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Travel rewards are only beneficial if you know how to use them. It sometimes feels like a full-time job to monitor your loyalty and card accounts and figure out how and where to transfer your points. It can also be challenging to understand what points are worth and make sure you take advantage of every benefit your travel rewards credit cards offer—not to mention selecting the right cards for your lifestyle in the first place.
But with travel costs on the rise, taking advantage of travel rewards is more important than ever, as it can save you money and ensure you’re still able to travel without breaking the bank. Here are the top travel rewards tips for maximizing your travel rewards credit card benefits and getting the best value from your points and miles.
Get the Right Travel Rewards Credit Cards
With so many different cards on the market, it can be challenging to understand what travel rewards cards are right for you or how they can help you save money. Here are simple steps to find the travel rewards credit card(s) best suited for you.
- Create a travel goal. If your preferred escape is to Ibiza, getting an Iberia Visa Signature® Card may be the right fit. If you’re more interested in a family vacation to Disneyland, a flexible rewards card may be best. Think about your dream trip and figure out the most direct and easiest ways to take it, which can guide you toward the right card.
- Think about your daily routines. If you constantly drive, consider a card that offers bonus points on gas. If you always take Uber rides, perhaps a card offering Uber credits would be more beneficial.
- Consider your travel habits. Travelers loyal to a specific hotel or airline brand may benefit from a co-branded hotel or airline credit card. Those that often rent cars may want to opt for a card that offers car rental elite status and car rental insurance.
- Research cards. Once you’ve addressed your routines and what you may need in a card, it’s time to see what’s on the market. We can help with our roundups and comparisons on the best travel rewards cards.
- Read the fine print. Don’t forget about all the little details. Read the fine print to ensure you understand everything your card does and doesn’t offer.
- Don’t forget about the annual fee and foreign transaction fees. Certain annual fees or foreign transaction fees may or may not be worth it for you. For example, if you live or frequently travel abroad, a card with no foreign transaction fees is ideal. If you’re looking for a beginner card, don’t start with one that has a $695 annual fee.
Maximize Rewards Earnings By Using the Right Credit Cards for the Right Purchases
Understanding where you can best gain value from your credit cards is the key to maximizing your points earnings. For example, if you have two credit cards, but only one offers triple points on dining, that’s the one you should always use at restaurants. It’s not enough to just have a travel rewards card—you have to use it for purchases you can get bonus points on, too.
Always Pay Your Bill on Time
Some travel rewards cards can have an APR as high as almost 28%. Paying high interest rates can completely negate credit card travel rewards. After all, saving on travel costs using points and miles or other travel reward benefits won’t matter if you’re drowning in credit card debt.
Not paying your bill can also damage your credit, meaning it may be difficult to get approved for travel rewards cards in the future. You can best benefit from travel rewards when you pay your credit card bill on time each month.
Keep Track of Spending and Rewards—Don’t Let Points Expire
Luckily, many flexible points currencies don’t expire—unless you decide to close your credit card account. If you do decide to close your account, transfer or spend your points beforehand to avoid losing them.
Some airline and hotel miles do expire. But there are ways to avoid it from happening. For example, American Airlines AAdvantage miles expire every 24 months. But earning or redeeming points with the airline is an easy way to keep them active, as the 24-month period restarts on the date of your most recent qualifying activity.
And keep in mind that qualifying activity doesn’t just mean flying. Shopping in the AAdvantage shopping portal or spending on a co-branded American Airlines credit card also counts as a qualifying activity to keep your miles from expiring.
Besides not letting your points expire, it’s a good idea to frequently check your accounts to ensure you’ve received your points and miles from spending, flying, staying or otherwise. Similar to how you’d review your bank account, review your credit card, hotel and frequent flyer accounts to make sure everything looks right. Just as someone can hack your bank or credit card account, frequent flyer and hotel accounts can also be a prime target for hackers, so if you notice anything amiss, report it immediately.
Find Ways To Utilize Perks and Don’t Forget To Enroll in Benefits
Many cards come with additional rewards you should plan to use. Reading the fine print can help you understand the terms of the card and the key benefits and not-so-obvious features.
