How to Travel for Free With Credit Card Points

As exciting as it is to travel, the experience is that much sweeter when you get to do it for free using credit card points.

You can take your trip without stressing out about how you're going to pay for it. Plus, you'll be able to do more at your destination since you saved money getting there. And let's be honest, you'll be the envy of your friends and family when they hear how little you spent on your vacation.

If you haven't used travel credit cards before, this might seem like a pipe dream. Fortunately, it doesn't take much time to learn how to turn your regular credit card spending into free travel.

How to travel for free with credit card points

Here's a basic breakdown of how you can travel for free with credit card points:

1. Apply for a travel credit card. Make sure you'll be able to use the points it earns for the travel you want.
2. Spend enough to earn the card's sign-up bonus.
3. Use the bonus to pay for your travel.
4. Put as much of your usual spending as possible on your credit card to continue earning points.

By using your card regularly, you'll keep earning points that you can use for more travel opportunities. If you're open to getting more than one card, you can also look for other top credit cards with sign-up bonuses that you like. After all, these bonuses are the fastest way to earn points.

That was a quick step-by-step look at the overall process. Next, we'll go into more detail on each step so you can choose the right travel card, earn as many points as possible, and get the most from those points.

Choosing a travel credit card

When you check out the best travel credit cards, you'll see a lot of options. What's most important is that you choose a card with points that you can use for the travel you want. So, for starters, let's look at the different ways you can book travel with points:

• Redeeming points directly through an airline or hotel loyalty program. You can do this with airline credit cards and hotel credit cards. For example, if you have a United credit card, you can use your miles to book award airfare with United.
• Redeeming points at a fixed rate (most often $0.01 per point) for travel purchases. Some travel cards let you book upcoming travel with points through their travel portals. Or, they may let you use points as a statement credit toward previous travel purchases.
• Transferring points to airline or hotel partners, and then using them through the partner's loyalty program. Some travel cards have transferable points that you can send to travel partners for award bookings.

The most versatile travel rewards cards give you multiple options. Cards in any of the following rewards programs will let you transfer points to airline and/or hotel partners and redeem points at a fixed rate toward cash travel purchases:

• Chase Ultimate Rewards
• American Express Membership Rewards
• Capital One Venture Rewards
• Citi ThankYou Rewards

I recommend starting with a card in one of those programs, because they give you much more flexibility. To explain why, let's say you have a Hyatt credit card. You'll only be able to use the points you earn through the World of Hyatt program.

On the other hand, if you have a Chase Ultimate Rewards card, you have far more options. You could transfer your points to the World of Hyatt program and use them there. But you could also transfer them to any of Chase's many other travel partners. Or, you could redeem them at a fixed rate for cash travel purchases through the Chase Travel portal.

Each of those rewards programs has its own lineup of airline and hotel transfer partners. Check to see which ones have partners you use regularly. Then, you can pick a card in that program. While it's important to compare the key features of each card, pay special attention to rewards rates. When a card earns bonus points in spending categories where you shop regularly, it's much easier to build your rewards.

Earning credit card points

Once you have your new credit card, it's time to earn points. You'll earn points on all your eligible purchases, so it makes sense to put as much of your normal spending as you can on your travel card. Many travel credit cards also offer lucrative sign-up bonuses, which you earn as a new cardholder if you spend a certain amount within a specific time frame.

For example, a card may offer 60,000 bonus points if you spend $4,000 in the first three months. Make sure you spend enough so you don't miss out on your bonus opportunity.

Outside of sign-up bonuses, it can take a while to accumulate enough points for free travel. For those who aren't big spenders, there's only so much you can earn through your regular bills. But there are many ways to earn points more quickly:

• Search for new credit card offers once or twice per year. Sign-up bonuses are usually the fastest way to earn points. If you open new cards with sign-up bonuses every now and then, it can really help with being able to travel for free.
• Check if your credit card has an online shopping portal. Many credit card issuers offer these, where you can earn more points on purchases with certain merchants.
• Open multiple cards with different bonus categories. Another benefit of having multiple credit cards is that you can pick cards that earn bonus points in different areas. For example, you could have a dining credit card that earns more on restaurant spending. You could then get another that earns more on gas and groceries.

LEARN MORE: How to Maximize Your Credit Card Rewards

Redeeming your points

Now we've reached the fun part: You have your points and you want to travel somewhere.

The process for redeeming your points will depend on the travel rewards card you have. Here's how it normally works for different types of cards:

• Airline and hotel credit cards: Your points/miles will go to your account in that company's loyalty program. For example, if you have an American Airlines credit card, your miles will go to your AAdvantage® account. You can log in to your account with that loyalty program to redeem your rewards.
• Travel cards in credit card rewards programs: Your points/miles will go to your account in your credit card's rewards program (Chase Ultimate Rewards, American Express Membership Rewards, etc.). You can log into your credit card account and go to the "Rewards" section to redeem your rewards.

Make sure to learn how you can use your points and compare your options. Credit card rewards programs, in particular, offer several ways to redeem your points.

Let's say you have one of the Chase credit cards in the Ultimate Rewards program. You could transfer points to a Chase travel partner, which includes a long list of airlines and hotels. You could also use your points as cash for bookings with the Ultimate Rewards travel portal.

First, you'll need to see which option allows you to book what you want. If there's more than one way to do so, then see which one gets you the most value for your points. If booking airfare through the Ultimate Rewards travel portal would cost you 50,000 Chase points, but you could also book it by transferring 30,000 points to the airline, then you're much better off transferring your points.

Saving on every trip

If you have a good travel credit card and spend enough with it, you could significantly cut your travel spending -- or eliminate it entirely. Take your time comparing travel cards to find one that fits your needs, and then make it your main payment method. Try to shop for your travel early, too, as this often helps when you plan to pay with points.

Still have questions?

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