25 Ways to Fail at Travel Rewards

Travel rewards make it easy to rack up points good for airfare, hotel stays and other travel expenses but that doesn't mean there aren't pitfalls to be aware of. Learn about the different ways your rewards strategy can go awry and how to get on the right path.

Travel rewards cards like the Chase Sapphire Preferred or Platinum Card from American Express offer an initial surge of points after you spend a set amount of money on your card within the first few months. If you fail to meet this requirement, you will miss out on this bonus altogether.

With the average credit card interest rate at over 15 percent, carrying a balance on your rewards card is a terrible idea. When you carry a balance, the rewards you earn from your card (generally in the 1-5 percent range) will almost always pale in comparison to your interest rate.

Paying your credit card bill late can mean paying hefty late fees that can eat away at your earning rate. Make sure to pay your credit card bill early every month to avoid additional charges and make the most of your rewards.

While travel rewards programs like United MileagePlus, World of Hyatt, Marriott Rewards and Southwest Rapid Rewards all let you earn free or discounted travel, make sure you choose a program that fits your travel style and goals.

Flexible travel credit you can earn with a card like the Barclaycard Arrival Plus World Elite MasterCard can be redeemed for any type of travel purchase at a rate of one cent per point. If you redeem points for travel without shopping around for the best price, you're wasting points for no reason.

While rewards programs like Chase Ultimate Rewards and American Express Membership Rewards programs let you redeem points for merchandise instead of travel, you'll typically get less than .05 cent per point if you choose this option. Stick to redeeming points for travel, cash-back or gift cards and avoid this poor value proposition.

Hotel loyalty programs like Starwood Preferred Guest and Hilton Honors let you book your fifth night free when you book with points in certain situations. Forgetting about this perk can cause you to miss out on free stays.

Hotels including the Hyatt Ziva Rose Hall and Hyatt Ziva Cancun let you book award stays for double occupancy but charge additional fees to bring your children. Make sure to check for extra person charges before you book an award stay.

Most of the top travel credit cards charge annual fees in the $49-450 range. Make sure you understand these fees and assess whether paying them is worth it to you before you sign up.

Some cards with big annual fees (think: Chase Sapphire Reserve or Platinum Card from American Express) offer lucrative perks like annual travel credits good for seat upgrades or flight incidentals. Failing to cash in on these perks is a shame, so try not to forget.

Cards like the Chase Sapphire Reserve, Platinum Card from American Express and Hilton Aspire Card come with airport lounge access as a cardholder perk. If you have one of these cards and forget to use it, you're missing out.

Some hotel loyalty programs offer special promotions that let you rack up more points for paid stays. IHG Accelerate, for example, lets you earn up to 50,000 bonus points or more for completing a specific combination of paid stays within a few months. Make sure to check for similar offers before you book or you could miss out.

While cash-back credit cards typically offer 1-2 percent back in the form of statement credits, you can usually earn a much higher rate of return with a travel credit card. If you want to travel, make sure you explore travel rewards card options and choose the right one for your needs.

Booking flights with airline miles can be stressful due to limited award availability on popular travel dates. If you wait to book until the last minute, you may not find the award space you want.

Many hotel loyalty programs limit their award space each night, meaning free room awards can run out fast. Booking early can help you book the free nights you want while waiting until the last minute almost guarantees free room awards will be gone.

Cards like the Hyatt Credit Card and IHG Rewards Club Select Credit Card offer free night awards on your cardmember anniversary. Forget to use this benefit and you're losing out on free hotel stays for no reason at all.

Before you start racking up hotel points with a co-branded credit card, make sure you know about redemption options available. Hotel brands don't always offer properties in every country or region, meaning you may not be able to redeem your points in your ideal travel destination if you don't check ahead of time.

Before you pursue airline miles, make sure the airline flies out of your home airport. Also, make sure the airline in question flies to the destinations you want to visit or at least partners with another airline that does.

If you have airline miles with several different frequent flyer programs, make sure to compare your options before you book a flight. Some programs may have better availability or require fewer points for your trip but you won't know unless you check.

While pooling all your miles with a single airline can make sense if you're familiar with their redemption process and use the airline frequently, it can come back to bite you if you don't find the award space you want.

Chase Ultimate Rewards and American Express Membership Rewards are renowned for their wide selection of transfer partners. If you don't take advantage of transfer partners, you could miss out on superior redemptions on flights and hotels.

Signing up for too many rewards cards at once can make meeting minimum spending requirements a chore but it can also cause a temporary drop in your credit score. Make sure to sign up for new cards sparingly to preserve your sanity and your credit.

While signing up for too many cards comes with consequences, you don't want to avoid new travel credit cards altogether. By signing up for new travel credit cards when they offer big signup bonuses, you can rack up a lot more points and miles over time.

Certain types of points (i.e. Chase Ultimate Rewards) never expire while some hotel points and airline miles expire if you don't use them within 12-24 months. Make sure you understand your rewards program and take steps to keep your points alive if they're about to expire.

While airline miles can cover the base price of airfare, you're still on the hook for government-mandated taxes and fees as well as fuel surcharges. Unfortunately, these fees can be in the hundreds of dollars for international flights with certain carriers. Make sure to research fees and compare options before you book.