One of the most common questions I get is “what card should I get (next)?” Honestly speaking, that’s a very loaded question – as it can differ from person to person. It’s tempting to jump on the next new increased card offer – which is a great way to earn a bulk of points from money that you are already spending – BUT without a (tentative) plan, you may just be left with a bunch of points that you are unsure of how to use. You don’t have to have it all figured out, but here are some things to think through before you get that next card. Award travel can be very rewarding as long as you remember the three pillars: mindset, financial discipline, and strategy.
1 – Let’s start with the basics. Do you have financial discipline? Are you in the habit of paying all your credit card bills on time, each and every month? If the answer to these questions are yes, then move on. If not, focus on achieving this habit first as it’s the key to success in award travel.
2 – Think about what card(s) you have already. What benefits, if any, do they offer you? What kind of points/miles do they earn? (Do they earn flexible rewards currency from a bank and/or are they co-branded with a hotel or airline?) You want any new card you get to complement what cards you may already have in your wallet, as possible.
To expand on the above note, different cards will serve you well for different travel redemptions. It’s ok to have multiple cards that earn flexible rewards currency (aka, cards from banks – Chase, Citi, Capital One, & American Express). It’s ok to have airline and/or hotel co-branded credit cards – as long as you are loyal to those brands and/or have tentative plans in mind of how you will use points earned from those cards. I’m generally wary of applying for airline/hotel co-branded cards (Southwest & Hyatt aside) because I don’t want my points stuck with a hotel or airline brand if I don’t have any redemptions in mind.
3 – Do you have any current goals, travel plans, or potential places you want to visit? If you don’t, that’s ok. In that case, it’s a good idea to work on earning flexible rewards currency while you’re ideating and planning. If you do already have something in mind, be sure to check Google flights first to see which airline, for example, is going to the place you had in mind, and when. Then check out cards with increased bonus offers and see if the respective banks can earn you points that you can transfer to that airline. Transferring your points to travel partners will almost always give you the most value for your points.
3 – If you have a “Player 2” in the mix, aka, a partner/spouse/loved one/friend, then try to go with cards that can earn you referral bonuses. Not all cards have them. For example, you can earn referral bonuses on different Chase cards, but Citi doesn’t have a referral program. Because not only can you get a card and earn a set of points, you can refer your “Player 2” to the card, earn referral points, and then he/she can get their own card and earn their own set of points! We’re talking about a lot of points earned for travel together!
These are just some things to keep in mind and think through as you work to develop an award travel strategy. I know the world of points and miles can feel overwhelming, with multiple offers out from different banks – it only makes sense one wouldn’t know where to get started!
If you need help developing a credit card strategy, have award travel-related questions, and/or want to delve deeper into points and miles – I’d be happy to work with you in an individual setting. Through a personalized consultation, I’ll help you develop a strategy that’s catered to your travel lifestyle and get you traveling more, for less!
