The Smart Traveler’s Guide to Credit Card Rewards & Protections

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Maybe I’m just a huge credit card nerd, but getting my first travel rewards card actually came with mixed emotions. 

Sure, I felt joy at scoring a huge sign-up bonus — and excitement to rapidly earn points towards my next trip — but I also felt FOMO. 

FOMO that I’d forget to use all of my benefits, spend enough to earn my sign-up bonus, or (gasp) that I got the wrong travel rewards card in the first place. 

So, how do you choose the right travel rewards card? What are the most underrated (and overrated) card benefits? What’s the best way to earn status and rewards quickly? 

And is there really a best day of the week to book reward flights? 

How To Choose the Right Travel Rewards Credit Card

First things first, what are some ways you can ensure you get the perfect travel rewards card for your wallet? 

1. Find a card that fits your existing lifestyle and travel plans

One of the most common mistakes you can make with a credit card is to fit your lifestyle to the card, and not the other way around. 

In other words, it’s best to start small and get a modest travel rewards card that fits your existing budget, spending habits, and upcoming travel plans. 

It may be tempting to go straight to the top shelf with the The Platinum Card® from American Express, but a card that requires you to spend a lot to earn the welcome offer and has a high annual fee isn’t for everyone. 

Unless you have tons of income and travel coming up, a premium card might encourage you to overspend — jeopardizing your finances, credit score, and future travel prospects. Not good!

That’s why if you’re just looking for a card to make travel more rewarding, it’s probably best to start with one in the $0 to $100 annual fee range. Then, if your travel plans ramp up to the point you’re on a first-name basis with the Delta SkyClub bartender, you might consider upgrading. 

2. Know the true value of a card’s points or miles

Most travel rewards cards come with a sign-up bonus, and you may find special promos that boost your bonus even further. But you can’t just judge a bonus on the amount of points it offers. 

For example, say you’re eyeing a Chase card that comes with a 60,000-point sign-up bonus, and a Capital One card that comes with 75,000 bonus miles.

Sounds like the Capital One card wins, right? 

Well, not quite. Because here’s what Chase points and Cap One miles are really worth: 

	Cash Value	Travel Value
Chase Ultimate Rewards® points	1 cent	1.25 cents (or more) when redeemed through Chase TravelSM
Capital One miles	0.5 cents	1 cent when redeemed through Capital One’s travel booking portal

So in reality, both bonuses are worth $750 in travel when redeemed from their respective travel portals — but Chase’s bonus is worth $225 more in cash ($600 versus $375). 

That’s why it’s best to check the actual cash/travel value of the points you’ll earn before you apply for a travel rewards card. You certainly don’t want to end up with half the value you thought you were getting!

Now, if the lyrics of Avril Lavigne’s “Complicated” are running through your mind right now, we don’t blame you. That’s why we’ve compiled guides to each of the major credit card currencies to help you maximize your rewards: 

• Your Complete Guide to Amex Membership Rewards®
• Your Ultimate Guide to Chase Ultimate Rewards®
• Your All-in-One Guide to Capital One Miles

3. Don’t be too intimidated by annual fees

To fee? Or not to fee?

With so many subscriptions already chipping away at your bank account balance, the thought of paying an annual fee for a credit card can be hard to stomach. 

But once we look at them logically instead of emotionally, annual fees become much more palatable. 

Take the Chase Sapphire Preferred® Card, for example. The card comes with a moderate annual fee that gets charged right away, but you’ll get a sign-up bonus that’s worth far more than the fee. You’ll also get a $50 annual hotel credit, 12 months of DashPass + $10 off non-restaurant orders each month ($240 value), oodles of travel insurance, and more. 

There’s also the IHG One Rewards Premier Credit Card, which charges a moderate fee but gives you a great welcome offer you can put towards IHG stays, and the card grants free room upgrades and other perks, too. 

So, before you write off annual fees, consider that the best travel rewards cards may charge a bit, but they offer tons of value in return. 

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4. Compare sign-up bonuses and their spending requirements

When pitting two travel rewards cards against each other, don’t just compare the sign-up bonuses — consider how much you’ll have to spend to earn those bonuses. 

