Travel blogger Nomadic Matt says he has earned “more free flights and free hotel stays than I can count” by collecting points and miles, and he argues that anyone who skips the habit is paying far more for trips than necessary.
The idea is simple enough. You sign up for travel credit cards and collect card points, hotel points or airline miles, then cash them in for free flights, upgrades, hotel stays and ground transport. The hard part is where to start. There are hundreds of cards, each with its own pros and cons, and plenty of beginners freeze at the first question: which one?
Start with a goal
His first advice is to decide what you want. A family trip to Disney World? A seat in a Singapore Airlines first-class suite? Free hotel nights in New York, an overwater bungalow for a honeymoon, flights for a round-the-world trip? Pick one, and keep it specific. “If you go into points and miles without direction, you’re going to get lost,” he writes.
The goal then points to the card. A loyal American Airlines flyer should begin with an AA-branded card, which jump-starts the balance and brings perks such as free checked bags and priority boarding. Someone heading to Europe on a United partner wants a card that earns United or Star Alliance points. A hotel-chain devotee takes that chain’s card. For points to spend anywhere, he points to Chase, Citi, Capital One or American Express, whose points work with many travel companies.
What to look for in a card
He is blunt that you cannot collect enough points without a credit card. The best ones usually carry an annual fee, so the card has to return more value than it costs. He says a call threatening to cancel can often get the fee waived in later years. His checklist:
A welcome bonus you can actually reach. Typical offers run from 40,000 to 60,000 points, sometimes 100,000, and often equal the cost of a round-trip flight. Most require a minimum spend, usually within the first three months. If you cannot meet it, wait. A big purchase or a holiday can help, or you can put a restaurant bill on your card and have friends pay you back.
Category bonuses. Most cards pay one point per dollar, while good ones pay two, three or even ten at restaurants, supermarkets, gas stations and other categories. He lists the Chase Sapphire Reserve at 3x, the Capital One Venture X at 2x and the Hilton Honors American Express at 7x at Hilton.
No foreign transaction fees, and a low annual fee.
The questions beginners ask
Pay the balance every month, he says, because card interest will wipe out any gain from points. Bad credit is not a barrier, but start with a prepaid or secured card and build up. Applying for a few cards over time dents a score slightly with each inquiry but does no lasting harm if applications are spaced out and bills are paid. He says he holds dozens of cards, opens and cancels them regularly, and his score is excellent.
Non-Americans can play too. Canada, the UK, Australia and most of Europe have similar cards, and a local airline or bank is the place to start asking. To keep track of balances, he recommends tools such as point.me.
