Here's How to Get a Free Summer Vacation with Credit Card Rewards

From our earliest school days, U.S. children are taught to revere summer vacation. And as we age, join the workforce, and have our own children, that reverence lives on. All hail the summer vacation.

Unfortunately, there's an important part of the summer vacation that we, as adults, need to face that our childhood selves never did: the cost. As venerable as the Summer Vacation may be, it's definitely not cheap. The average vacation can range from $500 up to $3,000 or more.

That's where your credit cards come into play. With the right cards -- and a bit of finesse -- you can turn everyday purchases into a summer vacation worthy of those capital letters.

The mighty sign-up bonus

The fastest way to turn credit card rewards into free travel is through sign-up bonuses. One or two big bonuses on some good travel rewards cards can easily turn into a few free flights and several nights at a decent hotel.

Make sure you know at least a little about your travel plans before choosing a new card. The best bonus in the world isn't going to do you any good if it turns out you can't fly that airline or stay with that hotel brand (I made that travel rewards mistake and learned the hard way). If you're at all uncertain about your summer travel plans, stick with cards with transferable rewards that offer more flexibility.

Another thing to consider is that most sign-up bonuses have a spending requirement you need to meet -- usually within 90 days of opening your account -- in order to earn the bonus. The bigger the bonus being offered, the more you'll need to spend to earn it.

So, you're going to want to do a bit of strategizing. You need to not only pick the right cards, but you also need to open those cards at the right time to earn the bonuses. Ideally, you'll already have some larger purchases planned out that can help you hit the spending requirements naturally.

Pro tip: Never spend more than you can repay just to earn a bonus. The interest fees from a carried balance can easily cancel out any rewards you may earn.

Research, redeem, repeat

Of course, the strategizing isn't over once you've gotten your bonuses. With your digital wallets full of points and miles, the real work begins. Now it's time to plan.

The thing that most folks (myself often included) gloss over when talking about free travel from rewards is that finding award space can be tough. And this is especially true if you're trying to travel during peak season or to popular destinations.

You may need to fly out of a different airport, stay at a lesser-known hotel, or otherwise compromise to find award space during the busiest travel times. The more flexible you are, the easier it will be to book your trip.

Choosing the right destination can also make a big difference. Traveling to less popular summer destinations makes everything less expensive, and it can also make award space much easier to find. For instance, hitting a popular ski resort in the summer means off-season pricing and lots of availability. Just be sure to research ahead of time to see what will be open.

Versatile points can save the day

As we noted above, the best way to give yourself extra flexibility in booking your vacation with rewards is to choose your rewards currency wisely.

Co-branded hotel and airline credit cards tend to earn points or miles good for only the brand in question. While this can be useful if you know you'll be flying that airline or staying at that hotel, it does limit your redemption options quite a bit.

If flexibility is important, stick with cards that have more versatility in how you can use your points. Travel cards with transferable rewards, for example, can usually be transferred to any of a dozen or more airline or hotel partners. And most transfers can be done instantly, or within a few hours, so you can find the exact redemption you want before committing your points.

Never transfer points until you're ready to redeem them. Transfers aren't reversible, so once you move your points, you're stuck with the result.

Turning your credit card rewards into an actual vacation takes some planning. But when you're enjoying your trip without worrying about being hit with big bills when you get back -- well, that's worth every minute you put into making it happen.