Let’s say you’re looking at two cards that are pretty neck and neck in most ways. Both include free priority boarding, free first checked bags, a solid welcome bonus, and other perks for frequent flyers. 

But when you read the fine print, you see that one only asks you to spend $2,000 within six months to earn its sign-up bonus. That’s very doable, even on a limited budget. Meanwhile, the other asks you to spend $3,500 in four months, which is nearly a grand a month. 

5. Look for the right transfer partners

One of the most underrated ways to maximize your travel rewards is to transfer your credit card points to another travel rewards program. 

For example, let’s say you’ve got 50,000 Amex Membership Rewards® points and you want to book a flight from Atlanta to Toronto. 

• You could always book through the Amex travel portal, where your points will be worth $0.01 each or $500 total. 

OR

• You could transfer your points from Amex to Air Canada, where they’re instantly worth about 1.5 cents each. That way, your entire $750 flight will be covered. 

Something else to consider is that each credit card issuer has its own set of about 14 to 21 transfer partners with surprisingly little overlap. 

• Amex has the most at 21, and the list includes Delta, Marriott, and more. 
• Chase only has 14, but the list includes three domestic U.S. airlines: JetBlue, Southwest, and United. 
• Capital One has 15+, but lacks any domestic airlines, so it’s better suited for international travelers. 

So if you’re already married to certain travel providers like Southwest and Hyatt, you might want to consider a travel rewards card that allows you to transfer points to those programs. 

5. Leave plenty of time for your sign-up bonus to land in your account

Keep in mind that the hefty, advertised sign-up bonus doesn’t arrive in your account right away. 

In fact, it can take anywhere from two to eight months, depending on the card’s terms and conditions. 

Let’s say your new card gives you three months to spend $5,000 and earn 60,000 points. Once you do, it can take another six to eight weeks for the bonus to land in your account. 

That means it could take up to five months before you can actually use your 60,000 points, so keep that in mind before you bank on using your points any sooner!

How to Earn Travel Status and Rewards Quickly

Once you have an idea of which travel cards you might apply for (and Erika has suggestions), what are the best ways to rack up points, rewards, and free travel ASAP? 

Apply for cards with instant status upgrades

One of the best ways to start benefiting from a travel rewards card right away — well before your sign-up bonus even arrives — is to apply for a card that instantly upgrades your status with a travel rewards program. 

The IHG One Rewards Premier Credit Card card is a prime example. 

Unlike the World of Hyatt Credit Card or the Marriott Bonvoy Boundless® Credit Card, the IHG One Rewards Premier instantly launches you all the way to Platinum Elite status, which unlocks a whole suite of tasty perks like late checkout and free room upgrades. 

Best of all, you’ll become Platinum Elite as soon as your application gets approved and you register online, so you can benefit from your fancy perks during your very next stay. 

Earn your sign-up bonus

This one’s worth reiterating, because the fastest way to rack up points with your new travel rewards card is to earn your giant sign-up bonus. 

The Platinum Card® from American Express, for example, has a hefty welcome offer that fluctuates anywhere from 80,000 to 125,000 points depending on current promos. With the right transfer partner, that could be worth over $2,000 in travel value, or enough to get you and your partner to Europe and back!

But unfortunately, that bonus is worth a big, fat $0 if you forget to earn it in the first place.

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Set your card as the default payment method in all the right places

Once you have multiple credit cards in your wallet, it can be hard to remember which card to use and when for maximum rewards. 

That’s especially true with travel rewards cards, which have complex reward tiers and annual credits that you’re just not going to remember during checkout. 

That’s why as soon as I get a new rewards card (especially one with a high spending requirement for the sign-up bonus), I set it as my default payment method in all the right places. 

For example, when my Chase Sapphire Preferred® Card arrived, I went online and set it as my default payment method for:

• DoorDash, to get the $10 monthly credit
• Utilities and insurance, to help me earn my bonus faster
• Airlines, to get 2x on travel and free travel insurance automatically applied to my flights

That way, I didn’t have to rely on my terrible memory to maximize my rewards!

READ MORE: How To Earn Credit Card Points Fast for Travel

Try the “Chase Trifecta”

Speaking of Chase, another way to maximize your travel rewards is to employ a popular points-earning strategy called the “Chase Trifecta.” 

