I know credit cards help with travel but don’t know the best way to use them. What’s the best way to start?

Optimizing your credit card usage can save you a pretty penny over the span of a year. And while things can get rather tricky when you’re churning through multiple cards, I do think that all it takes are two (or three) cards to optimize your return on spending.

Undoubtedly, if you’re a frequent traveller, rather than someone who’d be happier getting cash back to pay down their statements, there’s an opportunity to get a bit more return from travel points offered by top travel credit cards. Not to mention, there are a slew of other perks (think exclusive airport lounge access, waived foreign transaction fees, and a wide range of travel insurance coverage) that come with some of the more premier credit cards out there.

In this piece, we’ll check in on the case of a Reddit user who’s interested in getting into credit card “hacking” or churning, as it’s referred to by those seeking to maximize their return on spend. Indeed, it can be quite labor-intensive to sort through a dozen or more cards. But for a beginner, it can start with two go-to cards capable of providing 3% or more on specific purchases.

Getting into the travel credit card game doesn’t have to be 

For a beginner, I’d advise looking for credit cards whose points offer a great deal of flexibility. Indeed, it can be far better to have versatile points than ones that are severely limited. For instance, points that can be spent on airfare, hotels, and experiences may be better than points used solely for airfare or hotels. For a beginner, such flexibility could pay off and allow one to redeem points without having to be loyal to a specific airline or hotel chain.

Of course, if you’re always loyal to a hotel or airline, it may very well make sense to go for an airline- or hotel-branded credit card for better returns. However, for most beginners, it’d be best to find a few go-to cards that allow greater flexibility and ease of redemption.

Additionally, taking advantage of attractive promotions (high welcome bonus offers or waived annual fees) could be a wise move that’d allow one to get a step closer to funding their dream vacation without having to break the budget. Undoubtedly, the relative attractiveness of promo offers will change at any given time. Either way, it’s wise to research the best ones at any given time before applying.

Find the cards that offer higher returns for spending categories you care most about

If most of your monthly spending is on groceries and dining out, there are cards that offer higher returns in such categories. Every time you grab the bill or hit the till, it’s this card that you’ll want to use to maximize your travel points. Of course, a card that shines in one category may fall short in others. Notably, the dining card that offers 5-6x points may only offer 1x points on discretionary purchases.

That’s why, in addition to a dining-optimized card, one may wish to find a card that offers higher multipliers on everyday purchases. Even if it’s a 2x multiplier on everyday purchases, the added points could mean a great deal in any given year, especially if you’re a big spender.

Once you’ve accumulated enough points, do use your points as you would cash. Indeed, when it comes to versatile points, one can get a bit more mileage by using points on travel (hotel or airfare) rather than on statement credits or items paid with points.

The bottom line

When it comes to credit card churning, the key is finding the right cards (highest point return based on your spending) at the right time (generous welcome bonuses) and spending the points on the right rewards (travel tends to offer the most bang for the point).

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