Just as sure as Christmas will be on December 25 this year, you can bet on seeing plenty of articles this fall telling you how expensive holiday travel will be. 

As one of the busiest travel times of the year, it’s a near certainty that prices will rise with demand. That’s why it makes sense to use credit card rewards to defray the high cost of holiday travel. If that’s your plan, now is the time to start booking. 

Why summer is the ideal time to lock in your holiday travel

As heat waves sweep the US, winter may seem a long way off. However, now is the time to take your holiday travel plans seriously. 

Once fall arrives, the market for holiday travel will become more saturated, increasing travel costs. The market for flights using credit card rewards closely tracks the prices of flights in dollars. So when the dollar cost of flights increases, so too does the number of miles it takes to cover a flight. 

How to use credit card rewards to plan a winter holiday trip

By planning your award travel strategy, you can earn enough miles this summer to pay for your winter travel. If you were to apply for one or more travel rewards credit cards now that offer a generous welcome bonus, you should have time to complete the minimum spending requirements ahead of your holiday travel. 

For example, here are four credit cards that currently offer strong welcome bonuses:

• Capital One Venture Rewards Credit Card*: This card offers new applicants $250 to use on Capital One Travel in the first cardholder year and 75,000 miles after spending $4,000 within three months of account opening. That’s equal to $1,000 in travel. There’s a $95 annual fee for this card.
• Chase Sapphire Preferred® Card: This popular travel rewards card offers new applicants 60,000 points after spending $4,000 within three months of account opening. This could be worth $750 towards travel booked through Chase Travel℠, or potentially even more when transferred to travel partners like Southwest, United and Hyatt. There’s also a $95 annual fee. 
• Wells Fargo Autograph Journey℠ Card: This card’s welcome bonus is 60,000 points after spending $4,000 in purchases within three months of account opening — but you also earn 5x points on hotels and 4x on airlines, regardless of the brand. Like the others, there’s a $95 annual fee. 
• Southwest Rapid Rewards® Plus Credit Card: This card currently offers 50,000 points after spending $1,000 on purchases within three months from account opening. The annual fee for this card is $69.

CNET’S PICK

Intro Offer

60,000 bonus points

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠.

Annual fee

$95

APR

21.49% – 28.49% Variable

Intro Purchase APR

N/A

Recommended Credit

A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.

Good – Excellent

Rewards rate

1x
– 5x

5x on travel purchased through Chase Travel℠.; 3x on dining, select streaming services and online groceries.; 2x on all other travel purchases.; 1x on all other purchases.

Intro Offer

Earn 75,000 miles

Earn 75,000 miles once you spend $4,000 on purchases within the first 3 months of account opening, plus receive a one-time $250 Capital One Travel credit in your first cardholder year – that’s equal to $1,000 in travel

Annual fee

$95

APR

19.99% – 29.99% (Variable)

Intro Purchase APR

N/A

Recommended Credit

A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.

Good – Excellent

Rewards rate

2x
– 5x

Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options; Earn unlimited 2X miles on every purchase, every day.

Intro Offer

60,000 bonus points

Earn 60,000 bonus points when you spend $4,000 in purchases in the first 3 months – that’s $600 toward your next trip. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.

Annual fee

$95

APR

21.24%, 26.24%, or 29.99% Variable APR

Intro Purchase APR

N/A

Recommended Credit

A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.

Good – Excellent

Rewards rate

1x
– 5x

Earn unlimited 5X points on hotels; Earn unlimited 4X points on airlines; Earn unlimited 3X points on other travel and restaurants; Earn 1X points on other purchases

Now is the time to book an award trip with your credit card rewards

While it’s still possible to earn rewards toward your winter vacation or holiday travel, you’ve already got a leg up if you’ve stockpiled credit card rewards. But I always tell people that how you redeem your rewards is as important as how you earn them. 

There are two kinds of travel rewards points and miles, those that are transferable, and those that aren’t. Transferable rewards are those that can be moved to airline miles or hotel points.

These include:

• American Express Membership Rewards
• Chase Ultimate Rewards
• Citi ThankYou points
• Capital One Miles
• Bilt Rewards
• Wells Fargo Rewards

With these reward points, investigate if any of the airline or hotel partners will offer you the reservations you need, for a low number of points or miles, before transferring them.

You should also compare the number of points or miles needed when transferring with the number needed when booking through the card issuer’s travel agency. 

For example, Sapphire Preferred cardholders can redeem their points for 1.25 cents each for travel booked through Chase (thanks to the card’s 25% redemption bonus for travel through Chase Travel), or they can transfer their rewards to several different airlines. 

So if United is charging 15,000 miles for a flight that costs $150, you would be better off booking that flight through Chase for 12,000 points, rather than transferring 15,000 points to United. 

Nontransferrable rewards include those from Bank of America, U.S. Bank and Discover among others. To redeem these rewards, book your reservations through the card issuer’s website, or redeem them for statement credits toward the reservations you book yourself.

Avoiding debt

While it’s great to use credit cards to earn travel rewards, you should never go into debt while doing so. 
Earning travel rewards is best for those who avoid interest by paying their balances in full. All others should focus on reducing their interest payments while they pay down their debt. Even the most valuable rewards aren’t worth the additional cost of paying interest charges.

*All information about the Capital One Venture Rewards Credit Card has been collected independently by CNET and has not been reviewed by the issuer.