Sign-up bonuses, lounge access, cash rebates, free hotel rooms, and lots of terms and conditions – the complex promotions and confusing rules of rewards credit cards can leave you feeling dizzy. But fear not! Here are some tips to help you navigate through the confusion and make the most out of your rewards cards.
Rewards cards offer three types of value. First, there’s the sign-up bonus, which can be up to 120,000 points or miles when you meet a minimum spending requirement within a specific period. Then, there are the points, miles, or cash back you earn for your card purchases, sometimes multiplied for specific categories like travel, dining, or fuel. Lastly, there are the benefits you receive as a cardholder, such as credits for Global Entry or TSA PreCheck application fees, access to airport lounges, and elite status at hotels.
When considering a rewards card, travelers should weigh the rewards against the annual fee, which can range from zero to $695, and check which airlines, hotels, and other travel partners the card works with. To get the most value, make sure to pay off your balance in full each month to avoid interest charges. And don’t forget to set up autopay.
Make partnerships work for you
If you frequently fly with a specific airline, consider getting a co-branded card like the Alaska Airlines Visa Signature (with a $95 fee). Co-branded cards offer perks like priority boarding, free checked bags, and lounge access. The Alaska card also offers a $99 companion ticket (plus taxes and fees) each year when you meet the spending requirements. Hotel chains also have co-branded cards, such as the World of Hyatt Visa and Marriott Bonvoy Boundless Visa (both with a $95 fee), which offer a free night at select brands on your card anniversary.
If you choose a card without a co-branding, you may still be able to transfer your points to your preferred airline’s loyalty program. Some cards allow code-sharing as a workaround. For example, if you can’t transfer your points directly to Delta SkyMiles with Capital One, you can transfer them to Aeromexico (with which Capital One has a partnership) and then book a Delta flight through the SkyTeam alliance.
Stretch points into pennies
Redemption values for points can vary depending on how you use them. Gary Leff, from the travel site View From the Wing, advises aiming for at least one cent per point. For example, Citi ThankYou points are usually worth a penny when used to buy gift cards from various retailers. American Express cardholders can get one cent per point when using their Membership Rewards balance to book flights or hotels on the Amex website, and some cards even offer five points per dollar spent. Keep in mind that different redemption values may apply when making purchases on Amazon or paying for eligible charges on your statement. Check the credit card website for details on redemption values.
Sometimes, points can be worth more than one cent when transferred to an airline loyalty program for ticket purchases. Keep an eye out for temporary transfer bonus offers, which can give you an extra boost of up to 30 percent on points transferred to a specific airline or hotel partner.
Save big expenses for new cards
If you’re eyeing a generous sign-up bonus, it’s best to time your application with a major expense like a vacation, home renovation, or college tuition payment. This way, you can use that expense to meet the minimum spending requirement for the bonus. The Capital One Venture X Visa card (with a $395 fee) offers 75,000 miles when you spend $4,000 in three months. Recently, the Citi AAdvantage Executive World Elite Mastercard (with a $595 fee) offered 100,000 points for spending $10,000 in three months.
Bonuses like these can be significant. For example, 75,000 Capital One points can be worth $750 in travel spending, and 100,000 American Airlines miles could buy you multiple cross-country plane tickets.
Play to each card’s strengths
If you don’t mind a little card juggling, you can maximize your benefits by using different cards for specific purchases. For instance, pair a Chase Sapphire Reserve card ($550 fee) for earning three points per dollar on travel and dining expenses, with a no-annual-fee Chase Freedom Unlimited card, which earns one and a half points per dollar on all other purchases, recommends Mr. Leff. Similar pairing strategies can be applied to American Express and Citibank cards, he added.
To keep track of each card’s benefits, Mr. Leff suggests putting little stickers on your credit cards indicating the type of purchases they are best for, such as restaurants, gas, groceries, or other categories.
<
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
