The point game is one of the strategies. You want to choose loyalty programs that earn the kinds of rewards you can earn the most, and find affiliate credit cards that offer the highest earning and perk rates you can maximize.
It’s also a good idea to separate the types of points and miles you earn. That’s because rewards amounts — whether they’re frequent flyer miles, hotel loyalty points or transferable credit card points — are subject to dramatic and sudden changes (and, in extreme cases, devaluations).
However, there are also good reasons to double down on a specific score or two.
For example, there may be an additional welcome bonus on a credit card that you are eligible for even if you already have another cobranded card with the same program. If you already have one credit card with a program, you may find that you can earn more or enjoy better benefits by carrying more within the same rewards family.
Just remember that you have to think both long-term and short-term with any loyalty strategy and that focusing on a few programs now may mean you’ll need to expand your reach later — or vice versa.
Here are seven reasons why doubling down on points-based credit cards may be better than splitting.
Related: Better together: The ultimate guide to the best credit card pairings
Get in on the top welcome bonuses while they last
We have seen historically high acceptance offers on various airlines and hotel cards, such as Delta SkyMiles® Platinum American Express Cardi Marriott Bonvoy Brilliant® American Express® Cardonce Hilton honors the American Express Surpass® Card.
In fact, some of these offers are so good that even if you already have a card with the same rewards program, you might consider applying for another just to earn extra bonus points for flights or stays.
Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for the best news, in-depth guides and exclusive deals from TPG experts
The highest offer is always worth considering, especially if it is the best offer.
Related: The best current credit card acceptance bonuses
You can find (specific) eligibility rules and exclusions
Many credit card issuers have strict rules about who is and is not eligible for certain credit cards. Chase has its own 5/24 rule, for example; will automatically reject multiple applicants for a new card if they’ve opened five or more cards (from all issuers, not just Chase) within the past 24 months.
So, let’s say you’re approaching that number and trying to decide between several new credit cards from various issuers. Since some banks don’t have exactly the same rules, you may choose to get a Chase card before you reach the five-card limit and apply for products from other issuers and other programs afterward.
Charge more for your salary
It is often the case that different credit cards within the same loyalty program earn points or miles at different rates.
For example, Platinum Card® from American Express earns 5 points per dollar spent on flights booked directly with airlines or through Amex Travel, up to $500,000 per calendar year (then 1 point per dollar), and on prepaid hotel reservations made through Amex Travel. Earn 1 point per dollar spent on everything else.
On the other hand, the American Express® Gold Card earn 4 points per dollar spent at restaurants (up to $50,000 in a calendar year, then 1 point per dollar) and 4 points per dollar spent at US supermarkets (up to $25,000 in a calendar year, then is 1 point per dollar).
The card also earns 3 points per dollar spent on flights booked on airlines or Amex Travel, 2 points per dollar spent on prepaid hotels and other purchases booked through Amex Travel, and 1 point per dollar spent on everything else. These lead rates come in exchange for an annual fee of $325 (see rates and fees).
By carrying both of these cards, you can dramatically increase your earnings by earning 5 points per dollar spent on eligible flight and hotel bookings with Amex Platinum and 4 points per dollar spent on eligible US shopping and dining expenses with Amex Gold.
Related: How to make sure you get bonus points on grocery purchases
Unlock multiple best recovery options
With certain rewards programs, such as Chase Ultimate Rewards and Citi ThankYou Rewards, there are basic cards that earn easy cash back and additional premium cards that earn points that can be transferred to various airline and hotel partner programs.
That’s what makes card pairings like the Chase Freedom Unlimited® and Chase Sapphire Reserve® so powerful. Freedom Unlimited earns 5% cash back on trips purchased through Chase Travel℠, 3% back on food (takeout and eligible delivery services included) and drugstores, and 1.5% back on all other purchases.
If you don’t have a Chase card that earns high Rewards points, those rewards are only good for various cash back uses.
