Hey fellow travelers!
Planning your next backpacking adventure and wondering which travel credit card to pack along with your essentials? We’ve got you covered. Whether you’re trekking through the Himalayas or hopping from one European city to another, having the right travel credit card can make a world of difference. Here’s our roundup of the best travel credit cards for backpacking, tailored to suit the unique needs of budget-conscious explorers.
1. Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is a top contender for any serious traveler, and it’s easy to see why. With a combination of lucrative rewards, flexible redemption options, and robust travel benefits, it’s designed to cater to the needs of both casual and frequent travelers.
Sign-Up Bonus
One of the biggest attractions of the Chase Sapphire Preferred® Card is its impressive sign-up bonus. You can earn 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening. That’s equivalent to $750 toward travel when redeemed through the Chase Ultimate Rewards® portal, giving you a substantial boost right from the start.
Earning Points
The card offers a generous rewards structure:
- 2x points on travel and dining: Whether you’re booking flights, staying in hotels, or eating out, you’ll earn double points. This is particularly beneficial for backpackers who spend a significant portion of their budget on these categories.
- 1x point on all other purchases: For everything else, you earn one point per dollar spent, ensuring that every purchase helps you rack up more rewards.
Redemption Options
Flexibility is key with the Chase Sapphire Preferred® Card. Points can be redeemed in a variety of ways:
- Travel through Chase Ultimate Rewards®: Redeem points for travel bookings at a 25% higher value. For example, 60,000 points are worth $750 when booking travel this way.
- Transfer to travel partners: Chase has an extensive list of airline and hotel partners, including United, Southwest, Marriott, and Hyatt. You can transfer points at a 1:1 ratio, often allowing for even greater value.
- Cash back, gift cards, and more: If travel isn’t in your immediate plans, you can still use your points for cash back, gift cards, or purchases through Amazon.
No Foreign Transaction Fees
One of the most important features for international travelers is the lack of foreign transaction fees. With the Chase Sapphire Preferred® Card, you won’t incur extra charges when making purchases abroad, making it a cost-effective choice for global adventures.
Travel Protections
The card also comes with a suite of travel protections, which can be a lifesaver on the road:
- Trip cancellation/interruption insurance: If your trip is canceled or cut short by covered situations, you can be reimbursed for up to $10,000 per person and $20,000 per trip.
- Auto rental collision damage waiver: Decline the rental company’s insurance and charge the entire rental cost to your card, and you’re covered for theft and collision damage for most rental cars.
- Baggage delay insurance: If your baggage is delayed by more than six hours, you can be reimbursed for essential purchases like toiletries and clothing, up to $100 a day for five days.
- Trip delay reimbursement: If your trip is delayed by more than 12 hours or requires an overnight stay, you and your family can be reimbursed for expenses like meals and lodging, up to $500 per ticket.
Annual Fee
The card has a $95 annual fee, which is relatively modest considering the array of benefits and the potential for high rewards.
Additional Benefits
- Purchase protection: Covers new purchases for 120 days against damage or theft, up to $500 per claim and $50,000 per account.
- Extended warranty protection: Extends the time period of the U.S. manufacturer’s warranty by an additional year, on eligible warranties of three years or less.
User Experience
Chase’s mobile app and customer service are highly rated, making it easy to manage your account, track your spending, and redeem your rewards on the go.
The Chase Sapphire Preferred® Card is an excellent choice for backpackers seeking a combination of valuable rewards, travel protections, and flexibility. Whether you’re dining in a remote village or booking a last-minute flight, this card has the features to support your adventures.
For more information and to apply, visit the Chase website.
2. Capital One Venture Rewards Credit Card
The Capital One Venture Rewards Credit Card is a go-to choice for travelers who value simplicity and straightforward rewards. With its flat-rate earning structure and flexible redemption options, it’s particularly appealing for those who don’t want to fuss with rotating categories or complex point systems. Let’s dive into what makes this card a great companion for backpacking adventures.
