When people first hear that they can take almost free vacations simply by opening a credit card, they think its a scam. They think we are simply telling them to open a credit card, put the cost of the trip on there, and then slowly pay off this debt. Traveling on points is NOT that at all.
Traveling on points and miles is a cycle of opening travel credit cards that give a high welcome bonus in the form of points or miles after you meet the minimum spend, and then using that welcome bonus to book nearly free vacations. You then repeat this process every 90 days. Points and miles can be used to book hotels or airfare, or both if you have accumulated enough.
Below are the most frequently asked questions I get asked:
1. What is a Minimum Spend?
A minimum spend is the required amount a credit card requires you to spend in order to receive the welcome bonus. Each card varies in the amount that is required to spend and in the length of time they give you to spend it.
2. Who is the points and miles lifestyle right for?
This lifestyle is right for people that meet the following criteria:
- Have a credit score of at least 720 so that you are approved for lucrative travel credit cards.
- Are financially responsible and will only spend what you know you can pay back in FULL at the end of the month.
- Are responsible in general and will remember to pay cards on time every month to keep your credit score healthy.
3. What happens to my credit score when I live the points and miles lifestyle?
Your credit score will initially decrease a few points due to the hard pull on your credit, BUT should increase in the long run due to having more available credit and because you are paying your cards off in full and on time. This will happen with each credit card you choose to open and that is why it is important to stick to the timeline below in order to keep your score healthy.
4. What are the rules I need to know?
- 90 day rule –Space out credit card applications by at least 90 days to keep your credit score healthy. You can of course wait longer than that, but it can never be less than 90 days.
- 5/24 – Chase will only approve you for 5 personal cards within a 24 month period. This includes cards from ANY bank, not just Chase. It is important to know this because the most desirable credit cards are Chase cards. Due to this, it is always best to prioritize Chase cards.
- 12 month rule – Keep all credit cards open at least 12 months before deciding what you do with the card. This keeps your credit card healthy. You’ll know it’s been a year once you see the see the annual fee post on your account again.
5. What is the best starter card?
The Chase Sapphire Preferred card is the THE standard starter card. It carries a $95 annual fee for 60,000 points (about $600 depending on how you use it). The minimum spend is $4,000 in 3 months. You will earn these points in the form of Chase Ultimate Reward points that can be a) cashed out for $600 (not recommended) B) used in their travel portal for a 25% boost-about $750 in travel (also not recommended) C) transferred to many travel partners that can stretch your points much farther for more travel adventures-easily about $800 at least (Recommended to take this option)
Keep up with me through Instagram @mamitravelswithpoints and DM me any questions you might have
If you plan on starting your points journey please use my credit card links located at the top of the wed page or in the link in my Instagram bio. It is a no cost to you way to support my blog and content.
