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Credit cards can be incredibly useful for earning points or miles for free travel, but there are a great number of other benefits available to make traveling easier, cheaper, or more rewarding. Many of these credit card benefits you might already have in your wallet, but aren't aware of.
While some benefits might be obvious — like a free checked bag from an airline co-branded credit card. Other benefits, like purchase protection, aren't as advertised and can come in handy when the need arises. Here are 22 credit card benefits every traveler should know about.
Page Contents
- Why Credit Card Benefits Matter
- What Types of Credit Card Benefits Are Out There?
- How to Activate These Credit Card Benefits
- Credit Card Insurance for the Things You Buy
- Credit Card Travel Insurance Protections
- Credit Card Benefits for Award Redemption
- Credit Card Benefits That Save You Money
- Credit Card Benefits that Make Travel Better
- The Bottom Line
Why Credit Card Benefits Matter
Travel rewards credit card benefits are only useful if you're aware of them. The first objective is to ensure you don't pay money for something you have for free.
For example, did you know you may have free roadside assistance just by calling the number on the back of your The New United℠ Explorer Card (Rates & Fees) or Chase Sapphire Reserve® (Rates & Fees) cards (among others)? Folks that have these cards and are also paying for a membership like AAA may be incurring unneeded expenses.
Have you ever been talked into buying rental car insurance? What about that little popup that makes you second-guess whether you need travel insurance while buying a flight? The credit card insurance you already have might make these add-on purchases unnecessary. And the savings can add up quickly.
Knowing these credit card benefits is also key to evaluating whether a card is worth its annual fee. Cards that are long-term keepers are fundamental to building healthy credit and making your application strategy sustainable. Choosing the right card can save you and your family real money when things go wrong while traveling.
What Types of Credit Card Benefits Are Out There?
We’ve divided up this post into five different types of benefits:
- Protection for the things you buy
- Travel insurance
- Award travel benefits
- Discounts and free travel
- Benefits that make travel better
How to Activate These Credit Card Benefits
The rules for how you earn or activate credit card benefits will vary from one card to the next. Some benefits are granted just for being a cardmember. Others take effect when you swipe your card for a purchase. In some cases, a benefit will be a reward for meeting a spending goal on your card.
The key takeaway here is that the same type of benefit might fall into a different group depending on which card you have.
Here are a couple of examples:
- Benefits for being a cardmember: Many American Airlines credit cards offer free checked bags on domestic itineraries for the cardmember and up to eight companions on the same reservation. You don't even need to purchase the flight with your American Airlines credit card to get this benefit.
- Activated when you make a purchase: Many United credit cards also offer free checked bags, but the benefit is activated when you use the card to pay for your flight.
- Redeemable in a specific time period: Some benefits, like the $20 monthly Digital Entertainment Credit on The Platinum Card® from American Express, are “use it or lose it” and don't accrue month to month.
- Benefits earned by reaching a spending goal: Hilton Honors American Express Surpass® Card (full review) gives a free night reward if you spend $15,000 in eligible purchases on the card in a calendar year.
Related: Why I Spend $15,000 Each Year on My Hilton Surpass Card
But not all Hilton free nights are awarded after reaching a spending target. The Hilton Honors American Express Aspire Card offers a free night on your account anniversary just for being a cardmember. Knowing how your credit card rewards you for being a cardmember, and using the card, can help you determine if the card is worth keeping year after year.
Credit Card Insurance for the Things You Buy
Many cards offer a great lineup of protections for the physical products you buy. Each of the credit card benefits in this group is triggered when you use your card to pay for your purchase. It’s a good idea to have at least one card that offers robust coverage in this category. Then, remember to use it when you make a major purchase.
Purchase protection
Purchase protection is similar to a very short-term insurance policy that can reimburse you for the full purchase price if something you buy is lost, stolen, or damaged. A typical card will offer this benefit for 90 to 120 days from the date of purchase, depending on your state of residence.
Say you buy a new portable charger and break it two weeks later. You may be able to use this credit card insurance benefit to get a full refund of your purchase price.
You’ll find this coverage on many cards. Usually, the purchases that are eligible — or excluded — don’t vary much from one card to the next. The main thing to evaluate with this benefit is the coverage amount. $500 is a typical maximum per incident, but some cards will cover up to $10,000. There are also exclusions for entire categories of purchases, like jewelry, so read the terms and conditions of your card carefully.
