Credit Cards That Can Help You Earn a Free Vacation

Last Update: December 1, 2021 • Financial News •

Whether it’s the summer sun rising from your favorite tropical paradise, or the cool arctic views surrounding the North Pole, it’s time to save money on your next vacation.

At ElitePersonalFinance, we analyzed three rewards credit cards that offer the best bang for your buck. And with welcome bonuses and points systems that allow you to shine in short order, a little rewards knowledge can help you spend more time on the things that matter.

What Is a Rewards Credit Card?

Companies are always looking for new ways to win potential customers in the highly competitive credit card industry. And with deal savvy card members constantly on the hunt for the best offers, rewards are used to gain your business.

For example, most travel rewards credit cards offer sign-up bonuses of 20,000 to 100,000 points – which amount to cash values of roughly $500 to $10,000. However, eligibility requirements often include spending minimums, transaction minimums, and other conditions. However, if you meet these obligations, realizing the benefits is more than worth the headache.

Which Rewards Credit Cards Stand Out From the Crowd?

After analyzing many comparable offers, the Southwest Rapid Rewards Plus Credit Card emerged victoriously. The credit card has a $69 annual membership fee and offers a welcome bonus of up to 100,000 points.

To qualify, the following transactions are required:

Charge $2,000 to your Southwest Rapid Rewards Plus Credit Card within the first three months of activation.
Charge $12,000 to your Southwest Rapid Rewards Plus Credit Card within the first 12 months of activation.

For context, one Southwest rewards point is worth roughly 1.5 cents. As a result, the welcome offer of $100,000 points has a cash value of approximately $1,500. Moreover, the balance provides enough travel capital to book several roundtrip flights for an individual and more than one roundtrip flight for a couple.

Points:

Earn 2 points per $1 spent on Southwest purchases – including the airlines’ hotel and car rental partners.
Receive 25% back on all in-flight purchases.
Earn 3,000 points per year on your activation anniversary date.
Earn 2 points per $1 spent on commuting, transit, and ridesharing services.
Earn 2 points per $1 spent on cable, phone, and select streaming services
Earn 1 point per $1 spent on all other purchases.

Other Fees:

Your annual percentage rate (APR) ranges from 15.99% to 22.99% and depends on your creditworthiness.
Your cash advance APR is 24.99%.
Your penalty APR is 29.99% and applies when you miss a minimum payment or your payment is returned unpaid.
The foreign transaction fee is 3% of the purchase in U.S. dollars.

As the second standout on our list, the Marriott Bonvoy Boundless Credit Card provides members with three free nights at Marriott hotels (a value of 50,000 points per night). In addition, you also earn a Free Night Award on the anniversary date of your card’s activation (which can be redeemed at your convenience). The credit card has a $95 annual membership fee.

To qualify, the following transactions are required:

Charge $3,000 to your Marriott Bonvoy Boundless Credit Card within the first three months of activation.
After charging $1,000 to your Marriott Bonvoy Boundless Credit Card, the first 30,000 points are awarded.

Points:

Earn 17 points per $1 spent at any of Marriott’s 7,000+ hotel locations.
Earn 2 points per $1 spent on all other purchases.
Earn 10 points per $1 spent at gas stations, restaurants, and grocery stores for the first six months after activation.

Other Fees:

Your APR ranges from 15.99% to 22.99% and depends on your creditworthiness.
Your cash advance APR is 24.99%.
Your penalty APR is 29.99% and applies when you miss a minimum payment or your payment is returned unpaid.
There are no foreign transaction fees.

With airfare and hotel accommodations out of the way, it’s time to complete your free travel bucket list. And doing just that, the Chase Sapphire Preferred Credit Card earns you rewards from restaurants, ridesharing, streaming services, and online grocery orders. In addition, the credit card has a $95 annual membership fee and includes a welcome bonus of 60,000 points.

To qualify, the following transactions are required:

Charge $4,000 to your Chase Sapphire Preferred Credit Card within the first three months of activation.

Moreover, if you redeem the 60,000 points through Chase’s Ultimate Rewards portal, you receive $750 in airfare and hotel-equivalent dollars. However, the cash value of the points is $600.

Also valuable, Chase rewards are transferable to other loyalty programs. For example, since Southwest and Marriott are on Chase’s eligibility list, you can convert the 60,000 points into Southwest or Marriott rewards at your convenience.

Points:

Earn 5 points per $1 spent on travel purchases made through Chase’s portal.
Earn 3 points per $1 spent on delivery, takeout, and in-restaurant dining.
Earn 3 points per $1 spent on select streaming services and online grocery orders.
Earn 2 points per $1 spent on other methods of airfare, hotels, taxis, and trains.
Earn 1 point per $1 spent on all other purchases.
Earn 5 points per $1 spent on Lyft rides until the end of March 2022.
Receive a 10% boost in points on the anniversary date of your card’s activation.

Other Fees:

Your APR ranges from 15.99% to 22.99% and depends on your creditworthiness.
Your cash advance APR is 24.99%.
Your penalty APR is 29.99% and applies when you miss a minimum payment or your payment is returned unpaid.
There are no foreign transaction fees.

Conclusion

Whether at home or abroad, free is a language that we all speak. And with rewards credit cards from Southwest, Marriott, and Chase paying for all of your travel expenses, they offer a great way to plan for your next trip. For context, if you’re a small spender, the annual fees make them less desirable. However, if your monthly and yearly expenditures already meet the requirements outlined above, then these three credit cards will save you a bundle in the long run.