Sign-Up Bonus
To kickstart your travel fund, the Capital One Venture Rewards Credit Card offers a substantial sign-up bonus. You can earn 50,000 miles after spending $3,000 on purchases within the first 3 months from account opening. That’s equivalent to $500 in travel expenses, which can cover a significant portion of your trip.
Earning Miles
The Venture Card simplifies earning rewards:
- Unlimited 2x miles on every purchase: No matter what you buy, you’ll earn 2 miles per dollar spent. This straightforward approach is ideal for backpackers who may have varied spending habits while on the road.
Redemption Options
Flexibility is a hallmark of the Capital One Venture Rewards Credit Card. Here’s how you can use your miles:
- Travel purchases: Use your miles to erase travel purchases made with your card. Simply book your travel, then use your miles to get a statement credit for the cost.
- Travel portal: You can also use miles to book new travel directly through Capital One’s travel portal, where miles are worth 1 cent each.
- Transfer partners: Capital One allows you to transfer miles to over 15 travel loyalty programs, including airlines like Air Canada, Emirates, and JetBlue. This option can often provide outsized value for your miles.
No Foreign Transaction Fees
For backpackers exploring multiple countries, the absence of foreign transaction fees is a major advantage. You can use your card freely without worrying about extra charges on your purchases abroad.
Travel Benefits
While the Venture Card is straightforward in its earning structure, it doesn’t skimp on travel benefits:
- Travel accident insurance: Provides coverage for certain types of accidents while traveling.
- Auto rental collision damage waiver: When you rent a car using your Venture Card, you can decline the rental company’s collision damage waiver and be covered for damage due to collision or theft.
- Travel assistance services: Get help with travel-related emergencies, including lost luggage or trip delays, 24/7.
Annual Fee
The card comes with a $95 annual fee, which is offset by the travel rewards and benefits you can accrue. For many travelers, the rewards easily justify this cost.
Additional Benefits
- Global Entry/TSA PreCheck credit: Receive up to a $100 credit for Global Entry or TSA PreCheck every four years, helping you speed through airport security.
- Extended warranty: Capital One extends the manufacturer’s warranty on eligible items purchased with the card.
- Purchase security: Protects new purchases against damage or theft for a limited time after the purchase.
Easy-to-Use Mobile App
Capital One’s mobile app is user-friendly and efficient, making it easy to track your spending, manage your account, and redeem rewards from anywhere in the world.
User Experience
Capital One is known for its excellent customer service and online account management tools, ensuring you can easily resolve any issues that may arise during your travels.
The Capital One Venture Rewards Credit Card offers a hassle-free way to earn and redeem travel rewards, making it an excellent choice for backpackers who prefer a simple, no-nonsense approach to earning miles. Its robust benefits, combined with no foreign transaction fees and a generous sign-up bonus, make it a valuable tool for funding and enhancing your travel experiences.
For more information and to apply, visit the Capital One Venture page.
3. Bank of America® Travel Rewards Credit Card
The Bank of America® Travel Rewards Credit Card is an ideal choice for budget-conscious backpackers looking for a no-annual-fee card that still packs a punch in terms of rewards and benefits. With its straightforward earning structure and flexible redemption options, this card makes it easy to earn points and use them for travel expenses without any extra costs. Let’s explore what makes this card a smart choice for travelers.
Sign-Up Bonus
The Bank of America® Travel Rewards Credit Card offers a competitive sign-up bonus to help you start your travels:
- 25,000 online bonus points after making at least $1,000 in purchases in the first 90 days of account opening. This bonus is equivalent to $250 in travel expenses, providing a nice boost to your travel budget.
Earning Points
The card’s earning structure is simple and rewarding:
- Unlimited 1.5 points per dollar spent on all purchases. There are no categories to track or bonus caps to worry about, making it easy to earn rewards on all your spending, whether you’re buying groceries, booking flights, or paying for hostels.
