You know the type—the one in the fancy suit, sipping champagne before their flight. I used to think lounges were off-limits for someone like me—the budget traveler just trying to get from point A to point B.

Wrong!

It wasn’t until later that I realized I didn’t have to be an elite business traveler to enjoy the perks of airport lounges.

In fact, airport lounges are an incredible way for any traveler—yes, even budget-conscious ones—to relax, enjoy some free food and drinks, and make the travel experience a whole lot more enjoyable.

And the best part? You don’t have to break the bank to gain access.

In this post, you’ll learn how to gain access to airport lounges for free (yes, really) and elevate your travel experience without spending a fortune.

Complimentary Airport Lounge Access with Credit Cards (Including No Annual Fee Options)

If you’re like me and want to travel without spending too much out of pocket, using a credit card you already carry for everyday purchases to get complimentary airport lounge access is a game-changer!

While most premium credit cards offer lounge perks, there are also no-annual-fee cards that give you access to lounges.

I don’t typically recommend getting a credit card just for the lounge perks, but the fun part about all this is, that it’s all up to you!

You’re the one who gets to decide what’s worth it for your travel style and goals.

So, let’s break down the credit card options with lounge access including high-end and no-annual fee cards.

Premium Credit Cards with Airport Lounge Access

These cards typically come with a high annual fee, but they offer excellent value for many travelers especially those who fly often or internationally.

Check out this post to determine if paying an annual fee is worth it.

Our Pick: Capital One Venture X Rewards Credit Card

The Capital One Venture X Rewards Credit Card and Capital One Venture X Business offer unlimited access to Capital One Lounges and Priority Pass Lounges (enrollment required) providing access to over 1,300 lounges worldwide.

Capital One Lounges although a much smaller footprint (for now) than Priority Pass is a consistently premium airport lounge product and well worth a visit.

We thoroughly enjoyed our visit to the flagship Capital One DFW lounge!

Annual Fee: $395 (includes a $300 travel credit for use through Capital One Travel, effectively reducing the annual fee to just $95, which the card’s other benefits can easily offset).

Guest Policies:

• Capital One Lounges: Two complimentary guests per visit; fees for additional guests.
• Priority Pass Lounges: Unlimited guests.

It’s important to note that you can have up to 4 free authorized users with the Venture X and each user can get their own separate Priority Pass membership.

This is a huge benefit if you’re traveling with a large group and need to get everyone into a Capital One lounge or access exclusive Chase Sapphire Lounges once per calendar year with Priority Pass.

However, you can’t bring complimentary guests into the Chase Sapphire Lounge with Priority Pass.

That’s one of the reasons why adding an authorized user for Venture X and having that AU activate their own Priority Pass membership can be a big help.

We took advantage of this to gain access to the Chase Sapphire Lounge at Laguardia Airport in New York City.

Important Note: The Capital One Venture X Business doesn’t let authorized users have lounge access, only the personal Venture X.

Remember, don’t add anyone as an authorized user who is not a trusted family member or close friend.

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

Chase Sapphire Reserve®

The Chase Sapphire Reserve® includes unlimited access to Priority Pass Lounges (enrollment required) and Chase Sapphire Lounges for the cardholder and authorized users.

It also includes access to select Air Canada Maple Leaf lounges and Air Canada Cafes in the US, Canada, and Europe when flying on a Star Alliance airline.

Annual Fee: $550

Guest Policies:

• Chase Sapphire Lounges: Two complimentary guests per visit; fees for additional guests.
• Priority Pass Lounges: Two complimentary guests per visit; fees for additional guests.
• Air Canada Maple Leaf lounges and Air Canada Cafes: Authorized users get complimentary access, but there is a fee for guests.

You have to pay to add authorized users to the Chase Sapphire Reserve credit card, which is a bummer.

The annual fee is pretty steep, but with perks like a $300 annual travel credit (way easier to use than the one with the Venture X), trip insurance, and up to $120 Global Entry/TSA PreCheck credit every 4 years, plus lounge access, this card offers amazing value!

I like the Chase Sapphire Reserve, especially since the $300 annual travel credit is incredibly easy to use.

Chase Ultimate Rewards® are my favorite points currency so I normally like to stack those as much as possible, but the extra $250 of the annual fee is not something that I can justify as a long-term keeper.

Maybe as the lounge network for the Chase Sapphire lounges grows, I’ll be converted!

In the meantime, I’ll stick with my Chase Sapphire Preferred® Card and Venture X credit card combo.

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

All information about the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® has been collected independently by Traveling Franklins.

Chase Ritz-Carlton® Card

The Ritz-Carlton Card includes unlimited access to the Priority Pass lounges (enrollment required) and Chase Sapphire lounges.

The interesting part is that it is no longer available to new applicants, but if you already have a Marriott credit card through Chase, you may be eligible to upgrade to the Ritz-Carlton Card after your first year.

While the card offers some solid benefits, for most travelers, it may not be worth the investment.

However, if you have a large family, this card could be a great fit!

Annual Fee: $450

Guest Policies:

• Chase Sapphire Lounges: Unlimited access, plus guests.
• Priority Pass Lounges: Unlimited access, plus guests.

The Ritz Carlton card also allows you to add free authorized users who also can get their own complimentary Priority Pass membership. Nice perk!

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

The information for the Ritz-Carlton Credit Card has been collected independently by Traveling Franklins. The card details on this page have not been reviewed or provided by the card issuer.

The Platinum Card® from American Express

The Platinum Card® from American Express or The Business Platinum Card® from American Express offers access to Amex Centurion Lounges, Priority Pass Membership (enrollment required), Delta Sky Clubs (when flying Delta restrictions and limits apply), Escape Lounges, and Plaza Premium Lounges.

Annual Fee: $695

Guest Policies:

• Centurion Lounge: No guests.
• Escape Lounges: Two complimentary guests per visit.
• Plaza Premium Lounges: Two complimentary guests per visit.
• Priority Pass Lounges: Two complimentary guests per visit.
• Other Lounge networks with varying guest policies include: Aspire Lounges, Select Lufthansa lounges, and Other Global Lounge Collection partner lounges.

The Platinum Card has the highest annual fee of the credit cards we’ve mentioned, but if you can maximize the benefits and highly value luxurious experiences then it could be an amazing option.

Personally, I think it’s a very expensive card that would be a huge time investment for me to learn how to maximize.

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

Marriott Bonvoy Brilliant® American Express® Card

The Marriott Bonvoy Brilliant® American Express® Card is through American Express, not Chase so it wouldn’t be eligible to be upgraded to the Ritz-Carlton Credit Card.

However, the card does include a Priority Pass membership (enrollment required) with unlimited visits.

Annual Fee: $650

This co-branded credit card has some nice benefits, but with such a steep annual fee and Marriott points devaluations, there are better options available.

But if you’re a huge Marriott loyalist, go for it!

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

Bank of America® Premium Rewards® Elite

The Bank of America Premium Rewards Elite credit card includes 4 Priority Pass memberships (enrollment required) per card with unlimited guests.

It also gives you access to the Priority Pass restaurant benefits which is rare these days and can be a nice benefit.

Annual Fee: $550

I like that you get 4 Priority Pass memberships without needing to add authorized users.

It has some other nice card benefits too, but with the steep annual fee, I would put this one on the back burner unless you have room for it and its hefty annual fee.

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

Low or No Annual Fee Credit Cards with Free Airport Lounge Access

If you’re not ready to commit to a high annual fee, there are still options that provide lounge access.

While the access may be more limited than premium cards, these cards are excellent choices if you want occasional lounge access without the high price tag.

U.S. Bank Altitude Connect Visa Signature Card

The U.S. Bank Altitude Connect Visa Signature Card offers 4 free Priority Pass lounge visits (enrollment required) per year.

However, this benefit is a little different than usual—it’s 4 visits, not 4 unlimited memberships.

So, if you visit a lounge, that counts as one visit, leaving you with 3 more. If you had brought a guest, that counts as 2 visits, leaving you with just two more for the year.

So if you don’t plan to bring a guest with you, then you can visit 4 lounges within the Priority Pass network per year.

Annual Fee: $0

While 4 visits might seem limited, the fact that this card comes with no annual fee means you’re still getting great value.

If you’re a casual traveler who wants to enjoy a more comfortable airport experience, this card is a fantastic option!

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

U.S. Bank Business Altitude Connect World Elite Mastercard^®

Similar to the previous card, the U.S. Bank Business Altitude Connect World Elite Mastercard® offers 4 free Priority Pass lounge visits (enrollment required) per year.

Annual Fee: $0 for the first year, then $95

Keep in mind, these are 4 lounge visits—not 4 unlimited memberships.

What makes this business card stand out is its additional benefit of granting access to Priority Pass restaurants and experiences.

This is a rare perk, and with the annual fee waived for the first year, it’s definitely worth considering if you qualify for a business credit card!

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

The information for the U.S. Bank Altitude Connect Visa Signature Card and U.S. Bank Business Altitude Connect World Elite Mastercard^®has been collected independently by Traveling Franklins. The card details on this page have not been reviewed or provided by the card issuer.

What about Airline Credit Cards?

If you’re loyal to a specific airline and almost exclusively fly with them, it might make sense to get their co-branded credit card.

However, I wouldn’t recommend applying just because you want airport lounge access. I’d recommend checking out the other benefits and making sure the juice is worth the squeeze on these.

Just remember: The lounge access with these cards will likely have restrictions. You might only get lounge access if you’ve purchased your flight with that credit card and are flying with that specific airline.

There could be other restrictions too, so it’s important to check the details of this benefit before relying on it.

Here are some options to consider:

• Citi® / AAdvantage® Executive World Elite Mastercard®
  • Annual Fee: $595
  • You’ll get full access to Admirals Club lounges, along with the ability to bring up to 2 guests or immediate family members traveling with you.
• Delta SkyMiles® Reserve American Express Card
  • Annual Fee: $650
  • You’ll get 15 complimentary annual visits to the Delta Sky Club, plus access to American Express Centurion Lounges when flying Delta. If you want/need unlimited Delta Sky Club visits you’ll need to spend $75,000 or more annually with the card.
• United Club℠ Infinite Card
  • Annual Fee: $525
  • You’ll get unlimited United Club access.

All information about the United Club℠ Infinite Card has been collected independently by Traveling Franklins.

For us, we don’t fly with the same airline enough for it to be worth grabbing one of these co-branded airline credit cards with such high annual fees. But only you can decide whether it’s right for you.

Guest policies can vary, so it’s always a good idea to double-check the specific terms with your credit card provider regarding whether you can bring guests for free.

The information for the Citi® / AAdvantage® Executive World Elite Mastercard® has been collected independently by Traveling Franklins. The card details on this page have not been reviewed or provided by the card issuer.

Who can get business credit cards?

We’ve mentioned a few business credit cards in this post, but you might be thinking, “I don’t qualify for that, so I’ll skip this part.” Hold on!

Chances are, you do qualify for a business credit card—and I’ll explain why in this blog post about how to apply for business credit cards, even if you don’t think you have a “real business.”

Things to Keep in Mind

Quality of Lounges Can be Hit or Miss: Not all airport lounges are created equal. Some lounges are amazing—with high-end food, spacious seating, and a relaxing atmosphere—while others can be underwhelming, overcrowded, or lack basic amenities. It can be hit or miss depending on which airport you’re flying out of.

Limited Lounge Access at Smaller Airports: If you’re flying out of a smaller or regional airport, you may not have access to any lounges at all, or the lounges available might not offer the same level of comfort and amenities as the ones at larger airports.

Guest Fees May Apply: Some cards offer complimentary lounge access for the cardholder but may charge an additional fee for guests. If you’re traveling with family or friends, these fees can add up, and not all cards include free guest access.

Access Can Be Restricted During Peak Hours: Even if you have access to a lounge, it can be overcrowded during peak travel times. Some lounges have capacity limits, meaning you may not be able to enter if it’s too full. This is especially common during holiday travel periods or in busy airports.

Airport Lounges in Different Terminals: Even if you have lounge access, it might not be in the same terminal as your departure gate. Some airports require passing through security again or have lounges far from your gate. If there’s a wait for entry, you might not have time to enjoy it before your flight.

Check Lounge Hours: Lounge hours can vary by airport and airline, so it’s important to check ahead of time to make sure the lounge will be open when you need it.

Know Your Card’s Benefits: Not all cards offer the same lounge access. Some only offer access to a limited number of lounges or require you to be flying with specific airlines. Make sure you understand your card’s specific benefits before you head to the airport.

My Strategy

When it comes to our airport lounge strategy, we consider two key factors:

• How many people are traveling with you?
• Which airports do you fly out of most often?

