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Many travelers use credit card rewards to make travel more affordable. By paying for everyday purchases with credit cards that earn travel rewards, you could make your next trip cost less.
I had credit card rewards I needed to use, and it was time to start planning my next trip, so I recently redeemed them for a roundtrip business-class flight to Europe. I’ll share how much money I saved using credit card points so you can see the value in earning travel rewards.
Using a travel rewards credit card is an excellent strategy if you like to travel. When you swipe your credit card for purchases, you can earn points and miles, which you can redeem for airfare, hotel stays, rental cars, and other travel experiences.
You’re missing out if you’re paying for travel reservations and other everyday purchases with a credit card that doesn’t earn rewards. You can check out our list of the best travel rewards credit cards to discover the top features of some of the most popular cards.
Before applying for a new travel credit card, carefully review the benefits provided, learn how the card earns rewards, and explore your redemption options so you know how to use your rewards once you earn them. Doing this will ensure you choose the ideal card for you.
I’ve been a big fan of travel credit cards for several years now, and they’ve helped me save money on travel expenses. A recent redemption that I made saved me $3,280. It also allowed me to afford to upgrade my ticket, which will improve my entire flight experience.
I refuse to pay the cash price for international business-class flight tickets. Why? It’s too expensive for my budget. Instead, I look for business-class airfare deals or use my credit card rewards to upgrade my travel experience in a more affordable way.
I recently used the rewards I earned from one of the best Chase credit cards to book a roundtrip business-class ticket. Chase has an extensive list of travel partners, so with the right Chase credit card in your wallet, you can transfer your points to airline and hotel partners.
I transferred my points to an airline partner after discovering an affordable points-and-miles deal. I found a great award flight deal and redeemed 100,000 Chase Ultimate Rewards points for a roundtrip ticket from the United States to Belgium.
When you book an award flight, you’re responsible for paying the taxes and fees — your booking won’t be completely free. I don’t know about you, but nearly-free works well for me.
In addition to the 100,000 points, I paid $168.20. That’s a great price to pay for a premium airfare experience. But I was curious how much money I saved. I researched the cash price for my exact flights. It would have cost me $3,448.20. That means I saved nearly $3,300 by using my credit card rewards to book my ticket.
It’s possible to travel the world without draining your wallet. Earning credit card rewards and using them to save on travel expenses is a smart money move. But it’s also wise to research your redemption options before using your credit card rewards.
For example, redeeming your points for a statement credit may sound like a great idea, but it’s not always the best strategy. If I had redeemed 100,000 points for a statement credit to my account, I would have only received $1,000 off my credit card bill. The redemption I made was worth over $3,000.
Look for opportunities to get more value from your credit card rewards to stretch your rewards further and keep more money in the bank.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.
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