HOW TO CHOOSE THE BEST TRAVEL REWARDS CREDIT CARD

How many times have you thought, If only travel were free…? Well, armed with the right travel credit card, it can be.

Many credit card companies offer cards that, if used wisely, can get you that much closer to making your travel dreams a reality.

When I tell people that I rarely pay for hotels and often get free flights using my credit cards, they want me to tell them THE go-to card for free travel. It’s not that easy, though. There isn’t a one-size-fits-all card.

Using credit cards for free travel only works if you find the cards that work best for you and your particular interests and circumstances. These tips will help you focus on the most important aspects of choosing a card for you.

ASSESS YOUR INTERESTS

It doesn’t do you any good to have a credit card that gives you free flights if you like to travel by RV. If you prefer to stay with locals and embed yourself in a city’s daily life, a chain hotel credit card is probably not going to do you much good either.

Make sure you find cards that fit your travel style. If you fly often, look at the current offers from your three favorite airlines. If you like road trips, seek out cards that offer free car rentals or rental upgrades.

DO THE MATH ON POINTS

Some credit card companies advertise whopping numbers of sign-up bonuses as well as an outrageous number of points per dollar spent. But not all points are created equal. Find out what your points will actually translate to in dollars.

An example:

Card A offers 2 points per dollar spent and a 8,000-point sign-up bonus.

Card B offers 1 point per dollar and a 4,000-point sign-up bonus.

Card A seems to be the clear winner—more points per dollar spent and more sign-up points. However, let’s look at what each card offers in terms of redemption.

With Card A, you can get a free flight from New York to L.A. for 12,000 points. This means that, in addition to your 8,000 sign-up points, you need 4,000 more. You will need to spend $2000 to accumulate 4,000 points.

With Card B, you can get a free flight from New York to L.A. for 5,000 points. In addition to your 4,000 sign-up points, you need 1000 more. You will need to spend $1000 to reach your point goal.

Card B gives you a free flight for less money out-of-pocket. Always do the math.

CHECK THE ANNUAL FEE

Most travel reward cards come with an annual fee. Before you sign up, be certain that the amount you plan to redeem will be greater than the annual fee.

For instance, if a card’s annual fee is $89, and you only use it enough to redeem $100, is the $11 you earned really worth it?

Sometimes the fee is waived for the first year that you have the card. You can sign up for the card, use it furiously for the first year, and then cancel the card before having to pay the fee.

Check out the Choice Privileges Visa Signature card for hotels. There is no annual fee. Currently, they are also offering 50,000 sign-up points. I have used this card for seven years and have rarely paid for a hotel anywhere.

CHOOSE CARDS WITH FLEXIBILITY

Many cards come with the dreaded blackout dates. This is especially true of airline credit cards.

Blackout dates are days throughout the year when you are not allowed to redeem your points for travel. These dates usually fall on or around holidays or high-travel times like spring break.

This is super frustrating, especially when holidays are often the only time when families can get away together.

There are cards out there that offer reimbursement for travel rather than free upfront travel, which I have found to be the best way to get the flexibility I want. For instance, my Barclaycard Arrival Plus card allows me to redeem my points for reimbursement for anything travel related. (This card is no longer offered, but you can find similar cards here.) If I purchase a flight for $650, the amount is charged to my card, but then I can have that $650 given right back to me using my points. I can do the same for hotels, Airbnbs, car rentals, Uber rides, and much more.

IGNORE THE APR

If you are interested in using credit cards to hack the travel system, you had better be really in control of your finances, meaning YOU PAY OFF THE TOTAL AMOUNT EVERY MONTH. Don’t ever pay interest on these travel cards. It completely negates the whole idea of getting free travel. The APR should not matter to you because you will never incur any interest.

GET A CARD WITH NO INTERNATIONAL FEES

If you like to travel abroad, you will want to use your credit cards while overseas. I mean, it’s just more points for you! However, make sure your card doesn’t charge international fees.

I once got a new rewards card and took it with me to Belize. I used the card for everything: meals, hotels, souvenirs. When I got home, I was shocked to see how high the balance was on my card. I had kept track of everything I spent, but I didn’t know that each purchase had been accompanied by a nice 3% international use fee. Rookie mistake. Ugh.

GET THE PERKS YOU WANT

Some cards have handy perks like lost luggage protection, free checked bags, or free rental car insurance. If you utilize any of these regularly, it might be worth having a card that covers you.

USE WIDELY ACCEPTED CARDS

If you are really trying to rack up the points, you’ll want a card that you can use EVERYWHERE. This is especially true for international purchases. Visa and Mastercard are accepted pretty much everywhere. Discover and American Express are more hit and miss.

Success in finding the right travel rewards credit card comes as you ask the right questions about your spending habits and goals. It’s an experiment, really. Test out a few cards and see which ones are giving you the most in rewards. Then find other cards that mirror those in terms of point accruement, reward redemption, and annual fees.

Happy hacking!

Great Travel Card Offers Happening Now

Chase Sapphire Preferred Card