Understanding the Travel Rewards Card Program
Travel rewards programs allow you to earn points or miles on your everyday purchases, which can be redeemed for travel-related benefits like flights, hotels, and rental cars.
Understanding how these programs work can help you maximize the value you get from your travel rewards credit card. Here’s a quick guide to understanding these programs.
How Points or Miles Are Earned
The way you earn points or miles varies depending on the credit card. Most travel rewards cards offer a base rate for all purchases, such as 1 point per dollar spent, but some cards offer higher rewards for specific categories like travel, dining, or groceries. For example, a card may offer 2 points per dollar spent on travel and 3 points on dining.
Key Consideration: What spending categories do you use most often? Look for cards that offer the highest rewards in those areas.
Bonus Points and Sign-Up Offers
Many cards provide bonus points or miles as part of a sign-up offer when you meet a specific spending threshold within the first few months. These bonus offers can provide a significant boost to your points balance and help you earn rewards faster.
Key Consideration: Does the card offer a large sign-up bonus? Be sure to check the spending requirements and timeframe.
Point Redemption Options
Travel rewards can be redeemed in various ways, depending on the card issuer. Some cards allow you to book travel directly through their travel portal, while others let you transfer points to airline or hotel partners. Some programs even allow you to use points for things like gift cards, merchandise, or statement credits.
Key Consideration: Do you prefer flexible redemption options or would you rather stick to booking travel directly through the card issuer’s portal?
Point Expiration and Restrictions
It’s important to be aware of any expiration dates for your points or miles, as well as any blackout dates or restrictions that may apply when you redeem them. Some programs offer points that don’t expire as long as the card remains open, while others may have strict expiration policies.
Key Consideration: Are you okay with points that expire after a certain period, or do you prefer a program with no expiration?
Transfer Partners and Alliances
Many travel rewards programs allow you to transfer your points or miles to airline or hotel partners. These partnerships can offer even more flexibility in how you redeem your rewards, often at better rates than booking through the card’s travel portal.
Key Consideration: Do you have a preferred airline or hotel brand? Look for cards that offer transfers to those partners for better rewards redemption.
Travel Perks Beyond Points
In addition to earning points, some travel rewards cards offer extra perks like access to airport lounges, free checked bags, travel insurance, or rental car insurance. These benefits can provide significant value, especially if you travel frequently.
Key Consideration: Are you looking for additional travel perks such as lounge access or travel protection? Evaluate the overall value the card offers.