If you’re new to the world of points and miles, picking the right credit card can feel downright overwhelming.
With so many credit cards vying for attention with offers of discounted streaming services, hotel credits, lounge access and various earning systems, it’s hard not feel like you might be making a mistake and leaving something on the table.
Take a deep breath. There are a lot to choose from, but there are a few simple steps to help streamline the process of picking a card that suits you best.
The first step before you go down the rabbit hole of the endless credit cards on the market, take some time and think about how you typically spend your money, and also what your goals are in terms of earning points.
Factors to Consider
There are many factors to consider when finding the card(s) that will make the most sense to add into your life. While some people may opt to keep things simple and choose a single credit card to keep in their wallets while others may have a collection of cards that requires a little more attention, tracking what category of spending is put on which specific card. The path you go on completely depends on your living style and how much strategy you want to take on.
To help narrow down the best options, consider these factors and write your answers down so you can refer to them when it’s time to choose a card. Putting the blinders on to cards that don’t apply to your personal needs and spending habits will help with the overwhelm:
- What is your main goal for accruing points and miles?
- Cash back
- Points and miles for air travel
- Points and miles for hotel stays
- Elite Status with Airline or Hotel
- Airport Lounge access
- Current spending habits- Is there outsized spending on any certain categories to consider?
- Dining out
- Travel (Flights, hotels, Rideshares like Lyft and Uber, rental cars)
- Rent
- Groceries
- Streaming services
- Gas
- How many cards are you interested in getting?
- Just one card for all purchases
- Open to adding multiple to maximize expenditure
- Are you willing to pay an Annual fee, and if so, how much?
- No annual fee cards
- Annual fees can vary from $95 to thousands of dollars. Weigh the fee against the perks and the reality of being able to utilize those perks each year
- Your Credit Health
- Premium cards will require higher credit scores
What is your main goal for accruing points and miles?
Cash back cards can be a great resource if more money in your pocket is your ultimate goal. Many of them have no annual fee, and their cash back earnings can vary from 1-10%. Consider your spending habits as cards can vary considerably depending on things like categories of earning (groceries, dining out, business categories, etc.), and percentage of cash back for specific categories. For detailed reviews and recommendations of the best cash back cards on offer check out additional resources from The Points Guy, and Nerd Wallet.
Airfare and Hotel awards are a primary incentive that draws a lot of people to get into the points and miles game, and with good reason. The demand for travel has only increased in the last several years, contributing to higher costs amid plateauing incomes. Accruing and using your points effectively can be the difference between going on a vacation and just dreaming about it.
The most flexible credit cards for travel are the bank-based cards like the Capital One, American Express and the Chase credit cards. Aside from the co-branded credit cards that earn solely for hotel or airline points systems (see below), these credit cards are super valuable as there are a variety of ways to redeem the points. The ultimate way to get the most value out of accrued points is to utilize the travel portal within these bank programs or to transfer the points to hotel and airfare partners. By booking travel through the portals or transferring to partners, you can more than double the value of your points in comparison to paying off a balance or using points towards an Amazon purchase.
Attaining Elite Status with airline or hotel is a huge draw for those who have loyalty and fly or lodge regularly with the same company. Hotel perks can include free room upgrades, early check-in, late check-out, and breakfast and dining credits. Airline status can include lounge access, free seat upgrades, complimentary drinks and snacks, early boarding and free checked bags. The only drawback to these hotel or airline-specific credit cards is that the points cannot transfer outside of that specific chain or airline, so if you choose to go this route only do so if you tend to book the majority of your travel within that particular brands. If you are the type of traveler who prefers to book the cheapest seats on whichever airline or likes to try out boutique hotels, it would not be wise to silo yourself to a co-branded credit card. The Points Guy does a great review of credit cards for various elite statuses here.
Airport Lounge access is a factor for many people who start in on their points and miles journey. There are a handful of lounge networks and the credit cards associated with them have annual fees that can vary drastically, so getting a sense of how much you are willing to spend will be a great starting point. Read the review on best cards for lounge access by Upgraded Points here.
Review your Current Spending Habits
Doing an audit of your spending habits is one of the most important parts of choosing the credit card that will be most beneficial to you.
