3 Ways To Use Credit Card Rewards To Save Thousands on Travel
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You’re scrolling your social feed when a post from a friend catches your attention: photos from their two-week trip through Europe, which they claim was paid for entirely with credit card points. You can’t help but wonder how much they had to spend to rack up that many rewards. They have to be deep in credit card debt, right?
Not necessarily. With the right strategies, it’s possible to earn enough points for a dream trip without going into debt — because racking up travel points isn’t about spending more; it’s about using credit cards strategically to earn generous signup bonuses.
To earn rewards that put stamps on your passport — instead of past-due marks on your credit card bills — you need advice from a savvy travel hacker and personal finance expert like Kara Greene. As the voice behind “Aunt Kara,” Greene dispenses advice on many financial topics with the warmth and wisdom you’d expect from a favorite financially savvy aunt.
Following her own advice, Greene has booked more than $135,000 worth of nearly free trips with points and miles. As part of our Top 100 Money Experts series, GOBankingRates caught up with Aunt Kara to get her top three tips for maximizing credit card rewards for travel — without running up a balance.
1. Don’t Put Anything on a Credit Card You Can’t Pay For
Greene’s first rule of using a credit card for rewards is straightforward: Never charge more than you can pay off in full each month. Thanks to that discipline, she carries no debt — even while managing 10 active credit cards.
She wants you to ditch the idea that wielding a credit card means a shopping spree or buying things you don’t need just to earn rewards out of your head. Instead, she advises you to be intentional: Make the purchases you were going to make anyway and let the rewards work for you.
“Credit cards are simply a tool I use to turn the money I’m already spending on everyday expenses — like groceries, gas, household supplies, internet and cell phone bills, and even insurance — into points, miles and cash back that benefit me in real ways, like free travel and extra savings,” she said. “My experience is proof that you can use credit cards responsibly, take advantage of the rewards, and still stay completely in control of your money.”
2. Apply for Credit Cards Strategically
If reading that Greene has 10 credit cards gave you a bit of sticker shock, she knows what you’re probably thinking — that applying for multiple credit cards will tank your score. But that’s not necessarily true if you manage your cards well.
And here’s the key point many people miss: You don’t need to spend thousands on everyday purchases to earn points. The real point power comes from generous signup bonuses — often 50,000 to 80,000 points — that you earn just for opening a new card and meeting a modest spending requirement within the first few months. And no, this isn’t the credit score killer many people fear.
“The truth is, while each application results in a small, temporary dip due to a hard inquiry, the long-term impact is usually neutral or even positive if you manage your cards responsibly,” Greene explained.
To develop a smart strategy that allows you to apply for multiple cards without damaging your credit, Greene wants you to understand key parts of credit card usage.
Understand Key Credit Factors
The two most important factors in your credit score are your payment history and credit utilization. When you open new cards and keep your balances low, your total available credit increases — improving your utilization ratio.
“The average age of accounts does decrease slightly with each new card, but that’s a much smaller piece of the scoring puzzle compared to the big two: paying on time and not carrying high balances,” Greene said.
Adopt Positive Habits With Each Card
Greene reiterates that each new card should be viewed as a tool — not as extra money to spend.
“Large, planned purchases you have already saved up for, as well as recurring monthly expenses, are perfect for meeting sign-up bonuses and racking up rewards,” she said.
Space Out Applications
Instead of applying for several cards at once — which can create multiple hard inquiries or give lenders the impression you’re in financial distress — Greene spaces her applications over time.
“By following these habits, I’ve been able to have 10 credit cards at once, maintain a strong credit score, and stay completely debt-free — all while traveling for nearly free using points and miles for the past 13 years,” she said.
3. Redeem Your Points Wisely
You don’t book more than $135,000 worth of nearly free trips with credit card points and miles without a plan — and Greene’s plans start with knowing exactly how she wants to redeem them.
“I can tell you this: How you redeem your points is just as important as how you earn them. If you don’t redeem wisely, you risk wasting value or overspending,” she said.
Her pointers for getting the best value:
Do Your Research
Greene’s first step when redeeming points is to figure out where she really wants to go.
“From there, I look at which airlines fly there, which hotel brands are available, and which loyalty programs I already have points in that could fit the trip,” she said. “It sounds simple, but a lot of people skip this step and end up redeeming in ways that don’t maximize their rewards.”
Compare the Cash Price vs. the Points Price
“This tells me the redemption rate — or the ‘value’ I’m getting per point. As a rule of thumb, I want to see at least 1.25 to 1.5 cents of value per point before I consider using them,” Greene explained. “If the cash price is low, I usually just pay cash and save my points for a higher-value trip. If the cash price is high, that’s when points can really shine.”
Focus on What You Really Want
“Use your points for what’s valuable to you. Don’t get caught up in what bloggers or experts say is the ‘best redemption’ if it’s not a trip you’d actually take,” Greene said. “If a weekend getaway close to home brings you joy, then using your points for that is a smart choice. Points are only powerful when they help you create the experiences you actually want.”
Avoid “Points Pressure”
“I treat points almost like a savings account — to be used carefully and intentionally,” Greene said. “That mindset has allowed me to stretch my rewards into over 70 nearly free trips (and counting).”
Bottom Line
Maximizing your credit card rewards doesn’t have to involve going into debt or damaging your credit score. The secret is that travel rewards are earned mostly through strategic signup bonuses, not overspending. Combine that with responsible card use and smart redemption, and you can enjoy top-tier vacations — while keeping your credit strong.
Just listen to your Aunt Kara.
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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