Using Your Credit Card Points to Fund Your Next Trip
- Written by News Company
With a bit of planning, it’s possible to mostly fund your next trip – locally or internationally – using your credit card points. It all starts with having a goal in mind, knowing where you would like to go, and how many points you will need to get there. All credit card rewards systems differ, from how many bonus points you get just for signing up, through to how many points you earn per dollar spent, and how far those points will take you. And how far those points take you are further influenced by whether you are limited to using a specific airlines frequent flyer program, and whether you choose to fly economy or business class. It is worth noting - as observed by PointHacks - the best credit card for points is the one that meets your needs in terms of rewards, costs, and other benefits or restrictions.
Once you have a goal in mind you may need to adjust your spending habits to help you achieve it. Part of this would be switching to using your credit card for as many purchases and payments as possible – the more you use your credit card, the more points you earn, but you should also still be aiming to pay the full balance at the end of each month. Carrying a balance attracts interest charges would could easily wipe out the benefit of any points you are earning. However, many credit card reward programs also provide access to a branded online mall or select retail partners where you could earn more points per dollar spent, either as an ongoing offer, or through limited offers. You could look for new luggage, or even a few extra clothing items that won’t only come in handy on your trip but could make reaching your trip goal a little bit easier.
But you should always look at the other perks and benefits your credit card reward program gives you access to. Some reward credit cards may allow you to convert your points for car hire and hotel accommodation, while others might not allow that while still giving you access to preferential rates at selected hotels. Other perks could be things you wouldn’t normally make use of – private airport lounges, or hotel concierge services – but if they’re included by default in your reward program you should definitely use them. They could end up making your trip much more memorable, and even relaxing.
Finally, many credit cards offer free travel insurance when you make travel arrangements using your card, but the benefits could be much more limited than other travel insurance products. If your credit card rewards program includes travel insurance, look at what the benefits cover, and what isn’t included before deciding to travel with only the included cover in place.