Points and Miles Crash Course for Beginners
How to Get Started with Earning Points and Miles Using Credit Cards
Earning points and miles with credit cards is one of the best ways to travel for free (or nearly free!). The process is simple and follows three key steps:
Sign up for a credit card that earns travel rewards
Meet the spending requirement for the sign-up bonus (SUB)
Redeem your rewards for travel!
Now, let’s break each step down in more detail.
Step 1: Signing Up for Travel Credit Cards
There are many travel credit cards on the market, each offering different types of rewards. Some cards earn transferable points, meaning the points belong to the bank and can be transferred to various airline and hotel partners. This flexibility allows you to maximize your rewards and find the best redemption options.
When redeeming points, you generally get more value by transferring them to airline or hotel partners rather than booking travel directly through the bank’s travel portal. This is because travel portals offer a fixed point value, whereas transferring points can unlock premium flights and hotel stays at a much better rate.
The Major Banks Offering Transferable Points
The five major banks that issue travel credit cards with transferable currencies are:
Chase (Ultimate Rewards)
American Express (Membership Rewards)
Capital One (Capital One Miles)
Citi (ThankYou Points)
Wells Fargo (Wells Fargo Rewards)
Understanding Bank Application Rules
Each bank has specific rules for approving new credit card applications. It’s essential to understand these rules to develop a sustainable credit card strategy.
For example, Chase’s 5/24 rule states that if you have opened five or more personal credit cards from any bank within the last 24 months, Chase will automatically decline your application. Business credit cards do not count toward this limit in most cases.
Other banks have their own restrictions, such as American Express’s "once per lifetime" rule for welcome bonuses. This means if you’ve had a specific Amex card before, you typically won’t qualify for the sign-up bonus again.
Understanding these rules helps you time your applications strategically, ensuring you maximize your rewards.
Step 2: Meeting the Spending Requirement for the Sign-Up Bonus (SUB)
Once you’re approved for a credit card, your next goal is to meet the minimum spending requirement to unlock the sign-up bonus (SUB). These bonuses typically offer tens or even hundreds of thousands of points if you spend a certain amount within a specified period (e.g., 60,000 points after spending $4,000 in three months).
Tips for Meeting the SUB Without Overspending
It’s important to only sign up for a credit card if you can meet the SUB through your regular spending habits. Avoid unnecessary spending just to earn the bonus, as that defeats the purpose of free travel!
Some strategies to meet the spending requirement responsibly include:
Using your new credit card for all everyday expenses (groceries, gas, dining, etc.)
Paying bills with your credit card (utilities, insurance, phone, streaming services)
Prepaying expenses (such as insurance premiums or gift cards for future purchases)
Covering large, planned purchases (home improvements, medical bills, tuition)
If you find yourself struggling to meet the requirement, consider splitting payments with family or friends and having them reimburse you.
Avoid Interest Charges at All Costs
To truly benefit from points and miles, never carry a balance month to month on your credit cards. Interest charges completely negate the value of any rewards you earn. Set up autopay for your statement balance to ensure you never miss a payment.
Keeping Track of Your Credit Cards
When you start signing up for multiple cards, it’s crucial to stay organized. I personally use a spreadsheet to track:
Application dates
Sign-up bonus requirements
Annual fees
Whether the card is open or closed
Commit to Keeping the Card for One Year
Most banks require you to keep a credit card open for at least one year before canceling. Closing a card too soon can result in clawbacks of your welcome bonus or even account shutdowns. American Express, in particular, is strict about this policy.
Step 3: Redeeming Your Points for Travel
Congratulations! You signed up for a credit card, met the spending requirement, and received your points. Now it’s time to redeem them for amazing travel experiences!
Why You Shouldn’t Hoard Points
Points and miles don’t earn interest, and over time, they lose value as airlines and hotels devalue their rewards programs. The best strategy is to "earn and burn"—accumulate points with a purpose and use them as soon as you find a great redemption.
How to Use Your Points
Transfer to Airline or Hotel Partners – This is often the best way to maximize value. Each bank has a list of transfer partners, such as:
Chase Ultimate Rewards → United Airlines, Hyatt, etc
American Express Membership Rewards → Delta, Hilton, etc
Capital One Miles → Air Canada, Choice Hotels, etc
Book Travel Through the Bank’s Travel Portal – If you can’t find a good transfer partner redemption, using the bank’s travel portal can be an alternative. Each bank assigns a specific value per point:
Capital One Travel Portal: 1 cent per mile
Chase Travel Portal: 1.25 cents per point (If you hold the Sapphire Preferred) or 1.5 cents per point (If you hold the Sapphire Reserve)
American Express Travel Portal: 1 cent per mile
Redeem for Statement Credits or Giftcards – Some programs allow you to redeem points for cash back, giftcards, or statement credits. While this is an option, it typically offers the lowest value compared to travel redemptions. An exception to this is Capital One’s travel eraser, which is still a good way to use miles at one cent per point.
Bonus Strategy: Player 2 Mode
Want to double your rewards? Consider Player 2 Mode, where you and a partner (spouse, family member, or close friend) each sign up for your own credit cards. This allows you to earn twice the points, book more flights and hotels, and even share points in some cases.
Example:
You sign up for the Chase Sapphire Preferred and earn 60,000 points
Your spouse signs up for the Chase Sapphire Preferred and earns 60,000 points
Now you have 120,000 points, enough for several domestic flights or luxury hotel stays!
By strategically combining efforts, you can accelerate your travel goals and take even more trips for free.
Final Thoughts
Earning points and miles through credit cards is an incredible way to travel for a fraction of the cost. By following these three steps—signing up for the right cards, meeting the spending requirements, and strategically redeeming points—you can unlock first-class flights, five-star hotels, and unforgettable experiences without breaking the bank.
Are you ready to start earning points and miles?
Next Steps:
✔️ Learn more about Player 2 Mode