The Complete Beginner's Guide to Points and Miles

If you have ever seen someone post about flying business class to Tokyo for "free" or staying at a five-star resort using only points, you are not witnessing a scam or a secret only the wealthy know about. You are seeing the result of a travel rewards strategy that anyone can learn -- and this guide will teach you how.

Points and miles are one of the most powerful tools available to everyday travelers. Whether you want to take your family on a dream vacation, upgrade from economy to business class, or simply stop paying full price for flights and hotels, understanding how reward currencies work is the first step.

This guide covers everything you need to know to get started, from the basics of how points work to specific strategies for earning and redeeming them at maximum value.

What Are Points and Miles?

Points and miles are loyalty currencies issued by credit card companies, airlines, and hotel chains. Think of them as an alternative form of money that you earn through credit card spending, flying, or staying at hotels -- and then spend on travel (or sometimes other things).

There are two broad categories:

Bank points are earned through credit cards issued by banks like Chase, American Express, Citi, Capital One, and Bilt. These are the most flexible because you can transfer them to multiple airline and hotel partners. Bank points are where beginners should focus first.

Airline and hotel points are earned through co-branded credit cards (like a Delta or Marriott card) or by actually flying and staying. These are less flexible because they can only be used within that one program, but they can still deliver excellent value when redeemed well.

The key insight that separates experienced points collectors from beginners is this: not all points are worth the same amount. A Chase Ultimate Rewards point is worth more than a Capital One mile, and both are worth far more than most airline miles if you use them strategically. Understanding these differences is what this guide is all about.

The Major Reward Currencies

Not all rewards programs are created equal. Here is a breakdown of the five major bank point currencies, ranked by their average value per point when transferred to airline and hotel partners.

| Currency | Issuer | Average Value | Key Strength | |----------|--------|---------------|--------------| | Bilt Rewards Points | Bilt | 2.2 cpp | Earn on rent payments | | Chase Ultimate Rewards | Chase | 2.05 cpp | Best all-around flexibility | | Amex Membership Rewards | American Express | 2.0 cpp | Largest transfer partner network | | Citi ThankYou Points | Citi | 1.9 cpp | Strong airline transfer options | | Capital One Miles | Capital One | 1.85 cpp | Easy to earn, solid partners |

Bilt Rewards (2.2 cpp) stands out because it is the only program that lets you earn points on rent payments without a transaction fee. The points transfer 1:1 to major partners like Hyatt, American Airlines, and United. If you are a renter, this is a no-brainer program to join.

Chase Ultimate Rewards (2.05 cpp) is considered the gold standard for beginners and experts alike. Chase has an excellent set of transfer partners (including Hyatt, United, Southwest, and Air Canada), a solid travel portal, and a lineup of credit cards at every price point from $0 to $795 in annual fees.

Amex Membership Rewards (2.0 cpp) offers the widest network of transfer partners -- over 20 airlines and hotels. The points are slightly harder to use than Chase for domestic travel, but Amex shines for international premium cabin redemptions through partners like ANA, Singapore Airlines, and Virgin Atlantic.

Citi ThankYou Points (1.9 cpp) are a strong middle-ground currency with solid transfer partners. They are especially valuable for premium cabin flights to Asia and the Middle East through partners like Turkish Airlines and Singapore Airlines.

Capital One Miles (1.85 cpp) have improved dramatically in recent years. They transfer to a growing list of partners and the cards are among the easiest to earn with, making Capital One a strong choice for people who want simplicity.

How to Earn Points

There are four main ways to accumulate points, and the best strategy uses all of them together.

1. Sign-Up Bonuses (The Fastest Way)

Credit card sign-up bonuses are by far the fastest way to earn a large number of points. A single card can give you 60,000 to 200,000 points after meeting a minimum spending requirement -- enough for multiple flights or several hotel nights.

For example, the Chase Sapphire Preferred currently offers 75,000 Ultimate Rewards points after spending $4,000 in 3 months. At the 2.05 cpp average value, that bonus alone is worth approximately $1,538 in travel.