Some of the best credit cards for purchase protection include:
- 10X points on hotels and car rentals purchased through Chase Travel℠
- 10X points on Chase Dining (including prepaid reservations and prepaid takeout purchased through Chase)
- 5X points on airfare purchased through Chase Travel℠
- 3X points on all other travel
- 3X points on dining at restaurants
- 1X points on all other purchases
(Terms apply)
- 4X Membership Rewards® Points at restaurants worldwide, plus takeout and delivery in the U.S. (on up to $50,000 per year in purchases, then 1X)
- 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X)
- 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com
- 2X Membership Rewards® points on prepaid hotels and other eligible travel booked on amextravel.com
- 1X on other eligible purchases
Extended warranty
Manufacturer warranties are helpful when items break shortly after purchase. Extended warranties are often offered for an extra fee, where you can choose to pay a small amount up front and then be covered if your purchase breaks or is lost. Believe it or not, many credit cards offer extended warranties with your card. The length of the extended warranty (as well as the maximum amount covered) varies by card. Make sure to check your card's fine print for details. Adding another year onto a warranty is common, but the length of warranties this applies to will vary.
Related: Best credit cards for extended warranty
Return protection
Credit cards can also help when there's a disagreement on return policies with a merchant. Your credit card's return protection benefit can provide an extra layer of protection if this situation arises.
Return protection is often limited to smaller purchases. A typical policy would provide $300 to $500 per item and usually has an annual benefit cap of around $1,000. There are also a fair number of items that won't qualify, so make sure you fully understand your card’s policy before you rely on this benefit.
Related: Best credit cards for product return protection
Price protection
Price protection can save you from the frustration of buying something right before it goes on sale. If an item you purchased is offered at a lower price up to 60 or 90 days later, you can claim a reimbursement for the price difference. Say you bought a new tablet for $199.99, only to see it go on sale a week later for $149.99. This credit card perk would refund you the $50 difference.
Price protection used to be a fairly common type of credit card insurance, but many cards have eliminated this offering in recent years. The key factors to watch are the window of time you have to file a claim, the documentation needed to show the lower-priced offer, and the types of purchases excluded from the policy.
Related: Best credit cards for price protection
Cell phone insurance
Losing or damaging your cell phone can be a costly event, and a reason why services like AppleCare are so popular. Thankfully, many credit cards offer cell phone insurance. Generally, you need to be paying your monthly phone bill with the card in question for its cell phone insurance to be active. Just having the Ink Business Preferred® Credit Card (Rates & Fees) does not activate its cell phone insurance if you are paying your phone bill with another card.
It's worth noting that this coverage could partially overlap with other types of protection. The key difference is what sort of incidents are covered. If your iPhone stops working because of a defect, you could claim extended warranty coverage on the card you used to purchase the phone. If a thief snatches it out of your hand, you'd want to file a claim on the card that you use to pay your wireless bill (after filing a police report).
Related: Best credit cards for cell phone insurance
Credit Card Travel Insurance Protections
Like purchase protection benefits, you activate many travel insurance protections by using your card to pay for all or part of your trip. The exception in this group is roadside assistance, which is normally a benefit you get just for having a card.
Flight delay insurance
Flight delays are such a common occurrence for frequent travelers. Thankfully, many cards offer flight delay insurance, which can cover expenses like meals or lodging in case your flight is delayed and/or you miss your connecting flight. Most cards offer $500 of coverage, but there are a few with a $300 maximum per incident.
With this benefit, the factor that separates the top-tier cards from the rest is how long you need to be delayed before your coverage kicks in. A good policy will cover you after six hours, rather than 12 hours or “delayed overnight.” You'll be asked to provide receipts for the expenses. Thus, this benefit won't give you more compensation than your actual costs, but it's helpful when things go wrong. If you can fit it under your coverage cap, you can splurge on a five-star hotel next time you're stranded overnight.
Related: Best credit cards for flight delay insurance
Trip interruption/cancellation insurance
Trip cancellation insurance can reimburse you for non-refundable travel costs if you need to cancel a trip before departure. For example, you booked an expensive cruise to the Caribbean, but a hurricane makes travel impossible. This is incredibly helpful, as many travel providers specifically exclude weather as a reason to help with expenses when interruptions and cancellations occur.
Trip interruption is generally similar in terms of coverage, but it kicks in when you have to cut a trip short after you have begun your travels. You'll want to check out who is covered (e.g., the primary cardholder and immediate family, but friends normally aren't included) as well as how much is covered. To get a full refund of your travel expenses, your entire trip must be paid for on the card or with points earned with that card.
