Beginner's Guide to Points & Miles
Transform everyday spending into extraordinary travel experiences with our complete guide to getting started in the world of points and miles.
Welcome to the World of Points and Miles
If you've ever wondered how some travelers seem to jet off to exotic destinations in business class while staying in luxury hotels—all without breaking the ban—you've come to the right place. The secret lies in strategically earning and redeeming credit card points, airline miles, and hotel points.
This comprehensive guide will walk you through the essentials of points and miles, from selecting your first rewards credit cards to booking your dream vacation. You'll discover how everyday purchases can unlock extraordinary travel experiences with the right approach.
Don't worry if it seems complex at first—we'll break everything down into simple, actionable steps. Whether your goal is a domestic weekend getaway or an international adventure in a premium cabin, the journey to travel rewards starts here.
In This Guide:
Fundamentals of Points & Miles
Before diving into specific cards and strategies, let's establish a solid foundation of the key concepts in the points and miles world.
Sign-up Bonuses
These welcome offers are the fastest way to earn a large chunk of points quickly. Most premium cards offer substantial bonuses after meeting a minimum spending requirement within a specific timeframe (typically 3-6 months).
Example: Earning 60,000 points after spending $4,000 in 3 months could be enough for a round-trip flight to Europe.
Earning Categories
Cards offer different earning rates across spending categories like dining, travel, and groceries. Strategically matching your spending habits with the right cards maximizes your points earning potential.
Example: Using a card that earns 4X on dining can generate 8,000 points from $2,000 of annual restaurant spending.
Point Values
All points are not created equal. Values vary by program and how you redeem them. Transferable points (like Chase Ultimate Rewards) typically offer the highest value through transfer partners.
Example: 50,000 points might be worth $500 as cash back, but $1,000+ when transferred to an airline partner for a business class seat.
The Golden Rule of Points and Miles
Never carry a balance or pay interest on your rewards credit cards. The interest you'll pay will always exceed the value of points earned. Only venture into this hobby if you can pay your statement in full every month.
Types of Rewards Programs
Understanding the different types of rewards programs will help you build a more effective strategy. Each has distinct advantages depending on your travel goals.
| Program Type | Examples | Flexibility | Typical Value | Best For |
|---|---|---|---|---|
| Transferable Points | Chase Ultimate Rewards, Amex Membership Rewards, Capital One Miles, Citi ThankYou Points | Highest | Varies by transfer partner, typically 1.5-2.5 cents per point | Travelers seeking maximum flexibility and value, especially for premium cabin international flights |
| Airline Miles | United MileagePlus, Delta SkyMiles, American AAdvantage | Medium | 1.0-2.0 cents per mile, higher for premium cabins | Frequent flyers loyal to specific airlines or alliances |
| Hotel Points | Marriott Bonvoy, Hilton Honors, World of Hyatt | Medium-Low | 0.5-2.0 cents per point, varies widely by program | Frequent hotel guests or those planning extended stays |
| Cash Back | Citi Double Cash, Chase Freedom Flex, Discover it | High | Fixed at 1 cent per point | Simplicity-focused beginners or those who prefer straightforward rewards |
Pro Tip for Beginners
Start with transferable points programs like Chase Ultimate Rewards or American Express Membership Rewards. They offer the most flexibility as you learn what redemptions work best for your travel style.
Best Starter Credit Cards
Your first rewards cards should offer a strong combination of valuable welcome bonuses, useful earning categories, and reasonable annual fees. Here are three excellent options to start your journey.
Chase Sapphire Preferred® Card
Chase
$95
60,000 Ultimate Rewards points after spending $4,000 in 3 months
3X on dining and online groceries, 2X on travel, 1X on everything else
- Points transfer to 14 airline and hotel partners
- 25% more value when redeeming through Chase Travel Portal
- $50 annual hotel credit
- Primary rental car insurance
- No foreign transaction fees
American Express® Gold Card
American Express
$250
60,000 Membership Rewards points after spending $4,000 in 6 months
4X at restaurants and U.S. supermarkets (up to $25,000/year), 3X on flights, 1X on other purchases
- Points transfer to 20+ airline and hotel partners
- $120 annual dining credit
- $120 annual Uber credit
- No foreign transaction fees
- Various travel protections
Capital One Venture X Rewards
Capital One
$395
75,000 miles after spending $4,000 in 3 months
10X on hotels and rental cars booked through Capital One Travel, 5X on flights, 2X on everything else
- Miles transfer to 15+ airline and hotel partners
- $300 annual travel credit
- 10,000 anniversary bonus miles
- Priority Pass Select membership
- Airport lounge access (Capital One Lounges)
Starting Strategy Recommendation
For most beginners, we recommend starting with the Chase Sapphire Preferred as your first rewards card. This is partly due to Chase's "5/24 rule," which restricts approval for their cards if you've opened 5 or more personal credit cards in the last 24 months.
