Free Travel? You need these credit card favorites

We all want to know the secret – how do we travel for free?

Is there a magic way to see the world without using all of our life savings?

Is it possible to use credit cards to pay for travel without going into debt?

I’m here to tell you, yes, it is possible to leverage credit cards in a safe and responsible way to travel the world.

How do you earn travel rewards from credit cards?

Earning travel rewards from credit cards is pretty straightforward. Spend a dollar, earn at minimum 1 point for that dollar. The amount of points per dollar depends on the card and the purchase category. Some cards give more for groceries – like the Chase Sapphire Preferred gives 3x points on online grocery purchases – while others give 3x on dining – such as the Chase Sapphire Reserve.

How do you earn rewards without going into debt?

This question is key and one every responsible adult should ask themselves before opening a credit card. It can be tempting to open a card and go crazy with spending, especially when you have travel rewards in mind.

In order to earn rewards towards travel without going into debt, you need to go into the credit card reward game with a strategy.

Here are my tips for an effective credit card strategy:

• Choose a card based on the annual fee and APR – don’t choose a card with a high annual fee if you can’t afford to keep the card for more than 2 years. Canceling a card quickly can harm your credit score.
• Use the card on utilities, bills, and every day expenses that you were already going to pay. Keep track of your expenses for three months to get a sense of what your monthly spend is like and use that number to keep your spending in check.
• Pay off the credit card each week, if possible.

Will using credit cards for travel hurt my credit score?

How do credit cards impact your credit score? If you are messy with your money and don’t stick to your strategy, playing the credit card rewards game can be dangerous to your credit score report. However, if you follow the advice above and keep the following tips in mind, you can own credit cards for travel and have a stellar credit score.

How to protect your credit score:

• Keep your balance low – You need to keep your credit card balance low so that your overall credit utilization remains below 30%. This is the second most important factor in your credit score, so it’s crucial to pay attention to your credit card balances.
• Keep your credit card open even if you’re not using it – The age of your credit line is a big component of your credit score. Opening a new credit card brings down the average age of your accounts, but the longer you keep a line of credit open, the better your credit score.
• Don’t open too many cards – Opening a credit card results in a hard credit inquiy, which can lower your score by a few points. This will remain on your report for two years but your credit score will only be impacted for a few months.

Best Credit Cards for Travel Rewards:

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Do you have any of these credit cards in your wallet? Leave us a comment on which travel credit card is your personal favorite!