How to use credit card points for travel

The travel rewards card points you earn when you shop can help you cover more of your next trip than you’d expect. You could save money on everything from the basics like rental cars and baggage fees to more expensive things like an international or even business-class flight or a room at an upscale hotel. Here’s what you need to know about how to use credit card points for travel and how to get the most out of your rewards.

What can you use your travel rewards for?

Credit card points can help reduce the cost of your next trip in a few different ways. You might be able to redeem them as a statement credit to help offset eligible travel purchases you’ve already made. Or, you could redeem them when booking flights, hotels or other travel expenses.

What costs can travel points cover?

Depending on your card and rewards program, you may be able to use points to cover flights and rental cars, hotel stays and lodging, tours and activities, travel upgrades, exclusive experiences and more. 

How much are miles worth?

According to WalletHub, the average worth of 1 airline mile is between 0.49 cents and 1.8 cents, depending on the airline. That means the value of 10,000 airline miles, for example, averages between $49 and $180. Check with your travel rewards card program to find out the value of your miles.

Can you travel for free with credit card rewards?

It’s possible to cover all or most of a trip with credit card rewards, but it’s not always realistic. Many travelers use points to cover the most expensive parts of a trip, then pay out of pocket for smaller costs.

What to know before you redeem travel rewards

A little prep goes a long way before you start using your travel points. Before you book anything, look over your balance so you know what you have available. Compare cash prices and points prices for your trip to see what makes sense to redeem.

Make sure you know what your program’s terms for taxes, fees and cancellations are. Some airline and loyalty programs set up blackout dates when you can’t earn or redeem any rewards.

When should I redeem travel points vs. paying with cash?

Drew Tsitos, Manager of Credit Card Products at Navy Federal Credit Union, recommends doing a quick side-by-side check to decide whether to use travel points or pay with cash. For example, if your points cover a big part of the cost, you might consider using them. If the cash price is already a good deal, you could save your hard-earned points for later. 

A common rule of thumb is to consider using points when the redemption value is equal to or greater than 1 cent per point. For example, if you have 10,000 points that are worth 1.2 cents each, that could help you cover a $120 flight. If your points are worth only 0.80 cents each, your 10,000 points would only cover $80. In that case, you might consider saving your points for a better opportunity later.

“It also helps to check your card’s travel benefits, like trip insurance or rental car coverage, because those benefits can change based on how you book,” Tsitos says. “That’s why it’s smart to compare your options—like a travel portal, transfer partner or statement credit—to see what gives you the best value and coverage.”

How to redeem your travel rewards

Most travel rewards credit cards offer a few different ways to redeem your points. You can book through your card’s portal, transfer your points to a partner or apply your points as a statement credit.

Comparing value and coverage can help you decide your best option for your trip, Tsitos says. “A travel portal is often the easiest option and may help you keep some card benefits. Transfers can be a good choice if you want a certain flight or hotel and want to get more value from your points. Statement credits are the most flexible if you just want to lower your cost. The best option depends on what gives you the best mix of savings, ease and travel coverage for that trip.”

Here’s a breakdown of 3 redemption options, how they work and when to consider using them:

Table comparing credit card travel rewards redemption options

Redemption option	How it works	When to consider using it
Book through your card’s portal	Redeem points directly through your card issuer’s online portal to book travel	When you want a simple, all-in-one booking experience
Transfer points to a partner	Move points into an airline or hotel loyalty program, if allowed, and book directly through that program	When your card supports transfers and you’re looking for more flexibility or potentially higher value
Apply points as a statement credit	Redeem points for a statement credit applied to your account balance	When you’ve already booked travel and don’t want to rebook through a portal or partner

6 tips to get more value from your travel points

Once you understand your options, a few practical habits can help you save money on travel and get more out of the points you’ve earned. Earning travel rewards points is as easy as swiping your card, but getting the most out of them takes a little more planning. 

