How to Make the Most of Your Credit Card Miles in 2021

With credit card miles, the value you get depends on how you use them.

Most of us didn't do a whole lot of traveling in 2020. If you have any unused credit card miles sitting around, you might be thinking about how to redeem them.

The tricky thing about miles is that the way you use them makes a big difference in what they're worth. Some redemptions could get you two or three times as much value as others. Follow these tips to get the best deal with your credit card miles this year.

1. Get reacquainted with your redemption options

When you haven't redeemed credit card miles for some time, it's smart to go over what your options are. That's especially important right now, because the card issuer may have added new redemption methods. Certain credit card companies started doing this during the pandemic to give cardholders other options besides just travel. One notable example is Chase with its Pay Yourself Back feature, a limited-time redemption for Ultimate Rewards points.

A quick refresher will help you figure out the best way to redeem your miles, whether or not you use them for travel.

2. Start shopping for travel as early as possible

Travelers are booking flights in record numbers, which means award tickets could get snatched up quickly. By getting an early start, you're more likely to book the travel you want and at the best price.

Shopping three to six months in advance of when you want to travel is a good approach. If you need to book something sooner, don't worry. It's often possible to find award tickets, even at the last minute. In that situation, the next tip will just be even more important.

3. Be flexible about when you travel

It's always much easier to use miles when you're open about your travel dates. Sometimes just trying dates one or two days earlier or later opens up better deals. I've seen it all the time when booking my own trips. One day has no award tickets available, or everything costs 60,000 miles. However, a day or two later, and there are award tickets for 30,000 miles.

Many airlines have a fare calendar that highlights the lowest prices, in cash and in miles, on each date. Make sure to use this if you don't have a firm travel date.

4. Search for one-way flights

Although travelers often search for round-trip tickets, one-way flights open up more booking options. You don't need to book your entire trip at once or even with the same airline. If you find a great deal on an outbound flight, you can get it. Then, you can keep looking for a return flight with that airline or a different one.

Not only does this give you more flexibility, it doesn't cost you extra. Airlines typically don't offer lower prices on round-trip flights when you book with miles. If the round-trip ticket costs 50,000 miles, one-way tickets likely cost 25,000 miles each.

5. Check back regularly for new deals

Award tickets can come and go, so if you haven't found one you like the first time around, keep trying. This is another tip I can attest to with firsthand experience. I've searched for award tickets before with no luck, then checked again a week later and found what I wanted.

To have the luxury of checking back later, you can't be in a hurry. That's another reason why it helps to start shopping a few months ahead of your trip, because you don't need to get everything booked right away.

6. Use credit card miles for more expensive airfare

Here's the general rule with award airfare -- the more it costs in cash, the better the deal is when you pay in miles. For example, an airline may offer:

• A domestic economy ticket for 20,000 miles or $200, for a value of $0.01 per mile
• A domestic first-class ticket for 50,000 miles or $1,000, for a value of $0.02 per mile
• An international first-class ticket for 100,000 miles or $5,000, for a value of $0.05 per mile

What's most important with miles is booking the travel you want. It doesn't make sense to hoard miles for an international trip that's years away.

It does make sense to maximize your miles with your current travel plans. If you're going on one trip within the United States and one international vacation, try to use your miles for the international airfare.

7. Don't let your miles expire

Miles often have an expiration policy. The good news is that miles tied to travel credit cards usually don't expire as long as the card is open. There are some rare exceptions, so check the rules for your credit card to see if you need to do anything to prevent your miles from expiring.

Your miles could expire if you decide to close the credit card. If you've thought about getting rid of your travel card, redeem your miles first so you don't lose them.

It takes a little time to learn the best ways to use credit card miles, but once you get the hang of it, you can use your miles to save lots of money when you fly.