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Last Updated: February 14, 2024

Introduction to Points & Miles

Using points and miles to travel for practically free can be a complicated process, but it doesn’t have to be! Here, I’m breaking down the most frequently asked questions about how I take my family on yearly vacations and pay next to nothing. Let’s dive in!

1. What is Points & Miles Travel or Award Travel?

Points and Miles travel, or award travel, refers to the process of earning points and miles and redeeming them for free or deeply discounted travel—including flights, hotels, rental cars, and tickets to local attractions (like tickets to Disney or Universal Studios).

Credit cards offer very lucrative sign-up bonuses in the form of points or miles, that you can then redeem for travel. To earn the sign-up bonus, you have to spend a certain amount on the card within a certain time frame (often 3 months), called the “minimum spend.” (Example: Earn 50,000 points after you spend $1,000 in 3 months). Once you meet your minimum spend requirement, the points or miles are deposited in your credit card account or your airline/hotel loyalty account. You can then redeem those points and miles to travel for free or almost free.

2. Why Should I Use Points and Miles to Travel?

Let’s face it. Travel (the normal way) is expensive. And for most people, it either just feels out of reach or requires you to sacrifice making progress toward other financial goals. With points & miles, you don’t have to be rich or have a lot of money to travel well and frequently. Award travel allow you to travel for practically nothing, freeing up your money to meet other financial goals—like paying off debt or investing toward a work-optional future and early retirement.

I was instantly hooked on award travel when I realized I didn’t have to sacrifice my financial goals to travel well and travel often with my family.

3. What are the Basics of Using Points and Miles to Travel?

Using credit card points and miles to travel for free doesn’t have to be complicated. Here’s how to do it, in a nutshell:

1. Apply for a credit card that is offering a valuable sign up bonus

2. Meet the minimum spend requirement and collect the sign up bonus

3. Once you have the points, redeem them to book vacations (flights, hotels, rental cars, tickets to area attractions) for practically free.

4. Repeat!

4. What’s The Number One Rule of Award Travel?

Never carry a balance and never pay interest! Pay your cards off on time and in full every month. If you don’t, it negates the benefits you earn from using points and miles in the first place.

5. How High Does My Credit Score Need To Be To Successfully Use Points and Miles to Travel?

To be approved for most credit cards, you’ll want to have a credit score of at least 670, with 720 or above being your best bet for approval. I use Credit Karma to track my credit score for free. If your score is below this threshold, I’d recommend taking some time to work on improving your score before diving in to award travel.

6. Will Using Points & Miles Lower My Credit Score?

It’s a common myth that award travel will lower your credit score. In reality, the “hard pulls” on your credit when you apply for a card might slightly impact your score briefly, but it’s one of the smaller contributors to your overall credit score.

Your credit score is comprised of: 35% payment history, 30% amount owed, 15% length of credit history, 10% new credit, and 10% credit mix.

After you’ve been doing this for a while, your score will actually improve because your payment history and amount owed together make up for 65% of your score.

I’ve been using points and miles to travel since 2019 and my credit scores are still above 800.

7. What About the Annual Fees? Are They Really Worth It?

Not every credit card comes with an annual fee, but the ones that do have fees that typically range from $69-149, with the premier cards being as much as $695. Often, the benefits that come with the card more than justify the annual fee. For example, I’m using my Chase Sapphire Preferred® Card, which carries a $95 annual fee, to stay at the Thompson Central Park Hotel in NYC this year. That stay costs $1,800+ if paid in cash, but will be completely free on points. Is it worth it to me to pay $95 to get $1,800 in free travel? Absolutely!

This year, I have $13,185 in free travel booked already and more on the way! I’m paying $533 in annual fees for the cards that are making it happen. That amount of free travel more than justifies the annual fees for me! I’d happily pay $533 for $13K+ in travel!

8. Do Annual Fees Count Toward the Minimum Spend?

Remember, the minimum spend is the amount you must spend on the card within a certain time frame (usually 3 months) to earn your sign up bonus. The annual fee does not count toward the minimum spend. Make sure you don’t factor in the annual fee when determining whether you’ve spent enough to meet your minimum spend. You don’t want to miss out on a valuable sign up bonus by making this mistake!

9. Do Balance Transfers Count Toward the Minimum Spend?

No! Balance transfer don’t count toward your minimum spend requirement.

10. When Does the Minimum Spend Clock Start Ticking?

The time to meet your minimum spend requirement begins when you are approved for the card—not when it arrives, not when you activate it, and not when you make your first purchase on the card. If you are ever unsure about how long you have to meet the minimum spend, call the bank which issued you the credit card and confirm.

