As a newcomer to the world of travel rewards, it might be difficult to decide which credit card to use as your stepping stone. There are many alternate choices, each with its pros and cons. In this article, I'll introduce you to two of the most widely held starter travel credit cards: the Chase Sapphire Preferred Card and the Bank of America Travel Rewards credit card. You may start building up your travel points with either one, but which one is more cost-effective?

Present For Joining

The Chase Sapphire Preferred is easily the best compared to other cards' bonuses. After making $4,000 in purchases during the first three months of account opening, you will earn 60,000 bonus points, which may be redeemed for up to $1,200 based on valuations done by The Points Guy.

Bank of America's Travel Rewards credit card offers a far more modest sign-up bonus of 25,000 points after spending $1,000 in the first 90 days of account setup. One thing to bear in mind, though, is the necessary financial outlay. If you want to get the bonus for the Chase Sapphire Preferred, you'll need to spend $4,000 in the first three months.

With the Bank of America Travel Rewards credit card, you must spend $1,000 in the first ninety days. Ultimately, it doesn't matter how much of a bonus you get if you can't afford to meet the spending criteria.

Earning

When comparing rewards programs, Chase Sapphire Preferred again comes out on top. From now until March 2025, every dollar you spend on dining out, traveling, or using a Lyft will earn you three points, two points, or five points, respectively.

Alternatively, the Bank of America Travel Rewards credit card provides 1.5 points for each dollar spent. However, this earning rate can be greatly increased for favored cards.

Suppose you are a client of Bank of America and have a sizable enough deposit balance to be eligible for the Preferred Rewards program. In that case, you can earn anywhere from 1.87 points per dollar spent to 2.62 points per dollar.

Redeeming

Additionally distinct between the two cards is the variety of redemption possibilities. Credit card purchases made with the Bank of America Travel Rewards credit card are rewarded with fixed-value points that may be redeemed for cash back.

Bank of America Travel Rewards points can be redeemed for 1 cent each against travel expenses, including airfare, hotels, holiday packages, cruises, auto rentals, and checked bags, when used as a statement credit. There is a wide variety of redemption choices with the Chase Sapphire Preferred.

Through the Chase travel portal, you may redeem your points at a bonus of 25%. Still, you can also transfer them to one of Chase's important transfer partners at a rate of 1:1. You can obtain a minimum of 1.25 cents per point through the Chase gateway, but by moving to the correct partner, you may be able to get much more.

Benefits

Neither of these cards qualifies as a "premium travel card," so you shouldn't expect a lot of perks. However, the Chase Sapphire Preferred is the clear winner in this area since members get free DashPass for at least a year. This program allows cardholders to enjoy free delivery and discounted service fees on qualified DoorDash food delivery and takeout transactions.

Travel protections such as trip cancellation/interruption insurance, principal car rental coverage, baggage postponement insurance, trip delay remuneration, and extended warranty protection are also included in the Chase credit card package, along with a $50 annual hotel statement credit for reservations made through the Chase travel portal.

What's The Best Option For You?

The Chase Sapphire Preferred card is the winner in terms of value. As a Platinum Honors Preferred Rewards member, you'll get a bigger sign-up bonus, a stronger earning rate, more valuable redemption possibilities, and enhanced travel coverage. The Chase Sapphire Preferred has an annual charge of $95.

Beginners on a tight budget may wish to start with a no-annual-fee credit card like the Bank of America Travel Rewards card. Still, many people can easily cover that expense with Chase Sapphire Preferred's earning rates and other features.

Bottom line

Both can be called entry-level travel credit cards, but their target customers differ. The Chase Sapphire Preferred card is an excellent place to begin for individuals who want to learn about the ins and outs of travel credit card strategies and how to optimize transfer partners and card pairs. The Bank of America Travel Rewards credit card is a great option if transferring points to a specific airline and juggling numerous bonus categories and temporary bonuses gives you hives.