Miles and Points 101: Which Travel Credit Cards Should Beginners Get First?
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Now that we’ve covered the basics, let’s talk about the different types of miles and points and which travel credit cards you may want to consider first.
Not all points work the same way. Some can only be redeemed with one airline or hotel program, while others can be transferred to several travel partners. Understanding the difference will help you choose the right credit cards for your travel goals.
AIRLINE MILES - Airline miles are earned through an airline’s loyalty program or a co-branded airline credit card, such as the Chase Southwest Rapid Rewards® Priority credit card.
These miles can only be redeemed through that airline’s program. They cannot be transferred to another airline, although you may sometimes be able to use them to book flights operated by an airline partner.
Airline credit cards may also include benefits such as free checked bags, priority boarding or discounts on inflight purchases.
HOTEL POINTS - Hotel points are earned through a hotel loyalty program or co-branded hotel credit card, such as the Chase Marriott Credit Card or the American Express Hilton cards.
These points can be redeemed for stays within that hotel program and generally cannot be transferred to another hotel or airline. Hotel cards may also include benefits such as elite status, late checkout and an annual free night award.
TRANSFERABLE POINTS - Transferable points are the most flexible (and my favorite) type of travel reward.
You can transfer these points to participating airline and hotel loyalty programs or redeem them through the bank’s travel portal. Some programs also allow you to use points to cover eligible travel purchases.
Popular transferable rewards programs include:
Chase Ultimate Rewards®
Capital One miles
American Express Membership Rewards®
Citi ThankYou® Points
Bilt Points
For example, Capital One Venture miles can be transferred to travel partners, used through Capital One Travel or redeemed to cover eligible travel purchases.
We paid for six flights, two weeks of hotels, and train travel through six countries with points alone!
BEFORE YOU START: MILES AND POINTS GUIDE
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The minimum spend is the amount you must charge to a new credit card within a certain period of time to earn the welcome bonus.
For example, a card may offer 75,000 points after you spend $5,000 in the first three months. Once you open the card, use it for your regular expenses until you meet that requirement.
Before applying, make sure you have a plan to meet the minimum spend without buying things you don’t need. You should always pay your balance in full. Credit card interest can quickly cancel out the value of the points you earn.
Read my 10 ways to meet a credit card minimum spend for ideas using expenses already in your budget.
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An annual fee is the amount you pay each year to hold certain credit cards. Many travel cards charge an annual fee in exchange for benefits such as travel credits, airport lounge access, elite status or an annual hotel free night award.
The annual fee typically appears on your first billing statement and does not count toward the card’s minimum spending requirement.
During the first year, I consider the annual fee a small price to pay for a valuable welcome offer. At each card anniversary, I decide whether to keep, cancel or downgrade the card based on the benefits I actually use.
For example, I’ve kept my World of Hyatt Credit Card since 2015. It has a $95 annual fee and includes a Category 1–4 free night award each year. I consistently use that award to book hotel rooms that would have cost more than $350 per night.
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Before applying for your first travel credit card, it’s important to understand bank credit card application rules. Each bank has its own rules that may affect whether you’re eligible for a card or its welcome offer.
The most important one for beginners is the Chase 5/24 rule. If you have opened five or more personal credit cards across all banks within the past 24 months, Chase will generally not approve you for most of its cards.
That’s why I usually recommend starting with Chase cards before using your available 5/24 spots with cards from other banks. Approval is never guaranteed, even when you meet a bank’s application requirements.
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Two-player mode is when you and your spouse or partner both apply for travel credit cards and earn your own welcome offers. This is one reason our family has been able to use points to travel to places like Europe with four kids.
Our strategy is simple: I apply for a card and earn the welcome bonus. Then, if a referral offer is available and makes sense, I refer my husband to the same card. He earns his own welcome bonus, and I may also earn referral points.
We alternate applications instead of both applying at the same time. This helps us manage minimum spending requirements and spaces out the hard inquiries on each of our credit reports.
Each person must apply separately, qualify for the card and be responsible for paying the balance in full.
Which Travel Credit Cards Should Beginners Get First?
There is no single credit card strategy that works for everyone. Your first cards should depend on where you want to travel, which airlines serve your home airport and how much you are comfortable paying in annual fees.
However, this is the general order I recommend for many beginners.
Card One: Chase Sapphire Preferred or Chase Sapphire Reserve
I recommend starting with one of the Chase Sapphire cards because Chase Ultimate Rewards points are flexible and relatively easy for beginners to use.
Choose the Chase Sapphire Preferred if you want a lower annual fee and straightforward travel benefits. Consider the Chase Sapphire Reserve if you travel frequently and will use its premium benefits and credits.
Chase points can be transferred to airline and hotel partners, including United, Southwest, Air Canada, Air France-KLM, Virgin Atlantic and World of Hyatt.
The card that I recommend for all beginners is the Chase Sapphire Preferred® Credit Card.
The current offer is 75,000 Ultimate Rewards Points for $5,000 spend in 3 months.
With 75,000 Chase points you can:
Book one to two round trip flights to Europe
Book two round trip domestic flights
Book a one-way flight to Europe/Asia/Africa in Business Class
Book 3-4 free nights at a Category 1-4 Hyatt hotel anywhere in the world or two free nights in a $1,000 a night room at a Hyatt hotel in Paris, London, NYC, etc.
Card Two: Capital One Venture rewards or capital one Venture X
Next, I would consider the Capital One Venture Rewards or Venture X Rewards card.
Both earn 2X miles on everyday purchases and allow you to transfer miles to airline and hotel partners. You can also use your miles to cover eligible travel purchases, which is helpful for expenses that can be difficult to book with traditional airline miles or hotel points.
Capital One can be sensitive to recent credit inquiries and newly opened accounts, which is why I recommend applying for a Capital One card relatively early.
Choose the Capital One Venture Rewards credit card if you want a lower annual fee. Consider the Capital One Venture X Rewards credit card if you travel frequently and will use its annual travel credit and airport lounge benefits.
You can read my guide to this card and why I love it so much here.
Card Three: Choose a Card for Your Travel Goal
Your third card should fill a specific need in your travel plan.
Consider:
A Chase Southwest card if you frequently fly Southwest or want to work toward the Southwest Companion Pass.
A Chase United card if United is useful from your home airport or you want additional United benefits.
A World of Hyatt card if you frequently redeem Hyatt points and can use its annual Category 1–4 free night award.
A Marriott, Hilton or IHG card if one of those hotel programs works better for your planned destination.
I always recommend applying for these airline and hotel cards when they have a higher than normal welcome offer.
Stacy’s Tip:
You don’t need a wallet full of credit cards to travel with points. Start with your travel goals, then choose cards that fit your home airport, family size, and budget. One or two well-chosen welcome offers may be enough to help pay for your next family vacation.
Before applying, have a plan for using the points and meeting the minimum spend with purchases you already planned to make. Always pay your balance in full.
Ready to get started? Join my Facebook group or Instagram page to ask questions and learn alongside other travelers.
Happy Travels!
Stacy