For many Americans, traveling the world seems like an unattainable luxury. However, travelers who understand travel rewards credit cards and the US credit card points system can use points and miles to reduce the cash cost of eligible travel.
They don't have secret discounts. They understand how to collect and redeem points and miles. Award bookings can reduce out-of-pocket travel costs, but may still involve taxes, fees, surcharges, availability restrictions or other costs.
The Two Types of Travel Cards
Co-Branded Cards
These are cards tied to a specific airline or hotel chain (Delta, United, Marriott). They're excellent if you're loyal to one brand, offering perks like free checked bags, priority boarding, and companion certificates.
Flexible Transferable Points Cards
Issued by major ecosystems like Chase, American Express, or Capital One. Instead of earning airline miles, you earn bank points that can be transferred to multiple airlines and hotels, depending on the program. This flexibility can be useful, though redemption value depends on the program, transfer ratio, award pricing, availability, and the traveler's specific booking.
Earning Through Welcome Bonuses
The fastest way to earn rewards toward travel is through sign-up bonuses. Premium travel cards may offer bonus points after meeting a spending requirement in the first few months. Bonus amounts and spending requirements vary by card and may change; verify current offers directly with the issuer.
Transfer Partners
Some cardholders redeem points through their bank's travel portal. Redemption values when booking through a bank travel portal vary by issuer, card, program, booking and promotional features.
Alternatively, transferring points to an airline or hotel loyalty program can sometimes provide greater redemption value. Value depends on the transfer ratio, award pricing, availability, taxes and fees, and the traveler's specific booking. Transfer ratios vary by partner and can change over time. Check each program's current terms and award charts before transferring.
Transfers are generally irreversible — once points are moved to an airline or hotel program, they typically cannot be transferred back. Always check award availability before initiating a transfer.
Key Transfer Partners
- •British Airways Avios — Can be useful for short-haul flights, though award availability and rates vary.
- •Air France/KLM Flying Blue — Periodically offers promotional award rates, though availability and terms vary by program.
- •Hyatt — A commonly cited transfer partner for hotel stays, though point requirements and cash rates vary by property and date.
Top Cards to Consider
[Chase Sapphire Preferred](/review/chase-sapphire-preferred)
A commonly recommended starter travel card with a moderate annual fee, multiple transfer partners, and travel protections. Terms and offers may change; verify current details directly with the issuer.
[Capital One Venture X](/review/capital-one-venture-x)
A premium option with a higher annual fee that may be offset by travel credits and lounge access, depending on usage. Terms and offers may change; verify current details directly with the issuer. To compare these cards side by side, see our comparison of travel credit cards.
Common Mistakes
- •Transferring without checking availability — Once transferred, points can't come back. Always confirm the flight exists before transferring.
- •Using points for low-cost flights — If a flight costs $150 but requires 25,000 points, the per-point value may be lower than other redemption options. Compare the cash price against the points required to assess whether a redemption makes sense for your situation.
- •Letting miles expire — Know the expiration policies of each program.
Final Thoughts
Travel rewards can be a valuable benefit of certain credit cards when used strategically. Points and miles can reduce the cash cost of eligible travel, though award bookings may still involve taxes, fees, surcharges, availability restrictions or other costs. Start with one flexible points card, understand its bonus categories, and learn how redemption values compare before building your strategy over time.