Here are 6 simple ways to stretch your rewards points when you redeem them:

1. Research dates and destinations. Redemption rates for flights and hotels can vary depending on when and where you travel. Comparing a range of dates and options before you commit can uncover a better value than if you book the first option you find.
2. Compare points vs. cash prices. Before you redeem, find out what the same flight or hotel would cost in cash. If the cash price is unusually low, it may be worth paying out of pocket and saving your points for a higher-value redemption later.
3. Save your points toward a goal. It can be tempting to use rewards if you don’t have a goal for them. Rewards points are like a travel savings account. Be intentional in how you save and spend them.
4. Look into points transfers. If your card allows it, transferring points to an airline or hotel loyalty program can sometimes unlock better value than booking through your card’s portal. It takes a bit more research, but the payoff can be worth it.
5. Stack your rewards where you can. If your card earns bonus points on certain travel purchases, use it to book directly through airlines, hotels or travel sites that will count as travel purchases. Some programs also let you earn loyalty points on top of credit card rewards for the same purchase.
6. Watch for welcome offers. In the market for a travel credit card? Some cards offer rewards bonuses when you open a new account, hit a specific spending target or use the card for balance transfers. Before you open a card, make sure you know the exact welcome offer amount and the terms for getting the sign-up bonus.

How to use credit card travel points during your trip

Staying intentional about how you use your card while you’re traveling can help you keep earning and get more out of the perks you already have. Here’s how to make your points work for you even after you’ve arrived at your destination:

• Use the right card for the right purchase. Many travel rewards cards offer bonus points on dining, gas, transportation and other travel-related spending. Knowing which categories your card rewards most means every dollar spent on your trip is working harder.
• Check your card’s offers and member deals. Many card issuers include exclusive offers or discounts with select merchants on everything from luxury hotels to streaming services. A quick check before dining out or booking an activity could earn you bonus points or save you money—sometimes both!
• Track your spending categories. Different purchases earn at different rates. Being thoughtful about which card to use for dining or transportation or other expenses can add up to more rewards over the course of your trip.
• Pay in local currency when traveling abroad. If your card has no foreign transaction fees, paying in the local currency can help you avoid hidden conversion markups.

More valuable travel perks you should know

Travel rewards often go beyond points and miles. Many travel rewards cards come with benefits that can save you money and make your trip more comfortable even when you’re not redeeming rewards. Some common travel perks include:

• Global Entry and TSA PreCheck® statement credits. Some travel rewards cards offer a statement credit to cover the application fee for Global Entry or TSA PreCheck, which can help you move through airport security faster.
• Emergency assistance services. Many travel cards provide access to assistance services if something goes wrong on your trip. These programs can help you in critical situations, such as finding local medical care or replacing a lost passport.
• Travel and rental insurance. Using your travel rewards card to pay for a rental car may provide collision damage coverage, which could save you the cost of purchasing insurance at the counter. Some cards also include travel accident insurance that may provide coverage in the event of an accident during a covered trip.
• Hotel, car rental and shopping discounts. Depending on your card, you may have access to discounts with select hotels, rental car companies and retailers. Some cards also offer rewards on experiences. 

5 tips to avoid common travel rewards mistakes

Travel rewards work best when used thoughtfully. Keep these guardrails in mind to get the most value from your card while staying within your budget:

1. Don’t spend more money just to earn points. Spending beyond your means to chase points rarely pays off. The value of the points you earn will almost never outweigh the cost of unplanned credit card debt.
2. Pay your balance in full each month. Interest charges can quickly cancel out the value of any rewards you earn. The most effective way to maintain the value of your travel points is to regularly pay off your card balance.
3. Review the rewards program’s fine print. Not all rewards programs work the same way. A little research upfront can save you from surprises when it’s time to redeem. Make sure you know about your program’s expiration policies, transfer ratios, blackout dates and any annual fees. 
4. Don’t let your points linger. Your points may not have an expiration date, but it’s possible for them to lose value over time. That can happen if the rewards card program changes its redemption rates or adjusts its rewards structure. Use your rewards within a reasonable timeframe to help protect what you’ve earned.
5. Know when cash is the better deal. Sometimes paying out of pocket is the smarter move. If a cash fare or hotel rate is low, it may be worth saving your points for a higher-value redemption later. Comparing both options before you book can make a real difference over time.

Make your travel rewards work harder

When you've used your travel rewards credit card for eligible purchases like groceries, gas, dining and other everyday expenses, you've earned rewards. Now, you can make a plan to turn your points into real value—when you book and when you travel.

If you’re looking for a card that can help you earn rewards on the eligible purchases you’re already making, compare Navy Federal rewards credit cards to find the right fit for you. If you already have our Visa Signature® Flagship Rewards credit card, see how you can redeem your travel rewards when you’re ready to get started.