For quite a long time I have been trying to update some of the content on the homepage of this blog in order for it to be a bit more user-friendly.  It has proven very tricky to find the time to get that done, but I am excited to say that the first piece is now finished and launched.  The portion that is live is a Ten Step Beginner’s Guide.  I hope it will give newbies a place to start on their miles and points journey.  I hope to have a very comprehensive set of basic posts on a number of rewards programs, a more robust listing of the best credit card offers, and reviews/trip reports of family friendly hotels that we have visited, all easily accessible from the home page in the future.  But, that will all take time.  For now, here is the newly minted “Beginner’s Guide”.  It will be permanently accessible on the homepage as well.

Getting started in the world of miles and points is often very exciting, but can also be a bit overwhelming. New deals, promotions, and credit card offers are constantly popping up, so it is good to have a reference point in terms of where to start. Here are ten basic steps to help guide you on the journey to (almost) free travel!

  1. Sign-up for loyalty programs. By this I mean sign-up for various frequent flyer programs, hotel rewards programs, etc. You don’t need to go out on day one and sign-up for every program out there, in fact I don’t recommend that at all, but make sure that before you travel one more time you sign-up for the relevant car rental, hotel, or airline programs. I recommend signing up for loyalty programs either as you need them (because you will be utilizing that company’s services) or when they run a good promotion for new members who sign-up. Always check for promotions before signing up!
  2. Think about your travel goals. Free travel is fantastic, and you don’t always have to know how you are going to use your points in order for them to be valuable to collect, but when you are first starting out it is often much easier to have a specific travel goal in mind for your miles and points than to just seemingly collect points at random. For example, if you want to go to Europe and stay at top-end hotels for several nights, you aren’t going to focus on Southwest points to get there. You may be focusing on United or American Airlines miles for your flights, and perhaps you might be interested in getting the Hyatt Credit Card to get two free nights at a hotel such as the Park Hyatt Paris Vendome. That is just one example, but the type of points you need to get to Disney World aren’t always the same as the ones you need to get to Australia. Spend some time looking at airline and hotel redemption schedules to see how many points a flight or night at the hotel of your dreams will cost you.
  3. Check your credit scores and credit reports. There’s no denying the fact that the quickest and easiest way to rack of tons of miles and points is by obtaining rewards credit cards. This is something that I do in moderation, and it has been insanely lucrative for my family. However, before you decide if that route is for you, it is important to get a handle on your credit situation. You can obtain one free credit report from each of the three credit bureaus annually from annualcreditreport.com. I also strongly recommend getting an idea about what your FICO score is. You can get an estimate of your score for free from sites like CreditKarma.com or Credit Sesame. There is no “magic number”, but if your credit score isn’t at least 700, I would not recommend applying for rewards credit cards until you can bring your score up some.
  4. Obtain a good rewards earning credit card (or two). Assuming your credit report and credit score look good to go, I recommend getting a good rewards-earning credit card (or two). I would start slow. Don’t feel like you need to get tons of credit cards all at first. I would start with one or two good rewards cards that come with a good sign-up bonus. The best offers change regularly, but currently the Chase Sapphire Preferred Card is a fantastic card with which to started. I also would strongly consider getting a card from American Express such as the Amex Premier Rewards Gold Card or the Starwood Preferred Guest Amex. You can learn more about these and other available credit cards here. Getting 25,000 – 50,000 or more points from a credit card sign-up bonus is a great way to jump start (or supplement) your miles and points collection. It is very possible to get $500 – $1,000 in free travel from each credit card approval.
  5. Meet the minimum spending requirements for the credit cards you select. Most, but not all, rewards credit cards come with minimum spending limits in order to get the sign-up bonus. This can range from a few hundred dollars within a set period of time (often a few months) to $10,000 within a few months. If you can’t spend that much comfortably on your credit card each month (and still afford to pay it off), then I recommend looking for cards that award the sign-up bonus upon the first purchase, or a very modest spending requirement. That way, you can get a free flight just for charging your morning coffee.
  6. Shift your everyday spending from checks/debit cards to your rewards credit card. I’ll say right up front that this isn’t for everyone. If you find yourself buying things using your credit card that you wouldn’t otherwise purchase, or have trouble sticking to a budget by charging things, then this isn’t worth it. However, many people can successfully shift the majority of their daily spending (groceries, cell phone bill, insurance payments, gas, etc.) to a rewards earning credit card. That way you are meeting minimum spending requirements and earning rewards for virtually everything that you purchase. In general, I do not charge things that charge an extra fee to use a credit card (such as a mortgage), but I do charge virtually everything else and then pay it off at the end of the month.
  7. Pay attention to bonuses and promotions. These can come from your rewards credit card or the various loyalty rewards programs themselves. For example, a credit card that you have may offer 2x or even 5x points on a certain type of purchase. It makes sense to use that card for those types of purchases. Since my Ink Bold Charge Card gives me 5x on my cell phone bill, that is the card that I use for that monthly bill. Of course, not all promotions are related to credit cards. Most major hotel and airline programs run promotions at various times throughout the year as well. My personal favorite has historically been the US Airways Grand Slam promotion. It has happened the last several years in early fall, and if done correctly can result in your family getting over 100,000 miles for just a few hundred dollars out of pocket. Hotels often come out with promotions several times per year, and those promotions can sometimes be so lucrative that it is worth it to make a reservation for the night even if all you do is check-in and leave.
  8. Track your rewards using a site like AwardWallet.com. Once you start earning points in multiple programs, it can be hard to keep track of everything. While you can also use your own spreadsheets, I highly recommend using an online site like Award Wallet to help make that task much easier. Award Wallet can not only track the rewards you have in various programs, but it can alert you to when the points will expire and can also store your passwords so that you can log into many of your programs with just the click of a mouse.
  9. Once you have enough miles and points for your desired trip, redeem them. Many miles and points blogs (and forums like Milepoint.com and Flyertalk.com) can give you tips on how to get the most bang for your mile. Just don’t let your miles and points gather dust. Historically miles and points only go down in value, so don’t be afraid to use what you have. Just like with cash, their value typically only goes down. Earn them and use them…then earn some more!
  10. Have fun. Earning and tracking miles and points does take some work, but it can also be really fun. Don’t get too bogged down when things don’t go your way. This is a very rewarding hobby, and earning truly can be half the fun.

