- There are so many choices when it comes to travel credit cards that it can be hard to know where to start.
- And even when you've settled on a card, you may not be sure whether you're maximizing its benefits and rewards.
- If you're looking for some guidance, you've come to the right place. Keep reading for tips from Business Insider's network of travel and credit card experts.
- $4
If you want to earn points and miles to book award flights and hotel stays, your best bet is to sign up for a travel credit card, earn its $4, and continue accumulating rewards with your everyday spending.
There's no one right way to use rewards credit cards, but in this complicated hobby, every little bit of knowledge helps. That's why we've rounded up the best tips for choosing and maximizing credit cards from our network of points and miles experts. Several of them spend more time traveling than they do at home, so they know a thing or two when it comes to maximizing points, miles, and travel card benefits.
Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which will far outweigh the value of any points or miles. It's important to practice financial discipline when using credit cards by paying your balances in full each month, making payments on time, and only spending what you can afford to pay back.
1. You can have lots of credit cards and a high credit score
It's a myth that opening new credit cards automatically spells disaster for your credit score. Just ask Holly Johnson, who has $4 in the 800s. Johnson travels with her husband at least four months out of the year and uses cards like the $4 to enjoy $4s.
As $4 explains, the key is to use your cards responsibly. Whether you have one card or more than 30, falling behind on your credit card bills is a surefire way to tank your credit score.
2. The Chase Sapphire Preferred Card is great for beginners
In 2019 contributor Adam Bauer used Amex Fine Hotels & Resorts, a benefit of the $4, to score a $4. However, Bauer recommends a different option entirely to those who are new to credit card rewards.
The $4 makes for a perfect $4. It even has a $4 (60,000 points after you spend $4,000 in the first three months versus 50,000 points with the same spending requirement), and it comes with a great selection of benefits that covers all your bases.
You'll earn 2x points on travel and dining, and you get some helpful travel protections like primary rental car insurance and trip delay insurance to cover you if anything goes wrong. When it comes time to redeem your $4, you have lots of great options, from using them to book travel through Chase with a 25% bonus to transferring them to airline or hotel partners.
Plus, the card has a $95 annual fee, compared to $450 on the $4. If you catch the award travel bug and decide you want to upgrade to the Reserve, $4 after your first year.
3. You can get thousands of dollars in value from credit card sign-up bonuses and benefits
Provided you don't sit on your stash of points and miles and you can take advantage of other benefits like annual statement credits, you can come out ahead with $4. Here are just a few examples:
- Business Insider's David Slotnick got $4 from the $4 in his first year with the card, thanks to the card's welcome bonus and perks like Gold elite status with Marriot and Hilton.
- Eric Rosen recently shared how using Chase Ultimate Rewards points from the $4 allowed him to book award flights to Cabo San Lucas and $4 during a peak travel period.
- $4 has one of the highest annual fees around ($595), but when you add up all its benefits - from annual statement credits with Dell to savings through the Amex International Airline Program - you could get $4. Again, that's if you put all these benefits to use; if you're not a frequent travel, a cash-back credit card could be a better option.
4. An annual fee isn't always worth it - but it can be
Everyone has their own philosophy when it comes to paying annual fees for credit cards - $4. If you're on the fence, keep in mind that it comes down to whether or not you can put a credit card's benefits to use.
Travel and credit card expert Caroline Lupini pays $4, but she says it's worth it because she spends about eight months out of the year on the road and has no trouble getting value out of perks like the $300 annual travel credit on the $4 and the lounge access benefits of the $4.
5. The United Explorer Card has a hidden feature that makes it easier to use your miles
Contributor Jason Steele uses hotel credit cards to $4 in Colorado, Hawaii, and more, and he uses an airline card to stretch his miles further for award flights. Steele stumbled across an unsung benefit of the $4: $4.
If you have the Explorer card or another United credit card, you'll have more opportunities to redeem your miles at the lowest mileage award level than non-United cardholders. You just need to be logged into your United MileagePlus account to see the additional saver-level seats. The difference between the cheapest award prices and the "standard" level of awards can be tens of thousands of miles, so having a United card can help you stretch the value of your miles much further.
6. It pays to have an 'emergency fund' of travel rewards
Elizabeth Aldrich, who $4 and now $4, says having various types of travel rewards on hand has $4.
Her advice for building your own "emergency fund" of points and miles? It helps to have a few different points and miles currencies so you can be flexible. She focuses on Chase Ultimate Rewards, but also earns hotel points with the $4 and airline miles with the $4.
7. 'Double-dipping' on credit card rewards helps you earn more points faster
The points and miles hobby can be even more rewarding when you have a partner earning rewards alongside you. Contributor Clint Proctor and his wife $4 by each opening cards like the $4. This way, they can each earn a sign-up bonus - getting them more points for travel and helping them earn the valuable $4, which lets you bring a friend or family member on flights with you for just the cost of taxes and fees.
8. Using the right card for each purchase matters
Credit card sign-up bonuses - which earn you a lump sum of points, miles, or cash back after you meet a minimum spending requirement - are the easiest way to quickly acquire rewards. But that's just half of the equation.
To maximize his points-earning, Eric Rosenberg not only focuses on earning the most valuable sign-up bonuses, but he also makes sure he's $4. Rosenberg's used credit card rewards to book travel including a $4.
Here are his top picks for maximizing recurring expenses:
- $4 for 4x points at US supermarkets (on up to $25,000 per year, then 1x)
- $4 for 3x points on travel (excluding a $300 travel credit)
- $4 for 5% cash back (5x points) on internet bills (up to the first $25,000 spent each account anniversary year, then 1%/1x)
- $4 for 1.5% cash back (1.5x points) on "everywhere else" purchases