Choosing the right credit card isn’t just about getting one with good perks—it’s about having a strategy that maximizes every dollar you spend. A well-planned credit card setup can mean the difference between earning a few random points and taking free vacations year after year.
We’ve been using credit card rewards to travel for free since 2021, and in that time, we’ve taken trips to the Bahamas, Jamaica, Hawaii, Cancun, St. Martin, Puerto Rico, and more—all without paying for flights or hotels. And the best part? Most people can do this with just a few well-chosen cards and a little planning.
Let’s go through how to build the best credit card strategy to maximize rewards, minimize waste, and get the most free travel.
The Best Credit Card Setup
The best strategy for most people is to have three cards from the same issuing bank—Chase, American Express, or Capital One. Each of these banks offers transferrable points, which means you can use them for flights, hotels, or other redemptions instead of being locked into a single airline or hotel chain.
Use Credit Card Bonus Categories
The key is using the card with the best bonus category for each purchase. Chase, for example, has what’s called the Chase Trifecta, which is a great setup for earning Ultimate Rewards points.
Don’t Put All Your Spend on 1 Card
A common mistake people make is having just one or two cards. It might feel like you’re earning good rewards with 5% cash back or 5x points in certain categories, but when you look at your annual spending report, most of your purchases are probably earning just 1x. That means you’re leaving a lot of points on the table.
Earn Transferrable Points
Another mistake is earning non-transferrable points. Airline miles and hotel points are fine if you travel often with a specific brand, but they don’t offer flexibility. If your points are locked into one airline, you’re stuck with that program’s award availability and pricing.
The Best Cards for Each Category of Spend
Credit card reward optimization is what I do so Zuzu & I juggle more cards than most people. Here’s the cards we use for different categories of spend for personal and business expenses:
- Travel – Chase Sapphire Reserve® earns 3x Chase points on all travel
- Restaurants – Chase Sapphire Reserve® earns 3x, or American Express® Business Gold Card earns 4x
- Groceries – Chase Sapphire Preferred® Card earns 3x via the Kroger Pay app
- Gas – Citi Shop Your Way earns 5% cash back
- Random personal spend – Chase Freedom Unlimited® earns 1.5x on everything
- Business supplies – Chase Ink Business Cash® earns 5x at Staples and Office Depot
- Online ads (Google/Meta) – Chase Ink Business Preferred® earns 3x
- Random business spend – Chase Ink Business Unlimited® earns 1.5x or The Blue Business® Plus Credit Card from American Express earns 2x
What’s the right card (or cards) for you? Drop us a note & we’d be happy to help you come up with the best credit card strategy for you… for Free!
New Card Bonuses: Rack Up Points Fast
One of the fastest ways to earn rewards is through new card welcome bonuses. When we get a new card, we focus most of our spending on that card until we hit the bonus.
For example, we recently got the American Express Blue Business Cash™ Card. We put personal medical bills on it, which worked just fine, and ended up with $870 cash after spending $6,000. That’s a 14.5% cash back return.
You don’t have to open a ton of cards to make this work. Most couples with middle-class incomes and expenses can earn a free vacation every year if each person gets just one new card annually.
Focus! Don’t Diversify Too Soon
A mistake I see all the time is people having their points and miles scattered across different programs. They’ll have something like 10,000 Hilton points, 20,000 Marriott points, 3, 000 Hyatt points, 5,000 American Airlines miles, and 10,000 United miles. But they don’t have enough for a flight or a hotel stay anywhere.
Instead of spreading your earnings across multiple programs, focus on a single bank’s transferrable points, a single hotel brand, and a single airline. For us, that means Chase Ultimate Rewards, Hyatt, and Southwest.
1 Bank, 1 Hotel, 1 Airline Strategy
In our 14 page PDF “Guide to Free Luxury Travel,” you can learn the details of our 1 Bank, 1 Hotel, 1 Airline credit card strategy. This was our key to success when we started our travel rewards optimization journey.
Click here to get your copy for free!
Avoid Co-Branded Cards (Mostly)
Most co-branded credit cards—like those from Marriott, Hilton, American Airlines, Delta, and Southwest—are bad for everyday spending. These cards usually earn more on purchases with the brand but only 1x points everywhere else.
A lot of people keep these cards for perks, but they don’t always do the math. A doctor once told me they put all their spending on a Delta SkyMiles® Reserve American Express Card to get free lounge access. I asked how often they used the lounge.
“Two times last year with my husband.”
I told them, “That’s only $200 worth of lounge access on a card with a $650 annual fee.”
This specific card doesn’t have many perks for such a high fee. Lounge access is the best perk but paying $650 a year to get 4 trips (worth $50 each) into a lounge isn’t good math.
The Best Card for Cash Back
Not everyone wants to deal with points and miles, so what’s the best cash-back card? It’s the US Bank Smartly card. It gives you:
- 2% cash back on everything by default
- 2.5% if you have at least $5,000 with US Bank
- 3% if you have $50,000–100,000
- 4% if you have more than $100,000
If you want to just have a single credit card, it might be worth moving your money or retire funds over the US Bank to take advantage of unlimited 4% cash back.
The One Rule That Matters Most
All of these strategies assume one thing: that you pay off your balance in full every month.
If you can’t or won’t pay off every credit card every month in full and on time, don’t play the credit cards rewards game. Credit card interest will wipe out any benefits you earn faster than you can imagine.
Final Thoughts
By using the right strategy, you can earn enough points for free travel without spending more money. Start small with one or two key cards, take advantage of sign-up bonuses, and focus on earning transferrable points.
Want help picking the best credit card strategy for you? Drop us a note or get our Starter Guide, we’d love to help!
How We Use Rewards to Travel
Even if you’re just getting started, one or two well-chosen cards can put you on the path to free travel. Where will your rewards take you next? Here’s some of our adventures with (almost) free travel on credit card rewards:
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