Hey reader,
Credit card points might seem confusing, but it's really quite simple:
Accumulate points --> use those points to book flights and hotels for free
(You can even use points on Airbnb and VRBO - more on that later!)
A common misconception about credit card points is that you have to spend a lot of money on credits cards to earn a lot of points.
While that is ONE way to get points (if you have a million dollar business, for example) ANOTHER way is to accumulate points through the sign up bonuses. That's how this all works!
Get The Most Points In Sign Up Bonuses
As I'm sure you've seen on TV commercials or heard over the speaker on flights, credit cards offer great sign-up bonuses to entice people to get cards.
The best way to accumulate points is to get a new card and spend the dollar amount to get the bonus, usually between 60,000 up to 150,000 points when you spend a certain amount within the first months of opening the card.
Once you've met the bonus, you set that card aside and apply for another one. Or if it's a good card, you can keep using it for the categories it's good for (dining, groceries, etc.)
Start slowly
Doing 2-3 cards a YEAR is totally normal! If you try to do them too quickly it can get overwhelming, so just get one, take a break, get your partner the same card, and let your points bank up.
When I first learned about travel rewards, I did not like the idea of signing up for so many cards. It went against the minimalism and simplicity I valued.
However, I've learned that if I go slowly and use a card tracker it's not so bad. The pros definitely outweigh the cons! And I'm slowly learning which cards to use when to really maximize points. There is really no rush!
What about annual fees?
While annual fees are not fun to pay, most of the cards that have them have perks that offset the fee.
The best all around travel card has a $95 annual fee, but it comes with a $50 hotel credit and plenty of other perks.
The Capital One Venture X has a $395 annual fee, but you get a $300 hotel credit so it is like having a $95 fee. This card has extra perks like a TSA Precheck reimbursement and Priority Pass lounge access too. And you get 10,000 points on your anniversary worth $100 so you come out $5 ahead if you use all your perks!
The rewards gained should usually cancel out the fee above and beyond. If you decide you are done using a card, don't cancel it. Just call the company to do a product change to a card without a fee.
Stay organized
I use the Travel Freely card organizer app (it's FREE!) to keep track of the cards I get. It even recommends the next card for you. Check it out here.
We'll cover how to spend the points you accumulate in another lesson!
Kath
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Kath Eats Real Food ✽ Charlottesville, VA
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