Finding ways to save money while maximizing rewards is essential, especially when planning family vacations. One of the best strategies to build up travel points is by using a credit card designed for rewards. But with so many options available, it can be overwhelming to decide which one is best for you. This guide will help you choose the perfect credit card for earning travel points—starting with one that has $0 annual fees—and show you how to use it effectively to rack up points without paying interest.
Let’s break down the ABCs of choosing the best travel credit card, including how to move everyday spending to your card and why paying off the balance each month is critical. Don’t forget to check out the freebie section on the website for a detailed guide on using credit cards for travel—perfect for those just getting started!
Why You Should Start with a Credit Card That Has $0 Annual Fees
Choosing a credit card with no annual fee is a smart way to start earning rewards without any extra costs. Many people think that travel credit cards come with hefty fees, but there are great options that allow you to earn rewards without the added expense.
Why is this important? Cards with $0 annual fees give you:
- Reward points on everyday purchases, from groceries to gas.
- Introductory bonuses after meeting a minimum spending threshold, often resulting in a significant points boost right away.
- Cashback or points that can be redeemed for flights, hotel stays, and more.
By opting for a no-annual-fee card, you can dip your toes into the world of travel rewards without worrying about paying extra. This is particularly helpful for those who are new to using credit cards for points but want to earn rewards at a low risk.
Step 1: Move Your Everyday Spending to Your Credit Card
To maximize your earning potential, start by shifting your everyday spending to your new travel rewards credit card. This doesn’t mean spending more money, but rather using the card for things you already pay for regularly. Categories like groceries, gas, utilities, and streaming services are perfect for this.
Here are some of the best areas to focus on:
- Groceries: Weekly grocery runs can quickly add up. By paying for groceries with a rewards card, you can earn significant points each month.
- Gas: Many rewards cards offer bonus points for gas purchases, making it a great way to earn extra points if you’re frequently on the road.
- Streaming Services: Adding your streaming subscriptions (like Netflix, Disney+, Paramount+, etc.) to your credit card is another easy way to accumulate points, especially if your card offers bonus points for these services.
- Utilities and Bills: Paying for things like your internet, electric, and phone bill with your credit card can further boost your points total.
Shifting these essential expenses to your rewards card allows you to effortlessly earn points on spending you’re already doing, without needing to alter your budget.
Step 2: Pay Off Your Balance Every Month
The most important rule of using credit cards for rewards is to pay off your balance in full each month. If you carry a balance and get charged interest, the cost will likely outweigh the rewards you’re earning. To avoid this, here are a few simple strategies:
- Set up automatic payments: Many credit cards allow you to schedule automatic payments for the full statement balance. This ensures that your balance is paid off each month, helping you avoid interest charges.
- Track your spending: Treat your credit card like a debit card—only spend money that you know you can pay off at the end of the month. This will help you avoid overspending and keep your budget intact.
- Use budgeting apps: Tools like Mint or YNAB can help you stay on top of your spending by linking directly to your credit card. They offer alerts when you approach your budget, making it easier to manage your finances.
Paying off your balance each month is essential for making credit cards work in your favor. It allows you to accumulate points without accruing any interest or fees.
Step 3: Maximize Your Rewards on Everyday Purchases
To really take advantage of your new travel rewards credit card, you’ll want to maximize your points on all purchases. Here’s how:
- Use cards with bonus categories: Many no-annual-fee credit cards offer extra points for specific spending categories like groceries, dining, gas, or travel. For example, the Chase Freedom Unlimited offers bonus points on travel booked through Chase, dining, and drugstore purchases. Look for a card that matches your spending habits.
- Take advantage of limited-time offers: Some credit cards offer rotating categories that provide up to 5% cashback or bonus points. For example, a card might offer extra points for dining one quarter and gas purchases the next. Keep an eye on these rotating categories to maximize your rewards.
- Use your card’s shopping portal: Many credit cards have online shopping portals that allow you to earn extra points when shopping through select retailers. For example, by purchasing holiday gifts through your card’s shopping portal, you can rack up points quickly on items you were already planning to buy.
Step 4: Best No-Annual-Fee Credit Cards for Earning Travel Points
Now that you know how to maximize your rewards, let’s look at some of the best no-annual-fee credit cards for earning travel points. Here are a few top picks:
1. Chase Freedom Unlimited
- Earn 1.5% cashback on all purchases.
- No annual fee.
- Intro offer: Earn $200 after spending $500 in the first 3 months.
- Extra rewards: Earn 5% on travel through Chase Ultimate Rewards, 3% on dining and drugstores, and 1.5% on all other purchases.
2. Discover it® Cash Back
- 5% cashback on rotating categories (e.g., gas, groceries, dining).
- No annual fee.
- Cashback Match: Discover matches all cashback earned in the first year, effectively doubling your rewards.
3. Citi® Double Cash Card
- 2% cashback on every purchase (1% when you buy, 1% when you pay off the balance).
- No annual fee.
- Simple and straightforward cashback structure, making it a great option for families looking to earn points quickly.
Step 5: Redeem Points for Travel—Flights, Hotels, and More
Once you’ve started earning points, the next step is to redeem them for travel. Points can go a long way toward covering the cost of flights, hotels, and even vacation packages. Here are a few ways to use your points effectively:
- Flights: Many travel portals, such as Expedia, allow you to redeem points for flights. Additionally, some credit cards allow you to transfer points directly to airline loyalty programs for even more value.
- Hotels: Redeeming points for hotel stays is one of the best ways to stretch your travel budget. Whether it’s a family-friendly resort or a budget-friendly hotel, points can help cover the cost.
- Vacation Packages: Some credit cards allow you to use points to book vacation packages that include flights, hotels, and even activities—making it easy to plan your next trip.
Check Out My Freebie: The ABCs of Using Credit Cards for Travel
If you’re ready to start earning free travel for your family, I’ve created a detailed freebie that walks you through everything you need to know about using credit cards for travel. From choosing the right card to maximizing your points, this guide is perfect for beginners. Be sure to check out the freebie section on my website to grab your guide!
How to Choose the Right Credit Card for Travel
Choosing a no-annual-fee credit card is one of the smartest ways to start earning travel points without adding unnecessary costs. By shifting your everyday spending to the card, maximizing bonus categories, and paying off your balance each month, you can quickly accumulate points for your next family vacation. Whether you’re booking flights, hotels, or vacation packages, using your credit card strategically can make those dream trips a reality.
Ready to start earning points for your next vacation? Check out the credit card options mentioned in this post, and don’t forget to grab your freebie for even more tips on how to make credit cards work for your family travel goals!
