With so many credit cards offering travel rewards, it can be hard to know which to choose. Annual fees vary widely, ranging from free options to those that cost several hundred dollars. If you’re considering a travel rewards credit card, here's what you should keep in mind.

Are you gearing up for a summer getaway? If so, you’re in good company. Recent surveys indicate that nearly half of Americans are planning vacations this summer that involve flights or accommodations. Expect to spend around $4,000 for the average trip. If you love to travel but need to keep an eye on your spending, you might be asking yourself if these credit cards are a smart move.

As you look ahead to summer fun or holiday trips, it's an ideal time to evaluate whether a travel rewards credit card suits your lifestyle. Here’s what to consider.

DO YOU TRAVEL FREQUENTLY?

When contemplating a travel rewards credit card, the first question to answer is about your travel frequency.

Sara Rathner, a travel and credit card expert, shares, “If you’re a frequent traveler, especially if you head overseas at least once a year, travel rewards credit cards can be beneficial.” She emphasizes the importance of knowing how you want to use those rewards.

Rathner also mentions that if you have a preferred airline or hotel chain, a co-branded card could provide valuable perks like complimentary checked bags or room upgrades.

For example, if you're loyal to Marriott, consider their branded card that offers additional Marriott-specific rewards.

ANNUAL FEES MATTER

Understanding your usage of the card and its rewards is crucial due to the potential for hefty annual fees. Some cards feature low or no fees, while others can charge upwards of $695. However, higher fees can also come with valuable—but sometimes complex—rewards.

Take the Chase Sapphire Reserve, for instance. Its annual fee is $795, but it can offer up to $300 in statement credits for travel purchases. Similarly, Delta’s credit cards via American Express can offer a free checked bag, but come with an annual fee that may reach $650.

When we asked Rathner about the likelihood of recovering the annual fee through rewards, she explained, “It really depends on how often you travel and which benefits are useful to you. If you utilize travel credits, lounges, and checked bags, the value will be more apparent.”

So, are the pricier cards worth it? Rathner believes, “These cards often provide the most benefits, making it possible to recoup costs through their rewards.”

BOOKING TRAVEL THROUGH YOUR CREDIT CARD PROVIDER

Many travel rewards credit cards give extra rewards when you book trips through their online platforms. But, be mindful of the cancellation policies associated with those bookings.

Rathner warns, “When using a third-party travel portal, you’re bound by their policies instead of those of the airline or hotel. This can limit your flexibility compared to direct bookings. It’s not necessarily a bad choice, but be sure to review their policies before committing any funds.”

Alternatively, you can stick with your favored travel booking site. Rathner points out that “you can find flexible travel rewards cards across various price points, providing options if you prefer to book directly with airlines and hotels.”

WILL OPENING A NEW CARD IMPACT MY CREDIT SCORE?

Regardless of the card you choose, it’s vital to keep your credit score in mind. Applying for any new card triggers a “hard credit check,” which can temporarily lower your score.

Don’t let this discourage you from pursuing a new card if it suits your needs. Just be aware of this, especially if you’re considering a home purchase or applying for a large loan.

IS MANAGING A TRAVEL CREDIT CARD TOO COMPLEX?

If navigating the rewards and fees of travel credit cards feels daunting, there’s a straightforward alternative.

Rochelle Odesser, a CFP, suggests, “Focus on planning your vacation rather than managing multiple card programs. Your time is valuable.”

She adds, “Most people struggle to efficiently manage several cards for maximum rewards, and fees can diminish those rewards. Instead, consider a single no-fee card and funnel the cash back into a travel fund.”

Rathner concurs, stating, “Using a cash-back card and directing any rewards toward your travel budget can be a solid strategy.”

GETTING THE MOST FROM TRAVEL REWARDS CREDIT CARDS

Frequent travelers can enjoy substantial benefits from credit cards. If you believe the travel rewards can offset the annual fee, it’s worth opening a card. However, if you mainly seek cash back for occasional trips, simpler cash-back cards may be more suitable. Travel rewards credit cards can indeed be advantageous, provided you conduct thorough research to ensure they align with your travel preferences.

MORE: