As the holiday season approaches, many people are already finalizing plans to visit family, explore new destinations, or simply get away from the daily grind. Whether you’re booking a cross-country flight to see relatives or organizing a winter escape to a tropical paradise, travel costs can quickly add up. In the midst of planning and spending, one smart move you might not have considered is opening a new travel credit card.
While credit cards often get a bad reputation for encouraging debt, when used responsibly, a travel Card rewards card can be an incredibly valuable financial tool. If you’re planning to spend more than usual this holiday season, whether on flights, gifts, lodging, or dining, you might as well be earning serious perks in the process.
Here are five compelling reasons why opening a new travel card right now—before the holidays hit full swing—could be one of the best financial decisions you make this year.
1. Maximize Welcome Bonuses While You Spend More for the Holidays
Most travel credit cards offer generous sign-up bonuses for new cardholders. These bonuses are typically awarded after you spend a certain amount within the first few months of opening the account. For example, you might earn 60,000 bonus points after spending $4,000 in the first three months. These points can translate to hundreds of dollars in free travel, hotel stays, or other rewards.
The holiday season is the perfect time to meet these minimum spending thresholds without changing your purchasing behavior. Between flights, hotel bookings, gifts, dining, and entertainment, your holiday expenses could naturally fulfill the requirements needed to unlock that bonus.
Instead of using a debit card or a no-rewards card for those purchases, putting them on a new travel credit card allows you to leverage your existing spending to earn valuable points or miles. It’s essentially a way to get rewarded for money you were going to spend anyway.
Example: If you plan to buy plane tickets for a family of four, stay in hotels, and purchase gifts, those expenses could easily reach $3,000 or more. Adding a few other regular expenses like groceries or gas, and you’ll likely hit the threshold without effort.
2. Access to Travel Perks and Protections
A huge advantage of travel credit cards is the added travel protections and perks they offer. Booking travel with a premium travel card often includes benefits such as:
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Trip cancellation or interruption insurance
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Lost luggage reimbursement
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Travel accident insurance
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Rental car coverage
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No foreign transaction fees
Some cards also include airport lounge access, TSA PreCheck/Global Entry fee credits, hotel upgrades, and priority boarding. These perks can significantly enhance your holiday travel experience by making it more comfortable, secure, and convenient.
Even if you’re only planning one big trip this season, those benefits can deliver peace of mind—and potentially save you hundreds of dollars if things go wrong, like a delayed flight or lost baggage.
Example: If your flight is canceled due to weather and you need to book a hotel overnight, a travel card with trip interruption insurance may reimburse you for those unexpected costs.
3. Earn More Points or Miles on Seasonal Spending Categories
Many travel cards offer accelerated rewards on categories that align with holiday spending, such as travel, dining, groceries, or online purchases. These multipliers can help you rack up points or miles much faster than a standard 1% cashback card.
Let’s say your new card offers:
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3x points on dining
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2x points on travel
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1x points on all other purchases
Now imagine how those categories overlap with your holiday plans. Dining out with friends, paying for airline tickets, booking hotels, and ordering gifts online could all earn you significantly more rewards than usual during the final months of the year.
This stacking of rewards is one of the most powerful features of travel cards. When combined with a welcome bonus, you could end up with enough points for a free trip early next year—just for spending as you normally would during the holidays.
Pro Tip: Use a travel card that allows point transfers to airline or hotel partners for potentially even greater value when redeeming your rewards.
4. Lock in Lower Costs Before Prices Surge
Airfare and hotel prices often surge the closer you get to major holiday dates like Thanksgiving, Christmas, and New Year’s. Opening a travel card now allows you to book your travel sooner—before prices climb higher—and use your new card’s benefits right away.
Additionally, some travel cards come with discounted rates through exclusive booking portals or offer points-back opportunities when you use their travel service. These deals can help you shave hundreds off the overall cost of your trip.
Another consideration: if your current credit card has a lower credit limit or limited rewards, using a new card with a higher limit can provide more spending flexibility and help keep your credit utilization low, which benefits your credit score.
Opening a card now also gives you time to familiarize yourself with its rewards system, redemption process, and features—so you’re not rushing to learn everything at the last minute when you’re already traveling.
Example: Booking your holiday flights in late October or early November using your new travel card could save you significantly compared to waiting until mid-December, when last-minute prices are often much higher.
5. Kickstart a Long-Term Travel Strategy
Travel credit cards aren’t just useful for the holidays. They’re the foundation of many successful long-term travel strategies. By opening a card now and beginning to earn rewards, you’re setting yourself up for future trips—spring break, summer vacations, anniversaries, and beyond.
Some savvy travelers open a new card every few months to take advantage of welcome bonuses, eventually earning enough points to travel extensively for free. Even if you’re not interested in “travel hacking,” having a travel card is still beneficial for:
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Saving money on future trips
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Getting access to luxury experiences (like airport lounges or hotel upgrades)
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Building a strong credit profile through responsible use
Additionally, travel cards often come with companion tickets, annual travel credits, or status upgrades that improve your experience over time. Starting that journey now means you’ll be ready to take full advantage of these perks in 2025 and beyond.
Example: Earning 75,000 points now could mean a nearly free round-trip flight to Europe next summer—or a luxury hotel stay during spring break.
Bonus Consideration: It Can Help You Budget and Track Holiday Spending
While it might seem counterintuitive, using a credit card (when used responsibly) can actually help with holiday budgeting. Many travel cards offer:
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Real-time alerts and spending summaries
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Category breakdowns for easy budgeting
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Special tools to set and manage spending limits
Keeping all your holiday purchases on one travel card can help you monitor how much you’re spending. Plus, if your travel card comes with tools for redeeming cash value or points toward statement credits, it could help you offset some of your costs later.
The key, of course, is to pay off your balance in full each month to avoid interest charges. If you do that, you’re essentially being paid in rewards to spend what you were already going to spend.
What to Look for in a Travel Credit Card
Not all travel cards are created equal, and choosing the right one can depend on your lifestyle, travel habits, and financial goals. Here are a few features to consider:
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Annual Fee: Higher annual fees often come with better perks, but make sure they align with your travel plans.
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Rewards Structure: Look for cards that offer high points/miles on categories you spend in regularly.
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Redemption Flexibility: Some cards only let you redeem through certain travel portals, while others allow point transfers to a wide range of partners.
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Foreign Transaction Fees: If you’re planning international travel, make sure your card doesn’t charge these.
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Travel Protections: The more robust, the better—especially during a season when delays and cancellations are more common.
Doing a little research or using a comparison tool can help you find the perfect card for your holiday travel needs.
The Bottom Line: Timing Is Everything
The holidays are expensive—it’s a fact of life. But with the right strategy, those expenses can work for you instead of against you. Opening a new travel credit card now gives you the chance to earn a lucrative welcome bonus, enjoy travel perks, and build up a stash of points or miles to use for your next adventure.
Instead of waiting until you’re already knee-deep in travel plans, acting now gives you a head start on saving money and earning rewards. Whether you’re headed home for the holidays, escaping to a resort, or just looking to make your dollars stretch further, a travel card can be the difference between a stressful trip and a rewarding one.
As always, be sure to read the terms and conditions, understand the annual fee, and commit to using the card responsibly. But for those who do, the holidays might just become the perfect time to turn your spending into something truly valuable.