Traveling on Points FAQ's
What is the Points Earning Cycle?
The points cycle is the opening of 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 free or nearly free vacations. This process is repeated in a cycle done every 90 days or more, depending on your personal preference. It is how people in the points and miles world build up a bank of points and earn free vacations.
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. Each card varies in the amount that is required to spend and in the length of time they give you to spend it.
Who is this right for?
It is right for people that meet the following criteria:
- Have a credit score of at least 720 so that you are approved for 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 health
What happens to my credit score when I do this?
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.
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.
- 5/24 – Chase will only approve you for 5 personal cards within a 24 month period. It is important to know this because the most desirable credit cards are Chase cards. Due to this, it is always best to start with Chase.
- 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 may choose to cancel the credit card AFTER it has been opened 12 months.
What about all the annual fees?
You will have to pay annual fees, there’s no going around it. Fees vary depending on the card you choose to apply for. In the first year the welcome bonus will more than offset the annual fee (You pay a $95 annual fee but get $600 in a welcome bonus to fund your travel is a no brainer)..
What should I do with my credit cards after I get the bonus?
You have 3 options:
- Keep the card because you love the benefits
- Downgrade the card to the free version so that you can keep the credit line open and keep your credit score exactly as is
- Cancel the card all together
What is player 1 and player 2 mode?
You can earn points faster if you use a 2 player strategy. These people can be spouses, family members, or friends. It is simply the person you want to pool your points with so that you can travel together. Player 1 usually opens a credit card, meets the minimum spend and gets the bonus, refers player 2 for a referral bonus to open the same credit card, and player 2 meets the minimum spend to also get the welcome bonus. Using this strategy you will have 2 welcome bonuses and a referral bonus to help pay for your vacation.
What is the best starter card?
The Chase Sapphire Preferred Card is THE standard starter card because it is THE card that allows you to pool Chase points together AND because it is the card that allows you to transfer all of these points to travel partners. It is a $95 annual fee for 60,000 points ($600 cash). 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 (not recommended) B) used in their travel portal for a 25% boost C) transferred to many partners that can stretch your points much farther for more travel adventures (Recommended to take this option)