11. Do You Have Any Tips for Meeting the Minimum Spend?

Yes! First, pick a card with a minimum spend you know you can meet with your normal, everyday spending. Then, make a plan to meet your minimum spend by the deadline. Here are some tips:

• Remember that some things don’t count toward the minimum spend. Those include annual fees, balance transfers, interest payments, & returned purchases.

• Put ALL your expenses on the card until you meet your minimum spend

• Ask someone you trust (mom, sister, bestie) to pay their regular bills on your card and then Venmo you

• Always pick up the tab when you’re out with friends on your card, and then have them Venmo you

• Buy gift cards to places you regularly shop & Visa gift cards and then shop with those cards with expenses arise

• Wait to sign up for a card when you know you have a large upcoming purchase like property taxes or annual car and life insurance premiums

12. What Card Should I Start With?

My favorite card for beginners is the Chase Sapphire Preferred® Card. I’ve written an entire blog post here about why this card is the best, but in a nutshell, I love the points this card earns because they can be transferred to Chase’s travel partners and used for flights, hotels, rental cars, and tickets to area attractions. They are so valuable and so versatile! I also think it’s a good idea to start with this card because of the Chase 5/24 Rule, described below.

13. What’s the Chase 5/24 Rule?

In order to be approved for a Chase card subject to the 5/24 Rule, you cannot have opened five or more personal credit cards across all banks in the last 24 months. This means you have to have only opened 4 cards (or less) within the last 24 months to be approved for a Chase card subject to the 5/24 Rule. The 5/24 Rule only applies to getting approved for cards issued by Chase, BUT the 5/24 credit card count includes credit cards issued by ANY bank (including Amex credit cards, Capital One cards, Citi Bank cards, store credit cards, etc).

Most personal travel cards count toward your 5/24 count. Many business cards, however, don’t, with a few exceptions. Business cards only count toward 5/24 if they are from TD Ameritrade, Discover, or Capital One. A good rule of thumb, then, is to apply for business cards in between personal card applications to ensure you stay under Chase’s 5/24 Rule.

If you are ever unsure whether a card issued by Chase is subject to the 5/24 Rule, I give all that info on each card here. And, you can check your 5/24 status before applying for your next card by reviewing your credit report.

14. How Do I Decide What Card to Get Next?

Credit card sign-up bonuses change frequently, and I like to apply for cards when the sign up bonus has been increased. I keep you updated on all the best current credit card offers in my highlights on Instagram (@thatdebtfreelife) under Card Offers. You can also check all my favorite cards here or send me a DM on Instagram for a free consultation on helping you decide what card will be best for you.

15. How Often Should I Wait Between Credit Card Applications?

Applying for too many credit cards too quickly can lead to automatic denials—regardless of your 5/24 status. I recommend applying for cards once every 90 days at most. This will increase your odds of approval. Some banks, like Chase, will not approve you for more than 2 new accounts within 30 days, sometimes referred to as the 2/30 Rule. So, if you’re too excited for that next card and just can’t wait 90 days, then for best odds of approval, wait at least 30 days between card applications.

16. What Do I Do With My Card After I Earn my Sign-up Bonus?

Some people are tempted to close their cards immediately after earning a sign up bonus or before they’ve had the card for at least one year to avoid paying that annual fee. Don’t do this—ever—under any circumstances! Some banks, American Express especially, “clawback” the sign up bonus if a card is closed before the first card anniversary. Some banks will just deny you for future cards if you close before having the card at least a year, especially if they believe you are trying to take advantage of them. So, you must keep your cards open at least 12 months and always wait until that annual fee hits before closing it.

After you’ve earned your bonus and kept the card open for at least 12 months, you can

• Keep the card, continue to pay the annual fee, and continue to accumulate points for your everyday spend on the card

• Downgrade to a no annual fee version of the card, if there is one

• Call the bank and ask for a retention offer (a bonus or perk of some sort they will give you to encourage you to keep the card open)

• Cancel the card

17. Will I Lose My Points if I Close My Card?

This depends on the type of credit card you have and there are 2 main categories:

(1) Co-Branded Cards, which are cards between a bank and an airline or hotel. The Southwest Rapid Rewards® Priority Credit Card issued by Chase, which earns Rapid Rewards points, is an example. Generally speaking, you won’t lose points earned from co-branded cards. This is because the points reside in your loyalty account—not your credit card account. So, for example, all Rapid Rewards points you earn with the Southwest Rapid Rewards® Priority Credit Card are stored in your Rapid Rewards account with Southwest. You can cancel the card without losing those Rapid Reward points (just remember to keep the card open for at least 12 months, as discussed in Question 16, above).

