My Favorite Credit Card that Helps Me Travel for Basically Free
Disclaimer: That Debt Free Life is part of an affiliate sales network and receives compensation for sending traffic to partner sites such as Milevalue.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.
Last Updated: February 14, 2024
Freeing Myself From Debt and Promising to Avoid Credit Cards Forever
You may know that, at one time in my life, I was deeply in debt, owing $100K+ in student loans. After learning all I could about paying off debt and personal finance, I spent almost three years aggressively paying it all off. And I vowed I would never go back into debt again.
So it definitely surprised some folks when, just as I was nearing the end of my debt free journey, I applied for my first credit card in years. Now, I had opened credit cards before (when I was 18 in college at the promise of a free T-shirt or some pizza), quickly got myself into trouble with them, and promised myself never again. Credit cards, I thought at the time, were to be avoided at all costs, always and forever. And I knew I would NEVER get one again.
Never Say Never
During my debt free journey, I discovered that it was possible to use credit card points and miles to travel for practically free. Anywhere in the world! What?! And you could do it without carrying a balance and going into debt?! The more I learned and talked to those who had done it, the more I was convinced I had to give it a try.
And the more I began to use credit card points and miles myself to travel for practically free, the more I was hooked! (I say “practically” free because sometimes there is a resort fee or a small $5.60 per flight tax on airfare for domestic flights).
How to Use Points & Miles to Travel For Practically Free
Using credit card points and miles to travel for almost free is a lot simpler than many think. Here’s how you do it, in a nutshell:
Apply for a credit card that is offering a valuable sign-up bonus.
Meet the minimum spend requirement & collect the sign-up bonus points.
Once you have the points, use them to book vacations (flights, hotels, rental cars, etc.) for practically free.
My Favorite Travel Card - The Chase Sapphire Preferred® Card
It’s no secret that the Chase Sapphire Preferred® Card is one of the most popular choices for those wanting to use points and miles to travel for almost free. And with good reason—the card has so many valuable benefits including an awesome sign up bonus, a reasonable annual fee, and versatile points that can be used for flights, hotels, and rental cars.
For these reasons, this is the card I recommend to anyone who wants to get started with using credit card points and miles for affordable travel.
(It’s the card I’ve personally used to take vacations to New York City (multiple times!), Cancun, & The Bahamas, as well as many staycations at nearby resorts for practically free). It’s also the card my husband used this year to fly to Greece for a trip sailing around the Greek islands.
Current Sign Up Bonus
The standard welcome offer on this card is 60,000 Chase Ultimate Reward Points after meeting the minimum spend of $4,000 on purchases in the first three months. But what can you do with 60,000 points, really? A lot!
Those 60,000 points are worth $600 cash back or $750 in free travel when you redeem them through the Chase Portal. $750 in free travel? Yes, please!!
You can also transfer your points to Chase travel partners at a rate of 1:1 points for absolutely free. And by using Chase travel partners, you can get a better redemption value on your 60,000 points, making this single sign up bonus worth potentially thousands. Chase currently has 14 travel partners including airlines and hotel chains.
Hotel Chains: Hyatt, Marriott & IHG
Airlines: Aer Lingus, Air Canada, British Airways, Emirates, Air France/KLM, Iberia, Jet Blue, Singapore Airlines, Southwest, United, and Virgin Atlantic.
Some Category 1 Hyatt properties start at just 3,500 points/night, which means 60,000 points is equivalent to SEVENTEEN FREE NIGHTS at Hyatt! Feeling fancier? Bump it up to a category 5 hotel (worth 17,000 points/night) and still enjoy THREE FREE NIGHTS at Hyatt with this single sign on bonus.
What About the Annual Fee?
The card does carry an annual fee of $95, but the $750+ value in free travel you can get by redeeming points through the Chase Portal (or even more through travel partners!) more than makes up for the annual fee, in my opinion.
Plus, the Chase Sapphire Preferred® Card comes with a 10% annual point bonus based on your card spending, earned after you renew and pay the annual fee. And, the card comes with an annual $50 hotel credit.
PRO TIP: The annual fee DOES NOT count toward the minimum spend requirement.
Application Tips
To qualify for this offer, you must not be a current Chase Sapphire Preferred® or Chase Sapphire Reserve® cardholder, and it must be 48 months since you last received a new cardmember bonus from any Chase Sapphire card. Note: This is 48 months since you last received a bonus — NOT 48 months since you last signed up for or were approved for the card.
Chase’s 5/24 Rule
The Chase Sapphire Preferred® Card is subject to Chase’s 5/24 Rule.
In order to be approved for a Chase card subject to the 5/24 Rule, you cannot have opened five or more personal credit cards across all banks in the last 24 months. This means you have to have only opened 4 cards (or less) from any bank (Citi, Amex, Capital One, Chase, a Gap card, you name it) within the last 24 months to be approved. The 5/24 Rule only applies to getting approved for cards issued by Chase, BUT the 5/24 credit card count includes credit cards issued by ANY bank. You can check your 5/24 status by viewing your credit report or through Credit Karma.
How To Earn Points
Initial Sign Up Bonus. Many cards allow you to earn a large sum of points by offering a sign up bonus or welcome offer, and the Chase Sapphire Preferred® is no exception. See here for the current sign up bonus.
Everyday Spending. In addition to points earned via a sign up bonus, you can also earn points on everyday spending. Here’s how you can earn points with the Chase Sapphire Preferred® Card:
5X Points earned on travel booked through the Chase Portal
3X Points earned on dining/restaurants
3X Points earned on online groceries (excludes Target, Walmart, and wholesale clubs)
3X Points earned on select streaming services
2X Points earned on all other travel (purchased outside the Chase Portal)
1X Points earned on everything else
Annual Point Bonus. The Chase Sapphire Preferred® Card comes with a 10% annual point bonus based on your card spending, earned after you renew and pay the annual fee.
Pro Tips
Here are my tried-and-true pro tips for using credit card points and miles successfully!
Pick a card with a minimum spend you know you can meet with your normal, everyday spending. (If, for example, $4,000 in 3 months feels like a lot, check out my other favorite card offers here).
Make a plan to meet the minimum spend by the deadline.
Put ALL your expenses on the card until you meet the minimum spend.
Never carry a balance. Pay off all charges each month and avoid paying interest.
Overall, the Chase Sapphire Preferred® Card is simply the BEST option for beginners. If you still have questions or don’t know where to start, send me a DM on Instagram - which is always the best way to reach me.
Happy travels!
XOXO, Kate
Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel airline, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included within the post.