Many cards offer rewards that require enrollment. For example, The Platinum Card® from American Express (Terms apply, see rates & fees) offers a $50 credit twice a year to Saks Fifth Avenue, but you have to enroll. Even if it’s not a store you typically shop at, you can still utilize this perk for holiday gifts, travel accessories or back-to-school items.
When it comes to perks like Priority Pass Lounge Access, a benefit that comes with several travel rewards credit cards, cardholders won’t have access until they enroll in the program and receive a separate Priority Pass physical or digital card.
With Amex Offers, you’ll have to actually add them to your card to receive benefits like statement credits—it’s not automatic. Flexible rewards cards that offer things like hotel elite status benefits also require enrollment.
Credit card travel rewards are only valuable if you use them. Make sure to know all the rewards benefits and perks your cards offer in order to register, enroll and best take advantage of them.
Earn Additional Points With Shopping Portals and Authorized Users
Don’t miss out on earning additional rewards for things you’d already be doing, like online shopping. Many airlines offer shopping portals, websites where you can click through to your favorite stores and shop as normal while double dipping. This means you earn the points you’d already be earning for spending on your credit card and additional points for clicking through to retailers’ websites from the airline shopping portal.
Adding authorized users is another simple way to earn more points and miles. Their spend on your account counts toward your points and miles balance. Just make sure to be smart about who you add to your account, as you’ll still have to pay off their expenditures. Remember, any incidences can affect both of your credit scores.
Take Advantage of Big Bonuses
Many travel credit cards offer a sign-up bonus for new users that apply for the card and are approved. Welcome bonuses are usually offered for a temporary period and cardholders have to meet a minimum spend before they can get the bonus.
When a big bonus appears, take advantage and apply for the card right away. You never know how long these bonuses will last, so it’s best to snap up offers. You may also get targeted offers, so keep an eye out for emails that could give you more bonus points than what’s offered to the general public.
Finally, if you get approved for the card, take note of the time period you have to make the minimum spend to obtain the bonus. If you don’t spend enough in the allotted period of time, you won’t get the bonus points.
Use Travel Rewards Like Points and Miles Wisely (and When You Need Them the Most)
Get the Most Value From Your Points and Miles
Knowing the value of your points and miles means you can extract the best value from them. For example, there are better uses of points and miles than redeeming for gift cards. Instead, do the research to understand how you can transfer them or redeem them for flights and hotels in order to travel for free.
However, travel rewards are often the most valuable in extenuating circumstances or emergencies when cash prices or last-minute travel can be complicated and expensive. For example, if you need to fly somewhere on short notice for a family emergency, it’s okay if you aren’t getting the best cost value for your points or miles because they’re providing another type of value to you.
Understand Airline Alliances
Many travel rewards credit cards have transfer partners you may not know much about. And understanding airline alliances like Oneworld, SkyTeam and Star Alliance can help you figure out how you can earn AA miles for a Qatar flight or use Air France Flying Blue Miles for a Delta ticket.
Stay Updated on Benefits, Perks and Terms
Credit card welcome bonuses, perks and transfer reward partners change frequently. The value of different points and miles currencies also fluctuates. Make sure to stay updated on what types of rewards your travel credit cards feature, what’s new on the market, if loyalty programs announce devaluations and the best ways to use your points.
Use Best Practices
Get the most value from your rewards by doing things by the book. Avoid credit card churning to ensure your credit and accounts stay in good standing.
It Takes Work To Maximize Travel Rewards, but It’s Worth It
No one said maximizing travel rewards was easy, but when you’re sipping Champagne from your business-class flight, dipping into your private hotel plunge pool or just heading home to visit family thanks to travel rewards, it’ll all seem worth it. The more you know about earning and utilizing travel rewards, the more you can efficiently earn and redeem points and miles and take advantage of all sorts of travel perks that can make your next vacation easy, luxurious and even free.
To view rates and fees for the The Platinum Card® from American Express please visit this page.