I recommend doing a review of bank and credit card statements to get a general breakdown of how much money is typically spent on categories like groceries, dining out/delivery, rent, gas, business expenses (shipping, advertising, etc.) travel expenses, and clump the expenses outside those main categories together such as medical expenses, phone bills, utilities, pet care, car maintenance, etc.
Some credit cards offer end-of-year or monthly breakdowns of your spending categories which can be very helpful. Otherwise, take note on the areas of your life where you tend to spend the most money as this will be helpful in pinpointing credit cards that will be best optimized for your lifestyle and spending habits.
How many cards are you interested in getting?
If you are brand new to points and miles, I recommend starting with just one credit card. It keeps all your points earn streamlined into one point system and you won’t have to navigate keeping straight the different credit cards for different situations like restaurants versus the grocery store.
I have been a huge fan of Capital One’s Venture Rewards credit cards as they earn a flat 2X (double points) on everything.
As someone who has had enormous dental bills or large charges at a mechanic, it eases the pain knowing that I will be earning double points on these costs since no other credit card gives double points for these kinds of categories. Click here for more information about the Venture X card that I have had for years and highly recommend for those it appeals to. Note: Only the Venture Rewards and Venture X cards offer 2X on everything. Their Venture One cards have a lower earning rate.
I personally do not have the American Express Gold card, but flirt with the idea frequently as it earns 4X at restaurants and supermarkets. No pun intended, but it is the gold standard for food related credit cards as most other cards top out at 3X earn on restaurants, and grocery stores (unless for online order only) tend to get cut out of any multipliers (thus why I love the Venture X so much). If you are someone whose food related expenses are the biggest, the Amex Gold just might be the card for you. Learn more here.
If you’re up for the challenge of taking on multiple credit cards, there can be some great combinations that will help maximize earnings to cover all (or most of) your bases. Especially if you dine out or order in frequently, or your grocery bill is larger, there are some fantastic cards that will help fast track your points cache.
I personally love the combination of the Chase Sapphire Preferred credit card for all my dining expenses and the Venture X for all other expenses. The Venture X gets me airport lounge access, and when booking through their travel portal I get 10X on hotel bookings, and 5X on car and airfare. Although they earn on two different point systems, my husband and I have been earning enough points to cover the majority of airfare for all travel the last several years between the two credit cards.
Annual Fees
Annual fees vary drastically for points earning credit cards, but the general rule of thumb is that the higher the annual fee the better the perks (most of the time). That being said, it is worth taking the time to look over the offers of each card as depending on what your needs are, paying an annual fee may be worth the cost. There are some cards that have no annual fee and earn points or cash back, and others like the Chase Sapphire Preferred or Venture X where there is an outsized value in comparison to the annual fee.
For example the Venture X has an annual fee of $395. However, the card comes with an annual travel credit of $300 that can be used towards any booking through their travel portal. The card also comes with a 10,000 point bonus on your anniversary (a $100 value), covers the cost of Global Entry or TSA pre-check, Airport lounge access through Priority Pass for the primary cardholder and guests (changes to this feature will have limitations effective February 1, 2026), up to 4 free authorized users on the card, and is part of the Visa Infinite program which includes premium features such as cell phone insurance, various types of travel insurance, and extended warranty and return protection.
What about APR (Annual Percentage Rate)?
To be frank, APR should never factor into the calculation of a points and mileage card because if you are trying to play the points and miles game, you should never carry a balance on your credit card.
There is absolutely nothing wrong in carrying a balance if needed- credit cards exist for a reason and they can be a literal lifeline at times! However, the interest that can accrue on a balance can completely negate any perks gained from a points and miles journey. Thus, if you are someone who tends to carry a balance on your credit cards, I recommend checking out some resources here that may be helpful on your journey to tackle your credit card debt.
Final Thoughts
The landscape of benefits is ever-changing (unfortunately most of the changes are downgrades and not upgrades) so I recommend checking in directly with the credit card in question to confirm their current offerings, but keep in mind that these perks can change at any time, and often without warning.
While loyalty programs continue to evolve, I continue to support the responsible utilization of credit cards, earning points and miles for our everyday purchases. It seems only fair that with a little bit of intention and strategy that we are rewarded with opportunities of nearly free or low-cost options to reset, refuel and re-energize.
