Points and Miles Guides
Beginner Points & Miles Guide
Start earning free travel from the very first swipeWe use credit card points and miles to fund our Disney vacations every year. This guide breaks down everything a beginner needs to know to start doing the same.
What’s In This Guide
- Meet the Pixie Point Gals
- What Are Points & Miles?
- Why Points Beat Cash Back for Travelers
- Are You Ready? – How to Know Before You Start
- How to Start – Create Your Game Plan
- Ways to Earn Points
- Types of Cards – Transferable vs. Co-Branded
- The 4 Major Banks to Focus On
- Our Favorite Cards to Start With
- Business Cards – Do You Qualify?
- Card Families & Combining Points
- Using Your Points – Transferring vs. Portals
- Our Favorite Tips & Strategies
- Favorite Transfer Partners
- Annual Fees – Are They Worth It?
- Frequently Asked Questions
- Helpful Websites & Apps
Hi, We’re the Pixie Point Gals
A mother-daughter team who love Disney, family travel, and saving real money on magical vacations.
We are a mother-daughter team who love Disney and family travel! We use credit card points and miles to offset our costs as we travel with our families. We have both saved thousands of dollars every year implementing the steps in this guide.
Like every hobby, you have to start somewhere! This guide will break down what you need to know as a beginner. We hope you can use it to create some magical memories of your own.
Find us on Pinterest, Instagram, and TikTok at @pixiepointgals – real photos, travel tips, and card recommendations. Visit us at pixiepointgals.com.
Points & Miles Explained
Points and miles are the rewards your credit card gives you for using and signing up for their cards – and they can be worth far more than cash back.
Instead of cash back, you are given points or miles as a currency you can use towards travel – airlines, hotels, rental cars, and more. Here’s the basic breakdown:
Points vs. Cash Back – The Real Comparison
Cash back cards are fine – but if you value travel, you can get significantly more out of points and miles cards.
Sign-up bonuses are typically much higher on points cards. They also have different multipliers where you earn more points on certain categories. So you tend to earn more overall – and each point is worth more when redeemed strategically for travel.
| Card Type | Sign-Up Bonus | Annual Spend Earnings (2x avg) | Total Value |
|---|---|---|---|
| Costco Cash Back Card | $0 | ~$500 (2% cash back) | $500 |
| Chase Sapphire (Travel Points) | 60,000 pts (~$750) | 50,000 pts (~$625 in portal) | $1,562+ minimum |
That’s a minimum of 3x more value – and that’s before factoring in strategic point transfers, which can make each point worth 2 cents or more.
The real power isn’t just in using the card – it’s in the sign-up bonus. Most serious points earners are opening a new card every 90 days specifically to capture those one-time bonuses.
Make Sure You’re Financially Ready First
One of the most important things to understand before starting this hobby is knowing if you are financially ready to do it right.
Earning points is meaningless if you’re paying interest on balances. This hobby only works if you treat your credit cards like a debit card – spending only what you already have and paying off in full.
- Do you have a credit score of 660 or higher? Most premium travel cards require good to excellent credit to qualify.
- Are you carrying balances or paying interest? Earning points while paying interest is a net loss. Pay off existing balances first.
- Can you commit to paying your balance in full each week? Treat credit cards like a debit card – only spend money you already have.
- Do you have an idea of how much in annual fees you’re willing to pay per year? Have a plan and a comfort level before opening cards.
This hobby is not for everyone. If you are working on paying down debt or have a tendency to overspend, hold off until your finances are in a solid place first. Points are a reward for spending you were already going to do – not a reason to spend more.
Create Your Game Plan
Once your finances are in order, the next step is building a plan – because the farther out you plan, the better the redemptions you can find.
Step 1 – Write Down Where You Want to Go
Make a list of places you want to go on vacation for the next couple of years. This helps you open cards that align with your specific travel goals. Disney World? Hawaii? Europe? Each destination pairs with different airlines and hotels – and therefore different card strategies.
Step 2 – Create a Card Opening Timeline
Write down a plan for when you are going to open cards. A simple Google Sheet works great – note the card name, the date you opened it, the minimum spend requirement, and when the bonus was earned.
As a general rule, you can open a new card every 90 days. In a 2-person adult household, that means someone in your household could be opening a card every 45 days if you’re coordinating.
Step 3 – Use the Travel Freely App
Travel Freely is a free app that tracks when you are ready to open a new card and shows what card options you still have based on your current cards and bank rules like Chase’s 5/24 rule. It removes a lot of the guesswork.
The farther in advance you plan your trips, the better redemptions you can find – award availability opens up, you have time to accumulate the right points, and you can shop around for deals on flights and hotels.
How to Earn Points Quickly
There are several ways to earn points – sign-up bonuses are the biggest lever, but everyday spending, referrals, and portals all add up.
Sign-Up Bonuses
Most people in the points game earn the majority of their points from credit card sign-up bonuses. This is when the bank gives you a large lump of points as a one-time incentive for opening a new card and meeting a minimum spend in the first 3 months. These can be worth hundreds or even thousands of dollars in travel.
