You probably have heard stories of people who travel for free with credit card rewards, but you might wonder if it’s really possible for you.
Using credit card rewards to earn free or reduced trips isn’t easy. You have to evaluate the best programs for you, choose the right travel rewards credit card, and track your spending to ensure you’re meeting the minimum requirements.
While it takes some time, it is very doable if you know how to navigate everything.
If you have plans for trips this year now is the perfect time to find a travel credit card to make your trip more affordable.
Narrow your Focus
You are bound to become overwhelmed if you are looking at each and every offer out there. Instead of evaluating every offer you come across, decide your main goal and pick offers around that.
Let’s say your goal is to have points that can be redeemed for hotel stays. You’ll want to compare hotel credit cards. If you know which airline you will likely use, you can see if that airline has a credit card.
Whether you’re saving for a free or reduced flight, hotels, or dining, knowing your goal will help guide you on picking which credit card to apply for.
If you are still overwhelmed and unsure of how to get started, start by planning your visit. Decide which airline you will take and where you would like to stay. Even after planning, if you aren’t sure that you can commit to a single brand, then you might want to consider a credit card that offers rewards that can be redeemed for any type of travel-related expenses (compare these types of cards here).
Focus on Sign-Up Bonuses
To qualify for a sign-up bonus, you usually have to spend a certain amount of money with a few months. For instance, you might be able to earn 30,000 “points” if you put $3,000 on a card within three months of opening it. While many people don’t believe they spend enough to earn that bonus, you might be surprised.
By putting all of your regular spending on your credit card, you may be able to meet whatever the requirements are of your credit card. You will need to track all of your spending. Whether it’s your power bill, Starbucks run, costs for groceries, or even rent, you can use your card to pay. And tens of thousands of miles or a travel credit worth hundreds of dollars can go a long way.
There are many credit cards that are free to sign-up, but they usually have less lucrative rewards than those with an annual fee. You will need to evaluate to decide if a $100 annual fee is worth it. If you achieve the requirements for a bonus, you may recoup the annual fee easily. Note that many credit cards that have annual fees waive them the first year (read the fine print before you apply).
Be Flexible
The more flexible you can be with your travel plans, the better.
Every credit card has different stipulations for how you can redeem the points you earned. Some cards allow you to purchase any flight or hotel room and reimburse yourself with the points you have earned. Other cards require you to purchase flights through their rewards program or their specific airline, which may result in limited selections.
By being flexible, you can easily get more bang for your buck. By being open to adjusting your travel plans by just a week or two, you can make your rewards go even further.
If you have more than one travel rewards card, you will also need to be flexible as to which card you use and when. Depending on the card, you may earn more points by spending money on fuel, restaurants, or groceries. Make it easier on yourself by keeping a note in your wallet as to which card is the best choice for various purchases.
Know If and When your Points Expire
Lastly, be sure to understand the fine print of your credit card agreement. For most cards, points have an expiration date, which is something most people wouldn’t give a second thought to. Check out when your points expire and keep track so you can ensure you use the points in time.
