Travel credit cards used to be simple. Or at least simpler. You use them for everyday purchases, earn rewards and redeem your points or miles for free travel.
Sadly, they aren’t that simple anymore.
Getting the same value out of your travel cards is as difficult as it’s ever been. Card issuers are increasingly dictating where cardholders should spend to reap the benefits. Extensive lists of statement credits might even resemble classic coupon books.
Credit card experts agree the value is still there, but cardholders need to be willing to manage increasingly complex perks to get it. And those who prefer simple rewards structures and flexible benefits have fewer and fewer options on the market.
Here’s how to decide if travel cards are worth the trouble, and how to get the most out of them if you do decide to keep them in your payments playbook.
Complicating card benefits is now a trend
Just a few years ago, I defined a good travel rewards card as a card that offered easy-to-use benefits and simple ways to offset annual fees.
As a credit card journalist, I based that definition on existing card products like The Platinum Card® from American Express and the Chase Sapphire Reserve®. Either card offered valuable travel credits, expedited airport security perks and access to airport lounges, while charging a $550 annual fee. They set the bar for the industry. The American Express® Gold Card was another excellent option with dining credits and a $250 annual fee.
I still define a good travel card the same way today. Sadly, fewer and fewer cards fit that definition.
When travel cards began to turn into coupon books
An unfortunate trend began in 2021 when American Express raised the Platinum Card’s annual fee to $695. The issuer also added more than $1,300 in statement credit benefits. In theory, that would make the $145 annual fee increase more than justified. In practice, it wasn’t that simple.
The card received six new statement credit benefits for things like hotels, entertainment and shopping:
This was in addition to existing statement credit benefits:
In total, there are now 10 statement credits on the Amex Platinum. While these benefits are mostly advertised as annual credits, only four are doled out yearly. Four are monthly, one is biannual and one is every four (or four and a half) years. That makes keeping track of the credits quite a task. They also don’t roll over. A month without Uber and your Uber Cash for that month is gone.
Not to mention, most of these benefits are branded. That means if you’re trying to offset the annual fee with statement credits, the card will dictate where you spend. You’re to shop at Walmart regularly. Your gym is Equinox. Even digital entertainment credits only apply to Disney+, a Disney+ bundle, ESPN+, Hulu, The New York Times, Peacock and The Wall Street Journal. Only subscribed to Netflix and Spotify? You’re out of luck.
Bankrate’s take: When you adjust your spending habits to match a credit card’s list of perks, you’re not really saving on anything. And if you decide not to worry about it, you might be leaving hundreds of dollars on the table. The issuer, meanwhile, is winning in either case. When you’re not giving money to its partners, you’re simply leaving it with them.
It’s safe to assume that has worked well for American Express because the company did the same thing to the Amex Gold. Last year, the annual fee increased from $250 to $325. The issuer added new statement credit benefits worth $184, including up to $7 per month after using the card at Dunkin’ (enrollment required) and $50 in semi-annual credits for purchases at U.S. Resy restaurants on the Resy app or Resy.com after enrollment.
Even the description of these benefits sounds complicated, let alone ensuring you actually use them.
And with that, American Express established a trend.
Another issuer joining the trend
With all the ways American Express made their most popular cards look like coupon books, I wanted to encourage my readers not to normalize it. Plenty of other cards offered flexible travel benefits without heaps of branded credits to mark in your monthly planner.
I hoped the trend wouldn’t catch. But it did.
Recently, Chase did the very same thing to the Chase Sapphire Reserve. The annual fee jumped from $550 to $795 — an increase that made the card significantly less accessible for the average cardholder.
The message is clear. This card is less compelling for a frequent traveler who wants to enjoy premium benefits without breaking the bank. It’s now a high-priced card with benefits that align with users who enjoy lots of existing discretionary spending.
Chase added new statement credit benefits that seem to echo that message, including credits for dining, food delivery and airfaire:
Other new benefits include:
This list of benefits requires some serious spending, as well as mental math that feels convoluted to me — and I’m a credit cards writer. I can only imagine what it’s like for an everyday cardholder.
Once again, we see branded benefits doled out in increments. The Lyft and DoorDash statement credits and promos are monthly, so you better use these apps regularly, or you’ll miss out on the value. The card also encourages you to sign up for Peloton, watch Apple TV and fly with Southwest.
The Chase Sapphire Reserve shapes your spending instead of complementing your existing habits. It’s a metal, card-shaped voucher booklet for the upper class.
Some cards still offer the perk of flexibility
Travel cards that don’t tell you where to spend are increasingly rare. But the more cards succumb to brandification of benefits, the more their competition shines.
If your goal is to gain access to premium travel benefits without an eye-watering annual fee, I recommend the Capital One Venture X Rewards Credit Card — at least for now.
Some of the card’s perks include:
The card comes with a $395 annual fee — less than half of what the Chase Sapphire Reserve charges. I usually offset the fee on my Venture X with a single booking through Capital One Travel using the annual travel credit and anniversary bonus.
With how American Express and Chase cards have changed over recent years, you’re not likely to find a comparable offer. And, as a credit card enthusiast, I can only hope we won’t lose this card to the expensive coupon-book trend.
Whatever card you have, make sure you keep an eye on its benefits. As you can see, they can change abruptly, altering the card’s entire value proposition.
The bottom line
Credit cards aren’t static. Lately, premium travel credit cards have been going through changes, tying their benefits to specific brands and doling them out in small increments.
If you have a travel credit card with a high annual fee, it might very well still work for you. For instance, maybe the benefits do in fact match your spending habits completely. Or the annual fee isn’t much of a hit to your budget, so you can enjoy the benefits without worrying about offsetting it.
Either way, ensure you get the value that you want out of your card, whether your priority is savings or luxury experiences. And remember: letting your credit card dictate where you spend is a slippery slope. You want financial products that fit your existing lifestyle, not products that require you to change it.
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