We rarely travel in a group that is more than two or 3 people, but if you are traveling with a large group then that should factor into your decision.

You probably want a credit card that gets you the right number of complimentary guest access. Most options will get you at least one or two guests.

My home airport doesn’t currently have a lounge I can access, but I still value airport lounge access because the destinations we fly to often have great lounge options.

So if you’re traveling to Europe or most international destinations, decent if not good lounges are typically available.

Again, our overall pick and the credit card that we have that works well for us is the Capital One Venture X Rewards Credit Card .

Bottom Line

Airport lounges are a great way to make your travel experience more comfortable, and with the right credit card, you can get complimentary access—no need for a separate membership.

Whether you’re willing to pay for a premium card or prefer a no-annual-fee option, there are plenty of ways to enjoy a relaxing pre-flight experience.

For me, the main reason for getting the credit card is the other benefits, like earning points and flexible redemption options. But complimentary lounge access is a fantastic bonus!

It’s not only a way to enhance your airport experience but also a great way to save money while traveling—and that’s what it’s all about!

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post How to Get Free Airport Lounge Access with Credit Cards appeared first on Traveling Franklins.

You can enjoy a relaxing, comfortable lounge experience without breaking the bank.

In this post, I’ll share my experience accessing the Chase Sapphire Lounge at LaGuardia Airport for free! You’ll learn about what it takes to get in and what you can expect once you’re inside.

And if you’re looking for more info on how to get complimentary airport lounge access with credit cards, I’ve got you covered in this comprehensive guide.

Let’s dive in!

How to Access the Lounge for Free

Suppose you’re the primary cardholder or authorized user for the Chase Sapphire Reserve® or J.P. Morgan Reserve card. In that case, you’ll get unlimited complimentary access to the Chase Sapphire Lounge for you and 2 guests.

If you want to bring in more than 2 guests, there will be a fee.

Alternatively, you’d also get unlimited guests if you could gain access via the Ritz-Carlton Credit Card (not available for new applicants).

The information for the Ritz-Carlton Credit Card and J.P. Morgan Reserve card has been collected independently by Traveling Franklins. The card details on this page have not been reviewed or provided by the card issuer.

The lounge is managed by “The Club” so you’ll need to activate your free Priority Pass membership and use that to gain access to the lounge.

Just having your credit card won’t work.

Can you get free lounge access another way?

Yes! When we accessed the Chase Sapphire Lounge for the first time, we did not access it with a premium Chase credit card.

Thanks to the complimentary Priority Pass membership offered by our Capital One Venture X Rewards Credit Card, we get one complimentary entry per calendar year.

The catch is that we cannot bring in complimentary guests and there were 3 of us.

Luckily, The Venture X also offers up to 4 free authorized users and each user can get their own separate Priority Pass membership.

So weeks before our trip, my husband (the primary cardholder) added my mom as an authorized user. We waited for her credit card to arrive and then signed her up for her own complimentary Priority Pass account.

She had her Priority Pass membership card via the mobile app ready for scanning once we arrived at the Chase Sapphire Lounge.

When my husband originally got the card, I was added as an authorized user so I had already set up my own separate Priority Pass account.

Each person must have their own separate Priority Pass account.

It’s not enough to just have the credit card with their name on it. They need to activate the Priority Pass account before arriving at the lounge.

Note: Priority Pass and LoungeKey members can access a Chase Sapphire Lounge once per calendar year, with the option to pay a fee for guests. While we used the Venture X for this visit, you can also use a Priority Pass or LoungeKey membership from other cards or a paid membership to access the Chase Sapphire lounge.

Location

The Chase Sapphire Lounge LGA is located at Terminal B in the central airside area.

It’s kinda tucked into a corner, so keep an eye out for what looks like it should be the entrance to the bathroom.

If you find yourself at the Eastern Concourse pedestrian bridge, you’ve gone too far.

Above the entranceway is a sign for the Chase Sapphire Lounge.

There may be an attendant standing in the doorway to ask you if you’re in the right place and if you have a valid same-day boarding pass.

When we came across the entrance to the hallway, there was no one there so we just followed the hallway to the elevators.

Once you get off the elevator, you walk to the right and down the hallway and you’ll be greeted by a frosted sliding glass door and you’re there!

What if my flight isn’t out of Terminal B?

If you’re not flying out of Terminal B, then there’s a good chance that you won’t be able to access the lounge without having to re-clear security.

Our flight was out of terminal B so we had no issues, but it’s just something to keep in mind when you’re making plans to visit the lounge.

Check-in Process

I had heard mixed reviews about the wait times at Chase Sapphire Lounges, but thankfully, our experience was smooth sailing.

A key part of my budget travel strategy is flying during off-peak times.

For this trip, we flew just after New Year’s, when most holiday crowds had already cleared out. This timing worked out well for us.

When we arrived at the lounge, there was no line at check-in, and although there were several other passengers, there were still plenty of seats available.

We had our digital Priority Passes ready to scan on our phones, along with our same-day boarding passes.

The check-in process was quick and easy since we each had our own individual Priority Pass account ready to go. The staff member even commented on how smoothly it went—definitely a perk of doing your research ahead of time!

Something to Remember: Like us, if you don’t have one of the Chase premium credit cards (like the Sapphire Reserve or Sapphire Preferred), you won’t be able to bring in guests and will only have access once per calendar year with your Priority Pass membership.

This can be confusing if you’re used to bringing guests into other lounges with your Priority Pass. Be sure to check the details of your card benefits to avoid surprises.

That’s what we did since we had our Priority Pass through Capital One Venture X Rewards Credit Card.

Food & Beverage Service

Not only does the Chase Sapphire Lounge offer a buffet with small bites, but they also provide a table service menu accessible via a QR code at your seat. Be sure to use the QR code at your specific table, as orders can be delivered to the wrong spot if not.

The menu featured hot items like a burger, salmon, and risotto, all delivered right to your table. Additionally, the full bar was available for delivery, and while I wasn’t in the mood for alcohol, I was thrilled to see non-alcoholic versions of many of the cocktails I wanted to try. They were delicious!

The staff was incredibly accommodating, even offering to bring drinks or food from the buffet if you hadn’t ordered through the app.

Lounge Features and Comfort

In addition to the beautiful décor and comfy seating, the lounge offers plenty of restrooms and a nursing room for added convenience.

I loved the second level, which features more seating and a beverage station, so you don’t have to go downstairs for a coffee.

The lounge also has a wellness area, including two relaxation spaces and two facial treatment rooms. You can make a reservation upon arrival by scanning the same QR code used to order food, with a selection of five different types of facials.

I didn’t realize this until later in our visit, and by then, all the available timeslots were booked up until after our flight.

I’ve heard that even if you can’t grab an appointment you should still visit the wellness area to grab a complimentary skincare travel kit!

Kid’s Options?

Yes, The family area features a children’s playroom and a photo booth that leads to a hidden speakeasy-style retro arcade.

Who It’s Best For

Leisure Travel and Families – We were traveling for leisure, and the lounge was perfect for our needs.

I loved the variety of seating options — there were dining tables, stand-alone chairs with small tables, couches, and seating at the bar.

The kids’ lounge and arcade were great for families with younger children and teenagers, adding a fun touch.

The lounge was ideal for working, too, with no time limit at the tables. However, if you’re looking for a quiet space to take a conference call, this lounge might not be the best option.

It’s more focused on relaxation and socializing. If you do need a private space, you can rent one of the Reserve Suites, though It would come at a pretty penny.

Final Thoughts

The Chase Sapphire Lounge at LGA Airport exceeded my expectations and stands out as one of the most comfortable and well-appointed lounges I’ve visited—right up there with Capital One’s Flagship Lounge at DFW.

The seating options were plentiful and cozy, and the amenities were top-notch. The food and beverages were delicious, especially considering they’re all included with access.

Plus, if you’re traveling with kids, the play area and arcade are a great touch!

From everything I’ve heard about the other Chase Sapphire Lounges, they live up to the same high standards.

Adding my mom and me as authorized users on the Venture X was absolutely worth it.

If I knew for sure that we’d be able to experience Chase Sapphire Lounges around the world, I’d seriously consider upgrading to the Chase Sapphire Reserve for even more lounge access throughout the year.

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post Chase Sapphire Lounge LGA Review appeared first on Traveling Franklins.

In this post, I’ll walk you through my experience at Capital One’s flagship lounge at Dallas Fort Worth Airport (DFW), from how to access it to what you can expect once you’re inside.

If you’re considering visiting or want to know more about this lounge, keep reading for all the details!

And if you’re looking for more info on how to get complimentary airport lounge access with credit cards, I’ve got you covered in this comprehensive guide.

How to Access the Lounge

If you hold the Capital One Venture X Rewards Credit Card or the Capital One Venture X Business you’ll get unlimited complimentary access to Capital One lounges for yourself and up to 2 guests.

After that, cardholders can pay an additional $45 per guest.

Access is granted up to 3 hours before your flight’s departure and you and any guests must have a same-day boarding pass.

Only cardholders and their guests can enter for free, but non-cardholders can purchase a “day pass” to enter the lounge.

Join the Waitlist

Before we left for the airport, we checked the handy dandy Capital One bank app to see the current wait for the lounge.

Access the Waitlist:

• Open your Capital One bank mobile app
• Scroll down to “Explore rewards and benefits”
• Select “Travel”
• Select your Venture X credit card
• Select “Lounges”
• Scroll down to the lounge location you’re looking for and select it.

If the lounge is busy, they will give you the option to “Join waitlist”.

If there is no option to join the waitlist that’s good news!

That means that the lounge is not busy enough for a waitlist. I would still keep checking in case that changes.

When it’s time to enter the lounge you will receive a text message. You will then have 10 mins to show up to the lounge.

Our wait was 45 minutes, so while we were on the way to the airport one of us (cardholder) joined the waitlist. Once we arrived at the airport, another one of us (a cardholder) joined the waitlist.

They let you add yourself and up to 6 guests when you join the waitlist, but keep in mind that each cardholder can still only bring in 2 guests.

Important Note: Authorized Users cannot join the waitlist from their app unless they are designated as an “Account Manager”.

Authorized Users who are not Account Managers can still enter the lounge and bring in 2 guests without issue. However, if they want to join the waitlist on the app they will need to be an Account Manager.

The primary cardholder can manage users easily online, so if you’re not sure whether you’re an Account Manager or not, its simple to figure out.

Just a little tidbit that we learned on this trip!

Location

The Capital One Lounge at DFW airport is located in terminal D at gate 22 (D22).

Originally our flight was out of Terminal A so that’s where we arrived to go through security, but then it got changed to D.

Fortunately, the Sky Train makes it incredibly easy to get from one terminal to the next. Once we got through security we hopped on the Sky Train and that’s when we got the first text notifying us to come to the lounge.

Our strategy worked out perfectly!

The other text came through while we were in the lounge, but you can easily cancel via text so it’s really ok for multiple cardholders in your group to join the waitlist.

Capacity and Comfort

Once we arrived, they informed us that the wait was to be over an hour, but once we told them we had joined the waitlist and had gotten a text we were told to head up the elevators.

How busy was the lounge? Once we got up to the lounge, it was pretty peaceful. It wasn’t overcrowded, but we could tell that it was at capacity.

One of the staff members found us a table that could seat our entire party. The bar looked full, but you could still easily grab a drink.

What’s the vibe in the lounge? The lounge felt very relaxed. There was a good mix of leisure and family travelers.

There wasn’t a line to grab any food items or self-service drinks. We were very comfortable!

Lounge Features

Seating Arrangements: There was a good mix of seating in the lounge with booths and tables. I didn’t see workstations though.

Food & Drink: Everything is complimentary in the lounge including hot small plates, snacks, soft drinks, water, and alcoholic beverages. I love that they have coffee on tap!

I especially enjoyed that they have an entire “Grab and Go” section of sandwiches, salads, etc. I grabbed some sandwiches and cookies for us to enjoy on the plane!

They even have small to-go bags for you to use.

Amenities: Wi-Fi, charging stations, restrooms, quiet room showers, etc.

Special Features: Of course, everyone loves that there is a peloton!

For a full list of the lounge features and amenities, visit the DFW Capital One Lounge website.

Who It’s Best For

I think the lounge is perfect for families and leisure travelers.

I don’t see it as a great place for meetings or work. Some lounges have conference rooms or desks, but I didn’t see that with this lounge.

I think it’s more a place to relax and have a cold drink and a comforting snack.

Final Thoughts

I’ve been to several Priority Pass Lounges around the world and a handful of business class lounges and the Capital One Lounge at DFW did not disappoint.

I thought the food was really good and I really do love the “Grab and Go” section.

There are so many times when all I really want is a fresh sandwich and most lounges have gross hot food or cold cuts that I have to try to make into a sandwich.

