How We Use Credit Cards to Save $ on Travel

ByTracy

Credit cards get a bad reputation, but when used intentionally, they can be an incredibly powerful tool. Over the years, we’ve built a credit card strategy that helps us earn free flights, free hotel stays, and meaningful travel perks – all without paying interest.

This is not a one-size-fits-all approach. But if you’re someone who pays your balances in full every month and enjoys traveling, this might give you a helpful framework to think about your own strategy.

if you want our full breakdown of $ we got in free travel in 2024 and 2025… check out our full report HERE…and let me know if you want help seeing how you can do this too!

Branded vs. Non-Branded Credit Cards

We use a mix of branded (co-branded) cards and non-branded, flexible rewards cards, and each serves a different purpose.

Branded cards are tied to a specific airline or hotel chain. Over the years, we’ve had cards with Delta, United, American Airlines, IHG, Hilton, and Marriott. Some have been more valuable to us than others. Non-branded cards are options like Chase or CapitalOne Travel cards. These cards earn travel rewards without being tied to a specific brand.

Let’s break them down.

Airline Co-Branded Cards

Airline cards often come with perks like:

  • Free checked bags
  • Priority boarding
  • Points that can be redeemed for flights with that airline

If you’re loyal to one airline and fly it frequently, these cards can make a lot of sense.

For us, they’ve become less valuable over time.

We rarely check bags anymore, so that perk doesn’t move the needle like it once did. And we tend to book flights based on price, timing, and convenience, not airline loyalty. Because of that, we found ourselves earning points on airlines we didn’t actually want to fly.

For example, I used to have a Delta card – but more often than not, Delta wasn’t the best option for our trips. Eventually, it just didn’t make sense to keep it, and I closed the card.

But – there have been times where we’ve used our miles to get free or cheaper flights. Or – a scenario where we want to take a long layover on the way home from a trip and don’t want to deal with storing our suitcases while we explore – so we use the free bags to check everything and travel more unencumbered.

Bottom line: Airline cards are great if you’re loyal to one brand. If you’re flexible, their value drops.

Hotel Co-Branded Cards (Our Favorite Branded Cards)

Hotel cards are where we consistently get the most value.

We currently carry hotel cards like IHG and Marriott, even though they have annual fees. Why? Because the benefits easily outweigh the cost.

Most of these cards offer:

  • A free night certificate every year (that $95/year fee gets me, usually $150/night hotel!)
  • Extra points for booking and paying cash at their hotels

In our case, the free night alone is worth more than the annual fee. So even if we did nothing else with the card, we’d still come out ahead.

These cards are perfect for:

  • One-night stays
  • Road trips
  • Stopover nights (like driving to the beach and staying overnight along the way)

We’ve also opened these cards when the sign-up bonuses were especially good. For example:

  • With Marriott, I earned 5 free nights for a $95 annual fee
  • With IHG, I earned 7 free nights

Both of these sign up bonuses got me a value of over $1000!!

That kind of value is hard to beat.

Another bonus: when booking a stay and paying cash, you often earn huge point multipliers — sometimes 10x points per dollar — which helps replenish your balance quickly.

Downsides of Hotel Cards

The biggest downside is flexibility. Those points must be used with that specific hotel brand.

Sometimes:

  • The hotel is more expensive than alternatives
  • The location isn’t ideal

For example, when staying in a charming European old town, I’m not interested in a Holiday Inn near the airport. I’d much rather stay in a centrally located, locally owned hotel with character – even if that means skipping points.

That said, with global hotel footprints, we always find ways to use our free nights and points.

Why We Favor Flexible Rewards Cards

Our most frequently used cards are flexible rewards cards — think Chase and Capital One.

These cards earn points that can be used for:

  • Flights
  • Hotels
  • Rental cars
  • Travel portals (similar to Expedia)
  • Even gift cards if you’re not traveling

The flexibility is what makes them so powerful.

Their travel portals are easy to use, and we’ve always had good experiences booking through them. But the real magic comes from…

Transferring Points (The Secret Sauce)

Flexible points can often be transferred to airline and hotel partners.

For example:

  • Chase points → British Airways
  • Capital One points → various airline programs

This lets you use flexible points for very specific travel goals.

This does take more effort:

  • You need award availability
  • You need to understand transfer rates

It’s a bit more advanced — I’ll cover this in a future “Credit Cards 102” post — but for now, just know this:

Chase and Capital One points are incredibly versatile and a great foundation for any strategy.

How We Spend (and Why This Matters)

We put nearly every expense we can on credit cards.

Important caveat:
This only works because we pay every card off in full, every month.
If you carry a balance or pay interest, I would not recommend this strategy.

Using cards this way allows us to:

  • Earn points on everyday spending
  • Meet sign-up bonus requirements easily

Some cards earn extra points in certain categories (like groceries or restaurants). We’re not obsessive about it, but we do try to:

  • Use higher-earning cards for dining
  • Use grocery-focused cards at the grocery store

Even small multipliers (like 3x points) add up over time.

Sign-Up Bonuses: Where Big Value Comes From

Most travel cards offer sign-up bonuses like:

Spend $3,000 in 4 months and earn 70,000 points

These offers are usually available, but sometimes they’re especially good.

We wait for strong bonuses and only apply for cards that make sense for us. When we do:

  • We temporarily move most of our spending to that card
  • We meet the requirement
  • Then we go back to our normal setup

Timing card openings with large purchases (like travel or home expenses) makes this even easier.

Referring Each Other for Extra Points

Another strategy we use: referrals.

We stagger card openings so that:

  • One of us applies first
  • Then refers the other

When I refer my husband, I often earn 20,000 points, and he still gets the full sign-up bonus when he meets the spending requirement.

We’ve done this with:

  • IHG
  • Marriott
  • Chase
  • Capital One

It’s an easy way to stack even more value.

Are Credit Cards “Bad”? Absolutely Not.

Some financial advisors say credit cards are bad across the board. That’s terrible blanket advice.

Credit cards aren’t for everyone — especially if:

  • You carry balances
  • You overspend
  • You don’t track finances

But when used responsibly, credit cards:

  • Build your credit history
  • Increase your credit score
  • Make it easier to buy a home
  • Help with car loans, rentals, and insurance
  • Provide fraud protection

My credit score is 850 (the highest possible), and I have 15 open credit cards. That didn’t happen despite credit cards – it happened because of how I use them.

Our Go-To Everyday Cards

If I had to recommend just a couple of cards:

1. Chase (everyday favorite)

  • Small annual fee
  • Strong earning on daily spending
  • Very flexible points
  • $50 annual hotel credit
  • Free DoorDash delivery

2. Capital One (great for frequent travelers)

  • Higher annual fee ($395)
  • Offset by:
    • $300 annual travel credit
    • $100 anniversary bonus
  • Lounge access
  • Global Entry / TSA PreCheck credits

For us, the benefits far outweigh the cost.

Final Thoughts

Credit cards, when used intentionally, can unlock enormous value. Our strategy focuses on:

  • Flexibility
  • Sign-up bonuses
  • Everyday spending
  • Paying balances in full

If you’re interested in any of the cards we use, feel free to use my referral links — you’ll get the same benefits, and I’ll get a small bonus too.

And if you want a deeper breakdown of how this actually saves us money, I’ve linked our yearly spending breakdowns at this page.

More posts coming soon — including a deeper dive into transferring points and maximizing redemptions ✈️

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