What are Credit Card Points and why do i want them?
Credit card points are more than just rewards — they’re your key to nearly free vacations, upgrades, and more
FAQ: Credit Card Points
This is the biggest reservation for most people, and here’s the thing, opening multiple credit cards actually raise your credit score. I know that seems counterintuitive, but keep reading.
Here’s what to expect:
- When you open a new card, you might see a small, temporary dip in your score (usually around 5 points).
- This dip recovers quickly as you continue to manage your accounts responsibly.
What really impacts your credit score is:
- The age of your oldest line of credit (so don’t close your oldest card!)
- Your credit utilization ratio — how much credit you’re using compared to your total available credit. THIS IS THE REASON YOUR CREDIT SCORE USUALLY GOES UP!
Having multiple credit cards can increase your total available credit, which often lowers your utilization and boosts your score. Since you have more available credit, and you’re still spending the same as you were before, your credit utilization is lower, resulting in a higher score!
Always pay your balances in full and on time to keep your credit healthy and make the most of your travel rewards.
You earn credit card points from sign-up bonuses and every day spending on eligible credit cards.
They allow you to book travel on points, instead of cash, for an incredible value.
The simple answer – credit card points opened up opportunities we never believed were possible.
If you want to take bucket list trips, but don’t have the budget (I’m a teacher, I am in this boat), credit card points make those trips possible.
Even if you have the budget for one of those trips, credit card points then allow you to take multiple trips a year. Why would anyone pay for flights or hotel if they don’t have to?
For many travel partners, there are no blackout dates when redeeming your credit card points. This means you can often book the flights or hotels you want without worrying about restricted travel dates.
However, some popular destinations or properties may require you to book well in advance — sometimes 8 to 12 months ahead — especially during peak travel seasons. Planning early helps ensure availability and the best use of your points.
Once you’ve met your minimum spend and earned your sign up bonus, you have a few options:
- Option One: Refer a spouse or travel partner (also known as Player 2)
- Option Two: Continue to use your card and maximize the earning categories
- Option Three: If you’re past the 90 day mark since you opened the credit card, it may be time for another credit card. Not sure which one to get? Fill out a free credit card consult here. If you know which one you want, click here to select some of my favorite credit cards.
While cash back might seem like the easiest option, it isn’t usually the best option.
For example, cash back usually values your points at 1 cent each — so 60,000 points = $600. But if you transfer those same 60,000 points to a travel partner like Hyatt, you could easily get $1,200–$2,000+ in value for hotel stays.
We just stayed in Maui for 29,000 points per night. The hotel cost $700 per night. I could have taken $290 cash back OR I could redeem 29,000 points for my stay. So if you 700 / 29,000, I earned 2.4 cents per point. A way better deal than 1 cent per point if I took cash back.
So while cash back isn’t a bad option, if you’re looking to stretch your points and take incredible trips for less, transferring your points is usually the smarter move.
Should I Get an Airline Card or a Flexible Travel Card?
A flexible points credit card is one that transfers to multiple partners. Whereas an airline credit cards only earns for that particular airline.
Sometimes airline credit cards make sense, but not all the time (earning rates are usually lower, and it locks you into one airline, which may not have the best deal for the trip you’re taking).
Here’s a good example: Take the Chase Sapphire Preferred. It earns flexible points that can be transferred to 11+ airline and hotel partners, including Southwest, United, JetBlue, and more. This gives you the freedom to choose the best flights based on availability and price — instead of being locked into one airline.
Flexible travel cards also give you better earning potential – Let’s use the Chase Sapphire Preferred as an example:
- 3x points on dining, online grocery, and streaming with Sapphire
- Compared to most airline cards that only earn 1x point per dollar on everyday purchases
That means you’ll earn points faster — and be able to book free travel sooner — just by using your card for the things you already buy. If you’re not sure what credit card is right for you, please fill out the free credit card consult, and I can recommend a credit card based on your individual situation.
✅ Airline cards = nice perks like free bags and priority boarding
✅ Flexible cards = more points, more partners, more free travel
It’s totally understandable to be hesitant about annual fees. But here’s the thing: travel credit cards with annual fees are so worth it.
If someone offered you $1,000 if you gave them $95, would you do it? I mean I would, and that is how you have to think of annual fees.
And $1,000 of value is actually a pretty low estimate for a lot of credit cards. You can get way more than $1,000 of value from most credit card sign-up bonuses.
Yes! There are so many credit cards out there, you will not run out of cards to open AND there are a ton of cards you can open again and again (usually with a 24 month space in between.
Within the past few years, we’ve redeemed over $75,000 worth of travel. If someone would have told me I could have done this ten years ago, I would have told them they were crazy.
Here’s the wonderful thing about credit card points, you can do it to fit your lifestyle. Here are some options:
- Dive in full throttle and maximize sign-up bonuses, earning categories, and referrals to travel frequently. I’m talking someone in the household is opening a credit card every 90 days.
- Or you can dabble in it, maybe the household opens two credit cards a year, and you redeem the credit card points for free flights or free hotels.
Whether you want to travel often or just score occasional trips, this method can be sustainable and flexible — designed to work for you.
HAVE EVEN MORE QUESTIONS ABOUT CREDIT CARD POINTS?
If you’re ready to start earning free travel through credit card points and miles, be sure to check out the Beginner’s Guide. You can also follow me on Instagram for real-time tips, travel inspiration, and insights I don’t always share on the blog.
View this profile on InstagramJess • Teacher of Points and Miles • Family Travel (@teachertravelsonpoints) • Instagram photos and videos
Ready to learn more about how credit card points can unlock free travel?
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