But this lounge had delicious fresh sandwiches that I could eat in the lounge or just take with me.

Everyone gave this lounge a thumbs-up!

It was definitely worth the effort to make sure that we had a flight departing from DFW.

If you’re on the fence about whether it is worth flying out of DFW to experience this lounge, I’m here to tell you it’s worth it!

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post Capital One Lounge DFW Review appeared first on Traveling Franklins.

I’ve been in the points world since 2015 and I can honestly say that I didn’t even hear about 5/24 until I dug deep into the rabbit hole, joined a few Facebook groups, and followed some people on Instagram.

And unless you’re looking to apply for a ton of credit cards within a short amount of time, this rule may never affect you.

But we’re all about being strategic and earning as many points as possible with as little effort as possible so with that in mind, I think it’s an important topic to discuss.

So in this post, I’ll tell you exactly what it means to be under 5/24, why it matters for your strategy and your status, and what you should do if you’re over 5/24.

This information is vital to creating a strategy that will work best for you in the long term.

Because points and miles are a long game, and we’re in it to win!

What Is the 5/24 Rule?

The term 5/24 refers to the number of (personal) credit cards you’ve opened within the last 24 months.

So let’s say that in the last 24 months, I’ve opened:

• Costco Credit Card
• Target Credit Card
• Delta SkyMiles Credit Card

So according to the above list (just an example, I don’t have those cards), I’ve opened 3 personal credit cards in the last 24 months.

That would mean that I’m currently at 3/24.

It’s as simple as that.

But what about this 5/24 rule?

The 5/24 rule is an unofficial guideline that Chase uses when deciding whether to approve your application for most of their credit cards.

According to this rule, if you’ve opened 5 or more credit cards—from any credit card issuer, not just Chase—in the last 24 months, Chase will likely deny your application for a new credit card.

It doesn’t matter if you have a stellar credit score or a high income.

The rule still applies.

So even if you’re financially responsible and pay off your balances every month, having opened 5 or more credit cards in that timeframe could stop you from getting approved.

Why Does the 5/24 Rule Matter?

Now we could sit here and discuss why Chase would have this rule, but that doesn’t matter.

It’s not something that they advertise, but we know the rule does exist.

Why does matter?

Those Welcome Bonus offers!

Of course, we want to snag some welcome bonus offers for new credit card applications, but we also want credit cards that will earn us great points for years to come.

So, if you want a laid-back strategy where you have a lot of opportunities to earn with many options to redeem, there’s no better program than Chase Ultimate Rewards® points.

Chase travel rewards credit cards like Chase Sapphire Preferred® Card or Chase Sapphire Reserve® are the cornerstone of a long-term points and miles strategy.

All information about the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® has been collected independently by Traveling Franklins.

Not only do they earn very lucrative points, but they also offer amazing benefits.

What’s great about Chase Ultimate Rewards® points is that there are several opportunities to earn besides the credit cards mentioned above.

So if you play your cards right (pun intended), you could be well on your way to flying in business class for pennies on the dollar with very little effort.

That’s why you want to be strategic about the credit cards you choose to apply for.

You wouldn’t want to block yourself from Chase credit cards too early on before you experience all that Chase Ultimate Rewards® points have to offer.

Which Credit Cards Count Toward the 5/24 Rule?

When it comes to the 5/24 rule, it’s important to know which cards count toward your limit.

But it is also important to realize that this rule only matters when you apply for any credit cards issued by Chase.

It doesn’t matter if you’re applying for the Chase Sapphire Preferred® Card or the Southwest Rapid Rewards® Plus Credit Card.

If the credit card is issued by Chase, you’ll need to be under 5/24 for the best chances of approval.

So which cards count?

Well, mostly personal credit cards count toward your 5/24 status and it doesn’t matter if they’re from Chase or another credit card issuer.

And it also doesn’t matter what type of credit card it is.

If it shows up on your personal credit report – it counts.

However, it’s not just personal cards that can affect your 5/24 status—some business credit cards also count.

For example, some business credit cards from Capital One and Discover will show up on your personal credit report and count toward the 5/24 limit.

There is good news, though!

Most business credit cards from issuers like American Express, Citi, and Chase do not count toward the 5/24 rule.

Even though these cards might be on your radar, they won’t add to your tally as they don’t show up on your personal credit report.

What if I’m an Authorized User?

This is a great question!

Being an authorized user on someone else’s credit card account can still affect your 5/24 status. Even though you’re not the primary cardholder.

The reason for this is that these credit cards still show up on your personal credit report.

Many points and miles experts will caution you against being added as an authorized user for this reason, but I don’t think it needs to be so black and white.

Being added as an authorized user is not the end of the world.

You can always have yourself removed without issue.

But before you do that, make sure you are the primary cardholder on your own credit cards as well.

And remember, we’re talking about credit cards added to your report in the last 24 months.

If your mom added you as an authorized user 5 years ago, there’s no need to worry.

Just make sure that your entire credit report doesn’t only have credit cards you’re an authorized user on.

You need to build credit on your own.

Being an authorized user can be convenient for many reasons, so don’t freak out.

If you don’t plan to apply for a ton of credit cards within a short period, then it doesn’t really matter much anyway.

Also, if you get auto-denied for being over 5/24 because you’re an authorized user that’s also not the end of the world.

You can call Chase and explain that you’re not the primary cardholder and see if that is enough to push your application through to approval.

Join The Free Facebook Group!

Let’s Do this!

How to Strategically Manage 5/24

Managing your 5/24 status is key to unlocking some of the best travel rewards Chase has to offer. But how do you know where you stand?

How to Know Your 5/24 Status

Checking your 5/24 status is as easy as checking your credit report.

Services like Credit Karma and Experian give you easy access to your credit score and list out your credit accounts and the date you opened them.

You can add this to a spreadsheet and easily figure out your status.

There are also some great apps out there that can help you manage your 5/24 status and keep you organized.

Personally, I like to add my credit cards to the Travel Freely app to keep things simple.

Strategies for Prioritizing Chase Cards

Since the 5/24 rule can prevent you from getting approved for Chase cards, I think the best strategy is to apply for Chase cards first, before venturing out into other credit card companies.

Here’s a solid strategy:

• Apply for Chase Cards First
• Monitor Your 5/24 Status
• Stay away from Store Credit Cards
• Leverage Business Credit Cards
• Employ a P2 Strategy

Store credit cards, like those from Target or Costco, still count toward your 5/24 status. Trust me, they’re not worth a 5/24 slot.

Employing a P2 Strategy can help keep you stay under 5/24 longer and earn you double the rewards.

Some people think that if you’re married your credit scores are combined (not sure who spread that rumor), but that’s not true.

Even if you’re married, your credit reports and credit scores are completely separate from one another.

What to Do if You’re Over 5/24

So, you’ve hit (or exceeded) the 5/24 limit—what now?

Don’t worry, being over 5/24 isn’t the end!

Wait Until You Drop Below the 5/24 Threshold

The most straightforward approach is to wait until enough time passes for your card applications to fall out of the 24-month window.

Every month that goes by gets you closer to being back under the 5/24 limit.

I think this only makes sense for two reasons:

1. You don’t have a core group of credit cards yet.
2. You don’t have a lot of big spending coming up.

I don’t think you need to constantly be applying for a lot of credit cards to be successful with points and miles.

But if you don’t have a core group of credit cards so that you can maximize your everyday spending then you’re just leaving points on the table.

Equally, if you do have a core group of credit cards and you don’t have enough spending to meet a minimum spending requirement, then it can be nice to take a break from new credit card applications.

We try to apply for a new credit card once or twice a year, but in the meantime, we maximize our earnings on the credit cards we already have.

Focus on Other Credit Card Issuers

While you’re waiting to drop below 5/24, you can still build your points and miles strategy by applying for cards from issuers that don’t follow the 5/24 rule.

Remember 5/24 is a Chase rule, but other credit card issuers have their own rules.

Here are some options:

Capital One: My next favorite mix cards are the Capital One Venture Rewards Credit Card and Capital One Venture X Rewards Credit Card are great options, offering flexible rewards and easy redemption options like transferring to travel partners.

American Express: The flexible Amex Membership Rewards offers great value with their American Express® Gold Card and The Platinum Card® from American Express cards which can be transferred to a variety of awesome travel partners.

If you don’t already have one of these I would recommend starting with the Gold so you can earn the welcome bonus for the Platinum in the future.

Citi: The Citi Strata Premier℠ Card is a great earner for the flexible Citi ThankYou points, which can be transferred to several travel partners.

You can also check out CardMatch to find welcome offers targeted specifically to you.

Leverage Business Credit Cards

My favorite way to keep me under 5/24 is by leveraging business credit cards.

Many business credit cards don’t show up on your personal credit report. Hence why they don’t count toward 5/24.

It’s great because almost anyone is eligible for business credit cards.

Business credit cards open up so many more opportunities for earnings, benefits, and perks.

Keep in mind that Chase Business Credit Cards are still subject to the 5/24 rule.

So although they will not count toward your 5/24 status, you’ll still need to be under 5/24 for your best chances of approval.

Some great business credit card options:

• Ink Business Cash® Credit Card
• Ink Business Unlimited® Credit Card
• Ink Business Preferred® Credit Card
• Capital One Venture X Business
• American Express® Business Gold Card
• The Business Platinum Card® from American Express

All information about the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Ink Business Unlimited® Credit Card, and Ink Business Cash® Credit Card has been collected independently by Traveling Franklins.

Be Patient and Strategic

Understanding and managing the 5/24 rule is a crucial step for anyone serious about maximizing their points and miles.

Chase offers some of the best travel rewards cards on the market, but they’re not the only ones in the game.

Don’t rush into things, take a little bit of time to be patient and work on a strategy that works best for you.

Remember, the key is to take your time.

Whether you’re just starting out or already over the 5/24 limit, carefully planning your credit card applications will help you make the most of your travel rewards.

Need More Resources?

Check out these posts:

• 8 Points and Miles Myths Debunked
• Are Travel Rewards Credit Cards Right for You?
• Credit Cards vs. Debit Cards which is safer?
• Why Credit Card Annual Fees are worth it
• New Card? Here’s what you should do next

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post What is the 5/24 Rule? appeared first on Traveling Franklins.

In many cases, a person’s entire strategy may revolve around grabbing as many welcome bonuses as possible.

I know people with over 40 credit cards because all they do is chase after that next welcome bonus.

While it’s true that earning a welcome bonus can be a great way to boost your travel reward earnings with very little effort, that doesn’t mean it’s the only way to be successful.

I’ve been earning and redeeming points for travel since 2015 and it’s taken me a while to develop a strategy that works best for me.

In this post, I’ll explain exactly what a welcome bonus is and how it works, but most importantly I’ll help you decide how and whether you should implement it into your strategy in a way that works best for you.

What’s so great about a Welcome Bonus?

If you’re on Instagram, countless accounts constantly talk about flying in business class seats or all-inclusive resorts for “free” all because they earned multiple welcome bonuses.

And there’s a reason for that.

One welcome bonus could indeed earn enough points to book things like:

• Roundtrip Business Class Flights to Europe.
• Multiple roundtrip flights in Economy to Europe.
• Spend the weekend at a luxury resort for $0.
• and much more!

A welcome bonus can jumpstart your earnings and get you traveling for a fraction of the cost pretty quickly.

What is a Welcome Bonus?

Some people see a welcome bonus as credit cards giving away “free” money.

But that’s only kinda somewhat true.

A welcome bonus, also known as a sign-up bonus or simply “SUB”, is an incentive offered by credit card companies to new cardholders to entice them to apply for and use a new credit card.

But there’s a catch.

Yes, indeed, the bonus you earn can essentially give you hundreds and even thousands of dollars in value but it’s not technically free.

Applying for and getting approved for a new credit card is only half the battle. If you want to earn the welcome bonus, you’ll need to meet certain requirements.

How it works

Here are some things to know about a welcome bonus and how it works:

Eligibility Criteria: A welcome bonus is generally only available to new cardholders.

Meaning, if you already have that specific credit card or one in the same family (rules vary by bank) you’re technically not eligible for the welcome bonus.

There are some ways to get around this but the rules vary by bank.

For example, Chase lets you earn the welcome bonus for some of their credit cards every 48 months (from when you earn it, not when you activate the card).

So if you’ve had the credit card over 48 months you may be eligible to get the bonus again.

However, you’d need to cancel your current credit card or product change (downgrade) to a different Chase credit card.

This may allow you to earn a welcome bonus for the same credit card more than once.

Criteria for Earning the Bonus

The most common criterion to earn the bonus is spending a specific amount of money on the card within a set period after opening the account.

