If you’re someone who loves to travel or is looking to make your trips more rewarding, co-branded travel credit cards can be your best friend. These cards, which are issued in partnership between credit card companies and airlines or hotel chains, offer a way to rack up points and miles for purchases that can eventually be redeemed for flights, hotel stays, and more. However, to truly unlock the potential of these cards, you need to know how to use them effectively. Let’s dive into how you can make the most of your co-branded travel credit cards and get the most value out of every purchase.
Understanding Co-Branded Travel Cards
First off, it’s essential to understand what a co-branded travel card is. Essentially, these are credit cards that are partnered with specific airlines, hotel chains, or other travel-related companies. By using these cards, you earn rewards (usually points or miles) in the form of loyalty currency with that specific brand. For instance, a card linked to American Airlines would earn you AAdvantage miles every time you use it, which can later be used for flights, upgrades, and more.
Why Choose a Co-Branded Travel Card?
The obvious benefit of co-branded travel cards is the ability to earn travel rewards quickly. In addition to earning rewards on everyday purchases, many of these cards offer sign-up bonuses that can provide a substantial amount of points right out of the gate. Plus, some cards offer special perks, like free checked bags, priority boarding, and access to airport lounges. These added benefits can make your travel experience more comfortable and convenient.
However, to get the most out of your co-branded travel card, you need to use it wisely. Here are some top strategies to ensure you’re maximizing your points and rewards.
1. Maximize Bonus Categories
Many co-branded travel cards offer bonus categories where you can earn higher rewards rates for specific types of spending. For example, you may earn 3x points on dining, 2x points on travel purchases, and 1x points on everything else. It’s essential to familiarize yourself with the bonus categories of your specific card and adjust your spending habits accordingly.
For instance, if you have a Delta SkyMiles® Gold American Express Card, you’ll earn 2 miles per dollar on restaurants, U.S. supermarkets, and Delta purchases. If dining out or ordering in is a big part of your lifestyle, you should consider using this card as your go-to for those types of expenses. Similarly, if you tend to stay at a specific hotel chain, look for a co-branded card that offers bonus points for hotel stays.
2. Take Advantage of the Sign-Up Bonus
One of the quickest ways to build up your points balance is by taking advantage of the sign-up bonus that most co-branded travel cards offer. These bonuses can be quite substantial, sometimes offering tens of thousands of points or miles after you meet a minimum spending requirement within the first few months of opening the account.
For example, if you sign up for a Chase Sapphire Preferred Card (which is a travel card but not co-branded with a specific airline or hotel), you might receive 60,000 points after spending $4,000 in the first three months. That’s enough for a free flight in many cases. Similarly, co-branded cards often offer bonuses like 50,000 miles with a qualifying purchase, which is perfect for booking a round-trip flight or a free night at a hotel.
3. Utilize Airline and Hotel Partnerships
One of the most significant advantages of co-branded travel cards is their partnerships with other companies in the travel industry. These cards often provide exclusive access to special deals, offers, or even bonus points for booking through their partners.
For example, if you’re a frequent flyer with United Airlines, and you have a co-branded United Explorer Card, you may receive additional bonus miles when booking hotel rooms through their affiliated partners, such as Marriott. These partnerships can significantly enhance your points-earning potential by allowing you to earn rewards not just on flights or hotel stays, but also on car rentals, activities, and other travel expenses.
Another strategy here is using your co-branded card to pay for travel-related expenses like car rentals or airport parking, where you might earn bonus points for these purchases as well. Be sure to check the terms of your card to see if it offers extra points for any specific categories.
4. Combine Points with Airline Loyalty Programs
Many travelers overlook the power of combining points between the co-branded travel card and the airline or hotel’s loyalty program. Some co-branded cards, like the Citi / AAdvantage Platinum Select World Elite Mastercard, allow you to earn miles for both your credit card purchases and your loyalty status with the airline. This means that when you use your card, you’re earning double the points: one from the credit card itself and another from the airline loyalty program.
In addition, don’t forget about milestone bonuses and special promotions that these programs often run. For example, during a limited-time promotion, you could earn double miles on purchases made in a particular category, which can help you quickly rack up enough miles for a free flight.
5. Plan Your Travel to Leverage the Card’s Benefits
If you’re going to maximize the benefits of your co-branded travel card, you have to plan your travel wisely. Before booking a trip, take a moment to review any special promotions, discounts, or perks your card may offer. For instance, if your card offers free checked bags for you and your travel companions, it could save you up to $60 per round-trip flight, making it a valuable benefit to consider when booking.
Additionally, some co-branded cards offer priority boarding, which can save you time and hassle when boarding flights. If you’re planning a long trip, look into whether your card provides airport lounge access, as this can make your travel experience more comfortable, especially on layovers.
6. Track Expiration Dates and Reward Levels
One of the lesser-known aspects of co-branded travel cards is that many of them come with expiration dates for unused rewards. Depending on the card, your points or miles might expire after a certain period of inactivity or if you don’t use your card enough.
To avoid losing your rewards, set up a reminder to use your card regularly and track how many points you’ve earned. It’s also a good idea to redeem your rewards before they expire, even if you’re not planning to travel immediately. That way, you can avoid forfeiting your hard-earned miles.
7. Use Your Card for Everyday Purchases
Another trick to maximizing your points is to use your co-branded travel card for everyday purchases. Remember, points or miles aren’t just limited to big-ticket items or travel-related purchases. Many co-branded cards will earn you points on groceries, dining, and even utility bills.
Consider switching to your travel card when buying everyday items like gas, groceries, or even paying for your Netflix subscription. These points can quickly accumulate over time, and you’ll be amazed at how quickly you can build up your balance without significantly changing your spending habits.
Wrapping It Up
Maximizing the value of co-branded travel cards isn’t just about swiping your card every now and then. It’s about strategically using it for everyday purchases, taking advantage of sign-up bonuses, utilizing bonus categories, and leveraging partner benefits. By carefully planning your spending, you can significantly boost the number of points you earn, which can be redeemed for free travel, exclusive perks, and a more enjoyable travel experience.
So, the next time you head out on a trip or even just make a quick purchase, think about how you can make the most of your co-branded travel card. After all, those points and miles can add up fast, and you’ll be flying first class—or at least flying more often—before you know it!