The Chase Trifecta involves using three cards in tandem: 

• The Chase Sapphire Preferred® Card for 3x on dining and 2x on travel
• The Chase Freedom Flex® for 5x on its rotating rewards categories
• The Chase Freedom Unlimited® for at least 1.5x on everything else

Then, once you’ve racked up points on your Flex and Unlimited cards, you can use Chase’s “Combine Points” feature to move them to your Sapphire account, where they’re instantly worth 25% more in Chase Travel^SM redemption. 

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How to Redeem Travel Rewards For Maximum Value

Now let’s say you’ve gotten your card, employed some of the strategies listed above, and now you’re sitting on a nice pile of points (or miles). 

How should you spend them for maximum value? 

Compare your three booking options (direct, portal, and transfer)

As any travel veteran or credit card nerd will tell you, there’s a bit of an art to maximizing travel rewards. 

Credit card companies give you so many ways to earn points and redeem them that finding the best way to book a flight or hotel with points can feel a little overwhelming. 

But if you do nothing else, this single 10-minute step will make you an instant travel rewards black belt: Compare the cost of three redemption options: 

1. Redeeming for cash
2. Booking through the portal
3. Transferring points

I’ll give you a concrete example.

Let’s say you’re sitting on 100,000 Chase Ultimate Rewards® points and you want to book an expensive flight on United. 

1. If you redeem your points for cash, you’ll have $1,000 to spend on your flight. Not bad. 
2. If you book through Chase Travel^SM, your 100,000 points will be worth $1,250. Much better. 
3. If you transfer your points to United, your 100,000 Chase points will become 100,000 United MileagePlus Miles, worth about $1,300. Even better!

So be sure to take your time redeeming points and see if cash redemption, portal redemption, or a transfer will give you the most bang for your buck. 

Know your benefits before you upgrade

Before you redeem travel rewards for a room upgrade, a better seat, or a checked bag for your travel companion, check to see if those perks are already buried somewhere in your card benefits. You might be pleasantly surprised. 

For example, the Delta SkyMiles® Gold American Express proudly advertises that you’ll get your first checked bag for free on Delta flights. But if you look in the fine print, you’ll see that the benefit extends to up to nine passengers on the same reservation. 

Knowing your benefits like the back of your hand can save you thousands of points (and dollars!) in the long run. 

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Time your booking strategically

Did you know that on average, folks who purchase flights on a Sunday save 17% compared to folks who book on a Monday or Friday? 

Here are some other crazy (and helpful) takeaways from Expedia’s 2025 Report: 

• Flying on Thursday or Saturday instead of Sunday can save you 17%
• Booking domestic flights one to three months in advance can save you 25%
• Booking international flights last-minute (18-29 days prior to departure) can save you 17%
• Flights that depart after 9pm have a 57% higher chance of being canceled, so it’s better to book an earlier flight!

So, before you spend your hard-earned points and miles, consider booking on a Sunday, traveling on a Thursday or a Saturday, and in general, being as flexible as you can to find the best possible deals. 

READ MORE: How To Find Cheap Last-Minute Flights.

Managing Your Travel Rewards Over Time

Let’s say you and your travel rewards card are past your honeymoon period. You’ve earned your sign-up bonus, and now you’re looking to maximize your rewards in the long run. 

What are the best ways to manage your travel rewards over time, and ensure your big pile of points doesn’t disappear on you? 

Know if (and when) your points expire

While credit card points (e.g., Chase Ultimate Rewards®, Amex Membership Rewards®) typically don’t expire, travel loyalty rewards can. 

Take IHG One Rewards points, for example. If you don’t have any account activity for 12 months, poof, they’re gone (unless you have Elite status). It’s a similar story with Air Canada Aeroplan points, which go sour after 18 months of no account activity. 

However, you can reset the timer by performing some kind of “account activity.” That can be as simple as booking a reward flight, buying points, or even donating a tiny amount of points. 

Don’t be afraid to redeem for cash

It can be difficult to give up your travel points when you need cash, especially when they’re worth more in travel redemption. But sometimes, it’s the more prudent move. 

