If you really want to travel your bucket list using points, the fastest and most effective way to do it is with airline credit cards. Period. So, it’s important to find the right card, one that has a strong bonus and meets your travel goals. Then you’re ready to fly now with those airline points sign up bonuses!
First, credit is nothing to play with and only you can decide what fits best for you. Getting in over your head and wracking up anxiety-producing debt likely doesn’t make an awesome trip worthwhile. Airline credit cards tend to have the highest interest rates, often over 20%. Analyze whether these fit your financial profile and avoid that interest.
Now, for the good parts. Airline credit cards are very competitive. Airlines are moving away from maximum rewards for racking up miles. Instead, they are showering points on those who engage with their partners, aka credit cards. You still need to fly frequently to qualify for elite status, which means free upgrades and lounge access, but you can do A LOT with a lot of miles and no status other than credit card holder. And while you can earn miles with all kinds of purchases, the bonus is where it is at.
Airline card sign up bonuses let you fly now with points!
Because of this competition, opening a new card with an airline mean huge points with sign up bonuses. Don’t settle for less than 40,000 miles for opening a new account because many will offer better. For instance Delta, at this writing, is offering 60,000 for a new credit card. Just remember it has to be a NEW account. If you’ve had a card for a long time, and have no balance on it, you might be able to close it out and open a new one, getting that bonus. Contact your credit card company if this might fit for you.
The catch? You have to use your credit card to get those sign up points. Each airline sets it differently, but most require a spend of $2000 or less over a few months time. Another catch is you often pay a fee to use those miles. It can be as small as $11 for a domestic flight with Southwest or up to a few hundred for an upgrade to business or first class
Where can you go with 50,000+ points? On most airlines this will get you a roundtrip ticket from the US to Europe, US to South America, and all points closer.
Upgrades and perks that add value to your card
Those points will also get you a roundtrip upgrade on those international flights. For example you buy your base tickets and use your points to upgrade.) And this, ladies and gentleman, is where it. is. at. In an upcoming post I will deal with the wonders of business and first class upgrades and why, if you can swing it, it is glorious.
But for now, for you number crunchers and frugal vagabonds, know this: the point conversion to dollar rate is DEMONSTRABLY BETTER for an upgrade. In simple terms, you get more bang for your buck using points for an upgrade. Many airlines still require a smaller payment with the points to upgrade but please consider this scenario. You can buy a round trip ticket to Europe for $1400 (or less) or you can use 40,000 points. OR you can pay your $1400 (or less!) for your base ticket and then pay $2000 or more for the upgrade OR you can pay the $1400 for base and then 40,000 points for the upgrade. See how that’s shaking out? Either way you go, it’s a win.
The other big perk of airline credit cards is the bonus status perks you get. You DO NOT get to be silver, or platinum or unicorn glitter confetti or whatever the latest awesome status is called. However, you do get things like:
- priority check in
- priority boarding
- two free lounge passes each year
- anniversary sign up bonuses
- etc.
One more thing. Don’t forget, with or without an airline credit card, all of these points you earn can also be used for other great things. Examples are hotels, other means of transportation, the fee to pay for TSA pre-check, or some cards even let you use those points to pay for your credit card. So, that sign-up bonus? You can use it for whatever your airline point structure allows.
(One of the links above is an affiliate link- at no additional cost to you I would receive commission points upon purchase. I support the product regardless, but transparency matters. If you’re not wanting to use a card, check out ways to earn without credit cards. )
May the road rise to meet you, travelers, and may you go far with your free flights.
(Third in series: Maximizing Travel with Points)
