The most important thing to consider before starting to use credit cards to earn points and miles is that you must be able to pay off your balances IN FULL every month. If you are not able to pay off your monthly balances in full, the interest charges negate the benefits of this hobby.

Let’s start our learning:

1. Step One: Think about the type of travel you envision in your future. What got you interested in learning about travel points? There is no right or wrong answer — some people want to save up their points for years to go on a dream luxury vacation, other people want to get their family to another city over the holidays. The best thing about the transferable points explained below is that they are useful on a variety of airlines and hotels, so almost all types of travel can be accommodated.
2. Step Two: Learn about Sign-up Bonuses. Sign up bonuses (known as “SUB’s”) are the easiest way to earn points quickly. In order to entice people to sign up for specific credit cards, banks will offer a welcome (SUB) bonus to new applicants. Typically, the bonus is in the form of points if you spend a specified amount of money within a certain number of months after receiving the new card (this is called the ”Minimum Spend”).  For example, you might be offered 60,000 bonus points if you spend $3,000 within 3 months. These SUB’s change often, so it’s important to apply using a referral link to the most current and best offer.  (we would love it if you would use our referral links!)
3. Step Three: Understand the different types of points.  There are primarily two different types of points that you can earn with credit cards: “Transferable” and “Branded”.
   • Transferable Points: The best cards to start with will earn points that can be transferred to many different airlines and hotels. The main points programs are Chase’s Ultimate Rewards and American Express’ Membership Rewards. (Could have a hyperlink here to the programs transferable partners). Why do we want to start earning transferable points? Because most of the time if you transfer your hard-earned points to an airline or hotel that you are going to use, you can maximize their value. For example, if you buy things on Amazon or use your point on the Chase or American Express Travel Portal your points are worth approximately 1-1.25 cents. By transferring the points to the cards transfer partners, you have a chance to value them at 2-4 cents (visit our Resources page to see a list of Chase Ultimate Reward Transfer Partners).
   • Branded Points:  These are points that specific to a hotel brand (eg; Hilton, Marriot, Hyatt) or an airline.  These points are more restrictive because they can generally only be used for that specific brand.
4. Step Four: Open One Credit Card to Start. The first card we typically recommend is the Chase Sapphire Preferred. This card earns the Chase Ultimate Rewards points which are transferable to many desirable airlines and hotels. In order to get the full benefits of the Chase point ecosystem, you need to have a “gateway” card, such as the Sapphire Preferred or the Sapphire Reserve. Having a gateway card allows you to convert the Ultimate Rewards points that you earn into the valuable transferable points explained above. Click here for more information regarding the current welcome offers and benefits of this card, as well as the application link.
5. Step Five:  Book a trip!  There are many ways to redeem your points and miles for flights and hotel stays.  We recommend downloading our “Beginner Guide” for more information.