Redemption Options
Flexibility is a key feature of the Bank of America® Travel Rewards Credit Card. Here’s how you can use your points:
- Travel statement credit: Redeem points for a statement credit to cover travel purchases, such as flights, hotels, rental cars, and more. This option allows you to book travel through any website or travel agency and then use your points to offset the cost.
- Bank of America Travel Center: Use points to book travel directly through the Bank of America Travel Center, where you can choose from a wide range of travel options, including flights, hotels, and vacation packages.
- Cash back and gift cards: If you prefer, you can also redeem points for cash back, gift cards, or other options, although the best value typically comes from redeeming for travel.
No Foreign Transaction Fees
One of the standout features for international travelers is the absence of foreign transaction fees. This means you can use your card anywhere in the world without incurring additional charges on your purchases, making it a cost-effective option for globetrotters.
Travel and Purchase Protections
Despite being a no-annual-fee card, the Bank of America® Travel Rewards Credit Card offers several useful protections:
- Travel and emergency assistance: Provides referrals and assistance for emergency services, including medical and legal services, while traveling.
- Auto rental collision damage waiver: When you rent a car using your card, you can decline the rental company’s collision damage waiver and be covered for damage due to collision or theft.
- Lost luggage reimbursement: If your checked or carry-on luggage is lost or delayed, you may be eligible for reimbursement to cover the cost of essential items.
Annual Fee
One of the biggest advantages of this card is that it has no annual fee. This makes it an excellent option for travelers who want to earn rewards without any upfront costs.
Additional Benefits
- Preferred Rewards Program: If you’re a Bank of America Preferred Rewards client, you can earn a bonus of 25% to 75% more points on every purchase, depending on your tier. This can significantly boost your rewards earning potential.
- Online and Mobile Banking: Bank of America offers robust online and mobile banking tools, making it easy to manage your account, track your spending, and redeem rewards from anywhere in the world.
- Zero Liability Protection: You’re not responsible for fraudulent charges made with your card, adding an extra layer of security.
User Experience
Bank of America is known for its reliable customer service and easy-to-use online banking platform. You can easily monitor your account, make payments, and redeem rewards through their website or mobile app.
The Bank of America® Travel Rewards Credit Card is a great option for backpackers who want a no-annual-fee card with a straightforward rewards program. Its combination of flexible redemption options, no foreign transaction fees, and valuable travel protections makes it a solid choice for travelers looking to maximize their spending without incurring extra costs.
For more information and to apply, visit the Bank of America website.
4. Discover it® Miles
The Discover it® Miles card is a great option for backpackers and travelers seeking a straightforward rewards program without an annual fee. What sets this card apart is its unique first-year rewards match and its flexible redemption options, making it an attractive choice for those embarking on a new travel adventure. Let’s delve into the features and benefits of this card to see why it might be the perfect fit for your next trip.
First-Year Rewards Match
One of the standout features of the Discover it® Miles card is the unlimited mile-for-mile match at the end of your first year. Discover will automatically match all the miles you’ve earned, effectively doubling your rewards for the first 12 months. This means if you earn 35,000 miles in your first year, Discover will match it with another 35,000 miles, giving you a total of 70,000 miles.
Earning Miles
The Discover it® Miles card offers a simple and generous earning structure:
- Unlimited 1.5 miles per dollar on every purchase. No need to worry about rotating categories or spending limits. Every purchase, whether it’s booking a hostel, buying groceries, or purchasing a bus ticket, earns you 1.5 miles per dollar spent.
Redemption Options
Flexibility is a key feature of the Discover it® Miles card. Here’s how you can use your miles:
- Travel statement credit: Use your miles to get a statement credit for travel purchases, including airfare, hotels, car rentals, travel agents, online travel sites, and commuter transportation. This allows you to book your travel through any website or agency and then use your miles to offset the cost.
- Cash back: You can also redeem your miles for cash back at the same value (1 mile = 1 cent), which you can deposit into your bank account or apply as a statement credit for non-travel purchases.
