This Is the Best Way to Maximize Your Credit Card Points for Your Next Trip

Attention shoppers: There’s more to using a credit card than building credit or boosting your purchasing power. For avid travelers, the biggest draw is definitely using the points you’ve accumulated over the years to purchase plane tickets or hotel reservations.

“When you are earning points and miles on your everyday purchases thanks to rewards credit cards, it makes sense to redeem them regularly for travel so you can shave some dollars and cents off your next trip,” says Eric Rosen, director of travel content at The Points Guy. “You’re saving money—and who doesn’t love that?”

Redeeming credit card points can score you an excellent vacation minus the sticker shock, but with the right booking know-how, it’s possible to stretch your dollar even further. “Strategizing about your credit card points … is also a great way to put more inspirational trips within reach.” 

To help, Rosen is sharing his top advice to make the most of your credit card points. Simply follow these tips and you’ll be well on your way to your next beautiful, budget-friendly adventure.

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1. Do the Math 

While there are no hard and fast rules for when and how to use your points—after all, they’re yours for a reason!—you always want to do your research. 

“Price out any airline tickets, hotel stays, or vacation packages in cash and then see how many points and miles in the particular programs you participate in would be required to book the same reservations,” Rosen shares. “Don’t redeem those hard-earned points before making sure that you will be saving enough money to make the effort worthwhile.” 

To compare how much you’ll spend (and potentially save), you’ll want to divide the cash cost of your ticket or reservation by the number of points you’ll be spending. If you’re getting less than one cent per point in value, you might want to save your rewards for another itinerary. That said, Rosen says you shouldn’t stress if your value is lower than that one cent per point threshold. “The best use of your points or miles is for the trip you want when you want it,” he explains.

2. Factor in Your Travel Preferences 

Everyone has their travel preferences. Some people will only fly certain airlines, while others swear by a particular hotel chain. If you’re a picky traveler—no judgement here!—Rosen says to use your preferences to your advantage. 

“If you’re going to be spending a lot on airfare with a particular airline, consider getting one of its co-branded credit cards,” he says. “These are the ones that earn you multiple points or miles per dollar spent on airfare plus day-of-travel perks like free checked bags and priority boarding.”

Ditto for hotels. Credit cards that are co-branded with hotels often offer excellent perks like room upgrades or late checkouts, plus they can earn you multiple points per dollar. “You are racking up the rewards for your next trip even faster,” he says.

Not super fussy with your airlines or accommodations? “Consider getting a card that earns multiple rewards points per dollar on general travel expenses,” Rosen shares. “That way, you’re supercharging your earnings no matter how you fly or stay.”

Though you should always do your own research before applying for a credit card, Rosen says programs like Sapphire Preferred or the Citi Strata Premier are two great places to start your search.

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3. Pause Before Transferring Points

Speaking of hotels and airlines, let’s talk about transferring your rewards. Though moving your points over to an airline might get you a better deal, Rosen says to err on the side of caution. “You can’t get them back in your credit card account, so be sure the award you want to book exists before doing so,” he explains. 

If you’ve never thought about transferring points before, you might have a lot of questions. Can you use points for your specific itinerary? Do you have enough points? Will your credit card points transfer to an airline on a 1:1 ratio? While doing the research will require some time and energy, it’s always better to be safe than sorry. That said, reading the fine print on any rewards program can be confusing, so feel free to call your credit card company or your desired airline to clear up any outsanding questions.

4. Keep Tabs on Your Balance

When traveling, credit card points are the gifts that keep on giving—but they don’t exactly grow on trees. “There is just no way you can earn back value from those points equivalent to the high interest rates or late payment fees you accrue if [you’re] carrying a balance or not meeting the minimum payment amount,” Rosen explains. 

Of course, just because you’re nearing your credit limit doesn’t mean you have to sit out on an awesome trip.

“[It’s] better to pay cash for your purchases or use a debit card that you cannot overdraft until you can make sure you can pay your credit card statement off on time and in full every month,” he recommends. Psst…we even shared some secrets to saving on flights and hotel stays sans points. Cha-ching!