Learn the Art of Using Credit Card Points for Your Vacation

Understanding Credit Card Reward Points

Travel reward credit card points are rewards earned through your credit card transactions. Your everyday purchases earn you additional points to use towards free hotel rooms and frequent flyer miles. These points can be redeemed for various benefits, and one of the most exciting ways to use them is for travel. You can earn airline miles and free hotel stays, by charging your everyday purchases to a travel rewards credit card. Each purchase you make on your co-branded credit cards accumulates points, providing you with a currency you can use instead of cash for your next trip. Your trips to grocery stores, and gas stations, and regular spending habits when charged to travel credit cards can earn you an award flight to your dream travel experience.

Choosing the Right Travel Credit Card

Choosing the right card can be overwhelming.  There are many reasons why the best new card for you may be different than for someone else. When selecting your travel rewards credit card, look for cards that offer generous welcome bonuses. New cards offer sign-up bonuses, which is one of the best ways to earn a large chunk of points.  Perhaps there is an airline loyalty program that you already have points with or an airline you prefer. Chances are, they have a co-branded credit card. Many different airlines have affiliated credit cards that offer a generous welcome bonus on new credit cards. Some airline credit cards offer free annual award seats.

What is your favorite hotel chain? Most hotel chains offer co-branded credit cards which are a great way to earn free hotel stays. Many co-branded hotel credit cards offer elite status, offering travel perks such as free breakfast, room upgrades, free parking, etc. Other popular choices for that first card include travel-focused credit cards. These often have airline partners and hotel partners, to which you can transfer points to. Some travel-focused credit cards also will issue statement credits to cover travel expenses that are charged to the card. Most hotel chains and hotel loyalty programs also have cobranded credit cards which earn hotel points. People can get stuck on picking the best card to start with. Don’t fret too much about which one offers the best value. Check out our step-by-step guide to travel hacking here.

Earning Points Strategically

Maximizing your points requires a strategic approach. Consider using your credit card for everyday expenses and large purchases to accrue points faster. Some cards offer bonus categories that provide extra points for specific types of spending, such as dining, travel, gas stations, or grocery stores. Different credit cards will have different bonus rewards categories. Be sure to take advantage of these opportunities. This allows you to earn points at a higher rate for those same purchases. It is the easiest way to get those hard-earned points.  Once you have more than one card, you can leverage bonus points on different cards for specific categories. To learn more about bonus points strategies check out our post "Credit Card Chess: Strategy for Maximized Travel Rewards". 

The Sign-Up Bonus Game

One of the main ways to get enough points for your dream vacation is by taking advantage of sign-up bonuses. Many credit cards offer substantial bonuses for new cardholders who meet the minimum spending requirements within the first few months. This will kick-start your travel fund and get you closer to your travel plans. The key to effective travel hacking over time is to keep getting new sign-up bonuses. So once you meet the minimum sign-up bonus on one card, start looking into the next travel reward card you should get. How to pick your next card is explained in our post on what to do after your first sign-up bonus. An important thing to remember is that you will only get the sign-up bonus if you charge enough expenses to the new card to meet the minimum spending requirements. 

Another strategy is to leverage your spouse or partner for them to earn sign-up bonuses and combine your points. If you and your travel partner both are in the travel credit card rewards game, you can meet your travel goals faster. By alternating sign-up bonuses it is an easy way to up your credit card strategy.  For example, let's say you are planning a trip to Disney World, and want to stay at one the of Marriott hotels that are "on property" like the Swan, Swan Reserve, or Dolphin Hotel. So your travel goal is to get enough Marriott points for let's say a 7-night stay at the Swan. You may sign up for the American Express Marriott Bevy card, earn the sign-up bonus, and then have your partner 2 sign up for the American Express Marriott Bevy card so that they can earn the sign-up bonus. One key aspect is not to add your person 2 as an authorized user on your account, have them sign up for a separate account. To learn more about how we used Marriott credit cards to stay for free at Disney World, check out our post "A Guide to Planning Your Disney World Using Reward Points".  Also, check out our post on how to strategically use your travel reward credit cards. 

To learn more about travel rewards points check out your YouTube

Redemption Options Galore- How to Use Your Credit Card Points for Your Next Vacation

General travel rewards cards offer diverse redemption options, including flights and hotel stays. Transferring points to airline or hotel rewards programs can often yield higher value, providing you with more bang for your buck. Research the redemption options associated with your credit card to find the most lucrative deals. If your points are earned with a co-branded credit card, there is no need to transfer points to a different program. You would simply log into your rewards account and book your airfare or hotel stay. 

 Certain general travel rewards cards also offer a statement credit to cover travel purchases charged to those accounts. An example is the Capital One Venture card, which allows a statement credit for items that code as travel. This allows for other travel expenses, aside from traditional hotels and airfare to be covered. An example of this could be if the hotel you would like to stay at is not a co-branded hotel chain (boutique hotel for example). Another example could be theme park tickets. Now, Disney tickets do not code as travel if purchased directly from Disney's website. However many third-party vendor sites do code as travel such as Undercover Tourist. I was able to use my American Express membership rewards points, earned on my Amex Gold card to cover Disney World tickets purchased through Undercover Tourist. To learn more about my trip to Disney World for $1,400 including hotel, airfare and 7-day park tickets with Park Hopper check out our post "Plan a Free Trip to Disney World Using Credit Card Points ". 

Here is how I put many of these strategies into a game plan for my upcoming Disney World Trip:

1. I used mine and my Person 2 Marriott rewards points earned through our American Express Marriott credit cards and free night certificates earned on our cards for a free 8-night hotel stay

2. I used points earned on mine and my Person 2's American Express Gold cards to buy 2 of our 7-day park hopper tickets. 

Tips for Responsible Credit Card Use

While credit card points can be a game-changer for travel, it's crucial to use your credit card responsibly. Important things to remember are: pay your balance in full each month to avoid interest charges, stay within your budget to prevent overspending, and keep track of your credit score. Responsible credit card use ensures that you reap the rewards without falling into debt. Do not spend outside of your comfort zone. 

Start Your Free Travel Journey Today

Explore the possibilities that credit card points offer and start planning your next getaway. With the right credit card and a strategic approach, the world is yours to discover. Credit card rewards can add so much value to your everyday spending. 

Remember, the key to successful travel hacking is knowledge, tracking, and responsible financial management.

Happy travels!