No Foreign Transaction Fees
For international travelers, the absence of foreign transaction fees is a significant benefit. You can use your Discover it® Miles card for purchases abroad without worrying about extra charges, making it a cost-effective option for global travel.
Travel Benefits and Protections
While the Discover it® Miles card focuses on straightforward rewards, it also offers several travel-related benefits:
- Travel accident insurance: Provides coverage in the event of a travel-related accident when the fare is charged to your card.
- Auto rental collision damage waiver: Decline the rental company’s collision insurance and be covered for theft and damage when renting a car.
- 24/7 customer service: Access to Discover’s customer service at any time, which is especially useful when traveling across different time zones.
Annual Fee
One of the most appealing aspects of the Discover it® Miles card is that it has no annual fee. This makes it a great option for budget-conscious travelers who want to earn rewards without the burden of an annual cost.
Additional Benefits
- Freeze It®: Discover’s Freeze It® feature allows you to instantly freeze your card if it’s lost or stolen, preventing new purchases, cash advances, and balance transfers.
- FICO® Credit Score for free: Cardholders have access to their FICO® Credit Score for free, which can help you keep track of your credit health.
- Zero Liability Protection: You’re not responsible for unauthorized purchases on your card, adding an extra layer of security.
User Experience
Discover is known for its excellent customer service and user-friendly mobile app and website. Managing your account, tracking your spending, and redeeming your miles can be done easily on the go.
Discover’s Global Acceptance
One consideration for international travelers is Discover’s acceptance abroad. While Discover has grown its global presence, it’s always a good idea to have a backup card, especially in regions where Discover might not be as widely accepted.
The Discover it® Miles card offers a compelling mix of straightforward rewards, no annual fee, and valuable benefits, making it an excellent choice for backpackers and travelers who want to earn miles without the hassle of managing complex rewards programs. Its first-year rewards match can significantly boost your miles, helping you save more on your travels.
For more information and to apply, visit the Discover it® Miles page.
5. American Express® Gold Card
The American Express® Gold Card is a premium choice for travelers who enjoy the finer things in life, especially when it comes to dining and grocery shopping. While it comes with a higher annual fee, the benefits and rewards can easily outweigh the costs for those who maximize its earning potential. Let’s take a closer look at why the American Express® Gold Card is a top pick for backpackers who love to indulge in local cuisine and make the most of their travel experiences.
Sign-Up Bonus
The American Express® Gold Card offers a substantial sign-up bonus to get you started:
- 60,000 Membership Rewards® Points after spending $4,000 on purchases in the first 6 months from account opening. These points can be worth up to $600 when redeemed for travel through the American Express Travel portal, or potentially more when transferred to airline and hotel partners.
Earning Points
The card’s earning structure is designed to reward frequent travelers and foodies:
- 4x points at restaurants worldwide: This includes dining out, takeout, and delivery, making it perfect for sampling local cuisines wherever your travels take you.
- 4x points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1x): This is ideal for backpackers who prefer to cook their own meals while staying in hostels or vacation rentals.
- 3x points on flights booked directly with airlines or on amextravel.com: This provides a solid return on airfare expenses.
- 1x point on all other purchases: For all other spending, you earn one point per dollar, ensuring that every purchase contributes to your rewards balance.
Redemption Options
American Express Membership Rewards® points offer a high degree of flexibility:
- Travel bookings: Use points to book travel through the American Express Travel portal, where points are typically worth 1 cent each.
- Transfer to travel partners: Maximize the value of your points by transferring them to one of American Express’s many airline and hotel partners, such as Delta, British Airways, and Hilton. This can often provide higher value per point, especially for premium cabin flights and luxury hotel stays.
- Statement credits, gift cards, and more: Points can also be redeemed for statement credits, gift cards, or purchases through Amazon, though these options may not offer as high a value as travel redemptions.
No Foreign Transaction Fees
For international travelers, the American Express® Gold Card charges no foreign transaction fees. This allows you to use your card abroad without worrying about extra charges on your purchases, making it a practical choice for globetrotters.
