How Do Travel Credit Cards Work? A Beginner’s Guide

Are you someone interested in using credit cards for free travel, but kinda have no idea where to start? Or maybe you’ve heard travelers claiming they flew for free or booked hotels with points and miles and thought, how in the world did they do that?

I used to be one of those people. I’d look at the number of miles it took for a free flight or hotel room and think, how on earth would I ever spend enough to get that many points to qualify?

Then I started digging in a little more and realized most people were treating this points thing like a game. A very strategic game, and the prize was trading points for travel.

So let’s get into everything I learned and how you can start making it your mission to rack up points and miles for your future travels.

How to Get the Most Points and Miles

If you haven’t looked too far into what travel credit cards offer when you sign up, you may not realize they typically come with a very attractive welcome bonus.

I’m talking 75,000 miles or points, depending on the card, sometimes even more. In rare cases, I’ve seen sign-up bonuses as high as 200,000 points.

These credit card welcome bonuses are the best way to earn travel points fast, especially if you are just getting started. Hitting the minimum spend requirement to unlock that bonus can often be worth more than a year of regular spending rewards.

For example, 75,000 points could easily cover a $750 flight or two nights at a luxury hotel that might normally cost over $1,000.

That is why focusing on the welcome bonus is the smartest first step when learning how to maximize credit card points and miles.

So, What Is a Credit Card Welcome Bonus?

A credit card welcome bonus is the reward the card issuer gives you for using the card within the first few months of opening your account. To unlock it, you need to hit a minimum spend requirement, which is the amount of money you must charge to the card during that time frame.

In most cases, the minimum spend falls around $3,000 to $4,000 within the first three months, but it really depends on the card issuer. Meeting that requirement is what unlocks the big chunk of points or miles that can get you free flights or hotel stays.

How Do I Hit the Minimum Spend for the Welcome Bonus?

One of the things I always do is think ahead about when I’ll need to spend a larger amount of money in a short time. That’s when I start researching new credit cards so I can time it right and take advantage of a welcome bonus.

A perfect example is a trip. Let’s say you want to book a trip to Greece. By the time you add up hotels, excursions, and flights, you might already be close to the minimum spend. Pair that with your regular everyday purchases, and boom, you’ve just unlocked a free flight for that very trip to Greece.

I also look at other big expenses I already have, like rent, utilities, or a car payment, and see if I can pay those with the new card. Sometimes it takes a little extra work to switch your payment methods, but it is absolutely worth it for the points and miles you can earn.

What Makes for a Great Travel Credit Card?

There are a couple of factors I always consider when I go hunting for a new travel credit card. First, I want to make sure the card’s affiliations actually line up with something I’ll use.

For example, is the card offering miles with an airline you would typically fly? It wouldn’t make sense to grab a card tied to miles for an airline you never use. Let’s say you live in the USA and the Miles & More card offers Lufthansa benefits. If you rarely or never fly Lufthansa, that’s not a great first choice.

A much smarter move would be choosing a major card that partners with multiple airlines and hotel brands. Cards from Chase, Capital One, or Citi are great examples because their points can be transferred to dozens of travel partners, giving you way more flexibility.

Another thing I look at is whether the airline I fly most often has its own loyalty program. Joining one can help maximize your points and miles. For instance, United Airlines has the MileagePlus program, where you can rack up miles faster with everyday purchases. It’s free to join, and when you pair it with the right credit card, you can really supercharge your rewards.

That’s just one example, but the key takeaway is this: the best travel credit card for you is the one that works with your actual travel habits.

Below are the other programs that you can take advantage of:

Airline Loyalty Programs & Best Credit Cards

Program	Airline(s)	Alliance	Redemption Highlights	Elite Tiers	Best Credit Card Pairing*
MileagePlus	United Airlines	Star Alliance	United & Star Alliance flights, upgrades, hotels, cars	Premier Silver, Gold, Platinum, 1K	United℠ Explorer Card (Chase)
AAdvantage	American Airlines	Oneworld	Flights, upgrades, vacation packages	Gold, Platinum, Platinum Pro, Executive Platinum	Citi® / AAdvantage® Platinum Select®
SkyMiles	Delta Air Lines	SkyTeam	Flights, upgrades, Sky Club, experiences	Silver, Gold, Platinum, Diamond Medallion	Delta SkyMiles® Gold Amex
Atmos Rewards (Alaska + Hawaiian)	Alaska + Hawaiian	Oneworld (Alaska), Hawaiian partners	Premium cabin awards, Hawaii & partner flights	Silver, Gold, Platinum	Alaska Airlines Visa® Card (Bank of America)
TrueBlue	JetBlue Airways	Independent (select partners)	JetBlue flights, vacations, upgrades	Mosaic 1–4	JetBlue Plus Card (Barclays)
Flying Blue	Air France / KLM	SkyTeam	“Promo Rewards,” global partner flights	Silver, Gold, Platinum	Air France KLM World Elite Mastercard® (Bank of America)
Asia Miles	Cathay Pacific	Oneworld	Oneworld redemptions, hotels, lifestyle rewards	Green, Silver, Gold, Diamond	Cathay Pacific Visa® (Synchrony)

👉 Check out all the best airline credit cards from The Points Guy

What’s the difference between cashback cards and travel rewards cards?

