if you're opening up that Southwest credit card or a Marriott card that's issued by Chase, that's gonna count. A lot of people don't realize that.

Now some people get really strict about protecting their 5 24 spots, and that's fine, but personally, I've used up 5 24 slots on cards that others would totally skip. And you know what? It worked for me. So again, this is your strategy. You decide what's worth it. Also just a quick tip. Many business credit cards don't show up on your personal credit report, so that means they're not gonna count towards your 5 24 spots.

 That's one way people get around this rule, myself included. So just keep that in mind. [00:20:00] And remember, this is when you're applying for Chase credit cards. If you're over 5 24, that doesn't mean you're out of options. You just get to explore what other banks are offering.

And then there's application velocity.And velocity is all about the pace at which you are applying for credit cards. If you open too many too fast, some banks may see that as risky behavior, even if you have a great credit score. Some people say one card every 30 days is fine. Personally, that feels a little intense unless you've got like a really rock solid plan for meeting minimum spend.

Uh, I prefer a more spaced out approach, like one card every 90 days, but some banks are even more cautious and strict and they really just wanna see you only applying for one [00:21:00] credit card every six months. It really just depends on the credit card you're looking to apply for right now. So bottom line though, as long as you're not getting into debt and you're staying organized, you're being responsible.

Just do what's best and what makes sense for you and your situation. And then another thing you wanna consider before you're applying, is have you earned this welcome bonus before? So you may not know, but many credit cards let you earn the welcome bonus. Again and again, but only after a certain amount of time.

For example, I've earned the welcome bonus on the Chase Sapphire Preferred Twice, because Chase allows you to earn it once every 48 months, which is four years. So I downgraded it to a no annual fee card. Waited a while, and then I reapplied. And remember, the date is from when you actually earn the bonus, not from when you [00:22:00] actually got approved for it.

So that timing, depending on how tight you are with it, is very important. And each bank or credit card issuer is gonna have different rules for stuff like that. So what you wanna do is make sure that once you choose the credit card. You do a little bit of research or you can just post in the Lazy Budget Travel Tips Facebook group and we can figure it out together.

Alright, so what happens when you get approved? Yes, you did it, You. Weighed your options, picked the right card, made sure you qualified, and you got the congratulations you've been approved. Cue the confetti. But now what? Well, first things first, see if you can get that card expedited the clock for [00:23:00] meeting that minimum spend starts the day you are approved, not when the card shows up in your mailbox or when you activate it.

So if you can get the credit card faster, that's gonna give you a headstart. Some banks will show you the full credit card number right away online, which is great, but others don't. So calling and asking for expedited shipping can really help a lot. Now this isn't gonna work for everyone. I've mostly had good experiences with doing this with Chase.

Just keep in mind that they're probably still gonna send the credit card via snail mail. So if you get it expedited, you're probably gonna get the expedited one, and then you're gonna get another one later. So don't freak out. Uh, that's happened to me several times. 

 Another thing I really like to do when I get a new credit card is add it to my favorite tracking apps and my favorite apps for keeping me [00:24:00] organized with this stuff. There are some really great ones out there to help you, you know, stay on top of your spending. Make sure you don't accidentally miss your welcome bonus window.

But I'll drop a list of those apps in the show notes so that you can check those out. But now there's one thing that you definitely do not want to do, and that is miss that minimum spend deadline. I know I've said it a few times, but I've heard some horror stories.

 It's really heartbreaking, especially when it's an amazing welcome bonus. So that's why it's just so important to have a spending plan in place before you apply. And a quick note on downgrading or closing credit cards. Don't do it too soon. You should always keep that credit card open for at least one year before making any changes.

Canceling early could hurt your [00:25:00] relationship with the bank and even your credit score. I know people who like, you know, make mistakes. Maybe they applied for the wrong card Whatever the reason, don't panic and then just cancel that card.

I know that even if you're like, but I'm not gonna use this card. Well. It really doesn't hurt to just keep it for a year. It could actually hurt you more if you just cancel it right out the gate. It is just really not a good idea to cancel credit cards and they won't even let you downgrade if it hasn't been at one year yet.

So just keep that in mind. Keep credit cards no matter what for at least one year. But what if you don't get approved? So. If you don't get that instant approval, or maybe you were denied or maybe your application [00:26:00] just went into review, first of all, don't panic. Take a deep breath. It's not the end of the world, I promise.

If you got an instant denial, you might see a reason listed right away, or maybe they're gonna mail it to you. It could be because you were over 5 24, or maybe you applied too soon after your last credit card, or sometimes it's just a computer glitch,

That's why it's always worth picking up the phone and calling for reconsideration. Most banks have a reconsideration line where you can ask them to take another look at your application.

Sometimes they just need to confirm some informationIf they ask you why you want the card, don't say it's just for the bonus, even if that's the sole reason. Instead, mention things like the value of the benefits that the cart offers. You know how it aligns with the type of [00:27:00] travel you do, especially if it's a co-branded credit card.

I like to say something like, I fly with X, Y, Z airline all the time. So I thought it made a lot of sense to get this credit card and just start earning rewards. If they still say no, don't worry. You can still call back, talk to a different agent, try again as long as you're within the 30 day window. Even if the answer stays the same, at least now you've got more information to help guide you for the next application.

Now, if your application went into review, that's totally normal. That happens all the time, and it doesn't mean anything bad. Some people get an approval email a few hours later, or even a few days later or weeks later, But just don't wait too long before you check on that application. if you haven't [00:28:00] heard anything within a week or two, go ahead and call.

 I've had applications that fell through the cracks, but after I called, I was approved within minutes. I've even been told by a rep that I was denied because of whatever reason.

I asked to be transferred to a department I could speak with for reconsideration, and once they transferred me, I got approved right on the spot. So the key is to be persistent, be polite, and really don't be afraid to advocate for yourself, You know, no offense to these agents, but sometimes they just really don't know, and you have to ask those questions. Like if they say, oh, well your credit card application got denied. You have too many credit cards, I'll be like, alright, thank you so much. Um, is there someone else that I can speak to? And if they say no, be like, alright, thanks, then hang up.

Call again and try a [00:29:00] different person. Trust me, hanging up and calling again Or HUCA is what we like to call it can really be your saving grace when it comes to these situations.

Whew. Alright, so that was a lot. But if you're still with me, you now have a solid understanding of how to choose the right travel rewards, credit cards for you Now for some influencer with 40 cards, or your coworker who only flies. One airline, 

You've learned the difference between flexible and co-branded points. Why cashback cards can still make sense How welcome bonuses work, what to watch with annual fees, and how to actually get approved for the credit card that you want. This is truly one of the most important steps in your points and miles journey because the right credit card can set you up for free flights, hotel stays, and even luxury [00:30:00] experiences that don't cost luxury prices.

but remember, this is a marathon, not a sprint. You don't need to apply for five cards all at once or grab one just because everyone's talking about it. You just need to start with one good credit card, one that works for your lifestyle, your goals, and your budget.

And when you're ready, that perfect welcome bonus will be there waiting for you. I promise. So if you love this episode, it would mean the world to me if you left a review or shared it with a friend who's just getting started with points of miles. 

And if you need support while you're choosing your next credit card or building your own lazy travel strategy, come hang out with us in the Lazy Budget. Travel Tips Facebook group. We're a friendly bunch who love talking about points. No pressure. No judgment. You'll find the [00:31:00] links to everything I mentioned in the show notes, including my favorite tracking apps, and a few tools to help you choose your credit cards. Thanks for listening, and as always, keep it simple, keep it fun, and keep exploring.