I Get It—Now Just Tell Me What to Do!
You’ve heard all the chatter about credit card points and miles. Your friends, family, and even strangers at the coffee shop are raving about how they’re flying first class for free and staying in luxury hotels. It’s time to stop wondering and start doing. If you’re ready to dive in, here’s your step-by-step guide to earning points and miles, no matter where you’re starting from.
I Have No Credit, What Do I Do?
Become an Authorized User
One of the easiest ways to start building credit is by becoming an authorized user on a parent’s or trusted family member’s credit card. This lets you piggyback on their good credit history without needing your own card. For instance, if your mom has a Chase Freedom Flex, being an authorized user will allow you to begin building your credit score, making it easier to apply for your own card later.
Start with a Basic Credit Card
Once you have some credit history, the next step is applying for a basic starter credit card. Look for cards that don’t have annual fees and offer straightforward rewards. The Discover it Secured Card is a good option—though it requires a security deposit, it helps you build credit while earning 2% cashback on dining and gas. The Capital One Platinum is another good starting card, offering no rewards but designed for building credit, with a chance for a credit limit increase after six months of responsible use.
Open a Bank Account
Sometimes, opening a checking account with banks like Chase or Bank of America can increase your odds of getting approved for one of their credit cards. Many people receive pre-approved offers from these banks simply by being a customer, thanks to the relationship you’ve built with the institution. For example, customers of Chase may find themselves pre-approved for the Chase Sapphire Preferred, one of the most popular travel rewards cards.
I Already Have a Credit Card
Assess Your Monthly Credit Card Expenses
Before applying for new cards, evaluate your monthly credit card spending. This helps you determine whether you can meet the minimum spending requirements for a sign-up bonus. For instance, if you spend around $1,500 a month, you should be able to hit the $4,000 spending requirement in three months to earn the 60,000-point bonus on the Chase Sapphire Preferred.
Define Your Travel Goals
Think about whether your upcoming trips will be domestic or international. This can help you choose the best credit card for your needs. If you’re planning a trip within the U.S., a co-branded airline card might be ideal. However, for international travel, consider a card with transferable points. For instance, the Chase Sapphire Preferred allows you to transfer points to partners like British Airways or Air France-KLM, making it a great option for a European vacation.
Estimate the Points You Need
Next, research how many points you’ll need for your trip. Online resources can give you sample points requirements for flights and hotels, helping you set a clear goal for how many points to accumulate.
| Class | Destination | Points Required | Details |
|---|---|---|---|
| Economy | Hawaii | 15,000 Turkish Airlines Miles | Fly round-trip to Hawaii in United economy class using Turkish Airlines Miles. Transfer from Bilt Rewards, Capital One, or Citi ThankYou. |
| East Coast to London | 20,000 Virgin Atlantic Points | Round-trip in economy from the East Coast to London. Transfer from Amex Membership Rewards, Bilt Rewards, Capital One, or Citi ThankYou. | |
| Business | Asia | ||
| First Class |
Choose the Right Credit Card Based on Your Goals
Now that you know your travel goals and spending habits, choose a card that matches them. If you spend heavily on dining and groceries, consider the American Express Gold, which offers 4x points in those categories. On the other hand, the Chase Sapphire Preferred provides 2x points on travel and dining, making it a versatile option for both domestic and international travel.
Leverage a Dual Card Strategy if You’re Married
If you’re married and planning to travel with your spouse, you can maximize your points by both applying for the same card. For example, if you and your spouse each get the Chase Sapphire Preferred, you could collectively earn 120,000 points after meeting the spending requirement. This gives you a significant boost toward booking your flights or hotel stays.
A Few Examples
| Type of Traveler | Monthly CC Expense | One-Year Travel Plan | Suggested Cards & Strategy |
|---|---|---|---|
| Single Traveler | $1,000 | Domestic travel (multiple short trips within the U.S.) | – I fly the major three airlines, therefore I can get a Chase card for flexible points to transfer to airline partners – I like southwest and live near a hub therefore I can get the Southwest Airlines credit card. |
| Couple | $2,500 (combined) | Planning Umrah next year | Both apply for American Airlines AAdvantage cards to earn 80,000 miles each. Use points to fly Royal Jordanian (RJ) through AA, which offers affordable Umrah flights. |
| Family of Four | $3,500 | Yearly family vacation (domestic and international) | Chase Sapphire Reserve for hotel stays and United Explorer for flexible flight options; transfer Chase points to United for better redemptions and use points for international flights. |
Bonus Tips for Maximizing Points and Miles
Timing is Everything
Strategically apply for new credit cards when you anticipate large expenses, such as a home renovation or big trip. This helps you meet the minimum spending requirements to earn those valuable sign-up bonuses more easily.
Use Online Shopping Portals
Maximize your points by using online shopping portals provided by credit card issuers. These portals offer bonus points when you shop through their links, giving you extra rewards on purchases you’d make anyway.
Track Your Progress
Staying organized is key. Use tools like spreadsheets or apps to track your points balances, monitor expiration dates, and ensure you’re meeting spending requirements for bonuses.