The Sapphire Preferred offers an excellent balance of a strong welcome bonus, reasonable annual fee, valuable transfer partners, and versatile redemption options. It's the perfect foundation for your points strategy.
Suggested Next Steps After Your First Card:
- Meet the minimum spend requirement naturally (without overextending your finances)
- Learn about the card's transfer partners and redemption options
- After 3-6 months, consider adding a complementary card that covers different bonus categories
Maximizing Everyday Spending
Once you have the right cards, the key to accumulating points quickly is optimizing which card you use for different types of purchases. Here's how to maximize your everyday spending.
Grocery Shopping
- American Express Gold Card
4X points at U.S. supermarkets (up to $25,000/year)
- Chase Freedom Flex
5% cash back on rotating categories (often includes grocery)
- Blue Cash Preferred Card from Amex
6% cash back at U.S. supermarkets (up to $6,000/year)
Dining Out
- American Express Gold Card
4X points at restaurants worldwide
- Chase Sapphire Reserve
3X points on dining worldwide
- Capital One Savor Cash Rewards
4% cash back on dining
Travel Expenses
- Chase Sapphire Reserve
3X points on travel (after $300 travel credit)
- Capital One Venture X
10X miles on hotels and rental cars, 5X miles on flights booked through Capital One Travel
- Platinum Card from American Express
5X points on flights booked directly with airlines or through Amex Travel
Everyday Spending
- Capital One Venture
2X miles on all purchases
- Citi Double Cash Card
2% cash back (1% when you buy, 1% when you pay)
- Chase Freedom Unlimited
1.5% cash back on all purchases (more in bonus categories)
Beyond Card Spending: Additional Ways to Earn
Shopping Portals
Earn extra points by starting your online shopping through airline and credit card shopping portals. This simple extra step can earn you 1-15+ additional points per dollar spent at many retailers.
Dining Programs
Link your credit cards to airline and hotel dining programs to automatically earn bonus points when dining at thousands of participating restaurants. This stacks with your card's regular earning.
Promotions & Bonuses
Keep an eye out for limited-time promotions like spending bonuses, transfer bonuses between programs, and targeted offers that can significantly boost your earnings.
Organization Tip
Create a simple "cheat sheet" listing which card to use for common spending categories. You can keep this in your phone's notes app or wallet until it becomes second nature.
Beginner-Friendly Strategies
As you become comfortable with your first rewards card, consider these proven strategies to expand your points earning potential.
The Chase Trifecta
Maximize Ultimate Rewards by holding the Chase Sapphire Preferred, Freedom Flex, and Freedom Unlimited. This combination gives you broad category coverage and allows you to pool all points under your Sapphire account.
Key Benefits:
- Premium travel benefits with the Sapphire Preferred
- 5% rotating categories with Freedom Flex
- 1.5% base rate on all purchases with Freedom Unlimited
- All points can be transferred to travel partners through Sapphire Preferred
American Express Ecosystem
Build a collection of complementary Amex cards (like Gold + Blue Business Plus) to earn valuable Membership Rewards points on nearly all spending categories.
Key Benefits:
- 4X points on dining and groceries with Gold Card
- 2X points on all other purchases with Blue Business Plus
- Premium travel benefits and statement credits
- Access to valuable Amex transfer partners
Cash Back Foundation
Start with no-annual-fee cash back cards that align with your top spending categories, then later graduate to premium travel cards when you're ready.
Key Benefits:
- No annual fees to worry about
- Simple, straightforward rewards
- Build your credit history and relationship with issuers
- Transition to more complex strategies when comfortable
Guidelines for Responsible Card Management
Pay statements in full every month
Never carry a balance—interest charges will always outweigh the value of points earned.
Track application dates and annual fees
Use a spreadsheet to monitor when you applied, when annual fees are due, and when you earned bonuses.
Space out applications
Wait 3-6 months between new card applications to minimize credit impact and ensure you can meet spending requirements.
Set up automatic payments
Avoid late fees and negative credit impacts by setting up automatic payments for at least the minimum due.