How to maximize your credit card earning & redemption strategy
Earning strategy is just as important as a good points redemption. You need to be able to use your daily spend to rack up points to spend on your travels. If I looking to open a card here is a list of considerations I would ask myself before opening a card:
1) What is my biggest spend category?
Every credit card has different multipliers per spend category. I would understand where all of my money typically goes so I get a card to maximize my spend in this category. For me, that’s travel, dining, and groceries, so I have cards that maximize my earning in those categories.
2) What is my next biggest spend category?
Points really start to add up once you start stacking up different credit cards and welcome bonuses. If the card you opened for your biggest spend category does not cover your second biggest spend category, I believe that is enough of an argument for a second card.
3) Am I willing to use multiple cards for my spending?
Yes - you have a strong case to open multiple cards!
No - get a card that offers a better points multiplier on every dollar (such as the Venture or Venture X). That way you never lose track of your points.
4) Am I willing to research how to best use my points or use them for travel redemptions?
If the answer is no, a cash back card may be better for you. Or at the very least, a card where you can “reimburse” yourself with points. I love Chase for this reason since you can pay yourself back with points for any spend category. Capital One and Amex are a little trickier to do that with.
Don’t let points hackers online convince you there is only one way to spend your points - it doesn’t matter how you spend your points! Yes you can maximize them, but at the end of the day, the goal is to make money on the dollars you are already spending.
5) Am I willing to learn different cards rules?
If no, I would stick to cards from one bank since they tend to have similar transfer partners and deals. For example, opening a Chase Sapphire for travel, dining, and gas and then a Chase Freedom Unlimited for 1.5x on everything else. Then you can use those points at the same travel partners over and over again.
If you are willing to learn different banks rules and transfer partners, then explore how you can earn the most points. For example, I have a Chase card for travel and dining, a Venture X card for everyday purchases, and an Amex for airline perks. But many banks have different rules for redemption and travel partners so it’s a lot to consider!
6) Learn one program REALLY WELL
I always tell people starting with a Chase card is the best entry into leveling up your points game. Their cards offer really good earnings, travel partners, and other perks like insurance. Capital One is also a pretty good way to start, although I do find their travel partners to be a tad more difficult to redeem points with. I find that Amex cards are best for people willing to put a lot of time and energy into tracking their perks and using their points. Amex is not easy for beginners!
Let’s wander wiser together.
