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A travel credit card can be a valuable financial tool for those who love traveling or hope to begin traveling more. You can access useful travel benefits and earn rewards when you swipe your card for travel expenses. However, not every travel rewards card has the same features.

Before applying for a new credit card, ensuring it meets your needs and expectations is crucial. Here are a few red flags to watch out for when choosing a travel rewards card.

1. No bonus reward categories

Many travel credit cards have bonus reward categories, like dining or travel. When using your card to make purchases in those categories, you’ll typically earn rewards at a more generous rate. Spending outside of those categories usually earns at a flat rate.

For example, a travel credit card may offer 3 points per $1 on dining and restaurant spending, while all other spending earns 1 point per $1. Cards with bonus rewards categories are a great option if you spend heavily in the bonus categories.

But watch out for cards branded as travel rewards cards that don’t offer bonus rewards. A card may be marketed as a travel card, yet earn at a meager flat rate for all purchases.

If you spend a lot of money on travel each year, this may not be the most advantageous card for you, especially if you want to maximize your rewards potential. Look for a card that will reward you well for your travel spending so you can maximize your rewards.

Want to get rewarded for traveling? Click here to explore our list of the best travel credit cards to find the right fit for you.

2. A high annual fee with meager benefits

Many premium travel rewards cards charge an annual fee, but that’s not a red flag if the card has plentiful benefits you’ll use. As you explore travel rewards card options, review the perks provided. If a card you’re considering has a high annual fee but few useful benefits, there may be a better card for you.

You should also consider whether you’ll take advantage of the perks provided. If one particular travel card has more high-end perks but you won’t use them, look elsewhere. Not every traveler values the same benefits. The right credit card will have perks that add value to your life.

3. Minimal reward redemption options

Many of the top travel rewards cards offer various ways to redeem rewards. Premium travel cards often allow cardholders to redeem their rewards as a statement credit for travel booked through the card issuer’s travel portal or by transferring their rewards to select airline and hotel partners. Having flexibility is a plus.

If you value flexibility in using your rewards, it’s important to review the redemption options before applying for a travel rewards card. Some travel credit cards have limited redemption choices, so you want to ensure you can use your rewards as you intend.

Do you prefer a credit card that earns cash rewards? Check out our list of the top cash back credit cards with big rewards.

Know what to expect before you apply for a travel credit card

Carefully review a credit card’s features before applying. Research multiple card options and read reviews for each so you can get a better feel for whether the benefits and rewards meet your needs.

Luckily, there are many travel rewards cards available, so it’s possible to find a card that fits your lifestyle well.

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