(2) Non-Co-Branded Cards, which are cards issued by a specific bank with no partnership with an airline or hotel. The Chase Sapphire Preferred® Card, which earns Chase Ultimate Rewards, is an example of this type of card. If you cancel this type of card, you will lose your points. That’s because those points are tied to the credit card account and owned and controlled by the issuing bank. To prevent that from happening, you can transfer your points to someone else (see Question 24, below) or to one of the credit card’s travel partners.

If you have any questions about losing your points before canceling your card, send me a DM on Instagram @thatdebtfreelife.

18. Should I Add My Spouse as an Authorized User to My Card?

Generally, I recommend against this. Here’s why: (1) Your spouse won’t earn a sign up bonus from being added as an authorized user. And that’s the whole point of signing up for credit cards in the first place! (2) You won’t earn a referral bonus. You can refer your spouse (or friends and family or internet strangers) to the same credit cards you have and earn a referral bonus once they are approved. Referral bonuses are often between 10,000 - 20,000 points per referral and are a great way to maximize your points earning strategy. Most cards limit referrals to 5 per card per year. (3) Authorized user accounts typically appear on personal credit reports. That means they will be counted toward the authorized user’s 5/24 status. (See Question 13 for the 5/24 Rule). Burning up a 5/24 slot and not even earning a sign up bonus for it? That’s a hard pass for me!

Note: Even if your spouse is an authorized user on a particular card of yours, it won’t prevent them from signing up for the same card in their name. For example, if I applied for the Chase Sapphire Preferred® Card and added my spouse as an authorized user, he can still apply for a Chase Sapphire Preferred® Card in his own name and earn a sign-up bonus. There is no need to remove him as an authorized user from my card first.

19. Can I Earn the Same Credit Card Bonus More Than Once?

Generally, yes, but the rules vary depending on which bank issues the card. American Express, for example, typically only allows you to earn a welcome offer for a card once per lifetime (though data points suggest that really means once every 7-10 years). Most Chase cards, on the other hand, allow you to earn a sign-up bonus once every 24 months. Thus, if it’s been more than 24 months since you earned a sign-up bonus on a Chase card (not since you opened the card), you can close or downgrade the card, wait 30 days, and sign up and earn the bonus again. The Chase Sapphire Preferred® and Chase Sapphire Reserve® cards allow you to earn a new sign-up bonus every 48 months. If you have a question about whether you can earn another sign-up bonus on a particular card before applying for it, check out the rules for the card here.

20. Do I Qualify for a Business Card?

You probably do! It’s easier to qualify for a business card than you may think. If you have any type of side hustle that generates income (dog walking, baby sitting, selling things online, etc.), you likely qualify. Your business doesn’t need to be incorporated, you don’t need an LLC, and you don’t need a business license. You also don’t need employees and your business doesn’t even have to be profitable yet. You can apply as a sole proprietor with your social security number.

Here are some things they may ask you on a business card application:

21. Can you put personal expenses on a business card?

Check the terms and conditions or cardmember agreement of the particular card at issue. If you do put personal expenses on a business card, you’ll want to keep track of your business expenses to make things easier for you when tax time rolls around.

22. Is There a Way to Earn Points Without Signing Up For Credit Cards?

Yes! The obvious way is to earn points without credit cards is by paying cash for flights and hotel stays. If you travel frequently for work, this is a great way to rack up extra points on the company’s dime. For the rest of us, there are still a few lesser known ways to earn points without signing up for more credit cards. They include using online shopping portals, signing up for dining programs, and referring your friends and family to the credit cards you already have.

Shopping Portals. Did you know that every major airline has its own online shopping portal? Each one will award bonus points based on your purchases made through the portal. They typically offer more points per dollar of spend than you would earn shopping outside the portal. For example, the Southwest Airlines Rapid Rewards Shopping Portal sometimes offers 4 points per $1 of spend on Clinique products. If you purchased from Clinique directly with your Southwest card, you’d only earn 1 point per $1 of spend. Shopping portals can be a great way to boost your points earning—as long as you aren’t tempted to buy things you don’t need.

Dining Programs. Dining programs are another great way to earn additional points without signing up for a credit card. All major airline and hotels have dining programs. You simply sign up with the program, register any debit or credit card, and use it at participating restaurants. You’ll then earn additional points with each qualifying purchase. Many programs also often offer a first time bonus. The Southwest Rapid Rewards Dining Program, for example, offers a first time bonus of 1,000 extra points after you spend $25 in 30 days and submit a review.

Referrals. Did you know you can earn mega points by referring your friends and family to the cards you already have? These referral bonuses are often 10,000 - 20,000 points each, but most cards limit you to 5 referrals per card per year. It can be a great way to earn a chunk of points without spending a ton of money. My husband and I always refer each other to the cards we have to earn as many points as possible. To refer your friends and family, simply look for your personalized referral link in your credit card app.