Travel and Dining Benefits
The American Express® Gold Card comes with several valuable benefits that enhance your travel and dining experiences:
- $120 dining credit: Earn up to $10 in statement credits monthly when you pay with the Gold Card at participating partners, including Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, and select Shake Shack locations (enrollment required).
- $100 airline fee credit: Receive up to $100 in statement credits per calendar year for incidental fees charged by your selected airline, such as baggage fees and in-flight refreshments (enrollment required).
- The Hotel Collection: When you book a stay of two consecutive nights or more at participating properties through American Express Travel, you’ll receive a $100 hotel credit to spend on qualifying dining, spa, and resort activities, plus a room upgrade upon arrival, if available.
Travel Protections
The card also offers several protections to give you peace of mind while traveling:
- Trip delay insurance: If your trip is delayed for more than 12 hours due to a covered reason, you can be reimbursed for eligible expenses, such as meals and lodging, up to $300 per trip.
- Baggage insurance plan: Receive coverage for lost, damaged, or stolen baggage when you purchase the entire fare with your card.
- Car rental loss and damage insurance: Decline the rental company’s collision damage waiver and charge the entire rental cost to your card to be covered for theft and damage.
Annual Fee
The card comes with a $250 annual fee. While this is higher than some other travel cards, the rewards and benefits can easily offset this cost if you take full advantage of them.
Additional Benefits
- Extended warranty: Get an additional year of coverage on eligible warranties of five years or less when you use your card.
- Purchase protection: Protects eligible purchases against accidental damage or theft for up to 90 days from the date of purchase, up to $10,000 per claim.
- No preset spending limit: The card’s spending limit adjusts with your use of the card, your payment history, and other factors.
User Experience
American Express is renowned for its excellent customer service and user-friendly online and mobile account management tools. This ensures you can easily manage your account, track your spending, and redeem rewards while on the go.
The American Express® Gold Card offers a rich rewards structure and valuable benefits that make it an excellent choice for backpackers who enjoy dining out and booking travel. Its flexibility in redeeming points, combined with no foreign transaction fees and robust travel protections, make it a powerful tool for enhancing your travel experiences.
For more information and to apply, visit the American Express website.
Tips for Using Your Travel Credit Card Wisely
Using a travel credit card can be incredibly beneficial when backpacking, but it’s important to use it wisely to maximize rewards and avoid unnecessary fees. Here are some practical tips to help you get the most out of your travel credit card while on the road.
1. Avoid Cash Advances
Cash advances can be tempting in a pinch, but they come with high fees and immediate interest charges, often at higher rates than regular purchases. Whenever possible, avoid using your credit card to withdraw cash from ATMs. Instead, plan ahead and carry a mix of local currency and use your card for purchases directly.
2. Pay Your Balance in Full
To avoid paying interest, aim to pay off your credit card balance in full each month. Carrying a balance not only accrues interest but can also negatively impact your credit score. Set up automatic payments or reminders to ensure you don’t miss a due date.
3. Notify Your Bank of Your Travel Plans
Before you embark on your trip, notify your credit card issuer of your travel plans. This helps prevent your card from being flagged for suspicious activity when charges from foreign locations start appearing. Many banks offer an easy way to do this online or through their mobile app.
4. Keep a Backup Card
While your primary travel credit card might offer the best rewards and protections, it’s wise to carry a backup card. This can be a lifesaver if your main card is lost, stolen, or unexpectedly declined. Make sure your backup card is from a different issuer to avoid network issues.
5. Use Cards with No Foreign Transaction Fees
Foreign transaction fees can add up quickly when traveling abroad. Choose a travel credit card that doesn’t charge these fees to save money on every international purchase. All the cards we’ve highlighted in this guide, for instance, come with no foreign transaction fees.
6. Leverage Travel Protections
Many travel credit cards offer protections like trip cancellation insurance, rental car coverage, and baggage delay insurance. Familiarize yourself with these benefits and know how to file a claim if necessary. Keeping copies of receipts and documentation can help streamline the process if you need to use these protections.
