No matter if it’s business class flights or just taking your family on vacation, credit card travel rewards can save money and add valuable perks. But how can you maximize those points or miles?
Most travel credit cards provide an online travel portal where you can redeem points for airline, hotel and other travel-related purchases as well as transfer them to one or more of their travel partners.
1. Sign up for a new card.
Credit card issuers frequently offer promotional offers that can increase rewards earnings throughout the year, such as welcome bonuses or enhanced rewards for specific spending categories. Take advantage of these offers to maximize your returns earnings!
Start by identifying your desired credit card benefits, such as earning miles or cash back. Next, find one that meets your spending habits – for instance if you travel frequently, a travel rewards credit card could make sense for you.
Avoid being taken advantage of by high annual fees that could counterbalance the rewards you are offered from credit cards, and always read and understand any stipulations related to redeeming them. In addition, it’s advisable to review your communications preferences to see if you are receiving special credit card offers; if not, opt in so you don’t miss out!
2. Take advantage of special promotions.
Credit card points typically fall into three main categories: airline miles, hotel rewards and flexible travel points. Airline miles and hotel rewards tend to be redeemed for specific experiences like flights or cabin upgrades while flexible travel points can be redeemed against an array of travel products.
For maximum versatility, look for cards with transferable point programs such as Chase Ultimate Rewards or American Express Membership Rewards that enable points to be converted directly to airline and hotel loyalty programs at a 1:1 ratio.
To maximize the value of your points, it is important to stay organized when spending. Tracking credit card and loyalty account balances together with tracking spending categories will help you meet your earnings goals more easily. Our free TPG app can assist in this regard by giving a clear snapshot of all accounts; plus tools that help identify which card may offer more rewarding rewards on certain purchases.
3. Keep track of your spending.
Maintaining multiple loyalty accounts can make keeping track of credit card points and rewards a daunting task, but with plenty of online tools such as free Excel spreadsheets and apps available there’s help available that can make it simpler.
Some apps also provide features that can assist in making better decisions regarding how and when to redeem rewards, including helping calculate redemption values and determine whether it would be more cost-effective to pay in cash for redemptions, alerting you of expiration dates and changes and more.
AwardWallet is one of the more widely-used tracking solutions, keeping an eye on credit card rewards, loyalty programs and travel plans all from within a single account. There’s both a free version as well as the paid service of AwardWallet Plus which costs $30 annually to track multiple accounts while providing historical reward data and suggestions on how to maximize spending.
4. Transfer your points to a travel partner.
Many credit cards provide access to an extensive list of transfer partners, enabling you to convert points and miles earned with them into loyalty programs offered by partner airlines and hotels. Be mindful when selecting transfer partners – be sure to verify award availability with each airline or hotel frequent stay program before transferring rewards; in addition, check whether your card issuer offers any transfer bonuses as these could provide greater redemption value than using them directly with them.
To transfer credit card points, log in and select your travel reward program of choice. For example, Chase Ultimate Rewards portal provides various options for earning and redeeming travel rewards, such as the ability to transfer points at a 1:1 ratio into airline, hotel and retail partner loyalty programs – you’ll find this by clicking “Travel Rewards” drop-down menu at the top. After selecting which partner loyalty program you would like your points transferred too.
