Credit card points can provide the means for free flights and hotel stays when used wisely, particularly those offered by Chase Ultimate Rewards, American Express Membership Rewards and Citi ThankYou cards that allow transferability.
Unleashing these rewards requires some knowledge. Here are a few pointers to get you going:.
Know Your Credit Score
Selecting the ideal travel rewards credit card requires knowing your own credit score – something Experian provides for free – in order to maximize value from points and miles earned through travel rewards cards. Many require high to excellent scores in order to meet qualification criteria; you need to ensure yours can meet these high approval odds for approval purposes.
As part of your planning, it’s also useful to know exactly how many points are necessary to redeem for a specific travel booking. Most card issuers offer redemption calculators on their websites or rewards programs that allow for this purpose; keep in mind that flat-rate redemption options typically don’t provide as much value.
Know Your Spending Habits
Are You A Frequent Traveler Looking for Rewards Credit Cards to Save Money On Holiday Trips Or Upgrade to Business Class Flights? A rewards credit card could be just what’s needed! Just be sure that before applying, you know exactly how to maximize the earning potential and redeem options offered by each card issuer – before signing on the dotted line!
Credit card issuers generally provide online portals that list point and mile values, so cardholders can redeem these rewards in different forms such as statement credits, merchandise, gift cards and cash back. Flexible reward plans offer even greater value from earned points by transferring them to partner airlines and hotels to increase the return.
Target Big Welcome Bonuses
Many credit card companies provide welcome bonuses as an incentive for new cardholders, with meeting certain minimum spending requirements within a given time period qualifying you for these rewards. Unfortunately, exceeding your budget will result in interest charges being applied and will reduce their value considerably.
Consider choosing a card that allows you to redeem points for airfare and hotel stays as well as offers benefits like complimentary subscriptions to PRIOR or The Cultivist magazines, secondary car insurance coverage and an annual travel credit of $300. With Capital One Venture X Rewards Card’s 75,000 mile bonus after spending $4,000 within three months of joining and 5X miles when booking flights through Capital One’s services.
If award calendars have become a burdensome chore, perhaps switching cards would be worthwhile.
Don’t Chase Travel-Based Promotions
Many credit card points and miles are tied to specific airlines or hotel brands, making co-branded cards ideal for fast tracking elite status faster with them. But general travel cards typically provide greater value for travel redemption than co-branded ones do.
Chase and other credit card issuers provide travel portals where you can book flights, hotels and other types of travel using points or cash. Booking through these travel portals could provide outsized value; typically counted as cash purchases for airline and hotel loyalty programs to enable earning elite status credits and using protection features available through these cards.
Know Your Reward Redemption Options
Credit card rewards can seem like magic at first, especially for newcomers to the rewards game. When used for everyday spending and paid in full each month, your points become travel rewards that allow you to visit exotic cities, resorts, or tropical islands at virtually no additional cost.
An ideal destination is often within reach, yet reaching it may prove challenging without understanding how to maximize rewards and redemption options. One key strategy is evaluating a program’s rewards such as cent per point value before booking any travel services – simply divide cash cost of booking (minus any associated taxes and fees) by the number of points needed to book and you should see results!
