How Best to Use Credit Card Points for Travel

Traveling using credit card points is a great way to travel without breaking your budget, but it can seem a little complicated at first. There are many different programs, cards, and systems to use, and at first glance might seem too complex to be worth it. Calculating the value of points vs the price of just buying what you need for travel can seem like a headache. However, it’s well worth the work and can make your trip more comfortable and affordable. Let’s see how it can be done.

Credit Card Rewards

If you check your everyday credit card, you might find that they already offer special deals that can be redeemed for points to use for travel. These deals are often limited in time and tied to specific purchases, such as buying gas, groceries, or other purchases that you may already be making anyway. Some credit cards offer different reward rates on specific purchases even outside of limited time deals, so it’s always a good idea to review what benefits your card has so you can get the best value out of your credit card. By checking your banking app frequently, you can catch limited-time deals when they’re offered and start building up credit card points for travel with minimal extra effort. Some examples of rewards you might be able to exchange points for includes built-in coupons and discounts. Since they’re offered on credit cards that you may already have and use anyway, credit card rewards are an easy and inexpensive way for beginners to try out traveling using points and rewards. Some forms of rewards may expire after a set period, so always read the fine print to make sure you don’t miss out on value.

Travel Credit Card

Travel credit cards are designed specifically to reward customers with travel points, not just as limited time deals. This means you don’t have to worry about missing out on the types of deals offered by standard credit cards. Sometimes travel credit cards are tied to specific hotels or airlines, but general purpose travel credit cards are also available, and are a good option if you need more flexibility in your travel plans. Rewards on travel credit cards usually don’t expire until you cancel the card, so you can take the time you need to save up a lot of points for big rewards. Travel credit cards are a great option if you need to travel a lot for work, since you can build up points while doing business. Travel credit cards can be used for both travel expenses and everyday purposes, and will generate points as they’re used and paid off. The points can be redeemed to book airline tickets, hotel stays, car rentals, and other travel related expenses at a lower rate than you would have paid if you were using cash. In addition to generating points, some travel cards come with extra bonuses such as travel insurance and waived foreign transaction fees. If you love to travel frequently, a travel credit card can help you get the most out of your trips.

Frequent Flyer Miles

Frequent flyer miles are a particular type of reward that reward travelers for using airlines or airline-branded credit cards. They allow you to save up for free flights, upgrades to first class, and other airline related bonuses when you fly with a particular airline or do business with one of their partner companies. Despite the name, the rewards aren’t determined by the distance of the flight, and you can earn and save them up even if you only fly occasionally. They will build up more the more you fly, but it isn’t required that you fly frequently. These programs work best when you stick to one or two airlines, so before signing up for a program, it’s important to research which airlines are available at your local airport and preferred destinations. If you decide to use frequent flyer miles, there are other strategies you can use to maximize the number of points you earn if you do some research and planning before your trip. Some airlines partner with particular hotels, rental car companies, and other travel related businesses. If you plan out your trip in a way that you primarily do business with your airline's partners, you can earn lots of frequent flier miles quickly. Some credit cards will offer bonuses in the form of frequent flyer miles as a sign on bonus, so this can be another way to increase your rewards if you use the card strategically. Some airlines offer a gold or elite status to travelers who sign up for programs they offer, which can increase the number of frequent flyer miles you earn as well as offer other travel perks such as priority check in.

Loyalty Programs

Loyalty programs reward customers for their business by offering points that can be saved up for a discounted service in the future. Hotel points are a popular form of loyalty program that encourage and reward travelers for using the same hotel chain throughout their travels. If enough points are saved up, they can be used for perks such as room upgrades and free nights. If you have a favorite hotel chain, this can be a great way to earn extra perks on a service you would have been enjoying anyway. Make sure the chain you choose has hotels where you want to travel, or you might miss out on rewards. In addition to staying at particular hotels, there are other ways you can earn loyalty points. Some airlines and hotel chains have shopping portals on their apps and websites, and you can earn points if you take just a few extra seconds to go through the portal before you go shopping online. There are also company branded credit cards that give you points when you pay off your balance each month, even when used on purchases unrelated to the hotel or airline.

Think Through Your Options

As you can see, there are quite a few different options when it comes to using credit card points for travel. You need to think about which type of card is right for you, then research how best you can make use of its benefits. It can seem a little complicated at first, but you’ll soon get used to tracking your points, where you can spend to get benefits, and how you can use it to cut down on travel costs. These cards are a great way to get even more out of your travels.