This is pretty straightforward. Some cards offer points that can be redeemed for miles, hotel credits, or other rewards, while others provide cash back.

I like points because they give you more options. You can transfer them to airline or hotel partners, book directly through the card’s travel portal, or even use them for upgrades.

Cashback is simple and flexible for everyday life, but if your main goal is free or nearly-free travel, points stretch a lot further.

 For example, let’s say you spend $1,000 on your card:

• With a cashback card at 2%, you’d get $20 back.
• With a travel rewards card, you might earn 1,000–1,500 points. If you transfer those points to an airline partner, that could easily cover a $150 flight, way more value than $20 in cash.

That’s why points feel like “fun money” for travel, they unlock trips and upgrades you’d never want to pay cash for.

What Should You Do With the Card After You Get the Bonus?

This part is important if your main goal was to grab the welcome bonus and then move on to the next card. The big question is: should you close the card or keep it open?

If the card has an annual fee and no real perks like travel credits, airport lounge access, or TSA PreCheck reimbursement, you might decide it’s not worth keeping. Closing the card is an option, but keep in mind that it may shorten your credit history and reduce your available credit, both of which can impact your credit score. That’s why many people choose to downgrade instead of closing outright.

Call the creditor and ask if they can reduce or waive the annual fee. Not always an option but worth trying. 

But if you plan to use the card, here’s something you might not have thought of before: call the credit card company and ask them to lower your credit limit. For example, if your limit is $5,000, you could reduce it to around $2,000. That way you can still use the card, but you aren’t sitting on a huge amount of available credit.

Why does this matter? Lenders sometimes view a very high amount of unused credit as a potential risk, since technically you could run it all up. Lowering your limit can also make it easier to get approved for additional cards, since most banks have a maximum amount of credit they are willing to extend to one person. 

By lowering your available credit, you give yourself more room to apply for new cards and keep the points and miles rolling in.

I always recommend choosing credit cards you’ll actually use, especially ones that offer valuable perks long after the welcome bonus.

👉 Check out the cards with no annual fee from The Points Guy

How Do Travel Credit Cards Affect Your Credit Score?

I know one of the first worries people have is, “Will applying for a credit card ruin my credit score?” The short answer is no, not if you use the card responsibly.

Every time you apply for a new card, the bank does a “hard pull” on your credit report, which can cause your score to dip a few points. If you pay your bills on time and keep your accounts open, your score usually bounces back pretty quickly. Over time, having multiple cards and paying them off can even improve your credit score because you build a longer credit history and show you can manage credit well.

The biggest key is this: never spend more than you can pay off in full each month. If you treat credit cards like free money, you will end up paying interest, and that cancels out the whole benefit of earning points and miles. If you stay on top of your payments, travel credit cards can be a tool that helps your credit in the long run while also earning you free travel.

How to Get Started Looking for a Travel Credit Card

If you’re ready to dive into the world of points and miles, the first step is figuring out which travel credit card makes the most sense for you.

1. Look at your travel habits
   Do you mostly fly one airline, or do you like flexibility? If you’re loyal to one airline, a co-branded card (like Delta SkyMiles or United Explorer) could make sense. If you want options, go with a card like Chase Sapphire, Capital One Venture, or Citi Premier that lets you transfer points to multiple travel partners.
   
2. Check your everyday spending categories
   Different cards reward different things. If you spend a lot on dining and travel, you’ll want a card that gives extra points for those categories. If groceries or gas are your big expenses, look for a card that matches that.
   
3. Think about fees and perks
   Some of the best travel credit cards come with annual fees, but the perks can outweigh the cost. Free checked bags, airport lounge access, travel insurance, or TSA PreCheck credits can easily cover the fee if you’ll actually use them.
   
4. Compare welcome bonuses
   This is usually where the biggest value comes from. A 75,000-point bonus could be worth hundreds of dollars in travel, so make sure the card you choose has a solid offer.

If you’re not sure where to start, I recommend trying CardMatch. It’s a free tool that gives you personalized offers based on your credit profile, and sometimes it shows welcome bonuses that aren’t even advertised to the public. It’s also a soft pull, which means it won’t affect your credit score.

Want to Learn Even More About Points and Miles?

Once you get your first travel credit card, you’ll quickly realize there’s a whole world of ways to stretch your points even further. One of my favorite free resources is The Points Guy newsletter. It’s packed with tips on the latest bonus offers, best redemption strategies, and real-life hacks for flying in style without paying full price.

If you’re serious about turning everyday spending into free flights and hotel stays, I highly recommend signing up. It’s like having a cheat sheet for travel rewards land right in your inbox.

👉 Sign up for The Points Guy newsletter here