This spending requirement can range from a few hundred to several thousand dollars, depending on the card.

We often refer to this requirement as the “minimum spend”, “min spend” or simply “MS”.

There is usually a time limit by which you must meet the spending requirement to earn the bonus. The most common is around three to six months from account opening.

Type of the Bonus

Not every welcome bonus is created equal. There are 3 main types:

• Points/Miles
• Cashback
• Free Night Certificates

Each holds a different value based on the type of currency.

Value

Welcome bonuses can be quite lucrative and greatly boost the value of your rewards to the point that even if the credit card has an annual fee it’s still worth it, especially for the first year.

Meeting the Minimum Spend

The biggest hurdle to earning a welcome bonus is meeting the minimum spend requirement.

The requirements can range widely from one transaction to $30,000 or even more. But it just all depends on the credit card.

The worst thing you could do is apply for a new credit card, get approved, and then fail to earn the bonus. That’s why it’s important to have a plan and a strategy.

Looking for tips?

I’ve got an entire post dedicated to helping you meet the minimum spend.

What about Annual Fees?

As you start to research travel rewards credit cards more and more you’ll start to realize that the best credit cards come with an annual fee.

I know it seems dumb to pay money to spend money. I get it.

But think about wholesale stores like Costco or Sam’s Club. If you pay their annual membership fee, you get access to amazing discounts and other perks that make it all worthwhile.

It’s the same thing with credit card annual fees. Now, some are more worth it than others. I’m not saying that every credit card annual fee will work for you.

But before you decide, you must know how annual fees work and figure out for yourself whether or not they are worth it.

What is an Elevated Welcome Bonus?

While welcome bonuses for travel rewards credit cards are standard it is also very common to have “limited time” elevated welcome bonuses available.

This is essentially when the credit card company “sweetens the deal”.

Personally, we usually only apply for one or two credit cards (each) a year (in player 2 mode), so when we do I like to start with the credit cards that have an elevated welcome bonus.

But I don’t just go for any elevated offer. It has to work for my specific strategy.

Important Note: Don’t wait on elevated bonuses!

Elevated bonuses are great, but if you have a specific credit card in mind I would not hold off while you wait for an elevated welcome bonus offer.

These offers are sorta random and there’s no guarantee when they will be available or for how long.

The sooner you can earn a welcome bonus the sooner you can use the points.

If you want to earn as many points as possible with as little effort as possible, don’t waste your spend waiting on an elevated bonus that may never come.

It’s generally best to keep the train moving!

There’s no shortage of good welcome bonuses even if they aren’t elevated.

Join The Free Facebook Group!

Let’s Do this!

Considerations Before Chasing Welcome Bonuses

I hear people say that credit card welcome bonuses are a scam and it’s just a way for credit card companies to get you deeper into debt and for some people that may be true.

So it’s important to evaluate your specific situation before jumping into the deep end.

Financial Impact: Don’t bite off more than you can chew. Always have a plan and a strategy.

Credit Score Implications: Although I don’t think you need 40 credit cards, the number of credit cards you have will have little impact on your score IF you’re being responsible.

• Don’t apply for too many credit cards at once. This is a major red flag to banks.
• Keep your credit score at least 700.
• Hard inquiries will temporarily ding your score, but it should bounce back.
• Always pay off your statement balance on time and in full. You shouldn’t be paying any interest on your purchases because that will negate any benefits from the welcome bonus.

Long-term Value: Don’t apply for the credit card solely for the welcome bonus. Take a look at the earning rates and benefits of the credit card. Is it a long-term keeper?

Don’t jump on Free Night Certificates

Another consideration before you jump on that credit card application is the type of bonus being offered.

We talked about the different forms of welcome bonuses, the most common being Points/Miles, Cashback, and Free Night Certificates.

I would recommend cautioning yourself against free night certificates whenever possible.

Here’s why:

Free Night Certificates usually expire after one year from when they are issued. You can see if they will grant you an extension, but there’s no guarantee. It would be a bummer to earn these and then lose them.

In contrast, points, miles, or cash back will usually not expire for as long as you have the credit card.

Free Night Certificates typically have to be booked separately. I’ve never seen it where you have (5) free night certificates and can book them on the same reservation.

I’ve always had to book separate nights and then ask the hotel to combine them. Not a deal-breaker, but a little extra pain in the butt.

Free Night Certificates typically are capped at a per-night value. They try to get you by saying the welcome bonus is worth 250K (for example), but it’s misleading.

If you have a free night certificate that is capped at 40K points per night and try to book a night that costs 60k points, you may not be able to use it or you’ll need to pay the difference in cash.

Some chains let you top off a free night certificate with points, but that’s usually capped too.

I think that this type of welcome bonus only makes sense if you have a specific plan.

You don’t want to waste the spend on something that you may not be able to use. Be strategic!

Are you ready for a Welcome Bonus?

Whether you’re ready for a new credit card welcome bonus is completely up to you.

Let’s look at some factors:

• When was the last time you applied for a credit card?
• Is your credit score at least 700?
• Are you under 5/24? Will this impact your status?
• Can you meet a minimum spend with minimum effort?
• What type of points and miles currency would you be earning? Does that make sense for your strategy?

It’s ok if you’re not ready for a new credit card or a welcome bonus.

There are many ways for you to maximize the credit cards that you already have. I’m a big believer in ignoring the FOMO. Don’t feel like you’re missing out.

The most important thing is that you do what’s right for you and your strategy.

Current Favorite Welcome Bonus Offers

If you are ready for a welcome bonus, I’ve got a running list of ones that I think are great for a laid-back or “lazy” approach to points and miles.

These are all travel rewards credit cards that earn “flexible” points and miles that can be redeemed for airfare, hotels, and more.

Personal Credit Cards

• Chase Sapphire Preferred® Card: Earn 60,000 bonus points after $4,000 in purchases in your first 3 months from account opening. That’s worth $750 when redeemed through Chase Travel.
• Chase Sapphire Reserve®: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
• Capital One Venture Rewards Credit Card: Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening
• Capital One Venture X Rewards Credit Card: Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening.

All information about the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® has been collected independently by Traveling Franklins.

Business Credit Cards

• Ink Business Cash® Credit Card: Earn up to $750 bonus cash back intro offer. Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening.
• Ink Business Unlimited® Credit Card: Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.
• Ink Business Preferred® Credit Card: Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
• Capital One Venture X Business: Earn 150,000 bonus miles after you spend $30,000 in the first 3 months from account opening.

All information about the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Ink Business Preferred® Credit Card, Ink Business Unlimited® Credit Card, and Ink Business Cash® Credit Card has been collected independently by Traveling Franklins.

Or Check out CardMatch for the best offers personally for you!

Looking for more tips?

I have a cluster of posts dedicated to points, miles, and travel reward credit cards. Check them out!

• Credit Cards vs. Debit Cards: Which is better and safer?
• 8 Points and Miles Myths Debunked
• 7 Free Award Travel Apps You Should Download Today
• Are travel rewards credit cards right for you?
• How to apply for business credit cards
• Once you’re approved there are some do’s and don’ts you should follow

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post What is a Welcome Bonus? appeared first on Traveling Franklins.

How?

Well, if you’re using a debit card in your every day you’re not:

• Building Credit
• Earning Rewards (like for travel)
• Taking advantage of benefits like trip protection, rental car insurance, purchase protection, and much more.

You’re also not protecting your hard-earned money from fraud or billing errors.

Using a credit card to book travel can keep your cash flow available if you need it in a pinch. For example, if you stay at a hotel or book a rental car there is always a hold placed on your funds to cover incidentals.

This is regardless of whether you’re using a credit card or a debit card.

The difference is that if you use a debit card, that hold or security deposit is being held on your actual cash. But if you use a credit card, that hold is not on your money, it’s the credit card company’s money.

Why would you want to tie up your cash for no good reason?

I’m no financial advisor, but I’ve been researching and practicing travel rewards, points, and miles strategies since 2015.

I have over 12 credit cards (I only use a handful) with a credit score consistently over 830 with zero credit card debt. So, I know a thing or two about how credit cards can transform your life for the better.

In this post, we’ll discuss the key differences between debit and credit. You’ll learn why and how you should use credit cards for everyday purchases.

When you’re done with this post you’ll walk away with a better understanding of credit cards so that you can make an informed decision and enrich your life through travel without paying full price!

Differences Between Credit Cards and Debit Cards

Before we dive into more details about why you should be using credit cards over debit cards, let’s talk about the key differences.

Debit Cards

A debit card is linked directly to your checking account, think of it as digital cash. When you make a purchase, the amount is deducted immediately from your bank account.

Compared to credit cards, debit cards typically offer fewer protections and rewards, but many people still use them because they don’t want to risk going into debt.

After all, with debit cards, you can’t spend more than you have in your account without paying overdraft fees.

Some debit cards offer incentives like cash back at 1%. That’s pretty pitiful when you could get at least 2x back when using credit cards.

Debit Cards Don’t Build Credit

You can’t build credit by using your debit card. Debit cards are linked to your checking account and simply use the money you already have available, so they do not report to credit bureaus or influence your credit history.

Many people don’t understand that if you want a good credit score, you need a way to build credit.

Why does credit matter?

Loan and Credit Card Approvals: A good credit score is crucial for getting approved for loans and credit cards. It’s how lenders know that you can be responsible and pay back the money borrowed.

Lower Interest Rates: A higher credit score can qualify you for lower interest rates on loans and credit cards, saving you money in the long run.

Renting Housing: Landlords look at your credit score to indicate whether you’ll be reliable with paying the rent. If you have a good credit score, you increase your chances of being accepted.

Insurance Rates: Many insurance companies use credit scores to determine auto and homeowners insurance premiums. A higher credit score could save you money!

Utility Services: Sometimes Utility companies check your credit score to determine whether they need a deposit and what that may be. It’s important to have your credit score in check or you’ll pay more.

If you want to build your credit score, a debit card will not help you with that. As you can see from the above, having a good credit score is very important for your financial health and can open up a lot of opportunities.

Are Debit Cards Safe to Use?

Debit cards are straightforward, and if you’re not financially disciplined they can help you manage your spending and your budget.

However, debit cards provide very little protection. When there’s a fraudulent charge or billing error the money is taken directly from your bank account and it can take days or even weeks before it’s back (if you get it back).

For most people, that can put unnecessary financial strain on us.

Plus if you don’t report it immediately you may not get all of your money back at all.

Recently, we stayed at an all-inclusive luxury ranch for $0 using points and miles. The cash price was $1,700/night making a 3-night stay over $5,000. Ouch.

As with all hotel stays, we needed to put a card down for incidentals. Thankfully, I used a credit card because after our stay we were erroneously charged $5,100!

I freaked out!

If we had used our debit card that money would have been deducted from my checking account. I don’t even keep that much money in my checking account! (I put it in a HYSA).

It took over a week for them to fix their mistake and refund that money!

So, yes you can use a debit card for travel, but as you can see, that doesn’t mean you should.

Credit Cards

Unlike debit cards, credit cards are issued by a bank or credit card company and allow you to borrow funds up to a predetermined limit to make purchases or withdraw cash.

You are then required to pay back the borrowed amount, either in full by the billing cycle’s due date or you can pay over time, but you’ll incur interest charges (we don’t want this).

Credit cards will give a grace period between the time you make the purchase and the payment due date which is typically between 20 to 30 days.

This is when you may get yourself in trouble if you’re not careful.

A grace period doesn’t give you permission to spend money that you don’t or will not have. Always be prepared to pay the statement balance in full by the due date.

Important Note: Credit Cards are not the same as Charge Cards. Charge cards have no preset spending limit, but you must pay off the balance in full every month.

American Express offers cards that have a flexible spending limit.

So unlike a traditional credit card with a set limit, the amount you can spend adapts based on factors such as your purchase, payment, and credit history.

Examples are the American Express® Gold Card and The Platinum Card® from American Express.

Since you should pay your statement balance off every month anyway, these cards are great if they offer amazing benefits like the above from American Express.

Are Credit Cards Safe to use?

Yes! Credit cards are absolutely safe to use if you do so responsibly.

I don’t even carry my debit card with me anymore. The fact is that credit cards are much safer and offer higher levels of protection than debit cards.

If you have a fraudulent charge or there’s a billing error, the money that is held up is not your own.

Yes, it could take days or even weeks to get everything resolved, but the good news is that there’s very little impact t0 you financially.

Join The Free Facebook Group!

Let’s Do this!

How to Avoid Paying Interest Charges

When you think of credit cards, you may automatically think about going into debt, but it doesn’t have to be like that.

I don’t care about the %APR on my credit cards because I never pay interest.

Pay your Statement Balance in full and on time

Your statement balance is the total amount you owe on your credit card at the end of your last billing cycle, including all purchases, fees, and interest accrued up to that point (which you shouldn’t have).

