TRAVEL REWARDS 101 ✈️
Traveling is one of the most expensive and important parts of many-a-budget, but it doesn’t have to obliterate your spending plan—here’s my (free) travel credit cards strategy mini course.
Last updated September 2024.
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Traveling for free is possible with credit card points
But travel is expensive, and that can threaten your financial freedom and security in the future. The good news? It doesn’t have to. Over the last two years, we’ve gone on approximately 20 trips using points as the primary means of purchasing airfare and hotel rooms. My “monthly spend” (i.e., what I put on credit cards) is approximately $2,000 – I don’t work in management consulting, I’m not expensing a ton of work travel, and I’m not shelling out cash (often) for travel expenses. My method is replicable by the average 25-year-old.
After a lot of trial and error, the tutorial below outlines exactly what you should do to achieve the same – down to the annual fee math. Depending on where you are in your credit journey (from a religious debit card user to a AmEx junkie), you’ll be able to pick your starting spot below.
A beginner-friendly, 80/20 solution to travel rewards
(Meaning you’ll get 80% of the value with 20% of the possible effort). In other words, it’s the most bang for your buck.
That said, you could take this further – and I know people with 17 credit cards who absolutely have – but this is an “every wallet” approach.
It took a year of trial and error to accumulate this knowledge and many hours to put this guide together, so if you feel inclined to follow the advice and apply for the cards, it would mean the world to me if you’d use the referral links embedded.
Let’s get started.
Prerequisites for using credit cards for travel rewards
You already have good credit.
If your credit score is low or you have a history of spending recklessly, you won’t – and don’t want to be – approved for more cards.
If you need a basic credit card rundown, check out the post linked below.
You’re already (or willing to be) organized.
Credit card rewards aren’t for the faint of heart. It takes a little spreadsheet finesse. If you feel like your spending is a little out of whack or you need a general financial plan in place first, check out the Wealth Planner.
Will credit card travel rewards hurt my credit?
No. At least, not if you do it correctly. Having more credit cards is a good thing. When you have more credit cards, you have more credit available to you, thereby driving your credit utilization down.
What’s credit utilization?
Effectively, the more lenders who are like, “Yeah, we’re willing to give this person a few grand and we trust they’re good for it,” the higher your credit score goes. Think about it like a trust barometer between you and the lenders. Low credit utilization – only using a small percentage of the credit available to you – accounts for 30% of your credit score.
Is getting new credit cards bad?
New credit is minimally impactful. Having “new” credit (from a new credit card) only accounts for 10% of your overall score. Granted, credit age is important, so try not to cancel old cards (even if you aren’t using them!) because they make your credit “older” and therefore more established – you adult, you!
Am I supposed to keep these credit cards long-term?
Every card featured in this strategy breakdown is valuable enough year-over-year to warrant paying the annual fee on an ongoing basis (that is, if you’re using the benefits!). Some cards have high sign-up bonuses, but aren’t worthwhile afterward. Those cards aren’t on this page. Everything you see here is a card that I recommend keeping.
What’s credit card churning?
This isn’t a best practice, as card companies are getting more savvy about noticing and shutting it down. Churning is when you get a card for the sign-up bonus, use it, then close the card. It’s not great for your credit, as it lowers your available credit line. I don’t recommend churning cards.
What if I don’t want to keep paying an annual fee?
You can always downgrade a card in the second year to a no (or low) annual fee card (e.g., getting the Chase Sapphire Reserve and then downgrading it to a Chase Freedom Unlimited). This is a good alternative to closing a card, because it won’t hurt your credit.
Watch-outs and timing during the application process
The Chase 5/24 rule
Chase, otherwise known as the granddaddy of travel rewards, got wise to the credit card churning game. In an effort to prevent people from doing so, they now only allow you to be approved for 5 cards total in 24 months, regardless of the issuer (for example, if you got three AmEx cards then started applying for Chase cards, they’d only approve you for two). This is why people suggest getting the Chase-issued cards first, then moving onto other banks.
How long to wait between credit card applications
Timing-wise, we’re going to be loosely following a “one card every 90 days” cadence. Most spend thresholds are three months long, which means you’ll have to hit minimum spend thresholds for the sign-up bonuses before your third statement closes. Besides that, too many applications for new credit in short periods of time send up a red flag to the card companies and may result in a rejection.
How do you get the credit card welcome bonus?
“Spend $4,000 in three months.” What does that mean, functionally?
Here’s an example: If you get a credit card today (April 10th) and your first statement closes on May 20th, you'd have until the end of your July 20th statement (May 20th, June 20th, July 20th) to hit the spend threshold necessary to get the points.
Getting started earning points for free travel
#1: A good cash-back card, like Chase Freedom Flex®
If you don’t have a credit card yet, start here. If you do have a credit card/established credit already, feel free to skip this step.
Current offer: Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.
5% cash back on up to $1,500 on combined purchases in bonus categories each quarter you activate
5% cash back on travel purchased through Chase Travel℠
3% on dining including takeout and drugstores
1% on all other purchases
$0 annual fee
Check it out
#2: Chase Sapphire Preferred at 60,000 points
This is one of the most valuable travel credit cards out there, and right now, the bonus is at 60,000 points after you spend $4,000 in three months of account opening. This is easily worth $750 in free travel.
