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Find the right travel credit card combination to help fund your future travel plans.
There are many different types of credit card rewards on the market. Depending on your spending habits and preferences, you may be attracted to such credit cards or those offering cash back, points, or miles.

If you want to focus your efforts on earning travel credit card rewards, you should have a good strategy for a credit card to maximize the value you get for your spending pattern. Here’s how to find the one that’s the best credit card for you.

Key Takeaways

There are several types of travel rewards credit cards, such as general travel, hotel, and airline travel.
Adjusting your strategy may not require opening new travel credit cards if you already have credit cards to supplement your spending.
You should always plan and track your spending so that you can use the right card for you in the right situation and so you can track how many points or miles your credit cards are earning.

Table of Contents

How Travel Rewards Cards Work

There are three main types of travel rewards credit cards: general travel, hotel, and airline travel. Common travel credit cards usually offer points or miles that you can redeem for your various travel-related activities. Quite the contrary, hotel credit cards and airline credit cards usually offer rewards best suited for you based on hotel stays or booking flights with Toh Card’s travel brand.

Note: Most travel credit cards offer a sign-up bonus, which is an amount of cash, points, or miles that you can earn by spending a certain amount in the first few months of owning a credit card.

In addition to credit card points or miles, hotel and airline cards offer brand-specific perks, such as upgraded hotel status or free checked bags for you. Some common travel credit cards offer travel insurance protection and other perks such as reimbursement for TSA PreCheck or Global Entry application fees, but the perks are usually not specific to an airline or hotel chain.

Most travel credit cards offer either a flat rewards rate on every purchase you make or a tiered rewards structure, which gives you more rewards for credit card purchases in certain categories.

Note:- Some travel credit cards allow you to transfer your points directly to programs such as airline or hotel loyalty points.

Before You Get Started

You might find the prospect of accumulating a sizable sign-up bonus earned on your first travel credit card exciting. But before you open a new credit card and spend, it’s important to take stock of a few things, such as what you want from your credit card and your spending habits.

Assess Your Priorities and Spending Habits

It is very important for you to think about your travel habits as you design a credit card rewards strategy for yourself. If you fly with one airline or stay at only one hotel brand, it may make sense for you to get a credit card co-branded with that airline or hotel chain.

Alternatively, if you are not loyal to any brand and you book the cheapest option, a normal travel credit card may be a better option for you as they allow you to redeem your points for most travel purchases. Whatever brand you book with.

Finally, you should think about your spending habits. For example, if you tend to eat out more, a credit card with a higher rewards rate on restaurant purchases may be a good fit. And if you’re a rideshare driver, you’ll benefit from having a card with a higher rewards rate for gas purchases for your vehicle. You can also apply for multiple credit cards if you want to take advantage of the different rewards rates on each card, as one credit card usually doesn’t offer maximum rewards in all areas in which you spend the most.

Also, think about what benefits you want from your credit card. Some premium travel credit cards go the extra mile with complimentary airport lounge access, car rental discounts and benefits, travel-related statement credits, and other perks. But those credit cards usually charge hefty annual fees. Weigh the benefits you get from certain cards against their costs to determine which one offers you the most value for Weigh the benefits you get from certain cards against their costs to determine which one offers you the most value for your money.

Know Your Limits

Seasoned travel credit card users often have more than one travel credit card to maximize the value they get while traveling. But before you start applying for more credit cards, it’s even more important to know your own limits.

You must think about how much more you can afford in annual fees, how much time and effort you want to spend managing multiple accounts, and how easy it will be to maintain multiple credit card reward categories.

If you find that you prefer to keep your credit card annual fees to a minimum or find that you are struggling to stay organized, you may prefer to use only one or two credit cards.

Note: A basic rule of thumb for earning travel credit card rewards is to pay off your credit card balance each month. Otherwise, the interest cost can eat up the value of any rewards you earn.

How to Design Your Travel Rewards Credit Card Strategy

Once you’ve set some basic terms and expectations, you’ll need to develop an approach to travel credit card rewards.

Choose Your Credit Card Combination.

One of the best ways to maximize travel credit card rewards is to use multiple credit cards. For example, you can choose a generic travel credit card for flexibility and one or more airline credit cards or hotel credit cards that offer you brand perks and extra points.

For example, if you’re a big fan of American Airlines, you can get the Citi Advantage Platinum Select credit card, which offers:

2 miles per dollar spent with American Airlines

2 miles per dollar spent on gas

2 miles per dollar spent at restaurants

Free checked bag

Priority boarding

And then for all your other purchases, you can use the Capital One Venture Rewards Card, which earns you 2 points per dollar spent on everything.

Alternatively, you can combine two credit cards into the same generic rewards program. A popular combination is the Chase Sapphire Reserve and the Chase Freedom Unlimited.

The Sapphire Reserve offers lots of premium travel credit card perks, including 50% bonuses and points when you use the points to book travel through Chase, and the ability to transfer rewards to airline and hotel partners. You’ll gain 3 points per dollar spent on travel and food, but you’ll only get 1 point per dollar spent on everything else.

The Freedom Unlimited offers you a flat rewards rate of 1.5 points per dollar but does not entitle you to travel redemption bonuses or premiums to transfer points to the partner program. If you transfer your points to a Chase Sapphire Reserve account when you use Chase Freedom Unlimited for a higher rewards-earning rate on all your non-travel and non-food purchases, you can earn more points if you only have a premium credit card.

Note: You shop and compare the best travel credit cards to find the best credit card combination for you.

Open a New Card, If Needed

Opening a new card is also a good option for you if you want to take advantage of the sign-up bonus. Many credit cards for travel offer sizable incentives for new cardholders.

However, it is very important for you to know about your credit score before applying. Most travel cards require a good or excellent credit score, starting with a 670 credit score.

Additionally, keep in mind that applying for many credit cards immediately lowers your credit score. So, try to leave space in your application to avoid trouble.

Plan and Track Your Spending

Once you start using more than one credit card, make sure you know when to use the right card to further maximize your rewards. This is especially important if you have a lot of credit cards that offer you bonus rewards in different categories.

You can keep track of bonus categories using a spreadsheet or note on your phone. And some rewards enthusiasts may even use a label maker to label each credit card with their own bonus rewards categories.

Note: Be very sure to track your spending as well, to ensure you’re getting the best out of every purchase and to avoid overspending to earn rewards.

Never be Afraid to Change Your Travel Rewards Strategy Later.

There is no other rewards credit card strategy. You can always make your own changes as your travel and spending habits change. You have to remember that applying for a new credit card all the time is generally a bad idea.

For example, if you travel more than once, you may notice that you prefer a specific airline or hotel brand and choose to lean more toward that rewards program. Or, you may decide you want more flexibility with some common itineraries. More importantly, you continue to evaluate your strategy to make sure you are getting the best overall experience.

Frequently Asked Questions (FAQs)

How do I optimize my travel rewards?

Some ways to optimize your travel credit card rewards include using credit cards that maximize your spending in categories like restaurants and travel, implementing a two-credit card strategy where appropriate, and using sign-up bonuses. Including taking advantage.

Is it better to redeem points for cash or travel?

In general, your points are worth a lot more when you redeem them for travel than when you earn them. For example, your credit card points each exceed two cents when you redeem them for certain airline and hotel rewards. Most points are worth 1 cent per point if redeemed for cash.

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