A $22 Trip to Hawaii? How I Did It With Credit Card Rewards

Booking a vacation to Hawaii for two can cost thousands of dollars between flights, hotel stays, rental cars and activities. For some, this type of trip could be too pricey. But credit card rewards can make it possible for a fraction of the cost.

I know because I used my credit card rewards to book a Hawaiian getaway as a surprise for my mom. It would have set me back about $5,300 but rang up to only $22.40. Various credit card rewards programs covered all but taxes and fees on the airfare.

A tropical escape would be the perfect gift for my mom, who retired in March 2019, after working nearly 40 years at a national phone company.

Of course, using rewards from multiple credit cards to book trips big or small isn't for everyone. If you want to give it a try, here's how I planned this $22 Hawaii trip.

[Read: Best Rewards Credit Cards.]

How Did I Use Credit Card Rewards to Book a Dream Vacation?

Credit card issuers offer rewards programs to entice consumers to sign up for cards and use them often. With some of the top travel credit cards on the market, you can qualify for a sign-up bonus worth hundreds of dollars and receive rewards on every purchase, plus travel perks. Sign-up bonuses can help you earn cash or points toward rewards for any trip.

I've been collecting credit card rewards through sign-up bonuses and everyday purchases for years, using the spoils to explore the country. For the trip to Hawaii, planning early and being flexible were key as I plotted each part:

Flights. Shortly after my mom announced her retirement, Southwest Airlines began selling tickets for its new trans-Pacific routes to the Hawaiian Islands. I bought two tickets from Salt Lake City to Maui for 57,046 Southwest Rapid Rewards points.

I obtained the points in 2017 when I redeemed 270,000 Marriott Rewards (now Marriott Bonvoy) points for a seven-night Marriott hotel certificate and 120,000 Southwest Rapid Rewards points.

I had earned the Marriott points in two years by:

-- Applying for the since-discontinued Marriott Rewards Premier Business Credit Card, now the Marriott Bonvoy Business American Express Card, which offered 100,000 points as a sign-up bonus.

-- Applying for the Marriott Rewards Premier Credit Card, now the Marriott Bonvoy Boundless Credit Card, which gave me 80,000 points as a sign-up bonus.

-- Transferring 30,000 points from my Starwood Preferred Guest rewards account at a 1-3 ratio to Marriott Rewards (now Marriott Bonvoy), giving me 90,000 points. I had earned the SPG points by using the Starwood Preferred Guest Business Credit Card from American Express.

Had I paid for the flights out of pocket, they would have cost $962.36. Redeeming my 57,046 points for the flights instead gave me about 1.7 cents of value per point. The average value of a Rapid Rewards point is 1.37 cents, according to U.S. News research.

Hotel stays. I booked a five-night stay at the Wailea Beach Resort on Maui using 200,000 Marriott Bonvoy points. The choice was between the resort, which sits on the beach, and another Marriott property further inland. The cost in points was the same, so I picked the one that was closer to the water.

I earned the points for the hotel stay partly by using my Marriott credit cards for everyday spending. I also applied for the Marriott Bonvoy Brilliant American Express Card, which offered a 100,000-point sign-up bonus at the time.

The cash price for the stay was $3,265, giving me a value of 1.63 cents per point. That's a stark contrast with the average value of a Marriott Bonvoy point: 65 cents.

My points did not cover daily resort and parking fees, which is typical of rewards travel. But I plan to pay for most, if not all, of those fees with the $300 annual credit from my Marriott Bonvoy Brilliant American Express Card. The credit can be used for eligible purchases at participating properties.

Rental cars. Co-branded credit cards that help you earn points and miles are common among major airlines and hotel brands, but rental car companies do not offer them.

For a free rental, use a general travel credit card that allows you to redeem your rewards for a range of travel expenses. I used the Barclaycard Arrival Plus World Elite Mastercard, which offered me 70,000 bonus miles after I spent $5,000 on the card in the first three months.

I found a six-day Mustang convertible rental through Costco Travel for 32,869 Arrival miles, charged at the end of the trip. The cash value of the rental was $328.69.

I've been using my card regularly since getting it earlier this year, so I have plenty of miles in my rewards account. If you don't, though, the card allows you to redeem miles for travel-related purchases up to 120 days after they post. This gives you time to charge expenses to your card and earn enough rewards to redeem them for your purchases.

Activities. Hawaii has plenty of free activities. But trying to make the experience more special, I paid for preferred seating at a luau at the resort and a six-hour snorkeling trip at Molokini Crater. I also booked one parasailing outing.

Among these three activities, the out-of-pocket cost was $729.46, which I paid for with the Barclaycard Arrival Plus World Elite Mastercard.

Once the charge posted, I logged into my online account and redeemed a statement credit for the transaction, effectively erasing it.

What Should You Know About Using Credit Card Rewards to Book Free Travel?

The idea of using credit card rewards to travel affordably is appealing, and it can create experiences that might not otherwise be possible. Before you try out rewards travel, here's what to keep in mind:

You need good or excellent credit. Most of the top rewards credit cards require good or excellent credit for approval. A good credit score starts at 670, according to the credit-scoring model FICO. That's no guarantee you'll get approved, though. Card issuers will look at your full credit report, and applying for multiple credit cards in a short period can make approval difficult.

Plan to meet spending requirements. Travel rewards card sign-up bonuses offer the fastest way to earn points that can take you places. But to qualify, you typically must spend a certain amount in the first few months you have the card. This amount varies by card but is usually in the thousands of dollars.

If you don't normally spend this, the sign-up bonus could be tough to earn. Check your budget before you apply for a card to make sure it's doable.

It requires responsible credit card behavior. Because your credit card isn't directly tied to your checking account, you could overspend. While credit card rewards are nice, they are not worth racking up debt.

Before using a travel rewards credit card, set up a monthly budget you can follow to prevent spending more than you had intended. Also, set a goal to pay off your balance on time and in full each month to ensure that interest charges aren't eating into the value of your rewards.

[Read: Best Airline Credit Cards.]

Be patient. Credit card issuers usually give cardholders a few months to meet the spending requirement for a sign-up bonus. That may be enough time to earn the miles and points for a free flight or hotel stay. But you may need longer to cover the cost of a full trip.

In fact, you may need several months or even a few years to earn enough points and miles to book a major vacation. Keep that in mind as you choose cards and think about how you want to use them.

You may have to pay annual fees. Many of the top travel rewards credit cards charge annual fees. If you've never had this type of credit card, you may be apprehensive about it.

Annual fees aren't inherently bad, though, and many cards offer enough value from rewards and perks to make up for their yearly cost. But you may need to do some math to make sure it's worthwhile for your situation.

Be flexible. Some credit card rewards programs feature a set value per point or mile, and other reward values fluctuate. The value of rewards from airline and hotel loyalty programs can vary based on when and how you redeem the rewards. For example, I more than doubled the average value of a Marriott Bonvoy point when I redeemed my points for a hotel stay.

As you start planning your trip using credit card rewards, be flexible with your destination and schedule, if possible, to see if you can squeeze the most value out of your hard-earned rewards.