Other cards pay higher rewards rates
The Bank of America® Travel Rewards credit card is a great $0-fee travel companion, but depending on how much you spend and how you prefer to redeem, a different card might better suit you.
Bigger spenders will likely get more value from the Capital One Venture Rewards Credit Card, which earns 2 miles per dollar spent on most purchases. Like the Bank of America® Travel Rewards credit card, it allows you to redeem rewards for credit against travel expenses at a rate of 1 cent per mile.
The annual fee on the Capital One Venture Rewards Credit Card is $95. But, if you spend more than $4,750 annually, the rewards will offset the annual fee. Once you spend more than $19,000 a year, your rewards exceed those on the Bank of America® card even after taking into account the annual fee (assuming you aren’t a Bank of America Preferred Rewards® member). Reducing the sting of the fee even further, the Capital One Venture Rewards Credit Card also reimburses you for the application cost for TSA Precheck or Global Entry, and it offers a substantially higher sign-up bonus: Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.
You get a lower redemption value for cash
The Discover it® Miles has a lot in common with the Bank of America® Travel Rewards credit card: an unlimited 1.5 miles per dollar spent, a $0 annual fee and no foreign transaction fees. But a key difference is that the Discover it® Miles gives you the same value per point whether you redeem for travel or cash back. The Bank of America® Travel Rewards credit card has an edge over this card Visa’s wider acceptance abroad, but the Discover it® Miles is worth considering if you want better cash-back value.
Premium perks can take your travel further
The PenFed Pathfinder Rewards American Express® Card offers premium perks without the premium cost. Cardholders get 3 points per $1 spent on travel purchases (4 points for those enrolled in the PenFed Honors Advantage program) and 1.5 points per $1 spent everywhere else. On top of rewards, the card offers a $100 annual air travel credit and up to $100 in the form of a statement credit for Global Entry and TSA PreCheck programs every five years.
This card comes with a $95 annual fee, but it’s waived for PenFed Honors Advantage members. Even without qualifying for PenFed Honors Advantage, you can effectively cancel out the annual fee as long as you can take advantage of the full $100 air travel credit. You’ll need to be a credit union member to qualify for this card.
If you’d like to see how these cards compare with other potential travel card options, you can search NerdWallet’s list of best rated credit cards.
Source: nerdwallet.com
