There are so many different types of credit cards floating around out there it can be daunting to figure out which ones best suit your goal of free travel. Once you get more involved in the points and miles world, you will understand the blasphemy of using a simple cash-back card. The only thing worse would be if you pulled out a (gasp) debit card. You will use three main types of credit cards to earn free travel. You can squeeze so much value out of these cards – much more than you could ever get from a cash-back card.
Let’s break down the three types of cards you will want to have in your wheelhouse of travel hacking tools.
1. Branded Cards
These are cards branded for a specific hotel chain or airline program. Some examples are the Southwest Airlines card, the Hyatt card, and the Alaska Airlines card. These cards earn points that can only be redeemed with that particular airline or hotel chain. Here is an example of my favorite branded hotel card and how it works:
2. Transferable Points Cards
These are my fave as they offer the most flexibility. Some examples are the Chase Sapphire Preferred card, the American Express Gold card, and the Capital One Venture X. These cards offer transferable points that can be redeemed for travel with various airline and hotel partners. For example, here is how my favorite starter card, the Chase Sapphire Preferred, works:
3. Travel Statement Cards
These are cards that offer what I call a purchase eraser. An example is the Capital One Venture Card. When you make a travel purchase using this card, you can “erase” the purchase with points. So, a $100 train ticket purchase in Europe can be “erased” using 10,000 Capital One miles. To this end, this type of card is an excellent option for the parts of travel that aren’t covered by loyalty points programs. For example:
Conclusion
In short, you will use three main types of credit cards to earn free travel. While each type has its strengths and weaknesses; having all three types is the best way to have a well-rounded wheelhouse of reward travel tools. As always, ensure you have a travel plan before applying for cards. Let that plan guide you in thoughtful card applications. Before you know it, you’ll be ready for your (nearly free) dream vacay!
