Traveling with Points and Miles: Your First Steps

Ever dreamed of jet-setting to an exotic destination without breaking the bank? Traveling using points and miles can turn that dream into a reality! It might sound complicated at first, but with the right strategy, you can unlock free flights, luxurious hotel stays, and unforgettable experiences. Here’s a simple guide to help you get started.

Many people put all of their spending on a single credit card in an attempt to earn credit card points. However, there’s a more lucrative way to leverage the money you’re already spending. This strategy involves opening different credit cards to earn big signup bonuses (SUBs), so the points really add up fast!

1. Make Sure Your Finances Are Under Control

Traveling with points and miles works best when you open certain credit cards to take advantage of big SUBs. Basically, you’ll open a credit card with a large welcome offer, put all of your everyday spending on the card, and earn a bunch of points.

However – it’s never advisable to open new credit cards if you aren’t going to be able to pay off the balances. If you’re already in a lot of debt, you are only making the minimum payments on your cards, or are otherwise struggling financially, you’ll want to take care of your finances before you open your first travel credit card.

When deciding on a card, look at the Minimum Spending Requirement (MSR) and determine if this amount of spending is within your budget. If it will be a struggle to pay off that amount of money, choose a different card. There are many options out there for all budgets. Only open cards when you know you’ll be able to meet the MSR – otherwise you’ll miss out on a pile of points!

2. Take Time to Learn About Points and Miles

Think of points and miles as a kind of travel currency. You earn them through credit cards, airlines, or hotel loyalty programs, and you redeem them for flights, hotel stays, or other travel perks.

Different programs have different rules, but the goal is the same: turn everyday spending into memorable adventures.

Before deciding on your first card, think about the trips you’d like to take. Familiarize yourself with the airlines that fly to those destinations, and the hotel programs that are available there.

If you don’t have a specific destination in mind (or even if you do!), it’s wise to start by accumulating transferable points. Examples of transferable points are Chase Ultimate Rewards, American Express Membership Rewards, Capital One Venture Miles, and Citi Thank You Points. After you have built a stash of transferable points, you can branch out to hotel or airline-specific cards.

3. Get the Right Travel Credit Card

A good travel credit card is the cornerstone of any points and miles strategy. Many cards offer generous sign-up bonuses (think: 50,000 or more points just for meeting a minimum spending requirement in the first few months).

It’s often advisable to choose a Chase card as one of your first travel credit cards. The reason for this is because Chase will not approve you for any of their cards if you have opened 5 or more cards, from any issuer, in the past 24 months. So if you plan to open several cards, it’s a good idea to start with Chase, so you don’t get locked out of cards you really want.

Read more about the best travel credit cards for beginners here.

Some top options to consider:

• Chase Sapphire Preferred: Great for beginners, offering flexible points through the Chase Ultimate Rewards program.
• Capital One Venture X: Simple to use, with points that can erase travel purchases or transfer to airline partners, and airport lounge access benefits.
• Chase Ink Business Preferred Card: Great for small-business owners, with a large signup bonus, flexible points, and extra earnings on certain business purchases.

4. Involve Your Player 2 (P2)

If you have a spouse, significant other, or travel companion, you have the opportunity to earn even more points by referring each other to cards.

Most credit cards will have a referral bonus program, in which you’ll receive bonus points if you refer someone to sign up for a card through your link. You can really stack the bonuses by referring people to the cards you already have!

5. Focus on Transfer Partners

Many people think first about using their points to purchase flights or hotels through the credit card portal. However, there’s a much better way to get outsized value for your points!

Most travel credit cards let you transfer points to airline and hotel programs, often at a 1:1 ratio. This can unlock incredible value. For instance:

• Transfer Chase Ultimate Rewards points to United Airlines for a dream trip to Europe.
• Use Amex Membership Rewards to book a luxurious Singapore Airlines suite.
• Redeem Capital One miles with Emirates for a bucket-list flight experience.

Each credit card issuer partners with different airlines and hotel chains. You’ll want to become familiar with these partnerships, in order to get the most out of your miles.

6. Plan Your First Redemption

The best part of earning points and miles is spending them! Here are some trip ideas to inspire you:

• A weekend getaway: Use points for a free flight and hotel stay in a city nearby.
• An international adventure: Save up points for a round-trip flight to Europe, Asia, or beyond.
• Luxury travel: Splurge on first-class flights or five-star hotels that might otherwise be out of reach.

For example, 60,000 Chase points could get you a round-trip ticket to Europe in economy class. Or, if you’re feeling fancy, transfer points to Hyatt for a night at a high-end resort in the Maldives.

7. Stay Organized

As you collect points and miles, keep track of your balances and expiration dates. Apps like AwardWallet or Travel Freely can help you manage multiple loyalty accounts in one place.

8. Be Patient and Strategic

Traveling with points and miles isn’t an overnight process, but the rewards are worth it. Stay patient, focus on your goals, and make smart decisions about where to earn and spend your points.

Final Thoughts

The world of points and miles can feel like a maze at first, but once you get the hang of it, it opens up a world of possibilities. Start small—pick a travel credit card, focus on earning points, and plan a redemption that excites you.

Before you know it, you’ll be sipping cocktails on a tropical beach, soaring through the skies in business class, or exploring the streets of Paris—all without emptying your wallet. Now, isn’t that worth the effort?

What’s your dream trip? Let’s make it happen!