Year-End Travel Credit Strategy: Maximizing Your Benefits

As the year draws to a close, there’s no better time to review your travel credit card benefits and ensure you’re getting the most out of your rewards, status perks, and annual credits. Many cards come with benefits that reset with the new year, and some of these perks can be used in specific ways to help you optimize your travel plans and spending for the upcoming year.

By taking a few strategic steps, you can maximize your travel-related benefits, boost your points balances, and even ensure your card lineup aligns with your goals. Here’s a comprehensive checklist to help you make the most of your travel cards as we head into the new year.

1. Maximize Annual Travel Fee Credits

Many premium travel cards, like the Platinum Card® from American Express or the Chase Sapphire Reserve®, offer annual travel fee credits that can be used for airline incidentals, baggage fees, and airport lounge access. These credits are typically issued on a calendar-year basis, so you’ll want to use them before December 31 to avoid forfeiting them.

Action Tip: If your card offers an airline incidental fee credit, consider prepaying for checked luggage or using the credit for seat upgrades or in-flight purchases. Check your card’s app to confirm which airline you’ve selected for these credits.

2. Audit Your Card Usage

Take a moment to evaluate how often you’ve used each of your credit cards throughout the year. High-fee cards that don’t align with your spending habits or goals might no longer be worth keeping. Consider downgrading or canceling these cards to save on annual fees, especially if they’re not bringing you the rewards or benefits you expected.

Action Tip: Look for cards that charge high annual fees but are seldom used, and consider downgrading them to a no-fee or low-fee alternative if it better suits your lifestyle.

3. Track Your Progress Towards Elite Status

Whether it’s with an airline or hotel loyalty program, elite status can unlock valuable perks like upgrades, priority boarding, and free checked luggage. Before the year ends, check how close you are to achieving or renewing your status. If you’re just a few points or nights away from hitting a milestone, planning one final trip could help you reach your goal.

Action Tip: Log into your loyalty program accounts to assess your progress. If you’re close to qualifying for elite status, try booking a last-minute flight or hotel stay to close the gap.

4. Apply for Global Entry or TSA PreCheck

If you haven’t already applied for Global Entry or TSA PreCheck, this is a good time to start the process. Some premium credit cards offer statement credits for the application fees, which typically range from $85 to $100. Applying now can help you avoid long wait times in the new year, as the approval process for Global Entry often includes an in-person interview.

Action Tip: Check your credit card benefits for Global Entry or TSA PreCheck credits and begin the application process. Make sure to schedule your interview before the year ends to maximize the benefit.

5. Transactions to Consider Before Year-End

Several important transactions should be completed before the year ends to maximize your rewards and benefits:

• Points Transfers: If you want to transfer points to a family member or friend, remember that some programs have annual limits on point transfers. For instance, programs like Marriott Bonvoy restrict transfers to 100,000 points annually.

Action Tip: Check your point balances and make any transfers before the annual limit resets, ensuring you don’t miss out on valuable redemptions.

• Buying Points: In some cases, buying points through your loyalty program can be more economical than paying for a hotel stay or flight with cash. Consider buying points if you need to top off your balance for an upcoming redemption.

Action Tip: Evaluate your upcoming travel plans to see if buying points will save you money on cash rates. If the purchase price is lower than the cost of a paid stay, it may be worth the investment.

6. Earn Milestone Rewards

Many hotel loyalty programs offer Milestone Rewards after a certain number of nights or stays. If you’re close to earning a reward, booking a quick stay at a local property could help you hit the milestone and unlock additional benefits like free nights, bonus points, or elite qualifying nights.

Action Tip: Review your hotel program accounts and identify any milestone rewards you’re close to earning. A weekend stay at a Category 1 or 2 property can often be the quickest way to meet the required number of nights.

7. Review Your Credit Card Benefits

Your credit cards likely come with a host of benefits, from airport lounge access and free checked bags to travel insurance and purchase protection. Take time to review the benefits associated with each card and ensure you’ve made full use of them. Keeping track of what you’ve used can help you decide whether to keep or cancel a card based on its value.

Action Tip: Create a simple tracking system, like a spreadsheet, to monitor which benefits you’ve used and which ones are still available. This will help you determine if any benefits are expiring and if it’s worth keeping a card into the next year.

8. Track Points and Status Progress

Staying organized with your points, status progress, and rewards can be a challenge. Thankfully, there are several tools available to help you manage all your travel programs:

• Travel Freely and AwardWallet: These services track multiple credit cards and loyalty programs, offering reminders for benefit expirations and points transfers.
• Expense Tracking Apps: Tools like Mint and YNAB (You Need A Budget) can help you monitor your spending by card, making it easier to see which cards you’ve used the most.
• Loyalty Program Apps: Many airlines and hotel chains have their own apps that let you track points, status, and expiration dates for rewards.

Action Tip: Use one of these tools to track your rewards and benefits to ensure nothing falls through the cracks.

9. Plan for the New Year

As you close out 2024, now is the time to start thinking about your travel goals for next year. Reflect on what worked well this year and where you can improve, whether it’s maximizing new card benefits, earning more points, or reaching higher elite status levels.

Action Tip: Reevaluate your travel goals for 2025 and make a plan to use your credit cards and points strategically in the new year.

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Final Thoughts

As the year winds down, a few hours to evaluate your credit card usage, benefits, and travel goals can set you up for a more rewarding 2025. Whether using your annual fee credits, transferring points, or booking a stay to hit a hotel milestone, these small actions can add significant value.

Maximizing your credit card benefits and travel rewards doesn’t require much effort but can lead to enhanced travel experiences, savings, and greater flexibility in the year ahead. Stay organized, track your progress, and ensure you get the most out of your credit card perks.

Happy travels and a prosperous New Year ahead!