This is the amount you need to pay by the due date to avoid interest charges.

On the other hand, your current balance includes all transactions made since your last statement closed, plus any remaining unpaid statement balance.

This number includes more recent spending and any payments or credits applied to your account.

When you go to pay your credit card, you are typically given 4 options:

• Statement Balance (this is the winner)
• Current Balance
• Minimum Payment (this will incur interest)
• Other amount

The payment type you want is “Statement Balance”. This will ensure that you never pay interest when using a credit card.

You can pay the current balance if you want and have the money, but I wouldn’t bother. It’s good to have a statement balance reported to the credit bureaus. It shows that you’re using your credit and they like that.

Keep Your Credit Utilization Low

So you have your credit card and you’re paying the statement balance in full and on time. Great!

But one of the high-impact factors determining your credit score is credit use or credit utilization.

Credit utilization refers to the percentage of your available credit that you’re currently using. It is calculated by dividing your total credit card balances by your total credit limits.

The lower your utilization, the better your credit score (when applying other best practices).

You want to keep your credit utilization below 30%. Mine is between 1-5% and my credit score is consistently over 830.

Some people think having fewer credit cards will improve their credit score, but this can actually backfire if they use a lot of their credit and don’t have much credit, to begin with.

Scenario #1: Let’s say you have one credit card with a credit limit of $1,000 and your statement balance is always $800. Your credit utilization would be 80% which is very high.

Scenario #2: On the flip side, if you had 5 credit cards with a combined credit limit of $5,000 and your total statement balance across all 5 credit cards equaled $800, your credit utilization would be only 16%.

Much better!

So, the person in scenario #2 has a better utilization strategy for maintaining or improving their credit score despite having 5 credit cards instead of only 1.

Why Credit Cards Offer Better Benefits for Travelers

We’ve talked about how credit cards offer more benefits and rewards than debit cards, but what does that actually look like?

There are different types of credit cards, but by far my favorite are the ones that earn you travel rewards and benefits.

Travel Rewards and Bonuses

Points and Miles: The travel rewards credit cards that I love the most will earn me points and miles which can be redeemed for flights, hotels, activities, and even rental cars.

My favorite types of points and miles are the ones that offer flexible redemption options, so I can transfer them to multiple airline or hotel loyalty programs.

There are so many ways to use points for travel, including roundtrip business class flights to Spain for under $300.

Cash Back: Some travel rewards credit cards offer cash back on travel purchases or broader categories. These are not as lucrative as points and miles but I have a couple in my wallet.

Favorable earnings rates: As I mentioned earlier, you’re lucky if your debit card gives you a measly 1% cash back.

My travel rewards credit cards earn me at least 1.5% back, but in most cases, I’m earning anywhere between 2%-5% in the spending categories I use the most.

Welcome bonuses: One of the best things about travel rewards credit cards is the welcome bonus offer when approved for a new credit card.

In many instances, earning just one welcome bonus can get you an almost free flight or even a free hotel stay.

The lucrative welcome bonuses that come with applying will have some sort of minimum spending requirement. But I always make sure I have a plan to meet it with purchases that I was going to make anyway.

Travel Perks

On top of the fact that you can earn lucrative rewards to pay for travel, these credit cards can get you some pretty sweet benefits as well.

Travel Insurance: Complimentary travel insurance coverage is a great benefit. It can include trip cancellation, interruption insurance, and emergency medical coverage.

I love the Chase Sapphire Preferred® Card for this and it’s primary rental car insurance benefit.

All information about the Chase Sapphire Preferred® Card has been collected independently by Traveling Franklins.

No Foreign Transaction Fees: When traveling abroad, I only bring credit cards that don’t charge foreign transaction fees.

Your debit card likely charges foreign transaction fees ranging between 1%-3%. That’s ridiculous and so unnecessary.

Complimentary Airport Lounge Access: If you’re traveling through the airport a lot, you’ll love complimentary lounge access. These lounges can provide a comfortable space to relax or work.

The ones I’ve enjoyed have also offered complimentary food, drinks, and Wi-Fi. My go-to card for this benefit is the Capital One Venture X Rewards Credit Card.

On top of the travel perks, many of these credit cards may also include benefits like purchase protection, extended warranty, price protection, or access to exclusive events.

Things to Keep in Mind

Many credit cards that offer the best rewards and benefits will have an annual fee, but that’s not a deal breaker for me. Every year, I evaluate my credit cards to make sure the benefits outweigh the annual fee.

Using credit cards for everyday purchases should be part of an overall financial strategy.

I don’t recommend applying for credit cards willy-nilly and not having a plan for how you will be maximizing them.

Should you ever use a Debit Card?

Yes, there are times when using a debit card is the better choice.

I really do think that using credit cards for your everyday expenses can be the best strategy for you financially and if you love to travel.

However, when you’ve encountered a situation where you will be charged an extra fee for using a credit card it’s not going to make sense.

For example, when I pay my property taxes there’s a fee of 2.4% incurred for paying with a credit card. For this type of transaction, I could only earn 2% back which means I would be losing money by using a credit card.

Womp Womp.

The only time this could ever make sense is if you are working towards a new welcome bonus.

Almost all welcome bonuses will earn well over 3% back. But I would only do this if you can’t meet the minimum spending requirement any other way.

What Credit Cards do I recommend for Travel?

Now that you’ve learned why credit cards are the better and safer choice for your everyday spending, it’s time to figure out which one is right for you!

These are my top picks for travel rewards credit cards:

• Chase Sapphire Preferred® Card
• Ink Business Preferred® Credit Card
• Ink Business Cash® Credit Card
• Ink Business Unlimited® Credit Card
• Capital One Venture Rewards Credit Card
• Capital One Venture X Rewards Credit Card

All information about the Chase Sapphire Preferred® Card, Ink Business Unlimited® Credit Card, Ink Business Cash® Credit Card, and Ink Business Preferred® Credit Card has been collected independently by Traveling Franklins.

You may also want to check out CardMatch to find the best offers available to you.

Bottom Line

The bottom line is that credit cards are overall going to be better for your everyday spending than a debit card.

They are safer to use and earn you more rewards and benefits.

But whether travel rewards credit cards are right for you is something that only you can answer.

Personally, credit cards have opened up a whole new world of travel for me and my family. My only regret is that I didn’t start sooner!

Other posts you may like:

• Are you eligible for business credit cards? Probably!
• Top things you should and shouldn’t do when approved for a travel rewards credit card.
• What is the 5/24 rule?

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post Credit Cards vs. Debit Cards: Which One Saves You More? appeared first on Traveling Franklins.

The fact that you can earn points to pay for travel just by using the right credit card on your everyday spending is something I have to pinch myself about all the time.

And the quickest way to get a huge points boost is an amazing new credit card welcome bonus.

Just one welcome bonus could get you an almost free business-class flight to Europe, that’s amazing!

As you probably know, the biggest challenge with welcome bonuses is the minimum spending requirement. These can range anywhere from $1-$30,000 and usually must be met within 3-6 months.

But meeting a minimum spending requirement doesn’t have to be that hard. I bet you don’t even realize how much you and your family spend every month!

In this post, I’ll show you how easy it can be to hit that minimum spending requirement so that you can earn that welcome bonus and get a jumpstart to planning your next almost-free vacation!

Some of the links contained in this post are affiliate links, meaning that at no cost to you, I will earn a small commission if you click through and make a purchase. As an Amazon Associate, I earn from qualifying purchases.

Everyday Expenses, Utilities and Bills

How much do you spend on everyday expenses in a month? Do you even know?

• Gas
• Groceries
• Streaming Services
• Cable/Internet
• Cellphone
• Shopping
• Restaurants
• Entertainment

For some reason, people seem to use their debit cards for many of their everyday purchases.

But why?

When you get a new credit card, you should be using it for all of your everyday spending. It doesn’t matter which credit cards you have that earn on bonus categories.

Your priority is to snag that welcome bonus. The faster you hit the welcome bonus the faster you’ll get your bonus!

Take a few minutes and take a look at your expenses.

Many of us, (myself included) don’t really know what we’re spending every month. We know that we pay the bills, put money away for savings, and retirement investments, and then the rest is just for whatever we feel like it.

But taking time to really understand our spending habits has been a game changer for us.

We’ve decided that saving money for travel was our priority. Once we figure out how much we actually spend, we can make informed decisions about whether we can meet a minimum spending requirement with our everyday expenses alone.

Timing Big Purchases

We don’t like applying for new credit cards all the time. I love travel rewards credit cards, but I’ve found that I’m much happier when I’m using only a handful of credit cards for my everyday expenses and maximizing bonus categories.

But when we have a big purchase coming up, we always take that opportunity to earn a welcome bonus because it makes meeting a minimum spend quick and easy.

Examples of big purchases:

• Home Repairs
• New Appliances
• Furniture
• TVs, laptops, other electronics

The key to playing the long game of points and miles is to be strategic. You’re already going to spend the money, doesn’t it make sense to get as much back in return as possible?

You should make every single purchase count. Let’s work smarter, not harder friends!

Medical Expenses

Medical expenses are a necessary part of life, but that doesn’t mean you can’t try to make the most of that money spent.

HSA and FSA are a great way to take advantage of pre-tax benefits, but it may be a better idea not to swipe them for those medical expenses:

• Dental Services – like braces or retainers
• Eye Surgery – like Lasik or Lasek
• Contact Lenses or Glasses
• Blood Work
• Any eligible expenses – prescriptions, over-the-counter medications, medical equipment (like a CPAP).

If you have an HSA or an FSA you should be able to get reimbursed as long as the expense qualifies. So why not pay with a credit card to earn points or meet a minimum spend?

Once reimbursed you’ll have pre-tax money to pay off your credit card in addition to enough points for an almost free vacation.

What could be better?

Hot Tip! Check the website for your HSA or FSA for a list of eligible expenses. You’d be surprised by what qualifies as an eligible expense!

Join The Free Facebook Group!

Let’s Do this!

Pick up the tab

I get roasted so hard for this, but I honestly don’t care LOL.

Anytime we go out to eat with friends or family and I see that they want to pay with a debit card or a credit card that earns very little rewards, I insist on putting it on my credit card so they can pay me back.

I mean, someone should benefit from the money spent so why can’t it be me?

Of course, you want to make sure that you’re doing this with people who will definitely pay you back. But with Venmo or Zelle it’s easier and faster than ever to get reimbursed.

Trust me, once you’re flying in business class or sipping drinks at a resort paid for by points it won’t matter what kind of faces they made when you insisted on paying the tab with your credit card.

Car Insurance

There’s a really good chance that you’re paying for car insurance. It’s one of those things that you pay for, but hope to never need.

If you can swing it, ask your insurance company or broker whether you can pay your car insurance in full. You’ll likely get a pretty good discount for paying in full, plus it can help you meet that minimum spending requirement!

Homeowners Insurance and Property Taxes

We used to have an escrow account with our mortgage company so that they could pay our homeowners insurance and property taxes on our behalf.

Although it was convenient, we realized how much we were missing out on travel rewards and interest.

If you keep an escrow account you’re not earning any interest on that money. Instead, we closed our escrow account and started sending what we would normally be putting into escrow into a high-yield savings account.

When it’s time to pay the homeowner’s insurance and property taxes we’ll use a credit card that we’re working towards a minimum spend on to earn the points and then pay it off with the money in the HYSA.

So not only are we earning a lucrative welcome bonus, but we’re also pocketing the interest earned.

Hot Tip! There’s usually a fee to use your credit card to pay property taxes (usually between 2-5%) so make sure you’re earning more than that on the purchase which with a welcome bonus you likely will.

Otherwise, you may negate the benefit of using a credit card and lose on the purchase.

Give it to me!

Loading…

Thank you!

Your Budget Travel Cheat Sheet is on its way!

In order to receive it, please head straight over to your inbox and confirm your subscription.

Sometimes tech happens. But that shouldn’t keep you from traveling more for less! Go to your inbox and look for an email with the subject line “Confirmation Email (FREEBIE)”.

If you check your promotions tab and spam folder and still don’t see it, please reach out to me at support@travelingfranklins.com so I can help you find it!

Charitable Donations

Making a charitable donation to an organization that you believe is not only a good thing to do as a human being, but it’s almost a tax write-off!

I have a few organizations that I like to contribute to every year and when I’m meeting a minimum spend every little bit counts!

Education Expenses

My husband and I are always looking for ways to keep educated and up to date on the subjects that we’re most interested in. Fortunately, my husband’s company has an education program that will reimburse him for eligible coursework.

So not only is he working to better his skills, but he’s earning us free travel at the same time.