We recently transferred 100,000 Chase Travel℠ points to Hyatt and got a $2,500 stay at the Hyatt Zilara Cap Cana in Punta Cana.
$50 in statement credits each anniversary year for hotel stays purchased through Chase Travel℠
5x points on travel booked through Chase Travel℠
3x points on restaurants, delivery services, select streaming services, and online groceries
2x points on travel booked outside Chase Travel℠
1x points on everything else
Complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027
10% points bonus annually based on your card spending, earned after you renew and pay your annual fee
$95 annual fee (a steal, in my opinion)
You can transfer these points 1:1 to many different airlines and hotels.
*Heads-up: My “affiliate link” for this card looks funky. The link below will take you through a portal with my logo, and then redirect from there to bankrate.com. This is the way in which I receive credit for your application, and it’s up to you whether you want to go that route. Either way, make sure you get those points!
Check it out
#3: Southwest Airlines Rapid Rewards Priority Card at 85,000 points
Time to shift your focus to airline cards. If you fly Southwest Airlines, this is a no-brainer third move. You’ll receive 85,000 points after spending $3,000 in the first three months of opening your card.
Rapid Rewards points are arguably the most valuable in the travel rewards world, and after you get 135,000 qualifying points in one year, you earn Companion Pass (one person flies free with you, unlimited—save taxes and fees from $5.60 one-way) for the rest of the year plus the following full calendar year.
While it doesn't make sense to put a ton of ongoing spend on this card in normal circumstances, you'll get 7,500 anniversary points every year, a chance to earn A-List status, four Upgraded Boardings worth $40 each ($160 total), and a $75 annual Southwest travel credit. Here’s a more detailed deep dive about why Priority is my top pick.
$149 annual fee
Check it out
#4: Marriott Bonvoy Boundless at 150,000 points
Marriott's hotels program is the most robust in the sense that they have properties everywhere and their points go a decently far way.
The current offer: Earn 125,000 Bonus Points after spending $5,000 on purchases in your first 3 months from account opening with the Marriott Bonvoy Boundless® Credit Card. Here’s a more detailed deep dive into the Bonvoy program and this card specifically.
6x points on Marriott purchases
1 free night per year valued at 35,000 points
$95 annual fee
Check it out
Let’s pause, now that we’re on our 5th card.
Options for your fifth credit card
Remember Chase 5/24? We’ve applied for (if you started from scratch) four Chase cards already, which means it’s time for the last Chase card. You have choices, but a few of my favorites are:
Chase Ink Business Preferred, if you’re comfortable applying for business cards
Up to 100,000 points after $15k purchases in first 3 months after account opening | $95 annual fee
World of Hyatt Visa card, since Hyatt points are stupid lucrative
Up to 60,000 points; conditions apply | $95 annual fee
United℠ Explorer card, if you fly United
Up to 50,000 points after $3k purchases in first 3 months after account opening | $0 for the first year, $95 annual fee after
What if you get rejected for a premium card?
It happens to the best of us. If you get rejected for a card, you have options. I detail my own experience getting shot down in the post linked below.
#6: The Platinum Card® from American Express at 80,000 points
Look, I get it. With a $695 annual fee (Rates & Fees), this card can seem hard to justify. Here’s what comes with it:
Welcome bonus of 80,000 Membership Rewards points® (after you spend $8,000 on purchases in your first 6 months of card membership)
Up to $300 Equinox credit (enrollment required)
Up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal (enrollment required)
Up to $200 hotel credit on Fine Hotels & Resorts Collection (enrollment and two-night minimum stay required)
Up to $200 airline incidentals credit on an airline of your choice (enrollment required)
Up to $200 in annual statement credits for Uber and Uber Eats (enrollment required, issued as up to $15/mo and up to $35 in December). To receive this benefit you must have downloaded the latest version of the Uber App and your eligible Platinum Card must be a method of payment on your Uber account. The Amex Benefit may only be used in the United States.
$199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
Up to $100 TSA PreCheck/Global Entry credit (enrollment required)
5x points on all air & hotel purchases booked on American Express Travel
Centurion Lounge/Priority Pass lounge access (enrollment required for Priority Pass)
Access to Fine Hotels & Resorts collection, which includes up to $75 in daily breakfast credits when you book hotels in the collection
Terms apply.
I’ve written quite a bit about this card, and I think it’s worth it. Here’s how I got the annual fee waived one year, and here’s a breakdown of how you use the “resort credits.”
And of course, I’ve written an in-depth review here.
Check it out
In summary
Get a cash back card to establish credit if you don’t have any yet.
Chase Sapphire Preferred
Southwest Airlines Rapid Rewards Priority (or another airline card if you don’t fly Southwest, although their program is the most lucrative)
Marriott Bonvoy Boundless
Wild card – Chase Ink Business Preferred, United Mileage Plus Explorer, or World of Hyatt
American Express Platinum
And since we’re all about transparency here, this content was not commissioned or sponsored by a bank, but for some of the cards above where noted, I may receive compensation if you use my affiliate link to apply. Know that these are all my opinions and experiences described, and no bank, hotel, airline, etc. has approved or endorsed anything you see here – raw MWK hot takes, baby.
How to redeem your points for travel
