How to Use Your Credit Card Travel Credit

By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: Premium cards offset their fee with annual travel credits: some apply automatically to any travel purchase, while airline fee credits only cover incidentals like bags and seats on one airline you select, not airfare. Knowing which type you have, and using it every year, is what makes a high fee worth it.

The two kinds of travel credit

A broad travel credit (like a $300 annual travel credit) usually applies automatically to a wide range of travel purchases, the easiest kind to use. An airline fee credit is narrower: it reimburses incidental fees (checked bags, seat assignments, in-flight food) on a single airline you pick, and typically does not cover airfare itself, which trips many people up.

Make sure you actually use it

These credits only pay off if you use them every year, so treat them like cash you have already paid for. Set a reminder, select your airline for the fee credit, and know whether the credit resets by calendar year or cardmember year. An unused $300 credit means you overpaid the annual fee by $300.

Judge the fee honestly

When deciding whether a premium card is worth it, only count credits you will genuinely use on things you would have bought anyway, the approach in are annual fees worth it and the per-card worth it breakdowns. A credit you forget to use is worth zero, no matter what the marketing says.

Frequently asked questions

Does an airline fee credit cover airfare?
Usually no. Airline fee credits reimburse incidentals like checked bags, seat assignments, and in-flight purchases on one airline you select, not the cost of the ticket itself.
How do I use my annual travel credit?
A broad travel credit often applies automatically to travel purchases. For an airline fee credit, select your airline and use it on incidentals. Set a yearly reminder so it never goes unused.

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Bryce Casson

Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.