Holiday Shopping

Black Friday, Cyber Monday, Travel Tuesday, etc. are all great ways to meet a minimum spend. Calculate how much you plan to spend and then apply for a credit card offering a welcome bonus with a minimum spend that you could easily hit.

Major Events

Are you planning a wedding, honeymoon, baby shower, anniversary party etc.? Your special day is the perfect way to meet a minimum spend and maybe take the sting away from spending all of that money.

I convinced my brother to get the Capital One Venture Rewards Credit Card to use for his wedding expenses. They earned enough points to get a few nights free for their honeymoon.

Travel Expenses

When you’re not burning, you should be earning!

Sometimes it doesn’t make sense to use your points for all different types of travel, and that’s totally ok.

Only you can decide when its worth to you to use points instead of cash. But for many people things like cruises, activities, tours and other experiences are better for them to earn points.

Because, let’s be honest most of us can’t use points to pay for every aspect of our trip. Getting a cheap flight is just as satisfying as using points!

Myths about Meeting a Minimum Spend

People who are hesitant about credit cards and meeting a minimum spend usually don’t understand how it works or don’t have all the information.

When the terms are “spend $4,000 within 3 months of account opening” this doesn’t mean that you have to spend $4,000/month for 3 months. It means that within 3 months you’ll need to spend a total of $4,000.

That’s about $1,400/month.

Some families spend that much on gas and groceries alone each month!

Here are some more myths:

You Need to Spend Extra Money: Remember, this is about being strategic and not about going into debt. Always use the credit card for purchases you would be making anyway. We always pay off our credit card statements in full and on time every single month.

It’s Only for Large Purchases: While having a large purchase is a huge help, it’s not the only way. Many minimum spending requirements can be met with regular, smaller transactions like groceries, utility bills, and gas. It all adds up!

All Spending Is Eligible for Bonuses: Some people try to cheat the system, but transactions like balance transfers, and cash advances won’t help you meet a minimum spend.

Let’s get that welcome bonus!

Meeting a minimum spending requirement is one of the most intimidating things about credit card travel rewards, but it doesn’t have to be.

Remember, the whole point is to make every single purchase count and maximize your earnings on every single dollar that you spend. It’s not supposed to make your life harder, it’s supposed to make you richer in more ways than you can imagine.

That’s why I love my Lazy Budget Travel Tips community. We’re not about making things complicated, we want to earn as many points as possible with as little effort as possible.

In this post, we’ve given you many ways to earn a welcome bonus, so you’re ready to get those points!

Here are some travel rewards credit cards that have great welcome bonus offers!

• Chase Sapphire Preferred® Card
• Ink Business Preferred® Credit Card
• Ink Business Cash® Credit Card
• Ink Business Unlimited® Credit Card
• Capital One Venture Rewards Credit Card
• Capital One Venture X Rewards Credit Card

Advertiser Disclosure:
All information about the Chase Sapphire Preferred® Card, Ink Business Unlimited® Credit Card, Ink Business Cash® Credit Card and Ink Business Preferred® Credit Card has been collected independently by Traveling Franklins.

You may also want to check out CardMatch to find the best offers available to you.

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post How to Meet a Minimum Spend appeared first on Traveling Franklins.

I thought that business credit cards were only for large businesses and there was no way I could ever qualify for one.

I was wrong!

In this post, I’ll talk about why and how applying for travel rewards business credit cards is a great way to boost your points and miles earnings so you can travel for nearly free!

There’s also a very exciting limited-time welcome bonus offer for my favorite Chase Ultimate Rewards® points that I will cover later in the post.

What’s the benefit of getting a business credit card?

For me, the main benefit is more options for earning points!

Plus most business credit cards do not count towards my 5/24 status for Chase credit cards.

That’s because business credit cards will usually not show up or affect your personal credit report.

Although business credit cards may not impact your personal credit report, you’re still on the hook for all purchases made on these cards.

In this game of travel rewards credit cards, you’ll want to pay your statement balance in full and on time every single month.

Many business credit cards also come with some great perks as well.

Possible benefits include purchase protection, extended warranty, airport lounge access, free checked bags, priority boarding, hotel upgrades, and travel insurance.

Business credit cards can also have lucrative welcome bonuses giving you a huge boost in earnings for those expenses you were making anyway!

Who can apply for business credit cards?

Contrary to popular belief, you don’t need to set up a “real” business to be eligible for a business credit card.

Meaning, you don’t need to have formed a limited liability company or have incorporated your business to qualify for business credit cards.

Basically, if you’re making money or intend to make money even as a side hustle, you likely will be eligible for a business credit card.

Here are some examples of eligible businesses:

• Blog
• Pet Sitting
• Baby Sitting
• Uber
• Freelancing
• Sell anything online
• and these are just a few examples

You can apply for a business credit card as a sole proprietor using your legal name and social security number.

But you can also get a free EIN from the IRS online and use that to apply.

There is no revenue requirement, banks understand that you may need a business credit card for start-up costs.

So even if your revenue is $0, you may still be eligible.

Now, just because you are eligible does not guarantee that you will be approved. But it’s worth a shot!

Essentially, there’s no harm in applying for a business credit card.

Now, if you have a formally set up business like an LLC and haven’t applied for business credit cards – what are you waiting for?!

Need help choosing the right credit card for your travel goals?
Check out all of my credit card links here.

Can you put personal expenses on a business credit card?

I personally, use my business credit cards for all of my expenses.

The credit card issuing banks do not report your business credit card spending to the IRS so there are no tax implications when using business credit cards.

However, it is your responsibility to report accurate business expenses to the IRS.

Do not report personal expenses as a business expense. That is not ok.

As long as you’re being responsible with the credit card, you should be good to go!

What about annual fees?

Usually, the best travel rewards credit cards have annual fees. So don’t let this scare you!

Check out this post for why annual fees are almost always worth it!

Join The Free Facebook Group!

Let’s Do this!

My Favorite Business Credit Cards

I love the Ink Business Unlimited® Credit Card!

Current welcome bonus offer: Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.

Earning Rates: This credit card has no annual fee and unlimited 1.5% cash back on every purchase.

What’s great about the $750 bonus cash back is that it will deposited into your account as 75,000 Chase Ultimate Rewards® points.

Chase Ultimate Rewards® points can be combined with credit cards like the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or the Ink Business Preferred® Credit Card and transferred to travel partners or redeemed through Chase Travel℠.

All information about the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Ink Business Unlimited® Credit Card, and Ink Business Cash® Credit Card has been collected independently by Traveling Franklins.

What can you get with 75k bonus points?

If you’ve combined with a credit card that can transfer to travel partners, 75,000 bonus points can get you:

• 7 nights at a Hyatt Category 1 hotel on standard award nights
• 3 nights at a Hyatt Category 2 hotel on standard award nights
• 3 nights at a Hyatt Category A all-inclusive resort on standard award nights
• Fly a family of 4 round trip to Europe in economy.
• Close to flying 2 people in one way to Europe in business class.

That’s a lot of free travel from just one welcome bonus! Not bad!

Can you combine points?

Yes! I get a lot of questions about combining points and whether you can do it between business and personal credit cards.

When it comes to Chase Ultimate Rewards® the answer is ABSOLUTELY!

This is another reason why I just love Chase Ultimate Rewards®. Not only are the points easy to earn and redeem, but you can combine your points simply online!

These are all the Chase credit cards that I have and can combine points:

• Chase Freedom Flex®
• Chase Freedom Unlimited®
• Chase Sapphire Preferred® Card – transfers to travel partners
• Chase Sapphire Reserve® – transfers to travel partners (you can’t hold the Chase Sapphire Preferred at the same time)
• Ink Business Cash® Credit Card
• Ink Business Preferred® Credit Card – transfers to travel partners
• Ink Business Unlimited® Credit Card

All information about Chase Freedom Flex℠, Chase Freedom Unlimited®, Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Ink Business Cash® Credit Card, Ink Business Preferred® Credit Card, and Ink Business Unlimited® Credit Card, has been collected independently by Traveling Franklins. The card details on this page have not been reviewed or provided by the card issuer.

And if you have a P2 in the same household, you can combine points with them too!

My husband and I earned over 500,000 Chase Ultimate Rewards® points because of our P2 strategy.

Remember, there’s no such thing as applying for a credit card “jointly”. So even if you’re an authorized user on a credit card, you can get your own.

You and your P2 can get each card separately if eligible. This allows you to earn double the welcome bonus!

How to apply

Depending on the specific credit card you’ll likely need a FICO credit score of at least 700.

If it’s a Chase Business Credit Card then you need to be under 5/24.

Yes, indeed, a business credit card may not count towards 5/24, but you still need to be under 5/24 if you want the best chance to get approved.

Business info:

Authorizing Officer Title – I would put Owner

Legal Business Name: If you are applying as a sole proprietor use your legal name. Don’t be cute and add anything to your legal name to sound like a business.

It has to be your legal name. If you’re applying as an LLC you need to use the business name you registered the business under.

Tax ID – If applying as a sole proprietor use your social security number or an EIN if you have one, though it’s not required. If you have an LLC and applied for an EIN, use that.

Personal Info: This is your personal information, it’s okay that some of the information you already entered on the application is repeated in this section.

Need help choosing the right credit card for your travel goals?
Check out all of my credit card links here.

What if they require more information?

This is totally normal. Sometimes a credit card application will be put “in review”.

You will just provide them with the documentation they are asking for and wait for a decision.

Sometimes, they just need to confirm your identity.

I’m approved, now what?

Once you’re approved for your new business credit card it’s time to meet the minimum spend!

If you can’t meet the minimum spend to earn the welcome bonus then there is very little benefit to getting the credit card.

Make sure you have a plan!

Here are some tips:

Big Expense Coming up? If we have a big expense, that’s the most common reason that we get a new credit card. I mean, we’re spending the money anyway, so we might as well get some points!

Examples of Big Expenses that could work:

Medical Expenses – A lot of people don’t realize that it can make more sense to use a credit card to pay for their medical expenses rather than their HSA or FSA.

If possible, I would use my credit card to pay and then have my HSA or FSA reimburse me. That way, I’m earning points and using tax-free money to pay off the credit card!

Electronics: laptops, TVs, and office equipment.

Furniture and other home improvement items or projects. 

Christmas Gifts or other special occasions.

Everyday Spending & bills – Most people don’t realize how much they actually spend within 3 months.

One trip to Costco could put a good dent into a minimum spending requirement. 

Pay the dinner bill – I don’t care if they look at me funny, I always offer to put dining out on my credit card and have everyone else Zelle me.

Pay for someone else’s stuff – Of course, this only works if you trust the person to pay you back. I let my mom use my credit card for her expenses to help me hit a minimum spend. 

Remember, strive to make every purchase you make count towards almost free travel. Paying with a debit card, an HYSA or an FSA is not going to be nearly as rewarding or give you as much protection.

And we always pay our statement balance on time and in full! 

Check out my post about what you should and shouldn’t do now that you’re approved for your new credit card!

Are you ready to apply?

If you’re ready to apply for a business credit, I would highly recommend the Ink Business Unlimited® Credit Card for its 1.5% earning rate and lucrative welcome bonus.

Have questions? Join the Free Facebook Group!

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post How to earn Points and Miles with Business Credit Cards appeared first on Traveling Franklins.

You’re researching travel rewards credit cards because you heard that you can save a lot of money on travel (this is true).

You’ve analyzed all the perks and benefits, and you’re particularly excited about the awesome annual credits and that nice welcome sign-up bonus.

You go to hit the “apply now” button and then you notice “Annual Fee – $95”.

Ugh! You instantly cannot justify paying an annual fee just to hold a credit card.

After all, why should you pay the credit card company to use your own money, right?

Not necessarily!

Paying a credit card annual fee in many cases is completely justifiable and also smart.

Want to know why?

I’ll break down the math and show you how paying a credit card annual fee can be really worth it and help you meet your travel goals!

How to Know If a Credit Card Annual Fee is Worth it

Just because I say that credit card annual fees can be well worth it, does not mean that it always will be for your specific spending habits and travel goals.

It’s essential to weigh the benefits of the credit card against the annual fee before you apply.

Give it to me!

Loading…

Thank you!

Your Budget Travel Cheat Sheet is on its way!

In order to receive it, please head straight over to your inbox and confirm your subscription.

Sometimes tech happens. But that shouldn’t keep you from traveling more for less! Go to your inbox and look for an email with the subject line “Confirmation Email (FREEBIE)”.

If you check your promotions tab and spam folder and still don’t see it, please reach out to me at support@travelingfranklins.com so I can help you find it!

Are you in any memberships?

We all love shopping at Costco, Sam’s Club, or any other wholesale store, right? If you want access to shop at one of these places you need to pay an annual membership fee.

