Using credit card points effectively can significantly reduce travel expenses, offering you free flights, hotel stays, upgrades, and more. I have racked up over 600,000 points in 10 months on a fixed budget!
Here are some travel hacks with credit card points to help you make the most out of your rewards:
1. Maximize Sign-Up Bonuses (aka SUBs)
Choose Cards with Generous Sign-Up Bonuses: Many travel credit cards offer large sign-up bonuses if you meet a minimum spending requirement within the first few months. These bonuses can be worth hundreds of dollars in travel rewards.
Stack Sign-Up Bonuses: Consider applying for cards with high sign-up bonuses that fit your travel plans, especially if you're planning big purchases. Stacking multiple cards (without overspending) can fast-track your points accumulation.
2. Use Bonus Categories to Earn More Points
Category Spending: Many credit cards offer bonus points in specific spending categories such as travel, dining, streaming, groceries, and gas. For example, cards like the Chase Sapphire Preferred or American Express Gold earn extra points on dining and travel-related expenses.
Maximize Everyday Spending: Use your credit card for regular purchases that fall into bonus categories, such as food delivery, online shopping, or transportation. This will quickly boost your points balance.
3. Transfer Points to Airline and Hotel Partners
Transfer Points for More Value: Many credit cards, including those from Chase, American Express, and Citi, allow you to transfer points to airline and hotel partners at a 1:1 ratio. This can often provide more value than redeeming points directly through the credit card's rewards portal.
Use Airline Alliances: Transfer your points to airline partners that belong to global alliances (like Star Alliance, SkyTeam, or Oneworld) to book flights with multiple airlines and access more destinations.
Be aware that once you transfer your credit card points to a partner, you cannot transfer it back; so, make sure you will be using those points with the partner.
4. Book Flights and Hotels Through Credit Card Travel Portals
Use Travel Portals for Easy Redemptions: Some credit cards (such as the Chase Sapphire Preferred or American Express Platinum) have their own travel portals where you can redeem points for flights, hotels, and car rentals. These portals sometimes offer special discounts or better redemption rates for cardholders. Price check before you do so because many times this is not the case.
5. Redeem Points for Upgrades
Use Points for Upgrades: Some cards allow you to use points for upgrades to business or first class. This is a great way to stretch your points further, especially if you're traveling on a long-haul flight.
Upgrade Hotel Stays: Certain hotel loyalty programs allow you to use credit card points for room upgrades, such as moving to a suite or getting access to executive lounges.
6. Combine Points with Family and Friends
Pool Points for Bigger Rewards: Some credit card programs allow you to combine or transfer points with family members or friends. This can help you reach the threshold for flights or hotel stays faster.
Shared Points Accounts: Many airline and hotel loyalty programs allow family members to pool points together, making it easier to redeem larger amounts of points for a trip.
7. Leverage Travel Perks and Benefits
Airport Lounge Access: Some premium credit cards (like the Chase Sapphire Reserve or American Express Platinum) provide access to airport lounges, which can make layovers more comfortable. Use this perk to relax before your flight or enjoy free snacks and beverages.
Travel Insurance: Many travel credit cards offer built-in travel insurance, including trip delay protection, lost luggage reimbursement, and car rental insurance. These can save you money and add peace of mind during your trip.
Global Entry/TSA PreCheck Credit: Many premium travel cards offer a statement credit for Global Entry or TSA PreCheck application fees, which can expedite your airport security process.
8. Take Advantage of Limited-Time Promotions
Keep an Eye on Special Offers: Credit card companies often run limited-time promotions where you can earn additional points for specific spending categories or get bonus points when transferring points to certain partners. Stay updated with these offers to earn more rewards quickly.
Sign-Up for Email Alerts: Subscribe to credit card newsletters to receive alerts about seasonal promotions and bonus point opportunities.
9. Use Points to Offset Travel Expenses
Cover Travel Fees: Many credit card rewards programs allow you to redeem points to cover taxes, baggage fees, or seat selection charges, reducing your overall travel costs.
Statement Credit: Some cards let you redeem points as a statement credit to offset travel-related purchases, such as booking a flight or paying for accommodations.
10. Plan for Peak Travel Times
Book Early to Maximize Value: Booking flights and hotels during peak times (like holidays or busy travel seasons) often requires more points, so plan ahead and try to book when prices are lower.
Avoid Blackout Dates: Make sure to check for any blackout dates when booking travel with points. Some cards offer more flexibility than others, and you can often book travel during less busy times for better deals.
10. Pitfalls to Avoid
Failure to research best redemption offers: Credit card points can vary significantly in value depending on how they are redeemed, whether for flights, hotel stays, or merchandise. Consequently, it is crucial for travelers to invest time in comparing the redemption values of their points across different platforms, ensuring they maximize their rewards.
Delaying the redemption of points: Credit card programs might have expiration policies or fluctuating redemption values; thus, waiting too long to utilize points can result in lost value. Establishing a timeline or milestone for point redemption can help mitigate this risk, allowing travelers to reap the benefits of their accumulated rewards while they remain valuable.
Overspending on credit cards to accumulate points: This habit can lead to accruing debt and paying interest that negates any potential travel savings. To avoid this, setting a budget for credit card expenditures is advisable. Individuals should only spend what they can afford to pay off each month, ensuring credit card usage remains a tool for savings rather than a source of financial strain.
Remain aware of any fees associated with specific transactions or redemptions. Hidden charges can significantly diminish the value of points, making some redemption options less favorable. By keeping a vigilant eye on terms and conditions, travelers can ensure that they take advantage of the best value available for their credit card points, ultimately enhancing their travel experiences.
Not keeping track of credit card annual fees. Hidden charges can significantly diminish the value of points, making some redemption options less favorable. By keeping a vigilant eye on terms and conditions, travelers can ensure that they take advantage of the best value available for their credit card points, ultimately enhancing their travel experiences.
Not following the 5/24 Rule. This is a guideline followed by Chase (and some other credit card issuers) that limits the number of new credit cards you can open within the past 24 months when applying for certain Chase credit cards.
Using credit card points for travel can drastically reduce costs and enhance your travel experience. To make the most of your points, focus on maximizing sign-up bonuses, using bonus categories for everyday spending, transferring points to travel partners, and taking advantage of travel perks like upgrades, lounges, and insurance. Stay flexible with your redemption strategies, and be sure to keep an eye out for limited-time offers and promotions to boost your points balance. With a smart strategy, you can unlock amazing travel deals and enjoy your trips without breaking the bank.
Collect those points and transform your travel adventures!
Cards that I use:
JetBlue Business Card
Citi Strata Premier
A great website to delve into these hacks is 10X Travel. They offer a free online course that I found extremely helpful to avoid mistakes that could cost you money in the long run.