Because some people might not feel ready to board a crowded airplane and most cruises haven’t resumed just yet, road trips may turn out to be a popular option. In a survey from travel planning app TripIt, 83% of expected travelers said they’d be OK with using their own car for a road trip by June, compared with 52% who said they would be comfortable flying domestically. If you are among those who are eager to pack up the car to get out of town, learn how you can save money on your first post-pandemic road trip by leveraging your credit card rewards.
Use Rewards for Hotel Stays and Rental Cars
Consider how to redeem rewards with four different types of cards:
Cash-back cards: Chances are if you’ve been staying close to home, these cards are where you’ve been racking up the most points to pay for home improvement projects, ordering in, streaming services, and groceries. Redeem your earned cash back for statement credits to cover travel costs like hotels. Hotel cards: If you have accrued points stashed from the pre-COVID-19 days, hotel cards are perfect for covering one or more nights along your route. Some hotel cards offer a complimentary award night annually or special discounts. General travel cards: Flexible travel-card rewards can be redeemed for travel-related expenses or transferred to hotels and other partners. For the best rewards value, investigate using your card’s travel-booking portal, which may take your points further. Airline cards: Some of these allow you to redeem points toward car rentals or use miles for booking stays with hotel partners.
Look at the card’s deals or promotions page or the issuer’s shopping portal to see what’s available before you go. You may need to activate or register for deals before staying (and paying) at the hotel or other partners.
Take Travel Benefits on the Road
Your card may come with road-trip benefits. For example, Bank of America cardholders get one free admission per card to more than 225 museums on the first full weekend of the month with the “Museums on Us” benefit. With more museums reopening and increasing capacity limits, this card could save you admission fees. Some card types come with other road trip-friendly benefits. For example, Visa Signature cards offer insurance coverage for your valuables (while in hotels) and discounts on luxury vehicle rentals. World Mastercard offers low-rate guarantees and “stay guarantees” if you encounter any issues while staying at three-star or higher hotels booked via the Mastercard Travel and Lifestyle Services program. If your card offers roadside assistance benefits, you could save on towing and other roadside calamities. If you plan to rent a larger or different vehicle for your trip, many credit cards offer rental car insurance coverage. This allows you to decline some coverage (and charges) at the rental desk.
Dine and Ride to Earn Cash Back
Many cash-back cards offer a flat amount of cash back from purchases, like the 2% offered on the Citi Double Cash card. Or you can earn 5% to 6% back in bonus categories: For example, Discover’s cash-back calendar lists gas in the 5% category for April through June. Cards that save more money at the pump or those that reward dining and takeout meals (like the American Express Gold Card, which earns 4% on dining, takeout, and delivery, including Uber Eats) can help you recoup some of your travel expenses. “Gas is the biggest road-trip expense, along with lodging and meals,” said Tara Schatz, avid road-tripper and founder of the blog Back Road Ramblers. That’s why she camps and cooks meals to keep costs down. If you plan to buy groceries for an Airbnb or suite-style hotel stay, bring a card that offers bonus rewards for groceries, whether supermarket or warehouse spending. For instance, the Chase Sapphire Reserve card offers a 50% points bonus through its “Pay Yourself Back” feature when you choose to redeem statement credits for grocery store and restaurant purchases.
Look for Extra On-the-Road Rewards
Before you leave, check out your cards’ top-earning categories and bring the right card. In addition to the gas, dining, and grocery categories mentioned above, see if your cards give cash-back rewards in road-trip-friendly categories, such as:
HomestaysCampgroundsLive events Aquariums, zoos, and tourist attractions, including amusement parks. The Capital One Savor One Rewards card is a great choice for such entertainment costs.Toll roads, parking lots, taxis, ferries, and rideshare services. The Blue Cash Preferred Card from American Express offers 3% cash back for all of those categories.
Should You Get a New Card Before You Leave?
While you shouldn’t open a new credit card just to fund your road trip, applying for a rewards or cash-back card before you leave could help earn rewards and the bonus handed out to new cardholders. For example, the Chase Freedom Unlimited card is offering a $200 statement credit for spending $500 within three months of account opening—and you’ll get 5% back on travel purchases. If you’re renting an RV, a card with great gas rewards may be a good fit, especially with gas prices expected to keep rising. The PenFed Platinum Rewards Visa Signature card is offering five points per $1 spent on gas. If any of your potential card choices offers a 0% introductory APR for a lengthy period, like the Chase Freedom Flex offer that spans 15 months, that could be a good incentive—you’ll get extra time to pay off your road-trip bills after you return home. By using the strategies above, you can get back to the travel you’ve been missing while your cards go the extra mile on savings.
