Annual Travel Credits are perks offered on several travel cards that are offered in the form of a specific travel purchase statement credit. The annual travel credits typically range from $50 to $300, covering numerous costs, including airline seat upgrades and taxes, and award redemption fees.
Premium credit cards are most likely to offer annual travel credits as part of the perks offered with card membership. What each credit covers depends on the specific terms of your card.
How annual travel credits work
If your travel credit card offers annual travel credits, you must use the travel card that you plan to offset with credit, or book a trip using the card issuer’s own travel portal. In some cases, you may need to register to use your travel credits.
As this feature suggests, the refunded costs are travel-related and vary by card. Some cover anything that falls under the “travel” category, while others are limited to specific airlines and cost types, such as baggage fees, in-flight snacks, seat upgrades, and other travel costs.
Before using your credit, it is important to be aware of requirements (such as how you book or a fixed amount of spending to trigger your credit) or restrictions (such as spending with a specific travel provider). If you need to register, please check that too. After all, you don’t want to buy in the hope that there will be credits to know that there are certain conditions in play that can prevent it.
Cards that offer annual travel credits
To see how your annual travel credits work, check out the following top travel credit cards with annual travel credits:
Bank of America® Premium Rewards® Credit Card
- Annual travel credits: $100
- Annual fee: $95
The Bank of America Premium Rewards card has an annual fee of $95 with an airline accidental credit of $100 a year, which makes it very easy to cover the annual fees of your card.
To qualify, you will need to use your card to pay contingency fees from US-based airlines, including seat upgrades, ticket change fees, check bag fees, in-flight purchases, airport lounge fees, and more. Combined with the other benefits of the card, even casual travelers can come forward, especially if you’re banking at Bank of America.
Capital One Venture X Rewards Credit Card
- Annual travel credits: $300
- Annual fee: $395
The Capital One Venture X comes with $300 annual travel credits that can be used for travel through the Capital One Travel portal. You can use cash or miles (or combinations) to book car rental, hotel or airline tickets with Capital One Travel.
The big plus for this card’s $300 annual travel credit is that you can use it as much or as much as you want. This means you can disband the amount of credit you use.
Credits are renewed annually on the card’s anniversary, with an annual fee of $395 annual membership fee covering a large portion of the annual fee (as long as it can be used annually).
Chase Sapphire Reserve®
- Annual travel credits: $300
- Annual fee: $550
Chase Sapphire Reserve offers one of the most flexible annual travel credits available. The $300 annual travel credit on the card can be used to purchase travel, not just those created through Chase Travel.
Whether you purchase a trip through the portal or not, your credit will automatically apply eligible travel purchases until you run out of your entire $300.
The Chase Sapphire Reserve costs $550 per year, but this annual travel credit can be effectively offset by using it. But it’s so wide, so it’s very easy.
Hilton honors the American Express Aspire Card*
- Annual travel credits: $600
- Annual fee: $550
Hilton Loyalists can do well with Hilton Aswire Cards, but the card’s travel credits are released in chunks.
First, you can earn up to $400 for your stay at the Hilton Resort, split into $200 from January to June and another $200 from July to December. Please note that only Hilton Hotels, branded as “resort” counts for this statement credit, are participating. You will need to pay for the room using the Hilton Aspire Card.
You can then earn up to $200 aviation statement credits per year for flight purchases made in person through the airline or Amex Travel. This credit is distributed as up to $50 per quarter and requires you to use your card to pay for your flight.
There are minor hoops to jump, but if you often stay with Hilton and fly, then some plan will allow you to fully collect the annual fees on your card.
ritz-carlton® reward credit card*
- Annual travel credits: $300
- Annual fee: $450
The Chase Ritz-Carlton card is no longer open to new applicants, but if you have another Chase co-branded Marriott Bonvoy credit card, you can continue to change your product changes.
For those lucky, an annual travel credit of $300 is proven useful as it can be used for travel purchases on airlines, hotels, car rental agencies, and more.
However, to request that the credit be applied to a qualifying purchase, you will need to call Chase or send a message to the company online. This luxury credit card has an annual fee of $450.
American Express Platinum Card
- Annual travel credits: $400
- Annual fee: $695
The Amex Platinum Card has the highest annual fee on the cards on this list, and costs a whopping $695. Luckily, this card comes with not one but two annual travel credits, among many other benefits.
First, the card comes with an accidental airline fee credit of $200, which can be applied to seat selection, luggage charges, and more. You must pre-select an airline at the beginning of the year, and the credit covers eligible purchases made on that airline.
The second annual travel credit that comes with the Amex Platinum is up to $200 per year hotel credits. This credit is provided in the form of a statement credit and applies to eligible prepaid reservations for 2 nights or more at Amex Fine Hotels + Resorts or Hotel Collection Properties.
Southwest Rapid Rewards® Priority Credit Card
- Annual travel credits: $75
- Annual fee: $149
One of many Southwest credit cards, the Chase Southwest Priority Card comes with a $75 annual credit for Southwest Flights made with the card. This offset is half of the annual fee of about $149, making it easier to use if you fly southwest at least once a year.
Upgraded boarding and in-flight purchases will be excluded, but other Southwest purchases will be excluded. You don’t have to use everything at once, so if you find a cheap flight under $75, you can use the rest later.
Does annual credit make premium travel credit cards worthwhile?
Whether annual travel credits offer premium travel credit cards is all about the value and relationship of the card perks compared to certain circumstances.
The Amex Platinum is a prime example of this. This card has an annual fee of $695, but comes with many other perks beyond the two credits above. For example, the card also includes up to $240 annual digital entertainment credits, up to $300 annual equinox credits, and $200 annual Uber Cash (conditions apply).
In total, your card offers over $1,000 in annual credits, but unless you can fully use most of these credits, you may not be able to recover your card’s annual membership fees. For example, if you are not using Equinox, you do not need Uber Cash and don’t stay at a hotel included in the Amex Fine Hotels + Resorts Group or Hotel Collection, you may not be able to get enough value from the card to justify the cost.
Meanwhile, the Venture X Card comes with an annual fee of $395, but comes with a travel credit of $300 per year. The card also provides 10,000 capital to cardholders for one mile each year on the card’s anniversary. This is worth an additional $100 if redeemed through Capital One Travel, according to Bankrate valuations.
This will give you a higher overall value than the annual fee for this card, but again, this applies only if you travel enough to earn $300 a year of travel portal credits and redeem your bonus miles.
Conclusion
Annual travel credit card for credit cards is a valuable perk if you have a travel credit card that is appropriate for your lifestyle. However, before opening new cards, be aware of the restrictions on redemption of them and the annual fees for your cards. Taking time to compare the value of your credit card with your travel habits will help you determine whether it’s right for you.
FAQ
*Information regarding Hilton Honors American Express Aspire and Ritz-Carlton® Rewards credit cards was collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.
