Though I consider myself to be an avid traveler (18 countries and counting), there was a time where I paid little attention to my travel rewards credit cards. I assumed that as long as I was making purchases, I was earning points—but maximizing your travel rewards is a lot more complex than that.
You are probably familiar with the basics of travel rewards: You take a flight to accrue miles, or you open a credit card that gives you points for purchases that can later be redeemed for flights or other perks. But even if you're already earning points and miles, there are strategies you can employ to earn rewards more quickly than you would just by swiping your card for everyday purchases.
Let's explore how travel rewards cards work, and more importantly, how you can you maximize their benefits.
How travel rewards credit cards work
At their core, all travel credit cards operate on a simple premise: They reward you for your spending with travel-related perks, from free flights to flight upgrades. Every time you make a purchase using your travel credit card, you earn points or miles. These rewards can then be redeemed for travel-related expenses, effectively reducing the cost of your trips, or even making them free.
Travel cards are known to entice new customers with substantial sign-up bonuses. These can often be worth hundreds of dollars in travel value, jumpstarting your rewards balance. The three main types of rewards are points, miles, and cash back:
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Points: General rewards that can be redeemed for various travel expenses or transferred to partner programs.
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Miles: Often associated with specific airlines, but which can sometimes be used more flexibly, miles are generally redeemed to discount or eliminate the cost of your flight.
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Cash back: Some cards offer cash back that can be applied to travel purchases.
Sign-up bonuses aren't the only way to earn a substantial number of travel points—lifehacker even has a guide to earning travel points without having to open a new card. (Though I'll go into some of those methods below.)
Another thing to note is that as you're earning rewards, most travel cards offer a tiered reward structure:
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Higher rates (e.g., 3x or 5x points) on travel-related purchases.
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Moderate rates (e.g., 2x points) on common spending categories like dining or groceries.
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Base rate (usually 1x point) on all other purchases.
Understanding the value of your rewards will help you choose redemption options that offer the best return.
Types of travel credit cards
Once you know you want a travel-specific card, you can choose from different types of travel cards.
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General travel cards: Offer flexible points that can be used across multiple airlines and hotels or redeemed for statement credits on travel purchases.
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Airline co-branded cards: Partner with specific airlines, offering miles for that carrier and often including perks like free checked bags or priority boarding.
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Hotel co-branded cards: Similar to airline cards but focused on hotel chains, often providing perks like elite status or free night awards.
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Premium travel cards: High-end cards with luxury perks like airport lounge access, travel credits, and concierge services, usually accompanied by higher annual fees.
To pick a card, start by comparing earn rates across different cards. Some offer flat-rate rewards on all purchases, while others provide higher rates in specific categories. Choose the structure that will maximize your rewards based on your spending patterns.
How co-branded travel rewards cards work
Co-branded cards are partnerships between credit card issuers and travel companies (usually airlines or hotels). They offer several unique advantages:
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Earn miles or points directly in the partner's loyalty program
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Often provide elite status or a fast track to status
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Include travel perks specific to that brand (e.g., free checked bags, room upgrades)
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May offer bonus points for spending with the co-brand partner
However, these cards typically offer less flexibility than general travel cards, as rewards are tied to a specific program.
How to make the most of travel rewards credit cards
Now that we understand the basics, let's explore strategies to get the most value from your travel credit cards:
Choose the right card(s)
Not all travel rewards cards are built the same. Before choosing one, assess your spending habits and travel goals and consider cards that offer bonus points in categories where you spend the most. Look for cards with perks that align with your travel style, e.g. lounge access for frequent flyers.
Make sure you'll meet minimum spend requirements
Many cards offer large sign-up bonuses if you spend a certain amount within the first few months. One of the easiest ways to do this is to plan large purchases around new card applications, so you can easily meet these requirements (without spending more than you need).
Maximize category bonuses
If travel rewards are your focus, save your travel card for all purchases in high-earning categories. If you don't have any major purchases on the horizon, you can stil spend smarter by buying certain items at merchants that qualify for category bonuses (such as cleaning supplies at the grocery store). Consider multiple cards to cover different bonus categories.
Stack your rewards
If you have multiple credit cards that offer different rewards for specific categories (such as dining, travel, groceries, etc.), use the card that provides the highest rewards rate for a particular purchase. For example, if one card offers 4x points on dining and another offers 3x points on travel, use the appropriate card for each type of expense. You can also combine credit card rewards with store loyalty programs, online shopping portals, or dining programs for extra earnings.
Leverage transfer partners
If you ask me, transferable points reign supreme—they’re the most versatile currency in the points and miles world. Many general travel cards allow you to transfer points to airline and hotel partners, typically providing more value than redeeming directly through the card's portal.
Points are usually worth more when transferred to a travel partner’s program compared to just cashing them in for statement credits or gift cards. For example, Chase Ultimate Rewards are worth one cent per point towards cash back, but could be worth 1.5 cents or more per point when transferred to airlines. Get in the habit of looking out for transfer bonuses to partner programs.
Timing is huge here. Booking travel during off-peak times can mean better award availability.
Shop via online portals
To earn even more—anywhere from 2x to 5x points—on top of your standard credit card rewards accrual, try using a shopping portal to make purchases with participating retailers you would shop directly with anyway. Some airlines also have their own shopping portals that link with your membership number to earn miles that go into your loyalty account.
If you have a handful of loyalty programs you could earn points with, consider using a tool like Cashback Monitor or add the Chrome extensions for several shopping portals to compare where you get the most bang for your buck. Note that the bonuses may be even greater around big shopping holidays.
Understand your redemption values
Some programs offer experiential rewards with outsized value, while things like gift cards and merchandise typically offer poor value. Generally, using points for flights (especially business or first class) offers the best value. For hotel stays, look for properties where the cash rate is high relative to the points required. Aim for at least one cent per point in value, but many redemptions can yield two cents or more.
Evaluate the annual fees
A card's annual fee is an ongoing cost that you have to weigh against the value of the benefits it provides (including the welcome bonus). If you don't work to maximize your travel benefits, the annual fee may not be worth it. Plus, the desire to justify the annual fee may lead you to overspend on the card. You need to be honest, not aspirational, about your spending habits.
Take advantage of your perks
Make sure to use benefits like travel insurance, purchase protection, or airport lounge access to maximize your card's value. If you use enough card benefits, you can effectively offset annual fees.
Redeem points early and often
As we’ve previously covered, one rule of thumb is to only bank points for what you plan to use in the next year or so. Otherwise, you might be throwing away their value. Again, here are even more ways to rack up travel points.
The bottom line
Travel credit cards can be powerful tools for turning everyday spending into extraordinary travel experiences. Compare your options with different best-of lists, like this one from Nerdwallet or this one from Bankrate.
Just make sure you’re using my tips above to earn enough points—and redeeming them regularly—to justify the card’s annual fee. Remember, the key lies in choosing the right cards for your lifestyle, using them strategically, and being thoughtful about how you redeem your hard-earned points.
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