For those with a case of wanderlust, using travel credit cards responsibly can open up a world of opportunities. Gaining the greatest benefit from your card may not always be evident, and earning, and redeeming points and miles might be challenging. Don't worry if you lack the expertise; we've covered you. Here's how to make the most of your credit card benefits for travel.
Make Sure You Have the Right Cards
Priorities: Make sure the cards in your wallet match your preferences for travel and spending. You're not utilizing travel cards wisely if you have to completely change how you shop and travel to earn points. What works for you, use. A branded travel card might be useful if you're committed to a particular airline or hotel operator. For instance, a Citi AAdvantage Platinum Select World Elite Mastercard will help you accrue many miles when you fly with American Airlines, which you can subsequently exchange for additional American trips. Get a flexible travel rewards card, such as the Chase Sapphire Preferred Card or the Capital One Venture Rewards Card, if you prefer to search for the greatest travel offers. These general travel cards reward more of your purchases and allow you to use the points for more different kinds of travel (e.g., not just flights, but also hotels, rental cars, and cruises). Consider combining a travel card (or two) with a broader rewards card. Making sure your cards match your lifestyle matters most in the end.Use Travel Cards for Everyday Expenses
You may be passing on many chances to earn points if you exclusively use travel cards to pay for travel-related expenses. Many credit cards offer bonus points or miles on spending on gas, groceries, dining out, and other areas in addition to travel. By utilizing these advantages, you can accrue travel rewards more quickly.Look for Bonus Earning Opportunities
For spending a certain amount when you first obtain the card, many travel credit cards give bonus miles or points. However, there are frequently additional incentives to earn bonus points or receive discounts on particular purchases. These are excellent methods for maximizing your card's points and privileges. Some are one-time deals, while others depend on your credit card usage, how you redeem your points, or where you go. For example, you might get a great price on a family vacation package, accumulate bonus points when shopping for back-to-school, or receive a sizable bonus for spending $25,000 in a single year. Who doesn't enjoy a good deal, after all? Here are major travel rewards programs that offer additional earning and redemption opportunities for at least some cards:- Chase Ultimate Rewards
- Capital One rewards
- American Airlines AAdvantage
- Hilton Honors
- Marriott Bonvoy
- United MileagePlus
- Southwest Rapid Rewards
- Delta SkyMiles
Redeem Rewards for Travel
One thing became very clear after the Balance team carefully evaluated the worth of hotel points and airline miles: it frequently doesn't make sense to use your travel rewards to pay for non-travel-related items like gift cards or Amazon products. According to our research, using travel rewards can significantly reduce their value. Therefore, despite several redemption choices available, it is usually preferable to use your points for travel. Try putting a cash-back card in your wallet if you find yourself wishing you could use your points as cash.Don't Book Travel Through a Third Party
If your credit card offers bonus points or miles for travel purchases, this does not necessarily apply to all trip bookings with that hotel or airline. Many credit cards reward loyalty by limiting the greatest rewards earning rate to purchases made directly with the brand or through their rewards site. You probably won't accrue as many points or miles if you book trips on a third-party site like Kayak or Expedia or through a travel agent. When making a hotel, airfare, vehicle, or other travel reservation outside your rewards system, carefully review your card's restrictions to prevent dissatisfaction.Read Reward Category Terms
Review the reward category rules for your card in advance to maximize the value of each purchase. Whether your card rewards those purchase codes and how the retailer classifies your transaction will determine how many miles you will receive. You won't get double points every time you buy milk and bread, for instance, even if your card provides you double points on groceries. You would be out of luck if you purchased them from a retail or convenience store that does not classify your transaction as a grocery buy.Don't Pay for Benefits You Don't Use
Annual-fee travel cards often provide more high-value advantages, such as free admission to airport lounges or remission of your checked bag fees. Attempt to utilize these card features, or you will forfeit the cost savings after paying the yearly fee. Close the account if you don't utilize a travel card's advantages frequently enough to justify the yearly charge. Choose a card with fewer features and no extra fees.Add Authorized Users
Because some cards allow these users to take advantage of travel perks like complimentary airport lounge access, think about adding authorized users to your account. You'll be one step closer to recouping the annual price, and your traveling friends will also get some of the same benefits for no extra charge.Use Cards for Business Travel
Do you frequently travel for work? If so, use your travel card to make business travel arrangements. This might be a simple way to earn additional free miles as many employers will compensate employees for business travel. To ensure this does not conflict with current policies, check with your company. Some employers prefer that you charge your travel costs to a business card. You don't want to upset your supervisors to receive more compensation.Pay Off Your Balance
Pay off your card in full each and every month; we've said it before, and we'll repeat it. This is quite significant. Only charge what you can afford to pay back each month to optimize your credit card rewards for vacation. Any value acquired through points, miles, or card advantages may be forfeited if interest charges are paid.