Credit card travel reward points can be redeemed for flights, hotel stays or vacation packages through partner airlines and hotel loyalty programs. Their values depend on what redemption options are chosen as well as any transfer partners available on each card.
To maximize the value of your rewards, be sure to consider an card’s upfront bonus offers, fees and spending requirements before comparing its redemption options and features.
How do they work?
Credit card travel reward points can often be redeemed for airfare, hotels, rental cars and other travel-related products, with redemption value depending on how they’re used and their program structure.
Co-branded airline and hotel loyalty cards often provide better redemption values for points than general travel rewards cards, with some even offering the ability to transfer rewards points directly to their travel partner – further improving redemption values.
When selecting a travel card, take into account both bonus and rewards programs as well as the annual fee. A card with low APR and no foreign transaction fees could save money when making international purchases; some credit cards also offer generous sign-up bonuses that help offset annual fee costs; but it’s important to use credit responsibly so as not to spend beyond what can be afforded back later.
What are the benefits?
Points and miles earned with travel credit cards can have immense value when used appropriately, yet misusing it may incur interest charges that offset its rewards.
Many general travel credit cards provide rewards redemption options directly through the issuer for flights, hotels and vacation packages directly. Furthermore, they often enable users to transfer reward points/miles directly into airline/hotel loyalty programs.
Airline credit cards often feature co-branded benefits with specific airlines and can offer rapid reward point accumulation and airline-specific perks, like complimentary checked bags and priority boarding. Hotel cards also offer these perks – along with automatic elite status and complimentary anniversary nights – which can add hundreds of dollars in value each year.
How do I earn them?
There is no single answer to this question; however, there are a few strategies that can help maximize the value of your credit card travel rewards. Begin by setting goals: whether that means earning enough miles to cover an in-laws’ flight costs or saving up for that dream vacation to Maldives, setting an aim can motivate you to learn more about how you can earn and redeem points and miles.
General guidelines recommend earning at least 1.25 cents of value for every mile or point traveled. To maximize your earning potential, choose a credit card with generous rewards that fit with your spending habits, taking advantage of any bonus opportunities as they arise.
Be sure to visit your credit card program’s travel portal for redemption options, too. Many airlines, hotels and card issuers provide enhanced rewards when booking through their portals; making it even more lucrative to earn points or miles when travelling with credit cards.
How do I redeem them?
Credit card points and miles can be redeemed in many ways, with one of the easiest being using them to book travel through your card issuer’s online travel portal. This method offers quick rewards redemption as well as being one of the easiest ways to take advantage of generous sign-up bonuses if you’re new to credit cards.
Smart travelers understand that there are more valuable redemption options for their hard-earned points and miles, including transfer into airline loyalty programs to gain top travel rewards value.
Researching and comparing can yield superior values when searching for flight awards and vacation packages. Keep in mind that certain airlines impose additional charges (called carrier imposed surcharges ) when redeeming miles for award tickets, which could add hundreds of dollars if travelling internationally.
