(NewsNation) — One way consumers can spend smarter is by using credit card rewards. If you’re already swiping, why not earn cash back — or travel miles or hotel points?
Many credit cards offer rewards similar to currency, each with its own redeemable value. Popular hotel brands and airlines offer credit cards with perks in the form of points and miles, respectively.
First, determine your financial and travel goals. Do you travel once a year, or less? An airline credit card may not return the most rewards in that case. Do you travel frequently but only to a destination served by limited airlines? You may want to opt for that airline’s credit card.
You’ll want to understand the different types of credit cards, their rewards and the types of points and miles.
“If your family lives in Atlanta, focus your mileage earning on Delta SkyMiles (given that Atlanta is a Delta hub),” NerdWallet said. “If Japan is your dream destination, prioritize earning credit card points that will transfer to an airline that partners with All Nippon Airways or Japan Airlines. With an understanding of your goals (and where you’ll travel), you can better focus your strategy in the next steps.”
Many of these cards can be used for everyday purchases, allowing you to build points without flying or staying at a hotel. Smaller purchases like gas and groceries add up, accruing points.
The Points Guy suggested “using a rewards-earning credit card for as many purchases as possible, as they’ll do more than give you valuable rewards.”
“These cards also offer more consumer fraud protections than debit cards. Plus, they help you build your credit score. Just make sure you’re paying off your bill every month to avoid interest charges,” the company advised.
Many also come with bonus offers, including welcome bonuses and referral bonuses.
Once you’ve earned enough rewards, you can redeem for free hotel stays and flights.
