If you are new to the world of travel rewards, everything might seem a little overwhelming at first. You hear people throwing around words like “redemption”, “sweet spot” and “positioning flight”. The terminology travel rewards enthusiasts use might seem like a foreign language at first. But no worries, you’ll be a pro in no time!
Here are some of the most commonly asked questions every travel rewards beginner should consider when they start to dabble in travel rewards.
If you really want to maximize your travel rewards check out Ultimate Guide to Credit Card Travel Rewards series.
Where To Start?
A good place to start is to apply for Chase Sapphire Preferred® Card or Chase Sapphire Reserve® credit cards. Because of Chase’s strict application rules, I always recommend you start your travel rewards journey with Chase Ultimate Rewards® earning cards. Ultimate Rewards are the most flexible currency and can be used in many ways to provide free or almost free travel.
You should always have a credit card opening strategy. Avoid applying for cards just because it is being touted as the “best card ever” and don’t get distracted by the shiny objects in the form of “increased, limited-time offers” and other buzzwords. Lots of credit cards earn rewards that are hard to use or are not as valuable. Keep your eyes on the prize, and remember not all points and miles are created equal.
Travel Rewards Cards To Consider
As a beginner, you want to have a stash of travel rewards points that are flexible, easy to use, and provide excellent value, such as Chase Ultimate Rewards® points or Amex Membership Rewards points. If you aren’t sure yet where you want to travel, or can’t travel because of family circumstances, etc., that is certainly okay. Start collecting these points that are extremely flexible because they can be transferred to numerous airline and hotel partners to become those points & miles in your program of choice!
Top Travel Rewards Offers
Top Travel Card
Ready to unlock a world of free travel? Start with the Chase Sapphire Preferred® Card.
Details: $95 annual fee | Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
Most Flexible Travel Card
The Capital One Venture Rewards Credit Card can be used to offset almost any travel expense.
Details: $95 annual fee | Enjoy a one-time bonus of 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening
Best Card for Side Hustlers and Business Owners
Side hustlers! With the Ink Business Preferred® Credit Card
you can new Cardmember Offer! Earn 100,000 bonus points.
Details: $95 annual fee | New Cardmember Offer! Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
Another term you might see being used a lot is “two-player mode”. When both spouses can open the same cards, you can accumulate a good chunk of points. Some credit cards offer bonus points when you refer family and friends. For example, one spouse could open a card, let’s say Chase Sapphire Preferred® Card, and after they have met minimum spending requirements, refer the other spouse. This way you are earning the referral bonus and both spouses are getting the sign-up bonus. This will allow you to earn enough points and miles for the whole family!
Actual Travel—Domestic and/Or International
Another important question you need to ask yourself, is “Where do I want to go?” The answer will help you when you are trying to figure out your card opening strategy. As I mentioned above, if you have a lot of domestic travel, and have easy access to Southwest, then getting a Southwest Companion Pass® for you and your family might be a great idea. Keep in mind that Southwest cards are subject to Chase’s 5/24 rule.
If you are planning an international trip, you will need airline points or transferable currencies you can transfer to an airline of your choice. AwardHacker is a great resource—plug in your departure and arrival airports and the site will show you the best rates, which airline you can book with, and how many miles you will need for an award ticket.
Living near major airline hubs like New York City, Chicago, Atlanta, etc., means the travel options are open with possibilities. But if you have one or two dominant airlines that serve your home airport, it is good to consider which airlines you will use the easiest and most frequently. For example, United is a major airline where I live; American has some presence, but there are very few Delta flights. In order for me to optimize my dollars, points, and miles; I need to figure out a way to earn points that I can use on United and its partners.
Keep in mind that airlines will sometimes allow partner operated flights for use with travel rewards. And sometimes, it is an even better deal. I don’t have to use United miles to fly on United operated flights. I can use partner airlines to book flights on United and partners and sometimes it is even cheaper than booking directly with United!
If, for example, there are no good international options from your home airport, you can get a so called positioning flight to a bigger hub. If you have good options with Southwest, use your companion pass to get yourself and one other person to a hub airport.
Travel Rewards Are For More Than Just Flights
If you prefer to drive rather than fly, then you want enough points to cover your hotel stays. If, at first, you are sticking with cards that earn Ultimate Rewards points, Hyatt is a great chain that offers incredible value. It is very easy to transfer Chase Ultimate Rewards® points to Hyatt and you might need just 5,000 points for Hyatt Place or Hyatt House hotels! Lower tier Hyatt hotels are perfect for families because they offer more space and often include free breakfast.
If you prefer to stay at Airbnb then you should consider cards like the Capital One Venture Rewards Credit Card. You will book your stay and after the charge has posted, log in to your Capital One account and redeem previously earned points to reimburse yourself for your travel purchase.
The points on these cards are worth 1 cent each. I don’t recommend applying for these cards if you are under 5/24 but if your travel plans only include Airbnb stays, this might be a good option.
I hope this helps you get started on your travel rewards journey!