7. Maximize Rewards on Travel and Dining
Take advantage of your card’s bonus categories. If your card offers extra points or miles on travel and dining purchases, prioritize using it for these expenses. This can significantly boost your rewards balance, helping you earn free travel faster.
8. Redeem Points for Maximum Value
When it comes time to redeem your points or miles, aim for options that offer the best value. For many travel cards, this means using points for travel-related expenses or transferring them to airline and hotel partners. Be sure to compare redemption options to get the most out of your rewards.
9. Monitor Your Account Regularly
Keep a close eye on your account activity to spot any unauthorized transactions or errors. Most issuers offer real-time alerts and easy-to-use mobile apps, making it convenient to monitor your spending and rewards balance. Regular monitoring can also help you stay on budget and track your progress towards earning rewards.
10. Utilize Travel and Emergency Assistance
Many travel credit cards come with 24/7 travel and emergency assistance services. These can be invaluable in situations such as medical emergencies, lost passports, or other travel-related issues. Make sure you have the contact information for these services handy while traveling.
11. Take Advantage of Airport Lounge Access
If your card offers complimentary access to airport lounges, make the most of it. Lounges provide a comfortable space to relax, free Wi-Fi, snacks, and beverages, which can make long layovers much more pleasant. Check which lounges your card grants access to and familiarize yourself with the entry process.
12. Use Contactless Payments
Many travel credit cards now come with contactless payment technology. This can be especially useful in countries where contactless payments are widespread. It’s faster and more secure than swiping or inserting your card, and you don’t have to worry about your card leaving your hand.
13. Take Advantage of Special Offers and Promotions
Credit card issuers often run promotions and special offers that can help you earn additional rewards or save money. Keep an eye on your card’s online portal or app for these deals and take advantage of them when they align with your travel plans.
By following these tips, you can maximize the benefits of your travel credit card while minimizing costs and hassles. Safe travels and happy adventuring!
Conclusion
Choosing the right travel credit card can significantly enhance your backpacking experience, providing you with valuable rewards, essential travel protections, and financial flexibility. Each of the cards we’ve highlighted offers unique benefits that cater to different travel styles and preferences.
Recap of Top Travel Credit Cards
- Chase Sapphire Preferred® Card: Ideal for those who want flexible redemption options and robust travel protections, plus a generous sign-up bonus.
- Capital One Venture Rewards Credit Card: Perfect for travelers who prefer a straightforward earning structure and easy-to-use miles.
- Bank of America® Travel Rewards Credit Card: Great for budget-conscious travelers who want a no-annual-fee card with solid earning potential.
- Discover it® Miles: Best for those looking for a no-annual-fee card with a lucrative first-year rewards match.
- American Express® Gold Card: Suited for foodies and those who spend a lot on dining and groceries, with premium benefits and rewards.
Maximizing Your Travel Credit Card
Using your travel credit card wisely can amplify its benefits. Remember to avoid cash advances, pay your balance in full, notify your bank of travel plans, and keep a backup card. Make the most of your card’s no foreign transaction fees and travel protections, and use it strategically to earn maximum rewards. Redeeming points for travel expenses and monitoring your account regularly can help you get the most value from your card.
Planning Your Adventure
Armed with the right travel credit card, you’re well-equipped to embark on your next backpacking adventure. Whether you’re trekking through the mountains, exploring bustling cities, or savoring local delicacies, these cards can help you stretch your budget further and enjoy a more comfortable journey.
Final Thoughts
Travel credit cards are powerful tools that can turn everyday purchases into extraordinary experiences. By choosing a card that aligns with your spending habits and travel goals, you can unlock a world of benefits that make your backpacking trips more rewarding and less stressful.
Safe travels and happy adventuring! If you have any favorite travel credit cards or tips, feel free to share them in the comments below. We’d love to hear from you!
