Credit cards come with multiple benefits. With the right credit card and used the right way, you could earn major rewards and use them for free travel.
Here is what you need to do to travel with credit card rewards
Get a great travel reward credit card
Generally, you have to have a great credit card if you want to qualify for the best travel reward credit cards. If you do not have great credit card now, you could work on improving the credit and taking care of all the bills and balances to build yourself a great credit history.
There are two main travel reward credit types, the general purpose ones that offer higher rewards for all your travel purchases and brand specific cards that make rewards on purchases with specific airlines.
If you are loyal to a specific airline, you should go for a branded credit card. If you are used to making multiple travel purchases across different brands then you should for a generic card.
You are not obligated to stick to one card. This means that you could have multiple travel reward cards and this gives you the opportunity to earn major rewards. For instance, you could have one credit card that pays a higher reward and get another that pays higher rewards on your travel purchases.
You do not have to stick to a travel rewards card; a cashback credit card can also help when it comes to paying for your travel fee. Pick a card with no cap on the rewards you earn and those that do not have a short expiration date.
Charge everything on your credit cards
For free travel on your credit card rewards, you have to earn rewards and redeem them. Using your credit cards more will help you learn how to earn more rewards and how you can maximize them. For instance, if the credit card pays more rewards on a certain product you should ensure you make payments on that product to earn more rewards.
Always pay the balance on your credit cards in full
This is an important rule to follow when you are using any type of reward credit cards. Paying the balances in full every month will help you maintain an excellent credit and this allows you to qualify for better cards. Paying the balance in full will also prevent you from paying finance charges when you carry a balance on the credit.
Avoid cash advances and balance transfers
This will help you avoid extra charges on the credit card. The balance transfer could be high even when you have a 0% promotional fee. Transactions on balance transfers do not earn you any rewards so they will not be useful to your travel reward points and just take up more room on your credit cards.
Transfer your points between different programmes This is where having multiple credit cards come in handy. Depending on the credit card, you transfer the points between different programs. You should combine them into one and redeem them for a trip. Before making the transfer, read all the rules to ensure you do not lose to many points during the transfer.