Related: Best credit cards for trip interruption/cancellation insurance
Roadside assistance
AAA is a popular membership to hold if you're someone who drives a lot. Credit cards also offer roadside assistance that allows you to get help for things like a flat tire, dead battery, or keys locked in your car. This benefit comes with simply having the card. Usually, there's a specific telephone number that you can call to get your assistance when you need it.
You'll want to read the fine print on your roadside assistance benefit to find out what's covered and how often (you may be limited to a certain number of calls per year). If you take a few minutes to figure out which cards offer this perk, you can save yourself time and stress when you need to use this benefit.
Related: Credit cards that provide roadside assistance
Rental car insurance Collision Damage Waiver (CDW)
The rental car insurance that is offered by most car rental companies is usually fairly expensive compared to other kinds of insurance. If your own car insurance policy does not cover you while renting a car, your credit card may help you out instead.
There are two types of insurance offered by credit cards: primary and secondary. Primary coverage means you won't have to file a claim with your own vehicle insurance before coverage on a rental car will kick in for loss or damage. Some credit card insurance excludes certain countries, so be sure that you'll be renting in a country where the insurance is valid. This is the most useful type of insurance that a credit card can offer.
CDW stands for Collision Damage Waiver. Generally, credit card insurance covers damage to your rental vehicle, but it doesn't cover liability if you are at fault for an accident that damages other vehicles/property or results in injuries. You should check that your personal insurance policy covers these situations with a rental car or consider purchasing supplemental liability insurance when using your credit card's rental car CDW.
Related: Credit cards that provide primary rental car insurance
Baggage delay coverage
Baggage delay coverage reimburses you for out-of-pocket expenses incurred if your checked bag is delayed or misdirected by a common carrier en route to your destination. While you're waiting to be reunited with your bag, you may need to purchase clothes, toiletries, or other items. Coverage under this benefit is usually around $100 per day with a maximum of $300–$500 per traveler. Like the flight-delay benefit, you'll only be reimbursed for purchases you actually make.
The key factors to watch for with this coverage are who is covered, how long your bag needs to be delayed before the coverage starts, and the maximum reimbursement. A top-notch policy will:
- Start after six hours.
- Cover the cardholder and immediate family members.
- Reimburse you $100 per day for up to five days.
Some cards won't cover specific items that seem logical to replace (e.g., contact lenses). Be sure to review the rules and exclusions to avoid any surprises.
Related: Best credit cards for baggage delay insurance
Lost/damaged/stolen bags
While baggage delay insurance covers bags that arrive late, some credit cards also insure your bags and their contents, which is helpful when they never return to you. This protection is activated by using your card to pay for travel with a common carrier (a company that transports passengers for money). While that includes airlines, it could mean trains, cruise ships, and other forms of public transportation.
If your bags are lost, damaged, or stolen, you can file a claim and get money to replace your lost property. These policies usually require you to file a claim with the travel provider first and will make up for any amount you don't recover from the company that mistreated your bags.
Airlines in particular aren't known for having a very generous window for filing a claim. A stolen or lost bag is obvious, but if you discover that items inside your bag are missing or damaged when you get home, take action to report the loss to the airline as soon as possible. Even if the airline denies your claim, you'll now have the paperwork required to take advantage of the protections offered by your credit card.
An excellent policy might cover your bag and contents up to around $3,000, but many credit cards offer substantially less. There is often a list of (common sense) excluded items that won't be covered. For example, common exclusions include jewelry, cash, and expensive electronics that shouldn't be left in a checked bag. And, while checked luggage is typically most thought of for this policy, carry-on bags can sometimes be covered as well under the insurance umbrella, so check your terms and conditions.
Related: Best credit cards for lost or damaged luggage protection
Credit Card Benefits for Award Redemption
A few credit cards give benefits that help with either cheaper or more availability for award redemptions.
Discounted award travel
This benefit helps you spend fewer points when you redeem for travel. For example, most Delta credit cards grant cardmembers a 15% discount on Delta awards. Meanwhile, some hotel credit cards can give you a fourth night free or a fifth night free when redeeming points for a hotel stay. Also, some hotel brands also offer discounted award promotions just for cardholders.
The Aeroplan® Credit Card (Rates & Fees) even offers a 10% transfer bonus to cardholders when transferring points from Chase Ultimate Rewards.
