Using credit cards has its rewards when you follow the Ten Commandments of Points and Miles.  Follow these rules, and you will rack up more points and be able to travel more often!

 

1.  Pay Off Credit Cards Monthly

Travel is not free if you are paying interest.  Not paying off your credit cards monthly or paying late can also affect your credit card score.  It is important to have a good score so you can apply for and get approved for more cards.  We want all the points, which means maintaining good credit scores so you can get multiple approvals.  My credit card score has never been as high as it has been since I started using credit card points and miles.  Don’t believe the credit card myths that others tell you.

 

2.  Use 2-Player Mode

Get your spouse involved! We never make each other Authorized users. Instead, we refer the other person to the card. In doing so, we get a referral bonus and a signup bonus twice!  For example, when you sign up, the Chase Sapphire Preferred Credit Card has a bonus of 60,000 Ultimate Rewards as a standard bonus. If I sign up for the card and refer my husband, we’ll have 120,000 Ultimate Rewards, plus I’ll get 10,000 points for referring him!

 

3.  Meet Minimum Spend

The saddest thing is when we hear someone didn’t get their bonus points because they missed meeting their minimum spending by just a bit. Put everything on that card when you are trying to meet the minimum spend.  Use it like a debit card. We discuss all the items you can pay for with a credit card here. To be safe, go over that amount by a couple of hundred dollars. Chase has a tracker that lets you know how much you’ve spent so far and when you need to meet your minimum spend. It is super helpful!

 

4.  Use Organizational Sites

Use sites like Travel Freely and AwardWallet to stay organized. Travel Freely will track all the credit cards you’ve opened, when annual fees are due, and your Chase 5/24 status. Award Wallet will keep track of your point totals from all your loyalty accounts and when those points expire.  They make everything about being organized easier. 

 

5.  Use a Credit Card for ALL Spending

Quit using cash or debit cards!  You want all the points you can get. There are definitely some cards that will get you more points than other cards.  For instance, my American Express Gold Card gives me 4 points per $1 spent on groceries or dining.  I use that card in those instances. Even if you only get 1 or 2 points per $1 spent, it’s better than no points. It really does all add up! Not sure which card to use? Check out the CardPointers app, it’ll tell you which card is the best to use for a certain purchase.

6.  Review Cards When Annual Fees Post

Always review your cards when the annual fee is posted each year.  You have 30 days to decide if you want to keep your card after the fee posts and before it is due.  Is the annual fee worth it?  Do the benefits outweigh the fees?  I keep most of my hotel cards because the annual fee is less than 1/2 of the free hotel stay for most of them each year.  Travel Freely will let you know ahead of time when your annual fee posts, so you have plenty of time to decide if you want to cancel, keep, or downgrade the card.

 

7.  Know Some Basic Credit Card Application Rules

Be familiar with Chase Credit Cards and the 5/24 rule. It is usually best to apply for Chase cards first.

Know that you can usually receive the bonus on each  American Express Credit Card once. Occasionally, an AMEX card comes out with no lifetime rule, which is a nice surprise.

There are also some cards that you can cancel, wait 24 months, apply for, and get the bonus again.  I haven’t begun to run out of cards to apply for, and I have earned over 7 million points in the last seven years between my husband and I. Here are some general application rules. The Travel Freely Card Genie is great because it will only recommend cards that you are eligible for.

 

8.  Know That All Points are Not Created Equal

This is a huge points/miles commandment: Use points for their maximum earning power!  I could use 60,000 Chase Ultimate Rewards and get two $500 round-trip tickets domestically.  I could also use 60,000 Chase Ultimate Rewards and get a $4,000 one-way business class seat in lay-flat seats. What is worth more to you?  If you only plan to travel domestically, then doing the first scenario might be worthwhile.  I’d rather use my points in the second scenario, where my points are worth more money.

People often think that earning 2% on a credit card is great.  If I spend $3,000 on that card, I would get $60 back.  That is better than nothing.  I prefer to get 40,000-60,000+ points for that $3,000 minimum spend that I can use on a flight from $500 to $6,000.  Use and earn your points wisely.

If you see an offer for 100,000 Hilton Honors Points and another for 60,000 Chase Ultimate Rewards, your initial thought is that the 100,000 Hilton points seem better. Actually, Hilton points are valued at around 0.5 cents each, but the Ultimate Rewards are valued at 2 cents each.  I can find a reason for both in my portfolio, but, starting out, you might want to concentrate on those that are worth more.

 

 

9.  Remember That It Is All About Bonus Points

Getting points for all credit card spending is great.  Remember that continually adding bonus points increases your total points for travel.  If I just get 2-4 points for $3,000 spent, I will have 6,000-12,000 points.  If I get bonus points after meeting that $3,000 minimum spend, I will get those points PLUS the bonus!! That could mean 63,000 points! Don’t fall for the common misconception that you just need to open one card and put all your spending on that one card.

 

10.  Do It Again

Another good practice with credit card points and miles is this:  Do it again.  I continually try to sign up for new cards, meet the minimum spend, collect my bonus points, plan travel, and do it again.

 

Bottom Line

This is an amazing hobby, but to take it to the next level, you need to follow these 10 Commandments of Points and Miles. Please contact us at any time with questions!  Now, where are you planning your next trip?

 

Related Posts

Beginner’s Guide to Using Credit Card Points & Miles

Credit Card Points & Miles Misconceptions