Travel credits come in many forms, but for this post, we’ll define them broadly as any benefit with an expiration date that can be used to book travel instead of paying with cash. Points are excluded since most programs allow you to keep them active with some account activity.
If you hold several travel credit cards, chances are at least one provides an annual travel credit. Some, like the Chase Sapphire Reserve, offer broad coverage (e.g., $300 for travel expenses), while others, such as the AMEX Platinum and Hilton Honors Aspire cards, have more restrictive credits.
Hotel co-branded cards often skip statement credits in favor of free night certificates, which may have limitations based on the hotel category or points requirements. Other travel credits can come from canceled plans, airline bump offers, or even expiring points in programs like Singapore KrisFlyer or Wyndham Rewards.
Use Travel Credits First!
When planning your next trip, start by using any travel credits or vouchers before relying on points. Here’s why:
Airline Vouchers and Restrictions
If you’ve accepted a bump voucher or received credits from a canceled flight, prioritize using those. Airline vouchers often have limitations, as I learned when attempting to redeem one from American Airlines.
Free Night Certificates
Hotel cards often issue annual free night certificates, but don’t hold them too long waiting for the “perfect” trip. You risk scrambling to redeem them before expiration, which happened to me in this stupid mistake.
Expiring Points
Some loyalty programs have points that expire without any option to extend. For instance, Singapore Airlines KrisFlyer points expire 36 months after earning, no matter what. If you’ve racked up points from canceled travel, it’s better to redeem them creatively than let them vanish.
Creative Ways to Use Statement Credits
When credits tied to your card are available, use them before cash. Be prepared for situations where credits don’t fully cover costs. For example, I used $150 in United TravelBank credits, but I still had to pay the balance.
Similarly, while booking through the AMEX Platinum Fine Hotels & Resorts program, I paid $140 out of pocket, saving my World of Hyatt points for another trip.
Then, Turn to Points
Once you’ve exhausted your travel credits, move to your points. While points are often flexible, there will be times when credits don’t align with your travel plans. For instance:
- No hotel availability to use a free night voucher.
- Airline vouchers tied to a carrier charging exorbitant fares while other airlines offer lower prices.
It’s not a hard-and-fast rule to always use credits first, but checking for expiring credits is a smart habit.
Maximize Your Travel Benefits
With a bit of planning, you can stretch your travel credits, vouchers, and points to cover more of your expenses. Don’t let procrastination or rigid ideas about the “perfect use” lead to wasted benefits. Use your credits wisely and enjoy free or discounted travel while you can.
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This post first appeared on Your Mileage May Vary
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