More award booking options
Sometimes, a card will give you the ability to book flights that aren’t available to everyone else who wants to use miles. For example, Delta cardholders can redeem SkyMiles at 1 cent each towards paid travel (not a great deal, but it's an option). United cardholders get access to additional United award space that's only otherwise available to Premier elite members.
These credit card benefits can mean the difference between being able to use miles for your next trip and missing out.
Credit Card Benefits That Save You Money
Travel statement credits
This benefit gives you an automatic refund (in the form of a credit on your statement) when you use your card to make a qualifying purchase. Normally, you get a predetermined value that resets each month or each year.
Each card has its own rules about what type of purchases qualify. The Chase Sapphire Reserve® $300 travel credit and the Citi Prestige® Card $250 travel credit can be applied to a broad group of travel purchases.
In contrast, the American Express Airline Fee Credit is limited to ancillary fees with an airline you select each year. Checked bag, seat selection, and award change fees would trigger the credit, but airfare or award taxes typically would not be eligible.
Some credits apply to specific fees. Here are a few examples:
- British Airways Visa Signature® Card: Get a statement credit to cover award taxes and fees.
- Hilton Honors American Express Aspire Card: Get a $200 statement credit every six months (January-June and July-December) to use at Hilton resorts worldwide.
- Capital One Venture X Rewards Credit Card: Get a $300 annual travel credit for travel booked through the Capital One Travel portal.
- Southwest Airlines credit cards: Get statement credits when you pay for in-flight Wi-Fi and Upgraded Boardings.
Related: Best credit cards with travel credits and airline incidental credits
Hotel free nights
Free night certificates are normally awarded each cardholder year, but there are a few that are earned after meeting a spending threshold. Most free night certificates have some restrictions on using them. Most are only good at properties under a particular award price (ex: Marriott properties up to 35,000 points, which you can combine with the 15k point Marriott point top-off, or World of Hyatt Category 1–4 properties).
An annual free night is one of the credit card benefits that can make it especially easy to justify paying a credit card annual fee. If you choose the right hotel, you'll often save $200 or more compared to a paid stay, and many of the cards that feature this benefit have fees under $100. When you're considering a new hotel card, check to see if you'll get a free night certificate right away. While this shouldn't be a dealbreaker, pay attention to whether you have to wait until your first account anniversary to take advantage of the free night benefit. And check whether you're required to meet certain spending thresholds or whether the free night award is issued automatically.
Related: Hotel credit cards that come with free annual night bonuses
Companion certificates
Some cards give a benefit where a companion can travel with you for free or at a reduced cost. Alaska, Delta, Hawaiian, and British Airways each have one or more co-branded credit cards that offer a companion certificate. Most cards offer one companion ticket each year, so you need to stay on top of when the benefit expires. Fortunately, AwardWallet has you covered with expiration reminders for many companion certificates.
Then there's the famous Southwest Airlines Companion Pass, which allows a companion to fly for free on as many flights as you like while the benefit is active — just pay the mandatory government taxes (usually less than $6). The Southwest Companion Pass is not a credit card benefit per se (though offered occasionally as a sign up bonus), but the bonus points that come with your credit card's sign-up bonus can help you get the Southwest Companion Pass.
Related: Guide to companion fares and companion passes
Monthly spending credits
Several cards have begun offering credits for monthly spending at particular merchants or spending categories. Purchases from Dunkin Donuts, DoorDash, restaurants, and more are offered from a whole lineup of cards across issuers. We have a breakdown of all of those credits so refer to that post if you're interested. While these credits seem great on paper, do the math to see if they're truly saving you money, and understand that these credits expire on a monthly basis, making them “use it or lose it.”
Credit Card Benefits that Make Travel Better
This group of benefits can make your travel days much more enjoyable — from expedited security to lounge access.
Lounge access
Lounge access can be a game-changer. Generally, this benefit comes with having the card, but there may be other requirements. Many premium credit cards offer a Priority Pass Select membership, which gives you access to more than 1,700 airport lounges worldwide. You'll generally need to enroll with the bank that issues your rewards card. Then, you'll receive a Priority Pass card in the mail. Just present it at the lounge and you'll be admitted at no additional cost — as long as you stay under your guest limit for the card.
Cards that offer airline-specific lounge access typically require you to be flying with that airline. For example, if you have the Citi® / AAdvantage® Executive World Elite Mastercard®, you can access Admirals Club® lounges — but only if you have a same-day confirmed ticket flying American Airlines or one of its partners.