As a litmus test, if you’re unable to fully pay off your credit card next month, that’s a good time to consider redeeming travel points for cash. 

Sure, you’ll give up some travel value, but the alternative is facing high-interest credit card debt and possibly dinging your credit score, which could hamper your ability to travel later. 

Set a reminder before your next annual fee

Lastly, take a look at your credit card statement to find the exact date they charged you your first annual fee. Then, set a calendar reminder to yourself 11 months out. 

At that point, it’ll be worth considering whether you want to spend another $95, $99, or even $695 to keep the card. Sometimes it isn’t worth keeping the card once you’ve spent the sign-up bonus — especially if you aren’t traveling enough to use your credits and benefits. 

Even if you are, it might be worth getting a different travel rewards card to earn another sign-up bonus!

Credit Card Perks That Improve Travel, Ranked by Value

Before we wrap up, one of the best ways to maximize travel rewards with credit cards is to get the right, high-value benefits. 

After all, some benefits are worth more than a year’s worth of points all on their own. 

But which benefits are the best, and are worth the most money? 

Well, based on my experience as a globetrotting penny-pincher, here are my rankings of the best credit card travel perks by value: 

1. Free travel insurance

I hope you never have to use your free travel insurance, but if you do, you’ll be so glad you had it. 

Take the Chase Sapphire Preferred® Card as an example. The card comes with:

• Trip Cancellation and Interruption Insurance – $10,000 per traveler, $20,000 per trip
• Auto Rental Coverage – $60,000
• Baggage Delay Insurance – $500
• Trip Delay Reimbursement – $500 per traveler

To many, credit card travel insurance is an afterthought and not nearly as sexy as a 75,000-mile sign-up bonus. 

But think about it: If you crash your rental car and have to cancel the rest of your trip, your credit card could compensate you up to $80,000 — more than 100x your welcome bonus. 

That’s why I consider it to be essential and a massively underrated benefit.  

2. Free checked bags

This one’s pretty cut-and-dry. Checked bags cost $40 to $50 each way, so for a family of four, this single benefit can save you up to $400 per trip. 

3. Airline and hotel credits

Here’s another one that’s easily quantifiable — if a card like the Capital One Venture X Rewards Credit Card or The Platinum Card® from American Express comes with $300+ in annual credits, that’s money right back in your pocket. 

And unlike sign-up bonuses, these credits typically have no spending requirement before you can use them. 

4. No foreign transaction fees

Most credit cards that aren’t travel rewards cards charge a 3% foreign transaction fee on all transactions outside the U.S. 

That may not sound like a lot, but if you spend $2,000 while traveling in Bali or Marrakech, that’s already $50 in fees alone — enough for a fancy meal in those countries!

COMPARE: Best Credit Cards With No Foreign Transaction Fees

5. Elevated status

This one’s tricky, because loyalty status can be kinda worthless depending on (a) your status tier and (b) who it’s with. 

Take Silver Elite status with Marriott Bonvoy, which comes standard with the Marriott Bonvoy Boundless® Credit Card. It unlocks late checkout, free wifii… and that’s about it. Meh. 

By contrast, Platinum Elite status with IHG (which comes standard with the IHG One Rewards Premier Credit Card) unlocks complimentary upgrades, early check-in/late check-out, Hertz Gold status, guaranteed room availability, and more. 

6. Priority boarding 

Finally, last on my list of must-have travel card benefits is priority boarding – like the complimentary Zone 5 you get with the Delta SkyMiles® Gold American Express). 

Priority boarding can be helpful when you’re traveling with a roller bag since it gives you first dibs on overhead space. But aside from that, I’ve never found it to be nearly as handy or money-saving as the other perks on this list. 

Plus, if you have the Delta SkyMiles Gold or the Citi / AAdvantage Platinum Select World Elite Mastercard, you get free checked bags anyway, so you don’t have to worry about jockeying for overhead space. 

FAQs About Travel Rewards

The Bottom Line

Travel rewards credit cards offer incredible value when used correctly. Just make sure you choose the right card based on your travel habits so you can maximize rewards. And don’t forget to take full advantage of the sign-up bonus and any included travel perks!

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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.