How to choose the best travel-reward credit cards

Credit card reward points can add up to free stays at hotels such as the InterContinental New York Barclay, shown here. But some cards are more generous than others, according to the website ValuePenguin. InterContinental s IHG Rewards Club Visa gets a high value ranking using the site s model. (Photo: InterContinental New York Barclay)

Dozens of credit cards reward users with travel perks such as airline miles and free hotel nights. But calculating those rewards against what you pay in annual fees is more than most of us lacking a finance degree can handle.

Enter ValuePenguin. a new, customizable online tool that rates 56 travel-affiliated credit cards. The cards are mostly linked to airline and hotel rewards programs, but they also include some that offer generic travel rewards across brands, plus a handful that are affiliated with cruise lines and online travel agencies.

To measure relative value among the cards, ValuePenguin uses $9,000 in annual spending over two years as a benchmark. But the beauty of the tool is that it lets users input their own spending estimates for customized results. Basically, the site calculates an average dollar value for miles or points awarded, then factors in signing and other bonuses and subtracts the annual fee.

Using that model, the top card is the IHG Rewards Club Select Visa with a $731 value over two years. But because points are redeemable only for hotel stays at InterContinental Group Hotels properties, ValuePenguin gives the edge to the fee-based Barclaycard Arrival World MasterCard, which delivers a net value of $658 over two years, according to their calculations. Barclaycard points are redeemable for airline tickets, hotel rooms, rental cars, train tickets and cruises across brands.

The worst value: the American Express Delta Reserve card, with a $450 annual fee and high spending requirements to reap bonuses. According to the ValuePenguin's model, it'll cost subscribers $564 over two years. Not that all American Express SkyMiles cards are equal. The Gold Delta SkyMiles card, for instance, delivers $481 in net rewards over two years.

"The first thing to consider is your spending and travel patterns," says ValuePenguin co-founder Jonathan Wu. "Knowing how much flexibility you need helps you filter the kind of card you need."

Other high-value cards in the ValuePenguin model: Southwest Airlines Rapid Rewards Plus Visa ($644); Southwest Rapid Rewards Premier Visa ($635); Marriott Rewards Premier Visa ($595); Platinum Select AAdvantage World MasterCard ($578); British Airways Visa ($535).

ValuePenguin, which analyzes various consumer finance areas by conducting deep dives into relevant data, launched last year.

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