2. Everyday Category Spending

After you have earned a sign-up bonus, your card continues earning points on every purchase. The key is to use the right card for each spending category:

• Dining: Many travel cards earn 3-4X points at restaurants
• Travel: Premium cards earn 3-8X on flights and hotels
• Groceries: Some cards earn 4-6X at supermarkets
• Gas: Certain cards earn 3-5X at gas stations
• Everything else: Your "daily driver" card should earn at least 1.5-2X on all purchases

This is why experienced points collectors carry two or three cards rather than just one. Each card covers the categories where it earns the most.

3. Online Shopping Portals

Most airline programs and Chase, Amex, and Capital One all operate online shopping portals. Before buying anything online, check these portals first. You earn bonus points per dollar spent at hundreds of retailers -- on top of what your credit card earns.

For instance, buying a $500 laptop through the Chase shopping portal at 5X points earns you 2,500 bonus points on top of whatever your card earns. It takes about 30 seconds to click through the portal and can add up to thousands of extra points per year.

4. Dining Programs

Programs like Bilt Dining and various airline dining programs give you bonus miles for eating at participating restaurants. You simply register your credit card, eat at a listed restaurant, and the bonus points post automatically. There is no change to how you pay -- you just earn extra.

Transfer Partners: The Secret to Maximum Value

This is the single most important concept in the points and miles world, and the one that most beginners overlook.

When you earn bank points (Chase, Amex, Citi, Capital One, Bilt), you can transfer them directly to airline and hotel loyalty programs, usually at a 1:1 ratio. This is where the real value unlocks.

Here is why it matters: A domestic economy flight might cost 12,500 United miles (transferred from Chase). That same flight might cost $350 in cash. By transferring 12,500 Chase points to United, you are getting 2.8 cents per point -- far above the 1.25 cpp you would get through the Chase travel portal.

The value gap becomes even more dramatic with premium cabins. A business class ticket from the U.S. to Japan might cost $8,000 in cash but only 95,000 ANA miles (transferred from Amex). That is 8.4 cents per point -- more than four times the average valuation.

The major bank programs each have their standout transfer partners:

• Chase: World of Hyatt (hotels), United Airlines, Southwest Airlines, Air Canada Aeroplan
• Amex: ANA Mileage Club, Singapore Airlines, Virgin Atlantic, Hilton (with bonus)
• Citi: Turkish Airlines Miles&Smiles, Singapore KrisFlyer, Qatar Airways
• Capital One: Turkish Airlines, Air Canada, British Airways
• Bilt: Hyatt, American Airlines, United Airlines, Turkish Airlines

Your First Travel Rewards Strategy

If you are brand new to points and miles, here is a straightforward two-card strategy that will get you earning immediately without overwhelming complexity.

Step 1: Start with the Chase Sapphire Preferred.

This is the card most experts recommend for beginners, and for good reason. It has a reasonable annual fee, an excellent sign-up bonus, and earns flexible Chase Ultimate Rewards points that transfer to 14+ airline and hotel partners.

Step 2: Add the Chase Freedom Unlimited as your everyday card.

Once you have the Sapphire Preferred, the Freedom Unlimited becomes the perfect companion. It earns 1.5X Chase points on every purchase with no annual fee. Because you hold a Sapphire card, you can combine the Freedom Unlimited points into your Sapphire account, giving them full transfer partner access.

Step 3: If you are a renter, add the Bilt Mastercard.

Rent is likely your single largest monthly expense, and the Bilt card is the only card that lets you earn points on rent with no fees. The points transfer to Hyatt, American Airlines, United, and more.

With this two- or three-card setup, you cover all your major spending categories, earn flexible points that transfer to premium travel partners, and pay at most $95 per year in fees. This foundation can easily deliver $2,000 to $5,000 in travel value annually depending on your spending.

