what is the best credit card for travel?

If you travel a lot, you've doubtless thought about this question. What is the best credit card for travel? I can't give the definitive answer to that question because every traveler has different priorities, but here are some thoughts about the question.

What is your priority? Do you want miles, perks, or zero fees?

If you want to collect airline miles, there are two ways to go. Do you fly one airline predominately? When you use a credit card affiliated with that airline's frequent flyer program, every dollar you spend earns you one mile on that airline. You can [try to] use those miles for upgrades or free flights.

Some airlines offer additional perks with their branded credit cards. Alaska Airlines, for instance, offers a yearly $50 companion fare coupon that is a good deal. You can even get the companion fare when flying first class, and there are no blackout dates.

Want to use your miles on a variety of different airlines? With American Express and Diners Club cards, your miles accumulate over the years (they never expire), and you can transfer them to a variety of different frequent flyer programs. Potential drawback: both companies now charge you to transfer miles to your frequent flyer accounts.

Would you rather go for perks? Consider either an American Express Platinum card or a World Elite MasterCard (which is the official card of Virtuoso). The AMEX Platinum is expensive, $475 a year as I recall, but it gets you into airport lounges for Continental, Delta, Northwest, and American Airlines on your day of travel when using those carriers.

World Elite MasterCard, which you can obtain with no annual charge, provides you with a Priority Club membership. Show your card and get into participating airport lounges for $25. You know how often you fly; do the math! Both cards also offer an international airline program with 2-for-1 business class tickets on a variety of carriers (at full published fares). While you can often do better with advance purchase discounted premium fares, this is a great value if you and a companion are flying last minute.

If you frequently rent cars, Diners Club offers primary car rental insurance. Most other credit cards provide only secondary rental insurance (which means your own auto insurance pays to the limits of your coverage, the credit card company pays your deductible, and your insurance history gets "dinged" with a claim).

Zero fees are a compelling option for many travelers. If you pass up credit cards with an annual fees that can range from $75 to $475 annually, you keep the cash in your own bank account. Some free cards even pay you a cash rebate. Capital One's cards can save international travelers because they do not impose an additional foreign transaction fee on top of what Visa or MasterCard tack onto every charge in a foreign currency.

My conclusion? While any of these options can represent a good value, my most important advice is to use credit wisely and pay off your balance in full each month. Otherwise, whatever benefit you can possibly accrue from these cards is more than eaten up by the interest you will pay over the years.

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copyright (c) 2008 by David J. Ourisman. All rights reserved. If you have comments on this column, or questions about booking travel, email me or visit my website.
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