How do travel rewards credit cards work?
Find out what type of travel rewards credit card is best for you
Not all miles or travel rewards credit cards work the same way, or reward the same way. When looking for a no annual fee travel rewards credit card, the best card for you is one that gives you rewards at the places you spend the most, and lets you easily redeem miles rewards or points the way you want (cash, hotel or airline credit, account credit, merchandise, gift cards).
It's important to consider how much you plan to spend, or put on the credit card. If you don't plan to charge a lot to an airline or travel credit card, it may be hard for you to accumulate points or miles on rewards cards—especially if a rewards card has an expiration date on when you can redeem your rewards.
Review your travel and spending habits to figure out how much you will have to spend on the card before you can reach the rewards level you want. If you have to accrue 25,000 miles or points before you can redeem for the travel you want, how long will it take for you to earn these credits? How much will you have to spend?
You also may want a card that gives you greater flexibility and freedom in how you earn and redeem travel rewards. Are you limited in the number of places you can earn top rewards—such as affiliated airlines or hotels—or can you earn maximum rewards on any travel with no restrictions? Likewise, do you want to redeem these rewards with a specific airline or hotel or will you want to use your points or miles elsewhere (such as cruises, airlines, car rentals, hotels)?
When looking for a travel rewards credit card that's right for you, consider:
- Your travel habits—are you a frequent flyer who uses the same airline multiple times a year or an occasional traveler with the flexibility to shop for discounted airfare
- In what categories or places you will earn the highest travel rewards
- If you also earn rewards or points on everyday purchases
- How long will it take you to earn top miles or travel rewards
- When the points or miles you earn expire
- Does the travel or miles card offer unrestricted travel and flexibility in booking—with no limitations, blackout dates or seat restrictions
- Are you limited to where you can earn your points or rewards
- How easy is it to understand how the card works
- What is the interest rate on purchases and balance transfers
- If the rewards card has no annual fee
Check to see what travel benefits are offered with your travel rewards credit card. Many credit cards offer automatic car rental insurance and flight insurance. If car rental insurance provides secondary collision damage insurance when you rent a car using your card, you can decline coverage offered by the rental agency. For air travel, flight accident insurance often is included when you purchase an airline ticket with your credit card.
Some miles or travel credit cards also offer additional travel services, such as 24/7 global travel assistance. This can come in handy when you need to find lost luggage, rebook a flight, replace a lost passport and much more.
Discover Card believes that consumers should be armed with the information they need to help them make informed financial decisions. 
Interested in earning unlimited double miles? Find out about the no annual fee Miles by Discover Card and the new Escape by Discover Card with enhanced travel benefits.
TIP*:
"If you consolidate your spending on one card, consider getting a "rewards" card where you earn miles, stuff, or cash back on your spending. Look for a card that will award you stuff you'll actually use. (Cash is usually a good option.) Still, don't let your spending get out of control just to earn a free golf bag or a few extra airline miles."