 

Disclosure: I do receive a commission if you are approved for a credit card using one of my affiliate links. As always, thanks for your support!

Posted by Mommy Points | 17 Comments

17 Responses to “How to Get Started Earning Miles and Points: Beginner’s Guide”

  1. Mow says:

    One question regarding credit scores. Do we get a pull, if so what kind of pull when we request credit report from annualcreditreport.com and do we get hit once or three times from the 3 different agencies. Thanks

  2. Elena says:

    Great post mommypoints! I am new to boardingarea. I used your link to get the British Airways CC on the last day of the offer and I am giddy thinking about my 100,000 Avios!

  3. MP_Seeker says:

    @Mow,

    The site you mentioned does not give credit scores. Just a report.

    Only FICO (MyFICO.com) offers the real FICO score. The other sites are usually called FAKO scores since they are not what the banks see when they pull your credit report and score.

    With that being said, those sites are not terrible, they kind of point in the right direction about 3 out of 5 times. Meaning, if your real FICO score goes up, the same will happen on Credit Karma or Credit Sesame. The same will be true when it goes down and that is when it is useful. You should pay attention when it goes down and find out why and fix any errors.

    Sorry for the long reply.

  4. Heather Armstrong says:

    Thanks for the info, mommypoints! I am a beginner and have already taken the steps you’ve outlined. Now, I’m ready to begin credit apps. My question is this: to double the sign up bonuses, my husband and I want to both apply for the same CC (as long as we can meet minimum spend). Does it matter when each of us applies? I know there are some tricks for applying the same day for multiple apps to avoid multiple credit pulls, but that only applies to one individual, correct?

