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Starting with Travel Credit Cards

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If you are daydreaming about that long-awaited European getaway, but don’t have the cash to turn it into reality, one option that can help you get there is a credit card with a good welcome bonus.

So, how do you start traveling with miles and points? Every journey starts somewhere, and the journey to saving on travel using miles and points starts by getting those miles and points.

Well, the fastest way to earn a significant amount of miles and points at once is by signing up for credit cards, which offer generous welcome bonuses to earn your business.

This is how I timidly began to accumulate points with my first card, the Capital One VentureOne card. Even though I now realize that the welcome offer wasn’t the best, since it only offered 20,000 points at that time, which is equivalent to $200.

What I didn’t know back then was that the points could be better utilized by transferring them to airlines’ frequent flyer programs and hotel rewards programs.

Plus, credit cards periodically offer promotions with bonuses to stretch the value of your points even more. For example, a 30% bonus when transferring points to the FlyingBlue program of AirFrance and KLM. In this case, instead of a 1:1 ratio, points transfer at a 1:3 value, so 10,000 points would become 13,000 points.

The FlyingBlue program has various promotional destinations each month, reducing the percentage of points needed for each ticket purchased with points.

The idea here is that by accumulating points obtained with credit card welcome offers, you can access a plethora of travel options around the world almost for free.

Flights or hotel stays aren’t entirely free simply because taxes and additional fees are not included. Even so, there’s a huge difference between paying 800 dollars for a round trip to Tokyo, Japan, and 70,000 points on Delta with only $56 in taxes!

Where to start

Capital One

Capital One credit cards are good options for beginners since you can check if you would be approved before filling out the application. This is good because the inquiry will not affect your credit score.

However, if you decide to go ahead and apply, Capital One will check your credit just like any other credit card application.

The Capital One VentureOne doesn’t charge an annual fee and offers 1.25 miles per dollar on every purchase.

For more benefits, you can upgrade to the Capital One Venture X, which has an annual fee of $395 but offers a $300 travel credit, which can be used for flight or hotel expenses booked through the card’s portal.

Other benefits that justify the annual fee include a $100 credit toward TSA PreCheck or Global Entry application, and unlimited visits to Priority Pass lounges at various airports worldwide.

Check out all the benefits and the current welcome offer for the Capital One Venture X here.

Chase

Another bank offering good credit cards with travel perks is Chase. In fact, many points and miles websites recommend starting with a Chase card, like the Chase Sapphire Preferred.

The reason is the bank’s 5/24 rule, which limits the number of credit cards an individual can have to be approved for a Chase card. This means if someone has obtained more than five credit cards in the past 2 years, from any bank, they won’t be approved for a Chase card.

This limit could be an inconvenience because Chase has an attractive portfolio of credit cards for accumulating travel points, including airline cards like United and Southwest and hotel chains like Marriott.

The Chase Sapphire Preferred is a good beginner credit card since it has a low annual fee ($95), good welcome bonuses, great airline and hotel partners, and other perks such as a $50 hotel credit every anniversary.

Check out all the benefits and the current welcome offer of Chase credit cards here.

American Express

Having an American Express card in your wallet opens up a lot of possibilities for accumulating travel points.

This multinational financial company offers a variety of credit cards, from the simplest with no annual fee to the most prestigious like the Platinum with a $695 annual fee.

To justify its high annual fee, the Platinum offers a long list of benefits, including:

  • $200 credit for a chosen airline
  • $100 credit for Saks Fifth Avenue purchases
  • $240 credit for subscription services (The New York Times, Disney Plus, Walmart Plus, etc.)
  • $25 monthly credit on Uber
  • $100 credit for TSA PreCheck or Global Entry
  • unlimited visits to Priority Pass lounges and others
  • access to the American Express Centurion Lounge

The best time to make the most of this card is to wait for the highest bonus, which is advertised from time to time. Currently, the welcome bonus is 80,000 points with the condition of spending 6,000 dollars in the first six months.

Depending on everyone’s budget, spending that amount in that time might be challenging. The good thing is payments like phone bills, energy, water, car insurance, college tuition, and even rent can be made with the card and count towards earning the welcome points.

Continuing with the American Express family, a more economical option is the Green Card ($150 annual fee), which currently offers 60,000 points after spending $3,000 within the first 6 months of account opening, as well as 20% back on eligible travel and transit purchases made during the first 6 months.

Another one is the Gold, ($250 annual fee), which comes with 60,000 points after spending $4,000 in the first 6 months of account opening.

It was precisely thanks to the points from the American Express cards that we could travel to Japan and South Korea! (And we still had points left for other trips).

Check out all the benefits of the American Express credit cards here.

United Airlines

If you’re looking for a credit card to easily earn airline miles, plus benefits like free checked bags or priority boarding, virtually all airlines offer credit cards.

For example, United Airlines, in partnership with Chase, has cards that range from the simplest, with no annual fee, to the most luxurious, with a high annual fee, but with more benefits.

Best of all, each card comes with bonus miles that you can use to book flights on United’s extensive global network. Learn more here.

Do you pay rent? Check out the Bilt Rewards program to earn points and travel!

Take care of your credit

When using travel rewards credit cards, it’s essential to prioritize financial responsibility. It’s a good idea to always pay your balance in full each month to avoid high-interest charges and maintain a good credit history.

Likewise, it is essential to stay within your budget to avoid taking on unnecessary debt. Another important point is to be strategic when applying for new cards, since multiple applications in a short time could impact your credit score.

In Summary

The good: Credit cards with welcome promotions are a great option to accumulate points quickly and use them for trips. Some cards don’t require an annual fee, or the fee is reasonable, and offer introductory periods of 0% APR.

Travel-focused cards have benefits like a $100 credit for services such as TSA PreCheck or Global Entry, as well as airport lounge memberships, including Priority Pass.

The bad: Most cards that offer welcome promotions require a specific amount to be spent in a set time (e.g., $3,000 in the first 3 months of account opening) to obtain the bonus points or miles.

A good to excellent credit score is necessary for approval since companies or banks check credit history when applying. Interest rates are generally quite high, so paying the full balance every month is advisable to avoid extra charges.

With a good card management plan, you could be jet-setting in no time without breaking the bank!

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