The BEST Credit Card Strategy for Travel (Points & Miles) 2025

Summary

This video outlines the best credit card strategy for maximizing travel rewards, whether you're new to credit cards or an experienced user. The strategy emphasizes starting with a no-annual-fee card, building a solid foundation with Chase Freedom cards, and supercharging your points with premium cards like Chase Sapphire. It also explores business credit cards, unique cards tailored to personal lifestyles, and branching out into ecosystems like American Express, Capital One, and Citi for even more value. With tips on maximizing points and taking advantage of sign-up bonuses, this guide helps users unlock significant travel rewards.

Takeaways

• 😀 Start by getting any credit card, preferably one without annual fees, to build good credit habits and ensure a solid credit score.
• 😀 A no annual fee card is a good first choice as it helps lengthen your credit history without additional costs.
• 😀 Build a foundation with cards like the Chase Freedom Unlimited and Chase Freedom Flex for broad spending categories and earning Chase Ultimate Rewards points.
• 😀 Chase Ultimate Rewards points are versatile, redeemable for travel and other perks, often valued around 2 cents per point.
• 😀 Chase Freedom cards offer easy-to-get sign-up bonuses, which include elevated points for specific spending categories like groceries.
• 😀 Be aware of the Chase 5/24 rule, which restricts approval for new Chase cards if you've opened five or more cards in the past 24 months.
• 😀 After establishing a solid foundation, upgrade to Chase Sapphire Preferred or Sapphire Reserve cards for higher points value and additional benefits.
• 😀 Both Chase Sapphire cards offer substantial sign-up bonuses and perks that can offset the annual fee, such as increased point value for travel.
• 😀 Business credit cards can provide additional rewards and sign-up bonuses, and they don’t count toward the Chase 5/24 rule.
• 😀 Explore unique cards for specific lifestyle needs, such as the Bank of America Alaska Airlines card for free checked bags or the Marriott Bonvoy Brilliant card for hotel status.
• 😀 Consider diversifying into other ecosystems like American Express or Capital One for more rewards, but be aware of the one-bonus-per-card rule with Amex.
• 😀 Capital One and Citi also offer competitive credit card ecosystems with unique benefits, and you can combine their cards for even more value.

Q & A

What is the first step in starting a travel credit card strategy?

The first step is to simply get started by obtaining a credit card, preferably one with no annual fees. This could be a student card or a secured card, and the key is to use the card regularly and pay it off in full every month.

Why is it important to pay off your credit card balance in full every month?

Paying off your balance in full every month is essential for building good credit habits. It helps establish a solid credit score, which can lead to better interest rates in the future, such as for mortgages or renting in expensive areas like New York City.

Why should your first credit card ideally be a no annual fee card?

A no annual fee card is recommended as it doesn't cost anything to keep open and helps lengthen your credit history, which is a factor in your credit score.

What are the two foundational cards recommended for building a credit card setup?

The two foundational cards recommended are the Chase Freedom Unlimited and Chase Freedom Flex. These cards offer valuable points and a wide variety of spending categories, all while being no annual fee cards.

What makes Chase Ultimate Rewards points valuable?

Chase Ultimate Rewards points are highly valuable because they can be transferred to airline and hotel partners for significantly better redemption value, often worth several cents per point compared to the standard one cent per point.

What is the Chase 524 rule and how does it affect your credit card strategy?

The Chase 524 rule means that if you have opened five or more credit cards in the past 24 months, you won't be approved for new Chase cards. To maximize the value of Chase cards, it’s best to apply for them early in your credit card journey.

Why should someone consider getting the Chase Sapphire Preferred or Reserve cards?

The Chase Sapphire Preferred and Sapphire Reserve cards are great for supercharging your credit card setup. They offer large sign-up bonuses, enhanced points redemption for travel, and valuable perks like point transfers to airline and hotel partners.

How do business credit cards differ from personal credit cards in terms of rewards?

Business credit cards allow you to earn additional rewards without affecting your personal credit score. They also don't count towards the Chase 524 rule, making them a great way to expand your credit card portfolio.

What are some examples of specialized credit cards that cater to specific travel needs?

Examples include the Bank of America Alaska Airlines card for free checked bags and companion fares, the Chase Aeroplan card for free airline status, and the Marriott Bonvoy Brilliant card for free Platinum Elite status at Marriott hotels.

Why is American Express considered a strong alternative to Chase for a credit card strategy?

American Express is a strong alternative because it offers a robust set of points-earning cards, valuable sign-up bonuses, and extensive transfer partners, though its one-bonus-per-card rule limits how often you can earn bonuses on the same card.