Using Your Card for Everyday Spending
When a card offers 2x points on a category, you earn 2 points for every dollar you spend in that category. Having even a couple of cards that give you higher multipliers on categories you spend the most in – dining, groceries, travel – is a great way to keep earning points between new card applications.
Referrals
There is really no reason to add your spouse or partner as an authorized user on your card. Why? Because you would want to refer them instead! Referring someone earns you anywhere from 15,000 to 40,000 bonus points per referral. Simply go to your bank’s app, click on the card, and find the “Refer a Friend” option.
Shopping Portals
Shopping portals are browser plug-ins that earn you additional points, miles, or cash back on purchases you were already going to make online. As a beginner, start with your favorite airline’s shopping portal and Rakuten. Note: Rakuten is a cash-back extension by default, but you can switch it to earn American Express points instead.
Bonus Offers & Retention Offers
Chase and other banks periodically offer targeted bonus promotions on your existing cards. For Chase, visit chase.com/mybonus and enter the last four digits of your cards to see if any are targeted for extra points. Banks also occasionally make retention offers – extra points to keep a card open when you’re approaching the annual fee renewal.
At 15,000 to 40,000 points per referral, referring your spouse to even one card can be worth hundreds of dollars in travel. This is one of the most underused earning strategies for couples and families.
Transferable vs. Co-Branded Cards
Understanding the difference between these two types of cards is one of the most important foundations of this hobby.
These cards earn points you can use in a variety of ways – book through their travel portal, transfer to an airline or hotel loyalty program, or cover travel purchases as statement credits. Examples: Chase Sapphire, Capital One Venture, Amex Gold, Citi Premier. We always suggest beginners start here.
Co-branded cards earn points or miles for only that specific airline or hotel – for example, a Southwest Airlines card earns only Southwest points. They are less flexible, but very powerful once you know which programs you love. Great for earning Companion Pass, elite status, etc.
Start with flexible currency cards. Once you get the hang of it and know which airlines and hotels you love, you can branch out into co-branded cards to layer on top of your flexible earning base.
The Banks Most Beginners Should Focus On
These four banks cover the vast majority of the best travel rewards cards. Here’s what you need to know about each one.
The bank we suggest to start with. Chase points (Ultimate Rewards) are easy to earn, incredibly versatile, and transfer to great partners like Hyatt and Southwest.
Capital One can be finicky on approvals, so we suggest getting one of their cards early. Their points are probably the easiest to use of all four banks.
Amex cards usually have higher annual fees, but cards like the Amex Gold come with credits (like Uber/Ubereats) that offset those fees significantly.
One of the few banks with American Airlines co-branded cards. Also has a great beginner card in the Citi Premier, which functions similarly to a Venture card.
The Cards We Recommend for Beginners
These are the cards we personally recommend starting with – all flexible currency cards that give you the most options as a beginner.
One of the best beginner travel cards. Earns Chase Ultimate Rewards points transferable to Hyatt, Southwest, United, and more. Strong sign-up bonus, solid multipliers on dining and travel, and only a $95 annual fee. Open this one first before you hit Chase’s 5/24 limit.
Earns Capital One miles with the simple travel eraser feature – great for covering Disney tickets, cruises, and other travel that’s hard to book on points. One of the most beginner-friendly cards. Get this one early since Capital One can be particular about approvals.
A powerful business card earning Chase Ultimate Rewards points. Great sign-up bonus, strong multipliers on business spend, and does NOT count toward your Chase 5/24 limit. A great way to earn more Chase points alongside your personal cards.
Earns 4x Amex points on restaurants and groceries – the two highest spend categories for most families. Higher annual fee, but the included credits largely offset it. One of the best cards for maximizing everyday family spending.
We have affiliate links for all the cards we discuss in our guides. It costs you nothing extra, but clicking our links before applying helps support our business. We always share the best available offers. Find our card links at pixiepointgals.com.
Do You Qualify for a Business Card?
You don’t need a formal business or an EIN to apply for a business credit card – more people qualify than you might think.
Business cards have both flexible and co-branded options just like personal cards. And if the points earned are in the same card family as your personal card, you can combine them.
Do I Need an EIN to Apply?
No! Anyone who makes money through a side hustle or small business can apply as a sole proprietor using their Social Security Number. This can be something as simple as:
- Walking dogs or pet sitting
- Selling baked goods to neighbors
- Selling old items online (eBay, Facebook Marketplace, Poshmark)
- Freelancing, tutoring, or coaching
- Any side income at all
Business cards from Chase do not count toward your Chase 5/24 limit. This means you can open Chase business cards alongside your personal cards without burning through your 5/24 slots – a huge advantage for earning more points faster.
Card Families – How Points Stack Together
Cards within the same bank family earn the same point currency – which means you can pool them all onto one card to transfer or redeem.
