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We have noticed a common credit card points and miles misconception among beginners.  Many people think it is about getting that perfect credit card and putting all your spending on that card. That is a great first step. But that is what it is: a first step. With that strategy, you can probably get a free trip every now and then. If you really want to travel for free more often, like every year or a couple of times a year, you need to repeat that step over and over again.

Getting One Credit Card

Let’s say you follow our advice and get the card_name. Those 75K Chase Ultimate Rewards® you’ll earn from the welcome offer can get you some amazing free travel. You may think the best strategy is to continue spending on that card. If you spent about $2,000 per month on it, and assuming your average points earned on it are 2 points per dollar spent, you would earn about 48K points at the end of the year. (The Chase Sapphire Preferred® Card earns 5 points per dollar spent on travel booked through Chase Travel℠, 3 points per dollar for dining, online grocery, and streaming services, 2 points per dollar on travel, and 1 point per dollar spent on all other purchases.) At the end of your first year, you would have about 120,000 points. That could certainly get you domestic flights, a couple of flights to Europe, and/or a few nights in a hotel.

The following year, you would have about 25,000 to 50,000 points without another welcome offer. This is probably enough for a couple of domestic flights or some hotel nights. But you can do even better!

Getting Several Cards Each Year

Now let’s try a different strategy: getting a few cards each year. Again, you opened the Chase Sapphire Preferred® Card and earned a 75,000-point welcome offer. Then you referred your spouse to the same card and earned a 15K referral bonus. Your spouse then earned the 75,000-point welcome offer, too. Together you now have 165K+ Chase Ultimate Rewards®, and it probably took you about six months to meet your minimum spending on both cards.

Let’s say you want to use your points to transfer to Hyatt for some amazing free hotel award nights, so maybe you will get an airline credit card next. card_name has a welcome offer of 60,000 miles, so you apply for that. Then you refer your spouse to the same card and get a referral bonus of 10,000 miles. They get the 60,000 miles, too, and you now have 130,000 United miles. (You will actually earn more than that because of your spending to meet the requirement. I’m just keeping it simple for this example, though.)

Now you’ve earned over 295K points for the year. You can do a ton of traveling with that!

Now you just continue that every year, choosing the best cards to help you meet your travel goals. Believe me, there are so many credit cards to apply for. I have earned over 6,000,000 points during the last four years and have not run out of cards yet. And I continue with a credit score of about 830. Putting your normal spending on a credit card to get points and miles for nearly-free travel will not ruin your credit score. That is a credit card myth! Just be sure to pay your balances in full and on time each month, and go at a pace that works for your household’s normal spending habits. 

Bottom Line

There is no right or wrong way to earn and use credit card points and miles. I just wanted to clear up a common credit card points and miles misconception that you will earn enough points to take amazing vacations each year with just one credit card. If you want to travel for nearly free repeatedly, plan on applying for new cards a few times a year.

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