Travel Hacking: How to Use Credit Card Points to Travel for Free (or Nearly Free)
"Travel hacking" sounds complicated, but the core idea is simple: credit cards give you points or miles for spending, and those points can be redeemed for flights and hotel stays worth far more than the cash you earned them on.
Done right, travel rewards cards can fund multiple free trips per year. Done wrong, interest charges wipe out any benefit instantly.
The Golden Rule: Pay Your Balance in Full Every Month
This bears repeating before anything else. Travel rewards only work if you never carry a balance. Credit card interest rates (typically 20-28% APR) destroy any value from points in a single billing cycle.
If you can't reliably pay your full statement balance each month, skip rewards cards and use a cash-back card or no-rewards card instead.
How Travel Points Work
Earning: You earn points or miles on every purchase. Most cards offer:
- 1x points on everything
- 2-5x on specific categories (travel, dining, groceries)
- Large welcome bonuses for spending a certain amount in the first 3 months (often 60,000-100,000 points)
Redemption: Points can be used for:
- Direct flights and hotels through the card's travel portal
- Transferring to airline/hotel loyalty programs (often the highest value use)
- Cash back, gift cards, merchandise (usually poor value)
Point values: Points aren't worth a fixed amount — it depends on how you redeem them.
Typical point values:
- Chase Ultimate Rewards: ~1.5-2.5 cents each (through travel partners)
- American Express Membership Rewards: ~1.5-2 cents
- Capital One Miles: ~1.5 cents
- Airline miles (Delta, United, American): ~1.2-1.8 cents
- Hotel points (Marriott, Hilton, Hyatt): varies widely
The best redemptions are usually for premium cabin flights (business/first class) through airline partners — this is where the value really multiplies.
The Best Starter Cards
Chase Sapphire Preferred ($95/year)
Often considered the best starting point:
- 3x on dining, streaming, online groceries
- 2x on travel
- 60,000-80,000 point welcome bonus
- Points transfer to 14 airlines and 3 hotel chains (including United, Southwest, Hyatt)
- 1.25x value when booking through Chase travel portal
Chase Sapphire Reserve ($550/year)
Higher fee but strong benefits that offset it:
- $300 annual travel credit (making effective fee $250)
- Priority Pass airport lounge access
- 1.5x value through Chase portal (vs. 1.25x on Preferred)
- Same transfer partners
American Express Platinum ($695/year)
Luxury card with perks:
- $200 airline fee credit, $200 hotel credit, $200 Uber Cash, $120 dining credit, $155 Walmart+ credit
- Amex Centurion Lounge access + Priority Pass
- Transfer partners include Delta, British Airways, Air France/KLM
- 5x on flights booked directly with airlines
Effectively justified only if you use the statement credits.
Capital One Venture X ($395/year)
Simpler option:
- $300 travel credit
- 10,000 anniversary bonus points ($100 value)
- Priority Pass lounge access
- 2x on all purchases
- Simpler than Chase/Amex but fewer transfer partners
No-Annual-Fee Options
- Chase Freedom Unlimited: 1.5% base + strong rotating 5% categories. Works well as a companion to a Sapphire card.
- Capital One Venture Rewards: 2x on everything, $95/year, simple.
Welcome Bonuses: Where Most Value Comes From
A 60,000-point welcome bonus (earned by spending $4,000 in 3 months) is worth $900-$1,500 in travel depending on redemption. The annual fee ($95) means the first year is a good deal almost regardless.
Meeting the minimum spend: For most people, the minimum spend requirement ($3,000-$5,000 in 3 months) can be met with regular spending — groceries, utilities, insurance, everything you already pay. Don't manufacture spending or make purchases you wouldn't otherwise make.
Multiple cards over time: Many experienced travel hackers open a new card every 6-12 months to collect welcome bonuses. There are rules:
- Chase "5/24 rule": Chase won't approve you if you've opened 5+ cards in the last 24 months (any bank)
- Start with Chase cards before others, since Chase is most restrictive
- One card at a time for most people
Airline and Hotel Loyalty Programs
Beyond credit cards, joining airline and hotel loyalty programs (for free) earns points when you fly or stay:
Airlines to consider:
- United MileagePlus: Good for international travel on Star Alliance partners
- Chase Ultimate Rewards transfers to United make this especially powerful
- Southwest Rapid Rewards: Domestic US travel; all economy seating, no cancellation fees
- Delta SkyMiles: Wide network but often poor redemption value; best for Delta loyalists
- American AAdvantage: Good for international business class on partner airlines
Hotels:
- World of Hyatt: Best redemption value in hotel points; Hyatt transferable from Chase
- Marriott Bonvoy: Huge network but points are diluted; Amex Platinum has Marriott Gold status
- Hilton Honors: Amex cards earn Hilton points; 5th night free on award stays is valuable
The Best Redemptions
International business class: This is where points really shine. A business class ticket to Europe can cost $5,000-$8,000 in cash but only 60,000-80,000 miles on many programs. If those miles are worth 1.5 cents each for cash redemptions, you're getting 5-8 cents per mile by flying business class.
Domestic flights: Usually 1.2-1.5 cents per mile. Still fine, just not exceptional.
Hotel award nights: Hyatt is exceptional — a nice Hyatt property might cost $250/night cash but 8,000-12,000 Hyatt points. If you earned those points at 1.5 cents each (via Chase transfers), you're getting 2-3 cents per Hyatt point.
Cash redemptions: Typically 1 cent per point. Always worse than travel redemptions. Never do this with premium travel points.
Practical Example
You have the Chase Sapphire Preferred. You earn 80,000 points from the welcome bonus + $8,000 in annual spending at 2x (16,000 points). Total: 96,000 points.
You transfer 60,000 points to United Airlines and book a round-trip to Europe in economy for two (30,000 each). Cash value of those tickets: ~$800-1,200 each = $1,600-2,400.
You use remaining 36,000 points through Chase's travel portal (1.25x) = $450 credit toward domestic flights.
Total value: ~$2,050-2,850 from spending you would have done anyway.
Keeping Track: Tools
- Award Wallet: Tracks all your points balances in one place
- The Points Guy (thepointsguy.com): Keeps updated valuations of airline miles and hotel points
- Seat Spy or Award Hacker: Search for available award seats
When Travel Rewards Aren't Worth the Complexity
- If tracking cards and redemptions feels overwhelming, 2% cash back on everything is simple and valuable
- If your spending is very low (total monthly bills under $1,000), the math doesn't work as well
- If there's any chance you'll carry a balance, use a no-fee cash-back card instead
Travel hacking has a learning curve, but the payoff — business class flights and nice hotels for cents on the dollar — makes it worthwhile for people who travel regularly or have a specific travel goal in mind.