The Ultimate Beginner’s Guide to Credit Card Points and Free Travel

When I first heard about credit card points, I thought it was way too complicated or something only hardcore travelers cared about. But the truth? It’s one of the easiest ways to save thousands on travel—if you know how to use them right.

Credit card points have helped me book flights, stay in beautiful hotels, and access perks I didn’t even know existed when I first started. And no, you don’t need to be a frequent flyer or big spender. You just need the right strategy.

Here’s what I wish I knew when I was starting out.

What Are Credit Card Points?

Credit card points (or miles) are rewards you earn every time you use certain credit cards. Everyday purchases like groceries, gas, dining, and even subscriptions earn you points that you can later redeem for free flights, hotel stays, upgrades, or cashback. 

If you’re curious about annual fees and whether they’re worth it, check out my Free Guide: Is the Annual Fee Worth It?, it breaks it down in a simple way.

But if your goal is free travel, the smartest way to use points is often through travel redemptions—that’s where you’ll get the most value.

How Do You Earn Points?

There are a few ways to build your points balance fast:

• Welcome Bonuses: Most travel cards offer huge sign-up bonuses after hitting a minimum spend in the first few months. This is often how people book their first “free” flight.  I earned my Chase Sapphire Preferred 70,000-point bonus by putting everyday expenses on the card—groceries, bills, and a few dinners out. That bonus alone covered a full business class flight on my next trip.

• Everyday Spending: Use your card for daily purchases like dining, groceries, and bills—many cards even offer bonus points on certain categories.

• Stacking Opportunities: Use shopping portals like Rakuten when shopping online. You’ll earn cashback while stacking additional points on your credit card for the same purchase.

How to Redeem Points for Maximum Value

Once you’ve earned points, you’ll have a few options to use them:

• Book travel directly through your card’s portal (like Chase Ultimate Rewards or Amex Travel)

• Transfer points to airline or hotel partners for better value

• Cashback or statement credit—easy but typically the least valuable.

For example, I transferred 37,000 points from my American Express Platinum to Virgin Atlantic and booked a $6,000 business class flight to Europe. I only paid around $300 in taxes and fees.

Sometimes, cards like Amex or Chase even run transfer bonus promotions—offering 20% to 40% extra points when you transfer to partners. It’s one of the best ways to unlock luxury travel for less.

If you’re looking to book award flights, tools like Seats.aero help you search real-time availability fast, saving hours of research and showing you what’s possible with your points.

Bonus Tip: Another way to stretch the value of your points is by combining them with platforms like Expedia and Travelocity. Whether you’re booking hotels, vacation packages, or activities, Expedia often offers exclusive deals—plus, you can still earn rewards or cash back if you book strategically. Perfect for stacking value and getting the most out of every trip.

Stacking Points and Earning More Without Spending More

The real game-changer is stacking rewards:

• Use the right card for the right purchase (like 3x points on dining or 5x on travel)

• Book through sites like Expedia and stack with Rakuten for extra rewards

• Pair your credit card rewards with airline or hotel loyalty programs to earn even more

It’s really not about spending more, it’s about spending smarter.

Mistakes to Avoid as a Beginner

• Opening too many cards at once - start slow and stay organized

• Missing your sign-up bonus deadline - it’s where most of the value is

• Carrying a balance - points aren’t worth it if you’re paying interest

• Redeeming points for low-value options like gift cards - aim for flights and hotels instead

Extra Tip: Don’t Miss Out on Travel Deals!

Points are powerful, but timing matters too. Signing up for Thrifty Traveler’s email alerts is one of the easiest ways to stay ahead of flight deals and mistake fares. Pairing a good deal with your points means you’ll stretch your rewards even further.

Final Thoughts

Credit card points aren’t just for frequent flyers or big spenders. With the right strategy, you can turn your everyday spending into your next vacation—or even your next business class flight.

The key is to start simple: choose the right card, hit that welcome bonus, stack your points where you can, and redeem smart. Once you get the hang of it, you’ll never look at booking a trip the same way again.

Ready to start traveling smarter? Check out my favorite travel credit cards here or explore more tips and tools on my Resources page designed to help you get the most out of every trip.

Please note: This page may contain affiliate links or partner links, including credit card offers. I may earn a commission if you choose to sign up or make a purchase at no additional cost to you.