Basics of Leveraging Credit Card Points for Travel
The basic idea is this:
- Open credit cards that reward you with bonus points after you spend a certain amount of money.
- Meet the minimum spending requirements in the allotted timeframe to get the points.
- Redeem your miles and points for travel.
- Repeat this process to accumulate more and more miles and points.
Rules for Responsible Credit Card Use
1. Maintain a good credit score: Aim for at least 750. When used responsibly, opening new credit cards can actually boost your credit score.
2. Pay off your balance on time and in full every month: If you carry a balance, interest charges (which can be higher than 20% for a travel credit card) will negate the benefits of points. It’s not nearly free travel if you’re paying interest on your purchases.
3. Stay organized: Track your cards and points carefully. I like to use the Travel Freely app to keep organized.
4. Only use money you would normally spend: Make sure you can consistently manage your monthly expenses before diving in. The goal isn’t to spend more on your credit cards but to use your everyday spending to earn points. By putting your usual expenses on your credit card, you can meet minimum spending requirements and start enjoying the rewards without increasing your overall spending.
For a deeper dive into using credit card points, check out this beginner’s guide or take this free course.
