Stop Wasting Points: 7 Costly Travel Mistakes

Using the best travel credit cards can unlock free flights, hotel stays, and luxury perks. But even smart travelers sometimes make costly missteps when redeeming those hard-earned points. Here are seven common mistakes and how to avoid them so you can travel better and spend less.

1. Redeeming Points for Low-Value Rewards

Not all redemption options are equal. Using points for merchandise, gift cards, or statement credits often yields poor value—sometimes less than 1¢ per point.

Better strategy:

• Save points for travel experiences like flights or hotels.

• Use card travel portals where points may be worth 1.25¢ to 1.5¢ each.

• Skip redemptions on things you wouldn't buy with cash.

2. Letting Points Expire

Points often expire after 12 to 24 months of inactivity, and closing a credit card can wipe out your balance if you're not careful.

Avoid losing points by:

• Setting calendar reminders.

• Making small transactions to keep accounts active.

• Transferring or using points before canceling cards.

• Redeeming points regularly to avoid devaluations.

3. Transferring Points Without a Plan

Transferring to travel partners can offer great value, but once done, you usually can’t reverse it. If availability vanishes, you may be stuck with unusable miles.

Play it safe:

• Only transfer when you’re ready to book.

• Confirm availability before moving points.

• Be aware that some transfers are not instant.

4. Using Points When Cash Is Cheaper

If a flight costs $100 but requires 15,000 miles, that’s just 0.67¢ per mile—a poor deal.

Pro tips:

• Always calculate the value per point: cash price ÷ points needed.

• Avoid redemptions under 1¢ to 1.5¢ per point, depending on your goals.

• Save points for high-cost trips like international flights or luxury hotels.

5. Ignoring Taxes and Surcharges

Award bookings often include extra fees. Some airlines add hundreds in fuel surcharges, and hotels might charge resort fees, even on free nights.

Smart moves:

• Research common fees before booking.

• Choose partners with lower surcharges when possible.

• Keep out-of-pocket costs minimal for true value.

6. Overlooking Card and Loyalty Perks

Don’t waste points on benefits you already get for free.

Examples of perks to use first:

• Free checked bags from airline cards.

• Annual free night certificates from hotel cards.

• Global Entry/TSA PreCheck credits, lounge access, or No Foreign Transaction Fees.

• Travel insurance and companion discounts.

7. Being Inflexible With Travel Plans

Rigid travel plans can limit your options and cost more points.

Be flexible by:

• Booking early and being open to different dates or airports.

• Considering alternate hotels or nearby cities.

• Jumping on deals when award space becomes available.

Maximize Rewards Without Regret

To get the most out of your points:

Avoiding these seven mistakes means smarter travel and better value. Use your points wisely and enjoy premium experiences without the premium price tag.