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Points and miles are loyalty currencies you can earn from credit cards, flights, and hotel stays. Follow the six steps below, then use the guides linked in each step.
Reviewed Oct 2026
Step 1: What are points and miles?
Points and miles are the currencies of airline, hotel, and bank loyalty programs. You earn them when you fly, stay at hotels, or use a credit card that participates in a program. Bank points such as Chase Ultimate Rewards, Amex Membership Rewards, Capital One Miles, Citi ThankYou, and Bilt are transferable: you can move them to airline or hotel partners and then book awards. Co-brand miles such as Delta SkyMiles tend to stay inside one airline program and are hard to move to other brands. Marriott Bonvoy points can transfer to airline partners, but the trade is usually poor compared with flexible bank points. Value is not fixed. It depends on how you redeem the currency, so the same balance can stretch farther on some trips than on others. Compare an award with the cash price of the same trip using a cents-per-point mindset. Always check the live numbers on the issuer or program site before you decide. Points are not free money; they carry annual fees, interest if you carry a balance, and the opportunity cost of other uses for your money.
Step 2: How to pick your first travel credit card (check 5/24)
Start by checking your standing under Chase’s 5/24 rule before you apply for any card. Chase generally declines many of its cards if you have opened five or more personal cards from any bank in the past 24 months. Count how many personal cards you have opened from any bank in the past 24 months before you apply. Chase does not publish the rule, so treat it as a guideline. Once you know your count, choose a first card by looking at where you already spend, which airlines or hotels you would actually use, whether you would use any statement credits the card offers, and whether the annual fee makes sense for your travel pattern. Pay the balance in full each month; interest charges erase the value of the rewards. There is no single best first card. The right one depends on your spending categories, the partners you want, and how you plan to redeem. Read the current terms before you apply.
Step 3: How to earn points fast with everyday spending
You earn points through everyday spending in the bonus categories listed on your card, through welcome bonuses whose terms and spend requirements vary by offer, and through shopping portals or dining programs that add extra points on qualifying purchases. Track which categories earn more on each card so your regular spending lands in the highest available bucket. Shopping portals and dining programs are separate from the card itself; you usually click through or link an account before you buy. Keep the original terms of any welcome bonus handy so you know the deadline and the spend requirement. Always pay the statement balance in full so interest does not offset the points you earn.
Step 4: How to transfer points to airline and hotel partners
Transferable bank points can move to airline and hotel partners. Transfers are usually one-way and cannot be reversed, so search for award space on the partner site before you move any points. Some transfers post quickly and some take days; transfer bonuses appear from time to time and can change the amount that arrives. You typically need an existing account with the partner program before you can transfer. Once the points leave the bank, they follow the partner’s rules for expiration, redemption, and any taxes or fees. Compare the partner award with the cash price before you transfer. Worked example: you want a World of Hyatt free night. World of Hyatt publishes category-based award charts for free nights, so search on Hyatt’s site first and note the category for the stay you want. If it fits your plans, open or link a World of Hyatt account, then move Chase Ultimate Rewards to World of Hyatt from Chase’s transfer portal only after you have found space, because the transfer cannot be undone.
Step 5: How to book your first award flight or hotel
Search the program’s own site or a partner’s site for saver space, the lower-priced award inventory that programs release. Award-search tools such as seats.aero and point.me can help you spot routes and availability; they are search aids, and you still book on the airline or hotel program. Compare the points required plus any taxes and fees against the cash price of the same flight or hotel stay. Partner awards can sometimes cost fewer points than booking directly with the operating airline or hotel. Once you find space that fits, book it and note any cancellation or change rules. Ask whether the award is a reasonable use of the currency compared with paying cash, using the same cents-per-point lens from step one. Search again close to your travel dates if your plans are flexible. Always verify the final points price, taxes, and fees on the program’s booking page before you confirm.
Step 6: How to track card credits and annual fees
Statement credits and annual-fee dates are easy to miss. Note when each card’s annual fee will post and which credits you have already used or still need to use. Reassess every card before its fee posts: decide whether the credits you will actually use and the awards you can book still justify keeping it. Use the credits cheat sheet and card calculator linked below to track both. Keep a simple list of fee dates and credit deadlines so nothing expires unused. If a credit requires a specific merchant or category, read the benefit terms before you rely on it. Paying the balance in full remains essential; interest still wipes out the value of any rewards or credits.
Glossary
- Award
- A flight or hotel stay you book with points or miles instead of cash.
- Saver space
- The lower-priced award inventory that programs release.
- Transfer partner
- An airline or hotel program that accepts points from a bank currency.
- Transferable points
- Bank points such as Chase Ultimate Rewards or Amex Membership Rewards that can move to partners.
- Co-brand card
- A credit card issued with one airline or hotel, whose points stay in that program.
- Cents per point
- A way to compare the value of an award redemption against the cash price of the same trip.
- 5/24
- Chase’s general practice of declining many of its cards if you have opened five or more personal cards from any bank in the past 24 months.
- Welcome bonus
- Extra points offered when you meet a spend requirement after opening a new card; terms vary.
- Statement credit
- A credit that posts to your card statement, often after you use a specific benefit.
- Devaluation
- When a program increases the points needed for awards or reduces what your points can buy.
- Taxes and fees
- Cash amounts you still pay when you book an award, on top of the points.
- Positioning flight
- A separate flight you take to reach a city where a better award is available.
- Points value calculator
- A way to compare an award’s points cost plus taxes and fees with the cash price of the same trip.
FAQ
Is travel hacking worth it?
Travel hacking can be worth it when you pay your card balance in full, choose cards that match how you already spend, and redeem points for trips you would actually take. The same balance can be worth more or less depending on the award you find and the cash price of the same itinerary, and programs can change rules or availability. Rewards can be devalued, annual fees apply, and interest erases value if you carry a balance.
What is the best first card?
There is no single best first card. Choose by looking at where you already spend, which airlines or hotels you would actually fly or stay with, whether you would use any statement credits the card offers, and whether the annual fee makes sense for your travel. Check your 5/24 count before you apply for a Chase card.
How long does it take to earn a free trip?
It depends on how much you spend, which welcome bonuses you earn, the route you want, and whether award space is available. There is no fixed timeline. Compare points versus cash for the trips you care about before you commit.
Are points free money?
No. Points can be devalued, and they have no guaranteed value. You usually pay an annual fee, you pay interest if you carry a balance, and the money you spend to earn the points has an opportunity cost. Interest charges alone can erase the value of the rewards. Always pay the balance in full and reassess each card before its fee posts.