However, if you have a Chase points-earning card like the Chase Sapphire Reserve, you can combine the points you earn on it with Freedom Unlimited rewards and redeem them on Chase Travel for 1.5 cents (almost a 50% increase over the Freedom). , or transfer them to the Ultimate Rewards program at the program’s 14 airline and hotel partners.
Related: Power of the Chase Trifecta: Sapphire Reserve, Ink Preferred and Freedom Unlimited
Place benefits
Just as the cash-back rates for different cards from the same family may vary, many also receive different benefits from each other. So you may want to carry one for certain benefits and one for more.
For example, the United Club℠ Infinite Card earns bonus miles on different categories, including United Airlines purchases, travel and dining. As a great benefit, cardholders receive United Club membership and a statement credit of up to $120 per Global Entry or TSA PreCheck application fee once every four years.
In addition to these benefits, you may also want to open a United℠ Business Card. The card offers the same day-of-travel benefits as United Club Infinite, such as free checked bags and priority boarding, with a few exceptions.
United Business cardholders get bonus miles at gas stations and office supply stores and on local and commuter transportation purchases, as well as a 5,000th anniversary bonus if you also have a United credit card. You also get two United Club passes once a year that you can use to bring additional guests with you to the United Club.
Make multiple trips over multiple nights or flights
Banks seem to see most people only interested in one credit card from a particular airline or hotel, so they tend to offer the same benefits across their product lines. If you’re willing to double down on cards with a certain loyalty program, though, you can stack certain benefits to get (almost) more free travel.
For example, i Delta SkyMiles Platinum Amex as well as Delta SkyMiles® Reserve American Express Card both come with an accompanying annual certificate that can be used to earn a second ticket in a reserved seat as a card member for round-trip travel within the contiguous United States and select international destinations.
The Delta Amex Platinum companion certificate is good for traveling on Main Cabin fares, while the Delta Reserve allows you to use the companion certificate for Main Cabin, Comfort+ and even first class.
So if you had both cards, you could expect to save two trips for you and your partner — or, if you’re a family of four (or more), parents can fly forward while the kids stay in coach, and you’ll be enjoying about half off your vacation flights.
If you’re looking at hotel cobranded cards, the Hilton Honors American Express Aspire Card comes with an annual reward night for each year of card membership (and a second one every year you spend $30,000, and a third one after you spend $60,000 or more in purchases).
Pair this with Hilton Honors Amex Surpass and put $15,000 in spending on that in a calendar year to earn another free award night to use on the same or a different stay.
By using benefits that seem to overlap, you can actually combine things like companion tickets or anniversary nights to extend whatever trip you intend to use them on.
Hilton Aspire Amex card information is independently collected by The Points Guy. The card information on this page has not been updated or provided by the card issuer.
Related: The best hotel credit cards come with annual free nights
Get to elite status fast
In the case of hotel credit cards, in particular, carrying more than one product from the same loyalty program can put a high level of premium within reach.
For example, if you have Marriott Bonvoy Brilliant American Express Card and the Marriott Bonvoy Business® American Express® card, you get 15 exclusive nights per card per year on condition through the program. That amounts to 30 nights each year – five more than you need to earn mid-level gold status, and 45 nights from the rare Titanium, all before you even check into a hotel.
Related: The best credit cards to reach elite status
Bottom line
When it comes to points and miles, splitting up the number of loyalty programs you participate in is a tried and true strategy that will help you deal with sudden price drops. However, it would be a good idea to go all in with one or two single point programs at a time.
Doing so allows you to take advantage of any short-term bonuses that appear, enjoy cumulative benefits and accumulate the rewards you need to get your next redemption as quickly as possible. Evaluate your current card and see if there might be opportunities to double up on a program or two so you can collect rewards as quickly as possible.
Related: Why points and miles are a bad long-term investment
For Amex Gold rates and fees, click here.
Source link