However, some credit card companies opened their own lounges. Holding a card like The Platinum Card® from American Express grants you access to the Centurion Lounge, which has 30 lounges around the world. The competition has followed, with Chase and Capital One opening up their own lounges in airports as well.
Related: Best credit cards for airport lounge access
Expedited security: TSA PreCheck, Global Entry, NEXUS, and CLEAR® Plus
Another credit card benefit that can make travel better is access to expedited airport security. Some cards offer a statement credit for your application fee to either TSA PreCheck or Global Entry. Cards that offer this benefit generally have exactly the same benefit — a reimbursement of up to $100 for either TSA PreCheck or Global Entry, every 4–5 years.
Since membership in Global Entry also provides TSA PreCheck, it's usually a better idea to apply for Global Entry. Generally, you can use these credits to reimburse the fees for any traveler. If you have multiple cards that offer this benefit, you can use one of your reimbursements for a friend or family member.
Related: Credit cards that provide a TSA PreCheck or Global Entry application fee credit
Interestingly, NEXUS — the Canada-U.S. cross-border program — can give you certain Global Entry and TSA PreCheck benefits while costing less than both programs. However, it requires an interview with both U.S. and Canadian border security. Certain Chase credit cards can cover your application fee for NEXUS.
Some United or Delta co-branded credit cards give a discount on CLEAR Plus membership (normally $199 / year). CLEAR is another program that can work instead of or in conjunction with TSA PreCheck to reduce the amount of time it takes you to get through airport security.
The Platinum Card® from American Express (full Amex Platinum review) and the American Express® Green Card (full Amex Green review) are the best cards for CLEAR, offering up to $199 in statement credits towards membership each year. Enrollment is required for select Amex benefits.
Related: Should you register for CLEAR Plus?
Luxury hotel collections
Several premium credit cards offer access to reduced prices and elite benefits even if you're not an elite member with a hotel chain. Examples of these types of programs are Fine Hotels + Resorts® (from American Express), the Edit (from Chase), the Premier Collection (Capital One), and the Luxury Collection (Citi). If you have a credit card that offers access to one of these programs, you can make bookings with extra benefits built into each reservation.
Hotels booked through these programs often provide things like complimentary breakfast, late checkout, room upgrades, and a credit to use for food or drinks at the hotel, saving you the effort of earning status each year to receive similar (or better) benefits.
Related: How to receive elite hotel benefits without elite status
Hotel elite status
Many hotel cards offer either give complimentary elite status immediately or provide elite credit that will help you reach the next level when combined with your normal travel. The actual enhancements that come with elite status depend on the hotel program and what level of status you receive.
Common benefits of hotel elite status include complimentary room upgrades when available, late checkout, and earning more points on every dollar you spend. Some of the best programs offer a benefit like a fourth or fifth night free on award stays.
Related: How to get hotel elite status for free
Airline elite status
With airline cards, it’s more common to earn benefits that will make your travel experience feel like being an elite member — without actually awarding status. For example, you may get priority check-in and early boarding or free checked bags.
In addition to à la carte benefits, there are a few airline cards that offer elite qualifying miles to help you reach the next level of status. Others may grant a waiver that allows you to earn status with easier requirements than what the general public must accomplish. You typically activate these benefits by reaching a spending threshold on your card.
Related: How to get airline elite status for free
Rental car elite status
Rental car elite status may not be the luxury travel perk that first comes to mind. A suite at your hotel might provide a better experience. Rental car elite status can offer perks like upgrades to a nicer car or even a free second driver on your reservation. However, the time and stress you save from rental car elite status might be the best benefits. You'll skip the line and go straight to your car at pickup. Plus, you'll usually have access to a shorter line when returning your vehicle.
Cards like The Platinum Card® from American Express even work with specific brands more closely. If you use your Platinum code with Hertz, your rental window receives a complimentary 4-hour extension. This can come in handy on the day of departure.
Related: How to get rental car elite status for free
The Bottom Line
As you can see, there is a wide variety of benefits that come with various credit cards. Knowing what benefits are out there can help you decide which credit cards make sense for you. And maybe you even learned about a benefit that changes the value you'll get with a card you already have.
Did you learn anything new from this post? Please let us know in the comments!
For rates and fees of the cards mentioned in this post, please visit the following links: The New United℠ Explorer Card (Rates & Fees), Chase Sapphire Reserve® (Rates & Fees), American Express® Gold Card (Rates & Fees), Ink Business Preferred® Credit Card (Rates & Fees), and Aeroplan® Credit Card (Rates & Fees)
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