Some people pay the Costco membership fee just for the hot dogs. Seriously.

And none of us think twice about paying that membership fee to spend money at Costco because we already know that we’re getting great value.

The same can be said for credit card annual fees.

So just as a Costco membership grants you access to exclusive products and discounted prices, the right credit card with an annual fee can gain you access to a world of discounted flights, luxurious hotel stays, and a plethora of travel benefits that far outweigh the fee.

Travel rewards credit cards with annual fees often provide a range of travel-specific benefits like car rental insurance, travel insurance, airport lounge access, and concierge services.

These perks can greatly enhance your travel style, making every travel experience more comfortable and convenient.

When you add up the value of all of these benefits and perks, you may be coming out ahead by paying the credit card annual fee.

Does applying for new credit cards hurt my credit score?

The short answer is no. Applying for new credit cards alone will not have a long-term negative effect on your credit score. I cover this and other points and miles myths in this blog post.

Your Finances

Before you even consider a new credit card you should evaluate your financial situation and make sure that you’re in good shape to apply for a new credit card.

• What’s your credit score? Is it 700 or higher?
• Do you carry a balance on your credit cards?
• Do you always pay your bills on time?

The only way that paying an annual fee for a credit card is worth it (regardless of whether you like the perks and benefits) is if you pay off your statement balance every month in full and on time.

The APR on credit card balances likely starts around 14% and in many cases is much higher. It does not make sense to pay an annual fee and interest fees every month for a credit card. You’re throwing money away.

That’s not what we’re about, we want you to be the one taking advantage of the banks not the other way around.

So, if you’re not in the right financial situation to open up new credit cards, that’s ok.

You can download apps like Credit Karma or Experian Boost to help you understand your credit score and ways to improve it.

Welcome Sign-Up Bonus

Probably one of the biggest reasons to get a new travel rewards credit card is the hefty welcome bonus.

A nice welcome bonus can accelerate your points earning which means getting that almost free flight or hotel stay even faster.

But not all welcome bonuses are created equal.

A welcome bonus for a hotel co-branded card may seem like a lot, but when you go to redeem those points you may realize that you’re gonna need a lot more points for it to be worthwhile.

That’s why I suggest going for credit cards with flexible points currencies from banks like Chase Ultimate Rewards®, Capital One Venture Miles, or Citi ThankYou points.

These points can be transferred to travel partners, giving you a lot more options when it comes to redeeming points.

Even if just for the first year, a welcome bonus can make an annual fee well worth it.

Here’s an example:

Let’s say the welcome bonus will earn you 60,000 Chase Ultimate Rewards® points within 3 months of account opening when you apply for the Chase Sapphire Preferred® Card which has an annual fee of $95.

If you were to redeem those points in Chase Travel℠ you would get a minimum value of 1.25 cents per point which equals $750 worth of travel.

So $95 to get a minimum value of $750? Yeah, I like that math.

And if you transferred those points to travel partners you may get even more value. Just be sure there is award availability before you transfer points to travel partners.

You can’t transfer them back.

If you’re not sure about whether the welcome bonus will be worth it, I’d suggest doing some award searches to see how many points your dream trip is going to cost during any given time period.

If you’re flexible, you can snag some deals during off-peak dates.

You can use free sites like Roame to give you ideas on award costs or you can search directly on the supplier website and search by “points” or “miles” instead of cash.

Advertiser Disclosure:
All information about the Chase Sapphire Preferred® Card has been collected independently by Traveling Franklins.

Annual Credits

Some travel rewards credit cards offer annual credits that can be used for things like travel, shopping, or dining. You should review whether the credit card you’re interested in offers annual credits and the policy for these credits.

Ask yourself – Will you use these credits with very little effort?

For example, some credit cards will come with credits for things like TSA Precheck or Global Entry, or shopping at Saks. You don’t have to use every single credit offered, but make sure you use enough to make the annual fee worth it.

There are points and miles apps out there that can help you make the most of these credits like, Cardpointers.

Here are a couple of examples:

Chase Sapphire Preferred® Card annual fee $95 – this card is one of my favorites and includes a $50 annual travel credit through the Chase Travel℠. This credit can offset the annual fee making it only $45.

And with other benefits like primary car rental insurance, no foreign transaction fees, trip cancellation/interruption insurance, baggage delay insurance, and more, it’s a pretty good deal.

Capital One Venture X Rewards Credit Card annual fee of $395 – this card is another good one that includes up to $300 annual statement credit for bookings through Capital One Travel.

This credit can offset the annual fee cost to only $95. Plus you’ll get unlimited access to the Capital One lounge and Priority Pass airport lounges worldwide (free food and drinks) which is a pretty nice perk and well worth $95.

If that’s not enough, with the Capital One Venture X, you’ll also receive up to a $120 credit for Global Entry or TSA PreCheck every 5 years.

This is not an annual credit, but you’ll basically get Global Entry or TSA Precheck for free for one person which can save you a lot of time at the airport.

These are not even all the perks and benefits that come with these credit cards, but already I can see the annual fees being well worth it for me or even a less frequent traveler.

Purchase Protection and Extended Warranty

Credit cards offer valuable purchase protections that can save you money in the long run.

For example, if you buy a TV with a credit card that provides this benefit and the price drops shortly after your purchase, you can submit a claim to the credit card company for a refund of the price difference, up to the specified maximum benefit amount.

Remember to review the restrictions and limitations for these claims.

Each credit card has its own terms and conditions, which outline eligibility criteria, maximum claim amounts, and other relevant details.

The same goes for extended warranty protection, for some purchases made on the credit card, you may be able to extend the warranty for something like a dishwasher or washing machine once the manufacturer warranty has expired.

This can be a great perk! Just make sure to check the details and terms of your credit card’s extended warranty protection.

Travel Insurance

Most travel rewards credit cards with annual fees offer some form of travel insurance coverage, including trip cancellation/interruption insurance, baggage delay/loss insurance, and emergency medical coverage.

You may have to pay for the entire trip or at least a portion of the trip depending on the specific credit card.

Having these protections in place can provide reassurance during unexpected situations while traveling.

You’ll want to review the policies in detail to make sure you understand the coverage for the specific credit card. In many cases, there is a time limit to file a claim so if something does happen, you’ll want to file the claim as soon as possible.

Airport Lounge Access

Airport lounge access is one of my favorite perks! But to make this perk worth the annual fee you should think about how often you’ll be traveling through airports.

You’ll also want to consider whether there are lounges available at these airports that you can access.

Not all airports will have lounges accessible to you.

You’ll also want to keep in mind that not all airport terminals connect, so flying through a certain airport doesn’t guarantee lounge access.

Airport lounges offer complimentary snacks, beverages (yes, including alcoholic ones!), Wi-Fi, workspaces, and even amenities like showers or spa services.

They usually provide a nice and relaxing environment, making layovers or delays more enjoyable.

Airport lounges also vary in the quality of food, drinks, and comfortable seating spaces.

Check out Lounge Buddy or the Priority Pass app for photos and reviews of lounges.

I’ve had some great experiences and some just ok experiences, but I’ve never been to a lounge and thought it was worse than sitting by my gate.

Lounges can also get crowded so if you’re traveling during peak times there’s no guarantee that you’ll gain entry and may be put on a waiting list.

Personally, I get my complimentary lounge access with the Capital One Venture X Rewards Credit Card.

Premium Hotel Benefits

Many credit cards with annual fees provide elite hotel status or perks when booking through their travel portal.

For example, the Capital One Premier Collection offers benefits that can include possible room upgrades, late check-out, complimentary breakfast, or experience credits.

If you don’t hold hotel elite status this can be a great way to get similar perks without the added work of chasing status.

Other credit banks with luxury hotel programs include AMEX, Chase, and Citi.

Redemption options

When redeeming credit card points, not all options are equal.

Co-branded airline or hotel credit cards limit you to their loyalty program, which may not always provide the best value.

However, with credit cards offering flexible points currencies like Chase Ultimate Rewards®, AMEX Membership Rewards, Citi ThankYou points, or Capital One Venture Miles, you gain more options.

These programs offer extensive redemption choices and increased flexibility.

You can transfer points to various airlines and hotel partners and can often find amazing deals when transferring points to the right program at the right time.

If transferring points isn’t your thing, you can redeem points directly through the credit card’s travel portal, securing flights, hotels, and more at a fixed rate.

This may not always give you the best value, but you’re still saving money on travel and that’s all that matters.

Remember, the key is to find a credit card that aligns with your travel style and travel goals.

Regardless of how you choose to redeem for travel, you’re still ahead of the game because you’re taking the next step and traveling more for less.

What if you no longer want the credit card?

Once you’ve earned the welcome bonus and have had the credit card for a year it’s a good time to evaluate whether the benefits and perks alone are worth paying the credit card annual fee.

Important: You should wait at least a year before reaching out to the credit card company.

If you’re using an app like Travel Freely, you will get a reminder when your next annual fee is about to hit your account.

Ask for a Retention Offer

One option is to reach out to the credit card customer service team (via phone or chat) and ask about a retention offer.

Don’t say the words “retention offer” you don’t want to give away that you have no intention of canceling the credit card.

Let them know that you are considering canceling the card.

Be prepared with reasons why you think the benefits are not worth the annual fee.

You can ask them if they’ll waive the annual fee, but they may instead offer you bonus points, statement credits, or other perks to encourage you to keep the card open for another year.

It’s worth a shot, especially if the card’s benefits still hold value for you.

Downgrade to a No Annual Fee Card

If there’s no possible way that they’ll waive the annual fee and you don’t want a retention offer, you can ask them to downgrade to a credit card within the same card family that doesn’t carry an annual fee.

You should do some research to make sure this is a possibility before reaching out and making this request.

This allows you to maintain the credit line associated with the account while avoiding the annual fee.

However, keep in mind that downgrading may come with changes in benefits or rewards structure, so assess whether the new card aligns with your needs and spending habits.

I’ve personally used this strategy and it has worked out well for me. In some cases after a certain time period, you may be eligible to earn the welcome bonus on the annual fee credit card again so downgrading can be an effective strategy.

Consider downgrading your credit card instead of canceling it, even if you don’t intend to use it often or even at all. You can keep a small recurring payment on the card to keep it active.

Personally, I’ve never had a credit card closed due to inactivity, even with several unused cards (all of my credit cards are with large banks).

While my credit limit may decrease on unused or rarely used credit cards, it doesn’t worry me since I often increase it with new cards.

In fact, credit limit decreases on unused cards can benefit me in the long run.

As long as I can keep the old credit history, I’m good.

Cancel the Card as a Last Resort

Canceling the card should generally be a last resort. Your credit score may dip temporarily but if you have good long standing credit, it will bounce back.

Remember, having a good mix of credit types can positively impact your credit score. Additionally, a good amount of available credit, when used responsibly, can also be beneficial for your credit score.

But if you’ve had the credit card for at least a year, and you have other older cards to keep up your credit history just make sure that any remaining points are secure.

If you have a co-branded credit card like with a hotel or airline then your points are safely within their system. But if you have a bank credit card, you’ll want to have a plan to transfer those points or use them before you cancel the credit card.

In any case, consider your unique circumstances and weigh the benefits, annual fee, and any potential retention offers or downgrade options available to you.

By making an informed choice, you can navigate the situation effectively while maintaining a healthy credit profile.

Bottom Line

The bottom line is that annual fees are something to shy away from.

We have it in our heads that it doesn’t make sense to pay a fee to spend money, but in reality, we already do that for many things like a Costco Membership.

If someone told you that they would give you $1,000 and all they wanted was to give you $95. Would you do it?

That’s basically what happens when you apply for a new credit card to get a welcome bonus that’s worth a minimum of $1,000 in travel. In any case, credit cards always trump using a debit card for everyday purchases.

Remember, only you can decide what makes sense for you. As long as you have the facts you can make an informed decision and get yourself closing to paying less for travel!

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post Why credit card annual fees are worth it appeared first on Traveling Franklins.

Traveling can be both enriching and fulfilling, but it can also be costly.

I worked in the hospitality industry for years before I got burnt out.

I switched careers, but my love for travel and hotels didn’t go away.

What did go away?

My hotel team member discounts. We’re talking $29/night sometimes. Ouch. That’s how I found earning points and miles!

A significant part of this involves opening travel rewards credit cards, but isn’t only about credit card sign-up bonuses.

Although earning points and miles with credit cards can be lucrative numerous other strategies can make your travels more affordable. But what if you do want to be opening those travel rewards credit cards?

Is it worth it? Is this strategy right for you? Let’s find out!

How to earn Points and Miles?

Earning points and miles is all about leveraging loyalty programs and optimizing your everyday spending, allowing you to afford incredible travel opportunities.

