Is a Business Class flight to Dubai free? Yes, if you use points. No, if you pay interest.
Credit card churning is a hobby for some and a nightmare for others. Here are The Pros and Cons of Using Credit Cards for Travel Points.
The Pros (The Dream)
1. Free Travel: The obvious one. Sign-up bonuses (e.g., 100,000 points) can be worth $1,500+ in flights. If you spend money you were going to spend anyway, it is free money.
2. Lounge Access: Cards like the Amex Platinum or Chase Sapphire Reserve get you into airport lounges. Free food, free wine, and comfortable chairs make layovers bearable.
3. Travel Insurance: Premium cards cover you if your luggage is lost or your trip is cancelled. This alone can save you thousands.
The Cons (The Trap)
1. The Debt Trap: Interest rates on travel cards are insane (20%+). If you carry a balance of $1,000, you are paying $200/year in interest. That wipes out any rewards you earned.
2. Annual Fees: The best cards cost money ($95 – $695/year). You have to do the math to ensure you are getting more value than you are paying.
3. Spending Temptation: “I need to spend $4,000 in 3 months to get the bonus.” This leads to buying things you don’t need just to unlock points.
Kiran’s Take: The Golden Rule
I have flown business class around the world on points. But I follow one rule strictly:
If you cannot pay the balance in full every month, use a debit card.
Points are a game. The bank is the casino. The casino only loses if you are disciplined. If you slip up once, the house wins.
Conclusion
Credit cards are power tools. You can build a house with them, or you can cut your hand off. Use them wisely.
Want to travel for free? Read Travel Hacking Guide.
