Leveraging Gift Cards for Travel Credit Card Bonuses

How to Use Gift Cards to Maximize Travel Reward Points

I’ve spoken about taking advantage of travel rewards credit cards bonus categories in previous posts. Bonus categories are certain groups of stores where you will get extra credit card points when using a certain specific card. For example, Amex Hilton Surpass card has bonus categories for grocery stores, restaurants, and gas. The card allows you to earn a free night certificate if you spend $15,000 in a calendar year. My Chase Hyatt credit card also has bonus categories of travel and dining, and a free night certificate after spending $15,000 on the card in a calendar year. The challenge is using these bonus categories to meet the spending thresholds for those valuable free night certificates while also shopping at stores outside these categories, such as Amazon, Target, and Home Depot. While shopping at these stores earns me travel points, I miss out on bonus points since they don't fall under supermarket, restaurant, or gas station categories.

 Many cards also offer bonus points at office supply stores, which I don't tend to shop at. However, stores such as Staples also sell gift cards to stores you may frequent and are categorized as office supply stores. Bonus categories will vary depending on your rewards program. Credit card issuers often have different bonus categories so be sure to check your travel card. 

How to Maximize Bonus Spending Categories 

Here is where credit card travel hacking theories can come into play. My husband and I both have an American Express Surpass Card and I have the Chase Hyatt card. So that is 

• Amex Surpass $15,000 spent in groceries, restaurants, and gas Person 1

• Amex Surpass $15,000 spent in groceries, restaurants, and gas Person 2

• Chase Hyatt $15,000 spent on groceries and travel Person 1

We don’t spend $45,000 yearly on groceries, but still want to maximize the bonus categories. Our solution…. GIFT CARDS. For instance, if you know you'll spend money at a particular clothing store, electronic shop, or online retailer, buy gift cards for those stores while doing regular grocery shopping or fueling your car.

For example, we are going to Disney later this year, so I have been buying some Disney gift cards at the supermarket. This is also a good way to earn additional points on a bonus category for a larger spend, like tickets to Disney World. Check out our post about our upcoming budget trip to Disney World. 

I regularly buy gift cards for Amazon, Target, Home Depot, etc while at the supermarket. By earning bonus points for spending you are getting more credit card rewards, leading to free hotel stays faster. So in an ideal world, one of the best ways to maximize your travel rewards cards is to have all your min spending in the bonus category. While that is not realistic for most, taking advantage of gift cards purchased at stores that do get bonus points. This will earn you a larger number of points, and higher rewards,  getting to free travel sooner.   

Check for Any Gift Card Fees

Being mindful of any fees associated with purchasing gift cards is crucial to ensure you're maximizing your rewards without incurring unnecessary expenses. Avoiding gift cards with fees, such as Visa and Amex gift cards, is a wise decision.

Opting for gift cards from retailers like Amazon, Home Depot, or other stores where you regularly shop is a great way to earn extra points, especially if those purchases align with your usual spending habits.  Estimate your typical spending at these retailers so you can budget your gift card purchases. 

Be Mindful of Your Budget 

It's essential to stay within your budget and not overspend. By planning ahead and only purchasing the number of gift cards that align with your expected spending, you can effectively maximize the benefits of your credit cards' bonus categories without altering your overall spending habits.

Remember, the goal is to leverage the bonus categories offered by your credit cards to earn rewards on your everyday purchases while staying within your budget and avoiding unnecessary fees. This approach allows you to reap the benefits of rewards cards without any additional financial strain. Be sure to check your credit card balance and stay on the safe side of your spending budget. It is never a good choice to spend more in the name of more points or free flights. In addition, be aware of your credit scores as a lower credit score will limit your ability to get the right credit card for travel rewards. Or with a lower credit score, you maybe limited from the cards that offer the best welcome offers or bonus rewards. Your financial decisions matter.