  5. Grant Thomas says:

    @Mommy Points, it would be great if you could create (or link me to) a site that has the most popular credit card offers and their known churnability / frequency of cancelling and re-enrolling in the card. That would be great :)

  6. Laura S. says:

    MP I love your site! You are very newbie-friendly and have a wealth of information…my family appreciates it :)

  7. chemist661 says:

    When a consumer requests a credit report or score, it is a “soft” pull meaning it does not affect your credit score and does not count as a “hard” inquiry. When one applies for a loan or credit card, etc. that is a “hard” pull and does reduce your credit score. It is also noted as an inquiry. Lenders do not like to see too many inquiries.

    FICO scores are the most “real” credit score. The other scores that come with monitoring services, etc are not real FICO’s but is helpful on a relative basis for approximation on how your score is trending: up or down. I would check http://www.creditboards.com/forums under the credit thread and look under the FICO tab for the latest discount code for getting your FICO scores. Do not fall into the trap and have to know your FICO score all the time–that can get expensive.

  8. Jeff says:

    well, what happens when you’re canadian?

  9. Kathy says:

    All of this is great advice. I love your site and check it every day. I love Ultimate Rewards and so glad that I discovered them about a year ago–thanks to you! I have a question about award wallet–I signed up for the free 6 month trial. Do you think it is worthwhile to pay after the trial ends? Thanks!

  10. Grant Thomas says:

    @Kathy, I’m in the same boat as you, but i have a few more months left. I think it is a great service, and the benefits it offers (weekly email point updates) along with expiration dates for points makes the subscription well worth the price.

  11. Stephanie O says:

    Thank you! I’m just getting started and very interested in this series. In particular, I’m concerned about redeeming airline points when I’m taking my whole family – it seems like it might be tough to get seats for all 5 of us on one flight. In the limited research I’ve done so far, Southwest would be easy (it looks like you can book any available seat with points). But I’ve heard it can be hard to book any seat at all on some airlines, let alone 5. It makes me wonder whether playing this game is for me at all – I’d hate to make a hobby of building up a points balance and not be able to use them. Do you have advice related to this? Again, THANKS!

  12. mommypoints says:

    -Mow, others are right. Checking your own score won’t result in a hard pull, so it won’t hurt your credit.
    -Elena, awesome and thanks!
    -Heather, you can both apply for the same cards. The timing doesn’t really matter if you can meeting the spending. For cards you want to keep for the benefits it often makes sense to do them a year apart so you can essentially get two free years, but otherwise it is just based on when you want to apply.
    -Grant, there isn’t really a comprehensive site like that that I am aware of….mostly because it would likely do more harm than good in the long run if there was a list like that. I will tell you in general that some Citi Cards, Bank of America, and US Airways are some of the best churning bets. (but churning in that sense is getting harder and harder)
    -Kathy, I do think it is worth it….that said, mine has lapsed as well. I think I get it included with the Milepoint Premium Membership I just bought, but I am behind on that as well.
    -Stephanie, Southwest is the easiest for sure. However, five on domestic coach tickets (which is what I am assuming you are after given the SW reference) really isn’t that hard on United and American if you have a little flexibility in your travel plans. I’m happy to post on that or just email me with more questions. You can also choose to focus on hotel points if you are really worried about airline availability.

  13. murtuza says:

    @mommypoints. I have written an article which complements your details above. You might be interested in having a look. http://www.milesandmoney.com/3/post/2012/08/ways-to-accumulate-miles-points.html

  14. Mow says:

    thank you MP and chemist for answering my questions. Now i understand a little more about credit scores and how I should begin to understand the credit card sign ups

  15. frank says:

    Nice ripoff of milenerd’s post from last week.

    • mommypoints says:

      @frank, ha ha. I have been working on this new section of my site for about three months (literally), so while a beginner’s guide isn’t a novel idea, it certainly wasn’t a rip-off. I haven’t yet seen MileNerd’s post, but will have to check it out!

  16. frank says:

    haha, just playing with you mp. everybody rips everybody off. who cares as long as we’re learning from you guys.

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