Contrary to popular belief, it’s not only about opening a million credit cards to secure welcome bonuses.

It’s a strategic approach to travel that can benefit anyone, regardless of their travel preferences or comfort level with credit cards.

In fact, even if you’re not interested in opening multiple cards, there are still plenty of ways for you to join this game and reap the rewards.

If you’re not ready for credit cards check out this post about 7 strategies that don’t require credit cards.

Why are credit cards important?

Although it’s not the only way, credit cards play a significant role for several reasons.

They offer many benefits and rewards that can enhance your travel experiences and make your trips more affordable.

Welcome Bonuses: Travel rewards credit cards often provide attractive welcome bonuses, which are bonus points or miles awarded when you meet a specific spending requirement within a designated period.

These bonuses can be substantial, sometimes enough for a free round-trip flight or several nights at a luxurious hotel.

By strategically selecting credit cards with nice welcome bonuses, you can kickstart your journey with a significant boost.

Ongoing Rewards: Travel rewards credit cards typically offer rewards programs that allow you to earn points or miles for every dollar spent on eligible purchases.

Some of these credit cards also offer bonus earnings for categories such as travel, groceries, gas, and restaurants. By using credit cards strategically for everyday expenses, you can accumulate rewards faster and maximize their value.

Flexible Redemption Options: Travel rewards credit cards often provide flexibility when it comes to redeeming your points or miles.

You can typically use them for a variety of travel-related expenses, including flights, accommodations, rental cars, and more.

For some redemption ideas, check out these resorts that you can book with points.

Travel Benefits and Perks: Travel rewards credit cards also offer additional perks and benefits that enhance your travel experience.

These can include airport lounge access, priority boarding, free checked bags, travel insurance, hotel upgrades, and concierge services.

These perks can significantly elevate your travel comfort and save you money on expenses you’d be paying anyway.

Foreign Transaction Fees and Travel Insurance: When traveling internationally, you want to make sure that you’re not paying a foreign transaction fee on top of your purchases.

This can easily be avoided if you use a travel rewards credit card that offers no foreign transaction fees. Additionally, certain cards offer travel insurance coverage, providing peace of mind in case of trip cancellations, lost baggage, or other unforeseen events.

Not all credit cards are created equal

Not all credit cards are created equal, especially when it comes to earning travel rewards.

While certain credit cards, like the Costco credit card, aren’t designed to earn travel rewards, others, such as cash-back cards, may have limited options for converting rewards into travel benefits.

By combining a cash-back card with a travel rewards card in the same card family like the Chase Freedom cards and Chase Sapphire Preferred® Card or Chase Sapphire Reserve®, I can convert my cash-back rewards into valuable travel rewards.

So when you’re considering which credit cards to apply for, remember that not all credit cards will earn travel rewards. You can check out a list of some great travel rewards credit cards on my best credit card offers page.

Advertiser Disclosure:
All information about the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® has been collected independently by Traveling Franklins.

Is it worth it?

That’s a common question for those considering diving into the world of loyalty points and miles.

The answer varies depending on your travel goals, preferences, and financial situation. Here are key factors to consider:

Cost Savings: Earning points and miles can lead to significant savings by using points and rewards to reduce or eliminate travel expenses.

It makes travel more accessible and allows you to experience destinations and activities that may have been unaffordable otherwise.

Enhanced Experiences: In the world of travel rewards credit cards and points you can enjoy upgrades to premium cabins and complimentary stays at luxurious hotels.

Exclusive perks like airport lounge access and priority boarding enhance your overall travel experience.

Flexibility and Freedom: Points and miles provide flexibility in planning your trips, allowing you to customize your itinerary and explore destinations within your budget.

It may not be for everyone. But if you’re financially responsible there’s no reason why you shouldn’t take advantage of these strategies.

You’ve worked hard for your money so it’s time that you make your money work for you!

What are the cons?

While there are numerous benefits, just like with everything there are pros and cons.

Some of the cons are actually common misconceptions and myths debunked.

Credit Score Impact: Opening multiple credit cards can have an impact on your credit score.

Each new credit card application results in a hard inquiry on your credit report, which may cause a temporary dip in your score.

Additionally, maintaining multiple credit cards requires responsible credit management and timely payments to avoid accruing high-interest debt. It’s crucial to be mindful of your credit utilization and overall financial health.

These points and miles apps can help take the burden off of managing your credit cards.

Annual Fees: Some travel rewards credit cards come with annual fees.

While these fees can be offset by the value of the rewards and benefits they offer, it’s essential to evaluate whether the annual fee is justified based on your spending habits and travel goals.

And if you’re not utilizing the card’s benefits or rewards effectively, paying an annual fee may not be worth it.

I’ve got a blog post about annual fees and whether they are worth it.

Limited Availability: While loyalty programs can offer incredible value, popular travel periods or peak seasons might have limited availability for award redemptions making it challenging to secure your preferred options. Flexibility in your travel plans is key.

Learning Curve: Yes, earning points and miles involves a lot of rules and strategies. It requires time and effort to understand the intricacies of different programs, maximize rewards, and stay updated on changes and promotions.

It can be overwhelming for beginners or those who prefer a more straightforward approach to travel.

Luckily for you, I have a laid-back approach that I like to call lazy budget travel. If you want to get started, click below for my free cheat sheet!

Give it to me!

Loading…

Thank you!

Your Budget Travel Cheat Sheet is on its way!

In order to receive it, please head straight over to your inbox and confirm your subscription.

Sometimes tech happens. But that shouldn’t keep you from traveling more for less! Go to your inbox and look for an email with the subject line “Confirmation Email (FREEBIE)”.

If you check your promotions tab and spam folder and still don’t see it, please reach out to me at support@travelingfranklins.com so I can help you find it!

Risk of Overspending: To meet minimum spending requirements for welcome bonuses, it can be tempting to overspend on credit cards.

Being financially responsible is essential to reap the benefits without compromising your finances.

Changing Terms and Conditions and Devaluing Points: Loyalty programs and credit card rewards can change their terms and conditions or devalue points and miles, sometimes with little notice.

This can impact the value of your accumulated points or miles, alter redemption options, or introduce new restrictions.

Staying informed with blogs, newsletters, and Facebook groups can help you stay on top of this.

Despite these potential cons, many travelers (myself included) find that the benefits far outweigh the cons. But it’s essential to evaluate your own circumstances, preferences, and willingness to invest time and effort into maximizing your everyday spending.

There’s no right way so you should come up with your own strategy that aligns with your lifestyle and travel goals.

Is this Bad?

No, this strategy itself is not inherently bad, but it does come with potential risks and consequences if not approached responsibly.

One risk is falling into debt or overspending when trying to meet minimum spending requirements on multiple credit cards.

It’s important to have a solid financial plan, budget wisely, and pay off credit card balances in full each month to avoid accruing high-interest debt.

Earning points and miles with credit cards can impact your credit score through inquiries and account closures. However, if done responsibly (avoiding multiple applications at once, keeping your oldest account open, and not closing accounts too soon), it can actually improve your credit score by increasing your credit limit.

Assessing Your Finances

We’re not giving financial advice here, but it’s essential to assess your financial situation before you begin on this journey of opening credit cards.

Earning points and miles with credit cards can be a fantastic way to save money on travel, but it’s not the right fit for everyone.

High-interest debt: Do you have outstanding high-interest debt like credit card debt? The average interest rate for credit cards is around 16%.

This can significantly affect your financial fitness as you’re just throwing money away.

If this is you, you should not get into credit cards until you have paid off all your credit card or high-interest debt.

Credit Score: Your credit score plays a significant role when earning points and miles with credit cards. It affects your ability to qualify for those travel rewards credit cards with lucrative sign-up bonuses and awesome benefits.

A higher credit score generally opens up more opportunities, so take the time to check your credit score and work on improving it if necessary. If you don’t know your credit score download the Experian Boost app.

Shifting Payment Methods: Use your credit card like a debit card

A lot of people have a hard time shifting their mindset from using their debit card for everyday purchases to travel rewards credit cards – Thanks Dave Ramsey (side eye).

But it’s the most crucial step to maximizing and earning points and miles on your everyday spending.

Make your money work for you!

Ask yourself – why do you need to use your debit card for your everyday purchases? If the answer is because you’re afraid of overspending then that’s something that can be fixed.

You need to shift your mindset and think of your credit card as a debit card.

The fact is, that using a credit card for your everyday purchases is not only more rewarding but it’s safer.

By using travel rewards credit cards, you can take advantage of lucrative sign-up bonuses and earn valuable points on everyday spending to fund travel, enjoy travel-related benefits such as airport lounge access, travel insurance, etc., and build a long-standing credit history.

Here are some tips for using a credit card like a debit card:

Set up automatic payments: Schedule automatic payments for the statement balance of your credit card each month.

This way you’re always paying your credit card bill on time and in full, just like a debit card transaction.

You’ll also avoid interest charges and late fees, plus it’s also great for your credit score. Since you’re not spending money that you don’t have, then automatic payments work perfectly.

Monitor your spending: Keeping a close eye on your credit card transactions and regularly reviewing your statements can help you identify unauthorized charges and errors.

This is also something you should be doing with your debit card anyway. The difference is that credit cards usually come with purchase and fraud protections and extended warranties that debit cards do not.

Use a budgeting tool: Utilize personal finance apps or budgeting tools to track your credit card spending. These tools can help you stay organized, categorize your expenses, and provide insights into your spending patterns. By staying aware of your credit card usage, you can make adjustments if needed.

It’s time to be responsible and take control of your finances. If you don’t, you could be missing out on a whole world of travel benefits and experiences all while making everyday purchases.

Setting Your Travel Goals

It helps to have travel goals when you’re getting started, especially with credit cards.

Are you looking to fly to Europe in business class?

Or stay in 5-star hotels?

Or do you just want to afford a family vacation to Fresno?

It doesn’t matter what your travel goals are, as long as you have them. Having a vision of what you want to achieve through travel allows you to make informed decisions and maximize your efforts.

Consider how much time you can allocate to travel each year and the duration of your trips. This will help you plan your strategies accordingly and be aware of any flexibility required.

Reflect on your travel style and preferences. Determine if you lean towards adventure or luxury, solo or group travel. Do you enjoy comfort and convenience over the cheapest price?

Set realistic expectations for how much you’re willing to spend and how much you want to save on flights or accommodations. Are there any special occasions or milestones you want to celebrate through travel?

Consider the personal growth and experiences you want from traveling. Do you like to experience tourist attractions, cultural immersion, volunteering, or educational opportunities?

Once your travel goals are established, keep them in mind as you explore travel rewards credit cards, loyalty programs, and travel deals.

Evaluate how they align with your goals so you can make informed decisions. Reassess your goals as your journey progresses and adapt your strategies as needed.

Setting clear travel goals not only gives you direction but also fuels your motivation and sense of purpose. So, take the time to dream big, outline your objectives, and get ready for an incredible adventure!

Making an Informed Decision

It’s crucial to remember that no one knows what’s right for you except yourself.

It’s easy to get caught up in the noise of social media, where Instagram and Facebook portray glamorous travel experiences fueled by credit card rewards.

But the truth is, your journey is unique, and only you can determine if applying for new travel rewards credit cards aligns with your financial goals and lifestyle.

That being said, responsible credit card usage is paramount in this game.

Applying for multiple cards within a short period can have a negative impact on your credit score, so it’s essential to space out your applications wisely.

Once you have your travel rewards credit card, spending within your means and making conscious spending decisions are crucial.

Creating a dedicated budget for your travel expenses can help you stay on track and avoid overspending.

Paying your credit card statement on time and in full each month is vital to maintaining a healthy credit history and avoiding interest charges. This ensures that you’re maximizing the benefits without falling into unnecessary debt.

If you’re ready to apply for a travel rewards credit, that’s great!

Check out my blog post on the do’s and don’ts of maximizing your new travel rewards credit card.

It offers tips on optimizing your credit card benefits, avoiding common pitfalls, and maximizing your travel rewards potential.

Remember, this is all about YOU and no one else.

Do what feels right for you and at your own pace. I will tell you that if done right, this strategy can bring you amazing travel experiences that you can afford and that’s priceless.

Want to Travel More for Less?

Grab Your Free Budget Travel 101 Course!

Join my FREE course and I’ll get you started traveling more for less!

• Intro to Budget Travel
• Intro to Points and Miles
• Find the Best Price for Travel

I WANT IT FOR FREE!

Loading…

Thank you!

Access to Budget Travel 101 is on its way!

If you experience any issues, please reach out to me at support@travelingfranklins.com.

The post Travel Smarter, Not Harder: Are Travel Rewards Credit Cards Right for You? appeared first on Traveling Franklins.