SAN DIEGO — Looking to travel more while spending less? Strategic use of credit card rewards could help you save thousands of dollars on your next vacation. Travel experts say focusing on credit card welcome bonuses is one of the most effective ways to earn free flights and hotel stays.
Zac Hood, founder of Travel Freely, has personally saved over $100,000 on travel for him and his family through credit card rewards. "If you have been using the same credit card for more than a year or two, you're missing out on a lot of free travel," says Hood.
Getting Started with Travel Rewards
For beginners interested in earning travel rewards, Hood recommends starting with these key principles:
- Keep it simple at first
- Ensure you can trust yourself financially
- Always pay your balance in full each month
- Maintain a good credit score
"My wife and I were traveling quite a bit, taking really cool trips," Hood explains. "Friends and family kept asking how we were able to make it happen, because she was in grad school and I was a school teacher – and it was all points and miles."
Best Card for Beginners
For those just starting their travel rewards journey, Hood recommends the Chase Sapphire Preferred card. "It has a really good bonus right now," he notes. "You can use points in their travel portal to book rental cars, airlines, hotels, so it's very flexible. You can get a good feel for everything and have a good experience right off the bat."
Common Misconceptions
Many people worry that opening new credit cards will damage their credit score. However, experts say that when managed responsibly, opening credit cards can actually help build credit – provided you:
- Pay your balance in full each month
- Keep cards open for at least one year before closing
Tips for Success
Hood emphasizes that the key to maximizing rewards is focusing on welcome bonuses rather than regular spending rewards. "People spend a lot of time using coupons, but if you literally got one extra card a year with a huge sign up bonus, you are 99% ahead of every other person who's spending a lot of time just earning a couple extra dollars here and there."
The holiday shopping season can be an ideal time to sign up for a new rewards card, as you can meet spending requirements for welcome bonuses through purchases you were already planning to make.
To stay organized, travelers can use tools like the Travel Freely app to track their cards, search for new offers, and monitor spending requirements for bonuses. The free app helps simplify the process of managing multiple rewards cards and maximizing their benefits.