23. What’s a Player 2 or 2-Player Mode?

Player 2 is your points & miles partner—someone you team up with to enjoy double the sign-up bonuses and benefits. My husband is my Player 2. Whenever a really good credit card offer comes out, I apply for it and earn the bonus. Then I refer him, earn a referral bonus, and he applies for the card and earns the bonus. In this way, we are able to enjoy double the bonuses!

We did this recently when Marriott was offering 5 free night certificates as a sign up bonus. We both applied and earned 5 free night certificates each, totaling 10 free nights of hotel stays for us to use and enjoy!

24. Can I Pool My Points Together With My Family And Friends?

Generally, yes. Most credit card issuers allow you to pool your points together with others, but there are rules specific to each issuer/loyalty program. The rules for the four major banks are below:

American Express. American Express does not allow you to transfer your American Express Membership Rewards to others. You can, however, transfer points to the loyalty program of an authorized user—if they have been an authorized user on the account for at least 90 days.

Capital One. You can transfer unlimited Capital One miles to any other Capital One cardholder. There are no limits on the number of points you can transfer and no expiration dates to worry about. To make the transfer, simply call Capital One.

Chase. Chase’s transfer rules are a little more restrictive than the other major banks. Chase only allows you to transfer your Chase Ultimate Rewards to members of your household or your business partner. In the past, you were able to transfer points online. Now, however, you have to call Chase to make the transfer.

Citi. You can transfer your Citi ThankYou Points to anyone who has a ThankYou Rewards account—you don’t have to be related, live in the same household, or be business partners. But! The points you share with someone else expire 90 days after transfer, so don’t transfer unless you have a clear plan to redeem them soon. Citi also limits you to transferring 100,000 points per year. The transfer request can be submitted online or by calling Citi’s ThankYou Service Center.

25. How Long Does It Take to Accumulate Enough Points to Take a Trip?

Depending on where you want to go, how long you want to stay, and how many people you’re taking, you can often cover your hotel or flights with just a single credit card sign-up offer. Since the minimum spend period on most cards is 3 months, you usually have 3 months to meet the spend and collect the bonus. Assuming one bonus will cover flights, and one bonus will cover hotels, you should be able to accumulate enough points for your first trip in 6 months—even less if you can meet the minimum spend before the 3 months is up or if a single credit card offer can cover both your flights and hotel.

26. How Many Points Do I Need to Take a Vacation?

Before you even apply for a card, you can get a good idea of how far the points will take you by searching online. You can look up points needed for flights and hotel stays with every major hotel chain and carrier.

For example, this Hyatt Regency in London is only 9,000 Hyatt points/night. My favorite credit card for beginners typically offers 60,000 points as a sign-up bonus. And, points from this card can be transferred to Hyatt. That’s enough points for 6 nights in London on one single credit card bonus!

27. Do Points Ever Expire?

It depends on the points—each of the major banks and loyalty programs have their own policies when it comes to points expiration. Many points never expire as long as your account remains open and in good standing—including Amex Membership Rewards, Capital One Miles, Chase Ultimate Rewards, and Citi ThankYou Points. Southwest Airlines Rapid Rewards points also never expire, and its just one of the many reason I love flying Southwest. (Same goes for United & Delta). Hilton, Marriott, Hyatt, & American Airlines points expire with 24 months of inactivity. You can always call the number on the back of your card or the number for your airline/hotel loyalty program if you’re unsure about your points expiring.

28. Can You Explain About Transferring to Travel Partners?

Each major bank has a list of its own travel partners—hotel chains and airlines you can transfer your points to. You can often get way better deals by transferring your points to the travel partners, instead of booking your travel directly through the bank’s online travel portal. Most points transfer at a ratio of 1:1 and most transfers are instant.

But, transfers to travel partners are one-way. Once you transfer them, you can’t get them back. So be sure to have a plan to redeem those points before you transfer them. Check for hotel/flight availability before you transfer. And, only transfer the number of points you need to complete your booking.

29. What Cards Does @thatdebtfreelife Personally Use?

I talk about my complete credit card arsenal in this post. It lists every card I’ve ever applied for and how I use them strategically to earn the most points. (It doesn’t, however, mention all the cards my husband has and uses - I need to update that!)

30. How Do I Learn More About Traveling Using Points & Miles?

Follow @thatdebtfree life on Instagram for all the latest points & miles content and keep coming back to the blog for more info. You can always send me a DM on Instagram, and I’m happy to answer any award travel questions you have.

Happy travels!!

Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel airline, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included within the post.

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