In a Nutshell
Whether you’re braving traffic or long airport security lines, a travel rewards credit card might offer perks and benefits to help you save money and relax during what might otherwise feel like a stressful trip.The holidays can be the most magical time of the year — assuming you don’t have to travel far to visit friends or family.
For those of us braving traffic or long airport security lines to head home for the holidays, “magical” might not be the first word that comes to mind.
But here’s the good news: Whether you’re traveling by plane or car, holiday travel doesn’t have to be a nightmare before Christmas. If you pack the right credit card in your wallet, it can be a little easier.
Lounge access, free checked bags, trip delay insurance — these are just a few of the benefits available with the best travel rewards cards. While many of these benefits are available all year long, we thought we’d highlight some ways they can bring some extra cheer to your holiday travel plans.
If you’re traveling by plane …
- Use your credit card to skip the security line
- Escape from the crowds in a VIP airport lounge
- Apply your card’s air travel credit toward an upgrade
- Got a bag filled with gifts? Check it for free.
- Save on airfare costs with a companion pass
- Take advantage of your card’s built-in travel insurance
If you’re traveling by car …
If you’re traveling by plane …
Unless your name is Santa Claus, you won’t be flying home in a magical sleigh. So you should probably plan on dealing with expensive ticket prices, overcrowded airports, insufficient legroom and all the extra luggage you’re carrying.
Here are six ways to bring some extra holiday cheer to your flight.
Use your credit card to skip the security line
If extra-long holiday security lines stress you out, you might consider applying for TSA PreCheck or Global Entry. These popular expedited screening programs may help you clear airport security more quickly, particularly during the holiday season when more people are traveling.
The Transportation Security Administration currently lists a number of credit cards and loyalty programs that will reimburse you for all or part of the TSA PreCheck application fee. Several of the same credit cards, such as Chase Sapphire Reserve® and Capital One Venture Rewards Credit Card, offer a credit for either TSA PreCheck or Global Entry.
Escape from the crowds in a VIP airport lounge
After you’ve passed through the security line, relaxing in an airport lounge could be just what the doctor ordered. Fortunately, several high-end travel cards offer the benefit of lounge access.
The Platinum Card® from American Express is one stellar example. With this card in your wallet, you can get access to American Express Centurion Lounges as well as The International American Express Lounges and Priority Pass, Escape Lounges, Air Space and Plaza Premium lounges.
Other cards may offer more limited lounge access, but keep in mind that any type of lounge membership generally comes with a high annual fee. The Platinum Card® from American Express, for instance, carries a $695 annual fee.
Apply your card’s air travel credit toward an upgrade
It’s no fun squeezing into a tiny airplane seat. If you need to stretch out your legs on a long flight, you might want to consider applying for a high-end travel card like the Chase Sapphire Reserve®, which offers an annual travel credit of up to $300 in statement credits as reimbursements for travel purchases charged to your card each account anniversary year.
You can use this credit to upgrade to a more comfortable experience, purchase regular airfare or pay for checked bags. It’s up to you how you spend it.
Another card offering a similar air travel upgrade is the Platinum Card® from American Express (up to $200 per calendar year in baggage fees and other incidental charges at one qualifying airline). But keep in mind that not all credits apply to the same kinds of travel purchases.
Got a bag filled with gifts? Check it for free.
Even experienced travelers who know how to pack light can get hit with baggage fees around the holidays.
Fortunately, there are ways to avoid paying for checked bags. Choose the right airline or credit card, and you could end up saving some serious money.
Southwest Airlines allows travelers to check not one, but two bags for free. You can also carry on a small suitcase and a personal item, like a backpack. The best part? Southwest offers this benefit to all passengers, regardless of whether you have one of the airline’s credit cards.
If you’re flying a different airline, you might want to look into a co-branded airline credit card that lets you check your first bag for free. The United℠ Explorer Card is one example of a card that offers this benefit for United flights.
Save on airfare costs with a companion pass
If you’re flying home over the holidays, why not bring a friend? Some airlines offer companion tickets or discount codes that allow you to fly with a guest at a heavily discounted price.
One such example is the Southwest Airlines Companion Pass, which offers great value if you can earn it. But if you’re interested in checking out companion tickets associated with other airlines, be sure to read our comprehensive guide to airlines that offer companion tickets or discount codes.
Take advantage of your card’s built-in travel insurance
It pays to have a credit card that comes with travel insurance. Don’t believe us? Consider this: With the Chase Sapphire Reserve® card, Chase will reimburse you or your immediate family members up to $10,000 per person (up to $20,000 total per trip and $40,000 per 12-month period) for nonrefundable reservations if your covered trip is cancelled or interrupted.
Travel insurance isn’t the first benefit people usually think of when applying for a credit card, but it can be one of the most useful. This is especially true during the holiday season, when cancellations and delays due to severe weather are all too common.
If you’re traveling by car …
Did you know most Americans hit the road over the holidays?
According to AAA, approximately 102 million people were expected to drive to their holiday destinations in 2022. If you plan to be part of that group in 2023, here are a couple of ways you can save on travel this holiday season.
Get cash back on gas
You might be wondering how you can save money on gas during your holiday road trip. If a new hybrid car isn’t quite in your budget, consider applying for a gas rewards credit card.
Assuming you drive consistently throughout the year (and not just during the holidays), a gas rewards credit card can save you from leaving too much money at the pump. Our favorite gas rewards cards offer anywhere from 3% to 5% cash back on gas, which can really add up over time.
Use your credit card to save on rental car insurance
With the right credit card, you may be able to save about $15 per day in rental car insurance.
Many of the best travel rewards cards offer some kind of rental car insurance. The United℠ Explorer Card, for example, offers primary rental car insurance that covers up to the actual cash value of the rental car.
One thing to watch out for: Typically, travel cards offer secondary rental car insurance, which means you must first file a claim with your personal auto insurance company, and then your credit card will cover what your other policy doesn’t. (Unfortunately, filing a claim may raise your auto insurance rates.)
But you don’t have to worry about this with the United℠ Explorer Card because it offers primary rental car insurance. Just make sure you book the rental car with your credit card and read the terms and conditions carefully, as some exclusions may apply.
What’s next?
Traveling during the holidays can be hectic, but if you follow these tips you may be able to turn your vacation into a more enjoyable (and affordable) trip.
If you already have a travel card that works for you and aren’t sure what perks it offers, it’s probably a good idea to read up on the specifics or contact your card issuer for more information.
If you’re in the market for a new card, you can find details of each card’s benefits as you shop, or from helpful articles like card reviews. To get started, you can compare many different travel cards on Credit Karma.
Whatever your plan, just make sure to do your research before you start traveling. As with holiday shopping, you don’t want to wait until the last minute.