How To Earn And Use Points To Travel
This is an overview of how you can earn credit card points and use them in exchange for cheap or even free travel. How much you want to learn is up to you. The world of credit cards and rewards is constantly changing and there’s much to learn. You have the ability to reward yourself with a once in a lifetime trip, quick getaways, or even annual family vacations. The best part is, you don’t have to change much of what you’re already doing now.
Table of Contents:
The General Idea
Earn Credit Card Points -> Redeem for Travel -> Enjoy
Instead of using cash or a debit card on your everyday, monthly, and annual transactions, you shift your purchases and transactions onto credit cards. That is because when you’re using cash or a debt card, you get zero rewards on your purchases. The goal is to make sure you’re using the right credit card for each transaction as some cards earn points better than others.
Think about all the purchases you make in a year that are necessary. These can include but are not limited to cell phone bills, utilities, groceries, dining out, food delivery, entertainment, coffee, gym memberships, and more. These are purchases that you’re already going to be making so why not earn some type of rewards for them.
This sounds easy right? Well, it is! The only “work” you have to do is keeping track of which cards to use for which transaction. If that sounds like too much work, there are great alternative strategies. Instead of juggling multiple credit cards, you can focus on “catch all” cards that earn a flat rate across all transactions.
Do Points Really Add Up?
If you sit down and think about all the purchases you make throughout the year, big or small, it really does add up. This is especially true when you consider some cards earn between 2x and 5x points on everyday purchases. Some credit cards earn even higher rates such as 10x points or more.
On top of earning points from daily, monthly, or yearly spends, many credit cards offer “Welcome Bonuses” or “Sign Up Bonuses” which allow you to earn a huge chunk of points after meeting some spending requirements. Many of these bonuses are easily worth hundreds to even over a thousand dollars in value when redeeming for travel.
I Understand How To Earn Points, How Do I Use Them?
The majority of credit card issuers provide a rewards portal in which you can exchange your points for various goods, services, and travel. The travel rewards include both airfare options and hotel options. Airfare and hotel redemptions are what we focus on because they’re the most rewarding (to us at least).
In addition to the travel portals, many credit card points have travel partners which you can transfer points to and then book directly with the partner. For example, Chase credit cards generally earn Ultimate Rewards Points. These points can be transferred to Hyatt and then used to book hotel accommodations anywhere in the world.
Why Use Points?
When you use points to pay for travel, you’re essentially traveling for free due to not having to pay out of pocket for any of these experiences. This can free up your money or more important things whether it's paying off your loans, buying a new car, or paying for school.
On top of freeing up your finances, points can really provide significant savings on your trips. Wouldn’t it be much nicer to pay for airfare or only the hotel accommodations? Even better is when both are completely covered by points, which is completely possible.
Points can give you trips and experiences that you would never expect to go on. For example, a week at the Grand Hyatt Kauai in Hawaii can easily cost you over $6,600 when you’re paying out of pocket. However, with points, you can redeem $2,200 worth of points for the exact same week at the same resort. Points are really a wonderful tool.
What If I Am Not Interested In Traveling?
If you’re not interested in travel, I’m sure you’re interested in cash back. There are just as many credit cards out there that earn cash back or statement credits which can help you offset your expenses or even bring you some extra cash. This is a very popular strategy as well for those who would rather focus on cash back than travel. We can help you find the best strategy for you.
What's The Catch?
It’s really that simple. You buy things with credit cards, that you normally buy anyways, to earn points. You then redeem the points for travel. There are some rules and strategies that you need to learn to ensure that you’re signing up for the right and best cards for you and your goals. That’s where UntoldMiles comes into play. We provide free individualized consultation to help you find the right cards for you and your travel goals. We don’t charge anything for individual consultations, educational materials, or joining our Facebook group. The only thing we ask for is that you sign up using our affiliate link which helps us to continue providing these services and information for free. There’s no extra cost to you whatsoever when you use our affiliate links other than any annual fees imposed by the credit card issuers.