Converting credit card points into free travel may seem impossible at first, but with careful and calculated spending most people can build up enough points over time for low-cost or even free airfare using airline loyalty programs and credit card rewards.
Begin by applying for credit cards offering generous initial bonuses. To maximize the value of your rewards, redeem through travel booking services or transfer them to partner airlines for maximum return.
Sign-Up Bonuses
Credit card issuers offer sign-up bonuses to draw new customers into their fold, such as cash back, points or travel rewards. To claim these offers, typically within a set timeframe you must meet spending requirements on a particular credit card; to expedite this process it’s wise to choose one that fits with your budget and shift regular expenses (such as rent or utility bills) onto it quickly if possible (like moving some regular expenses onto this new card).
Responsible credit card management allows you to quickly accrue miles for free flights and hotel stays by signing up for multiple cards with minimum spend requirements, completing these required minimum spends and meeting their bonuses. Unfortunately, this may also lead to debt if your budget overstretches and interest charges arise; so it is vital that you calculate how much a bonus might be worth when compared with flight prices so as to identify which cards or programs make the most sense when planning travel goals.
Reward Booking Services
As well as earning and redeeming points and miles, many credit cards offer ways for cardholders to book travel through their issuer’s portal – known as travel hacking – which can help cardholders take advantage of flexible pricing and availability options.
Most major credit card issuers, such as Chase, American Express and Capital One, offer travel portals where customers can book flights, hotels or rental cars using rewards to save money and take advantage of available discounts. Unfortunately, however, these travel portals often boast higher prices or limited availability than direct booking methods.
Expert travel advice suggests using award booking services to maximize the value of rewards program points and miles. These services don’t operate like travel agencies but instead utilize resources with specific skills that can find deals for you, helping determine flat-rate redemption options such as statement credits, cash back or gift cards which often provide the least desirable redemptions options – but there may be exceptions.
Transferring Points
If you want the maximum value out of your credit card points and miles, consider transferring them directly to airline or hotel partners. While this requires more work and comparison shopping than booking through a portal, this strategy could prove particularly fruitful when searching for premium cabin redemption opportunities.
To estimate the value of a transfer, divide its cash cost (excluding taxes and fees) by how many points will need to be redeemed against it – or use the valuation tool on your program for an estimate.
Keep this in mind when transferring points: they are permanent one-way transfers that you shouldn’t alter until it comes time to book a trip. Check CardRatings for their list of transfer partners before making your decision, then use these savvy traveler strategies to fly free, upgrade to first class seating and stay at top hotels without paying full price.
Award Booking Services
Credit card rewards can transform into free travel if you maximize sign-up bonuses, open multiple cards and use transferable rewards to book award flights.
While you could probably find many of the same deals yourself, hiring an award booking service may save hours of research and hundreds of dollars in fees by booking tickets you might otherwise miss. Because these services specialize in optimizing redemptions all day long, they possess expertise to locate seats where others might fail.
Professional travel consultants know which programs have lower fuel surcharges, how to take advantage of flexible routing rules and other tricks not commonly known by average travelers. Unfortunately, however, their services typically incur fees and often require access to personal accounts or information; not everyone may feel comfortable sharing this with a provider who does not come recommended as trustworthy. Take your time selecting a reputable provider before sharing passwords with anyone.