Common Mistakes Beginners Make

Learning from others' mistakes can save you hundreds of dollars and thousands of wasted points. Here are the most common pitfalls to avoid.

Hoarding Points Without a Plan

Points are not fine wine -- they do not get better with age. In fact, they almost always lose value over time as programs devalue their award charts. Earn with a plan and redeem regularly. A good target is to redeem points within 12 to 18 months of earning them.

Making Poor Redemptions

Using 50,000 points for a $250 domestic flight is a waste when those same points could get you a $2,000 business class ticket. Before redeeming, always calculate the cents-per-point value you are getting. Use our points calculator to check whether a redemption makes sense.

Chasing Too Many Cards Too Fast

It is tempting to sign up for five cards at once to rack up bonuses. Do not do this. Opening too many accounts in a short period can hurt your credit score, and most issuers have rules limiting approvals. Chase, for example, will typically deny you if you have opened 5 or more cards from any issuer in the past 24 months (known as the "5/24 rule").

Start with one or two cards. Once you have met the spending requirements and understand the system, add another card every three to six months.

Ignoring Annual Fees

A $95 annual fee is almost always worth it if the card earns you thousands in travel value. But a $550 or $895 premium card might not make sense if you cannot take advantage of the travel credits, lounge access, and other perks. Always do the math: add up the tangible benefits you will actually use and compare that to the fee. Keep the card only if the value exceeds the cost.

Carrying a Balance

This one is non-negotiable. If you carry a balance and pay interest on your credit cards, the interest charges will wipe out any value you earn from points. Travel rewards cards often have interest rates of 20% or higher. Pay your statement balance in full every month, every time, no exceptions.

How to Redeem Points for Maximum Value

You have earned a pile of points. Now what? There are three main ways to use them, listed from best to worst value.

1. Transfer to Airline and Hotel Partners (Best Value)

As covered above, transferring points to partners unlocks the highest value -- especially for premium cabin flights and luxury hotel stays. This requires a bit more research and flexibility, but it routinely delivers 2 to 10+ cents per point.

Best for: Business and first class flights, high-end hotel stays, aspirational travel

2. Book Through Your Bank's Travel Portal (Good Value)

Chase, Amex, Capital One, and Citi all operate travel portals where you can book flights, hotels, and rental cars using your points. The redemption rate is typically fixed -- for example, Chase Sapphire Preferred gives you 1.25 cpp through the Chase portal. This is simpler than transfers but delivers lower value.

Best for: Domestic economy flights, simple bookings, last-minute travel

3. Cash Back or Statement Credits (Lowest Value)

You can usually redeem points for cash back at 1 cent per point or less. This should be your last resort. Redeeming 100,000 Chase points for $1,000 in cash means leaving $1,050 or more on the table compared to using transfer partners.

Best for: Only when you truly cannot find a reasonable travel redemption

Next Steps

You now understand more about points and miles than the vast majority of credit card holders. Here is how to put this knowledge into action:

1. Check your credit score. You will need good to excellent credit (generally 700+) for the best travel rewards cards. If your score is not quite there yet, focus on building credit first.

2. Apply for your first travel rewards card. The Chase Sapphire Preferred is the best starting point for most people.

3. Set up a tracking system. Even a simple spreadsheet works. Track which cards you have, when you got them, your spending targets, and your points balances.

4. Start earning with intention. Put all your regular spending on your new card. Route online purchases through shopping portals. Register for dining programs.

5. Plan your first redemption. Pick a trip you actually want to take, then research the best way to book it with points. Our comparison tool and calculator can help.

6. Keep learning. Explore our credit cards page to understand the full landscape, read our guide on the best travel credit cards for 2026, and dive into the transfer partners guide when you are ready.

The points and miles world can seem overwhelming at first, but the fundamentals are straightforward: earn flexible bank points through smart credit card use, and redeem them through transfer partners for outsized travel value. Everything else is just optimization on top of that core strategy.

Welcome to the game. Your first "free" flight is closer than you think.