Once the travel bug bites you, it typically stays with you forever. The incessant desire to travel and see and experience the world is always below the surface. The avid traveller knows this feeling. They also know that the most effective way to travel on a budget is to leverage reward credit cards and their reward points and miles programs.
You can even fully finance trips on nothing but rewards if you know how to choose the best credit card for you and your goals. It’s important to ask yourself some questions. What is it you are looking for? Flights? Accommodations? Cashback? How do you know which credit card is the best credit card for road trips? Which is the best to earn free flights?
These are some of the most important tips when looking to finance a trip using rewards points and miles.
- Research, research, research. Knowing which cards give you the best rewards is key to traveling for free so make sure to compare credit cards and pick the best one for you.
- Transferable points. These can be a traveler’s best friend. Many cards offer the ability to transfer points from one program to another. Knowing the rules is key for this tip because some cards may penalize you for transfers while others do not. Understand how the program works and you could combine your points to earn bigger rewards.
- Don’t be cheap! (at least when it comes to annual fees). Annual fees can be a turn-off for many travellers because not spending a dollar more than absolutely necessary is often core value. However, when you look at the cost/ benefit ratio, the annual fee can be repaid many times over in rewards and perks, often in the first year.
- Think ahead. If you are planning a specific trip, plan ahead to know what rewards make sense to accumulate. If your plans are loose, see what promotions your cards have and maximize what they are offering by planning around the trip around earning certain perks.
- Use more than one card. Different cards mean different rewards and there typically aren’t limits on how many credit cards a person can have. If it serves a purpose for you, having another credit card is a tool to be used in the pursuit of your goals.
- Don’t be late! Always pay your bills on time. Here’s why. Paying interest can financially cost you the same as the perks you have earned. You may lose your rewards by not paying on time. Keeping a good standing with your credit card companies will qualify you for better cards.
- Maximize everything! This means making sure you earn the sign-up bonuses (which can be significant). Use the cards that give you the most rewards on your purchases and buy everything with your credit card.
- Use the credit card travel insurance. These travel insurances are great. They may come with activation requirements so it is important to understand the details. Travel insurance from credit cards is often better because they aren’t location specific and the insurance coverage can be superior to other travel insurances.
Follow these tips and you will be out exploring and discovering in no time… and at no cost to you!
