4 Lessons I've Learned After Earning and Redeeming Millions of Points and Miles (2024)

Credit card enthusiasts often focus on redeeming for the most “Instagrammable” moments or fret over not getting a Mount Everest level of value for their rewards. But it doesn’t have to be that way. For me, the point of redeeming rewards is to create long-lasting memories.

Over the years, the points and miles hobby has served me well. I learned about credit at the ripe age of 15 from my mom, who used cash-back credit cards to save on everyday expenses and redeemed rewards to offset the cost of presents during the holidays. While not a business class flight or 5-star resort stay, this credit card strategy worked well for my parent’s financial picture.

After earning millions of points and miles, covering the space extensively as a reporter for years, and recently visiting my 25th country, I’m regularly asked about my thoughts and opinions on points and miles. Here are a few angles to consider as you earn rewards from travel and spending.

1. Focus on Your Finances First

Credit cards are the bedrock of the points and miles hobby. Simultaneously, they are financial handcuffs for millions of Americans.

According to the Federal Reserve, there’s over $1 trillion in revolving credit card debt in the U.S. This boils down to $8,000 in credit card debt for the average American, per CBS News. This number has ballooned since the onset of the COVID-19 pandemic.

If you have any sort of burdening debt (above 5% interest) attached to a liability (such as a car loan or credit card debt), your focus shouldn’t be on earning credit card rewards.

For example, when I was in $80,000 of student loans at the beginning of my career, there was no reason for me to focus on earning points and miles. Instead, I leaned heavily into the Costco Anywhere Visa® Card by Citi to save on gas and travel expenses associated with work because I needed to save every dollar I could. Once I got my student loan debt into a manageable place, I started focusing on earning more in credit card rewards.

Additionally, if your credit score isn’t up to snuff, do everything you can to increase your score. Your score could be weighed down by missed payments, high credit utilization, and even incorrect marks. So, if your score is under 700 or if you haven’t checked your credit report recently, it could be beneficial to take a look. Without a good credit score, it will be much harder to qualify for a rewards credit card when you’re ready to take that step.

Lastly, if you’re struggling with credit card debt or overspending, it may be time to take a break from credit cards completely. The rewards you earn won’t outweigh the mounting interest you pay on revolving credit card balances. In some cases, it may be financially smarter to shift completely to paying cash for the majority of your purchases. Money is a game of psychology, and for some, having a credit card is more of a negative than a positive — and that’s OK.

Bottom Line:

As a certified personal finance counselor, I regularly listen to people’s financial battles. In many cases, it starts with simply spending beyond their means and racking up credit card debt. You don’t have to live your life saddled with debt, but it must be prioritized before ever worrying about earning more points and miles. Once you eliminate debt and get your financial life in order, then you can start digging into the world of credit card rewards to earn free travel.

2. Earn and Burn Mercilessly and Create Memories Along the Way

There’s a subset of points and miles earners who love showing off how many credit card rewards they have saved. While it can be a flex of sorts to show off how much you’ve spent and earned, sharing your travels with an empty points balance is a better brag.

There’s nuance to this. Yes, it’s strategic to save up your points for a large, luxurious redemption. However, it isn’t recommended to save for the sake of saving.

First, points can go through devaluation. In a devaluation, the loyalty program makes the points you have saved less valuable. In many cases, this happens with no advance notice. It’s never a good idea to have too many points on hand without a plan to redeem them.

Second, points programs are often targets for scams. I’ve had credit card points stolen from my account. Thankfully, I was able to get them credited back. But with a large points balance, you could theoretically be a target for foul play.

Third, and most importantly, the points should be used to create memories.Whether it’s a solo trip or an adventure with the people you’re closest to, don’t hesitate to spend your points. Always redeem wisely, but do your best to keep the greenbacks in your wallet and your points balances on the lower side.

3. Don’t Lose Sleep Over Redemption Values

Every point you earn has a monetary value to it. For example, we value Chase Ultimate Rewards points at 2 cents per point. This means when you redeem points, you should aim to get roughly that value. However, this doesn’t mean you should lose sleep over obtaining the estimated value of your points.

Here’s an example: Delta SkyMiles are worth 1.2 cents per point. This means 10,000 SkyMiles are worth roughly $120 for Delta flights. However, let’s say the flight you need is only $100. In this case, redeem the miles. It’s not the most brag-worthy redemption of all time, but having $100 in your pocket and using your miles is much better than paying cash.

Again, there is nuance. If the redemption you’re looking at gives you a terrible value for your rewards, paying cash could be the better option. But generally, I vote for using rewards over cash if the redemption value is in the general ballpark of the estimated value.

4. Prioritize What You Value Most

Earning points and miles is largely black and white in my eyes. The more you have, the more you will be able to redeem. However, the gray areas, nuance, and creativity are on the redemption side. This is where you shouldn’t listen to points and miles pundits about how you should only redeem your rewards for an ultra-luxury Maldives trip (although it’s still pretty awesome).

You should prioritize using your rewards based on what is on your travel list, not what‘s the ultimate redemption. For example, you may not value hotel points because you don’t mind staying in cheaper accommodations, like an Airbnb or hostel. Or, if you prefer road trips instead of flying, redeeming points for hotels may be a higher priority than flights.

Similar to my point above, don’t worry about getting the highest value or redeeming your rewards only for luxurious experiences. Redeem points for things that work for you, your lifestyle, and your travel goals.

What I Prioritize With My Points and Miles

My mindset for redeeming points and miles is that wherever I travel, I likely have to fly. However, there are ample options for accommodations (such as staying with friends and family or booking hotels, Airbnbs, and hostels). So, my preference is to score free flights over hotels.

Moreover, I’m not loyal to one airline because I fly all over the world. Because of this, I am all in on earning transferrable rewards such as Chase Ultimate Rewards and American Express Membership Rewards. This allows me to select from a variety of airline loyalty programs.

For now, I’m solely earning points with my Chase Sapphire Preferred® Card. I recently canceled my American Express®Business Gold Card in an effort to simplify my finances and points-earning journey. However, I never swear myself to 1 strategy indefinitely. Things change in life, and your points and miles strategy should adjust in tandem.

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Final Thoughts

Your points and miles earning and redemption plans should be constructed around your wants and desires. But regardless of your strategy, aim to keep your points balances low and the number of travel experiences high.