For example, all three of these Chase cards earn Chase Ultimate Rewards points:
| Card | Type | Annual Fee | Role in Your Wallet |
|---|---|---|---|
| Chase Freedom | Personal | $0 | Earns points with no annual fee – keep it open forever |
| Chase Business Cash | Business | $0 | Earns points on business spend, doesn’t count toward 5/24 |
| Chase Sapphire Preferred | Personal | $95 | The hub card – allows you to transfer all pooled points to partners |
You can also combine points with someone living in your household. If your spouse has several cards in the same family, all those points can live in one account – dramatically increasing what you can book.
Without a card like the Chase Sapphire (Preferred or Reserve), your Chase points can’t be transferred to airline or hotel partners. The Sapphire is what unlocks the full value of the entire Chase family.
Transferring vs. Travel Portals – Why It Matters
How you redeem your points makes an enormous difference in what you actually get. Transferring to loyalty programs almost always wins.
Let’s use a real example: a room at the Grand Hyatt Kauai that retails for $644 per night.
| Redemption Method | Cost in Points | Value |
|---|---|---|
| Cash out at 1 cent/pt (Capital One eraser) | 64,400 points | $644 |
| Book through Chase travel portal | 56,350 points | $644 |
| Transfer to World of Hyatt (free program) | 30,000 points | $644 – same room, far fewer points |
By transferring to Hyatt’s free loyalty program instead of booking through a portal, you get the same room for less than half the points. That’s the power of transferring.
Always check what a room or flight costs directly through the hotel or airline’s loyalty program before using a travel portal. In most cases, transferring your points will stretch them 2 to 3x further.
Tips We Swear By
These are the strategies that have made the biggest difference in our own travel – all beginner-friendly.
Tip 1 – The Hyatt + Southwest Combo
The easiest beginner one-two punch is Hyatt hotels + Southwest Airlines. Chase Ultimate Rewards points transfer to both programs. One of our favorite moves is opening a Southwest personal card + Southwest business card to earn the Companion Pass – meaning a child or another adult flies free with you on Southwest for up to two years.
For Hyatt specifically, you can usually get at least 2 cents per point in value (sometimes more). A 60,000-point sign-up bonus alone could be worth $1,200 in Hyatt hotel stays.
Tip 2 – Kids Fly 25% Off on KLM / Air France with Points
One of the best ways for families to get to Europe is through the KLM/Air France partnership called Flying Blue. Award flights for children ages 3 to 11 are 25% off with points and miles. When searching on KLM or Air France’s site, search one-way and leave the date field blank – this pulls up the monthly view of points availability.
Tip 3 – Don’t Chase Shiny Point Numbers
Just because a card offers a large number of points doesn’t mean they’re all worth the same. Different point currencies hold different values. Always look at what a point is actually worth in the redemption you care about – not just the raw number.
Open Chase Sapphire, earn 60,000 pts + 4,000 from spend, refer your partner, earn 15,000 referral pts, partner opens the card and earns 64,000 pts, transfer all to one account, move to World of Hyatt – that’s enough for almost 5 nights at the Grand Hyatt Kauai (cash value: $3,165).
Our Favorite Loyalty Programs to Transfer To
These are the transfer partners we personally use and recommend.
| Program | Bank Partner | Best For | Watch Out For |
|---|---|---|---|
| World of Hyatt | Chase | Great redemption value – often 2 cents/pt or more. Excellent for families at Disney-area Hyatts. | Smaller hotel footprint than Marriott or Hilton |
| Southwest Airlines | Chase | Companion Pass for families – one adult or child flies free. Strong domestic network. | Open boarding style; very few international routes |
| KLM / Air France (Flying Blue) | All 4 major banks | Kids 3 to 11 fly at 25% off on points. Best beginner path to Europe. | Higher fuel taxes and fees on award tickets |
| British Airways (Avios) | Capital One, Chase, Amex | Book flights on American Airlines domestically and internationally with Avios points. | Limited to discount fare availability on domestic routes |
| Air Canada (Aeroplan) | Capital One, Chase, Amex | Book United flights including domestic with Aeroplan points – often at lower rates than United charges directly. | Limited to discount fare availability on domestic routes |
Delta is genuinely hard to find value in as a beginner due to dynamic pricing. Marriott and Hilton hotels also tend to require a co-branded card to get real value. Master Hyatt and Southwest first before branching into these.
Annual Fees – Are They Worth It?
Most cards that are “worth it” for travel have some sort of annual fee. Here’s how to think about whether it makes sense for you.
The key is to look at what you actually get back from the card. Take the Capital One Venture X as an example:
- $300 travel credit to use on Capital One’s travel portal each year
- 10,000 anniversary bonus points every year (worth ~$100 in travel)
- Airport lounge access (Capital One lounges + Priority Pass)
- Strong travel protections and no foreign transaction fees
Just those first two perks total $400 in value – more than the $395 fee – before you count the points you earn, lounge access, or the protections.
How to Set Your Annual Fee Budget
Set a budget for what you are willing to pay in total annual fees per year. Look at how much you currently spend on travel without using cards, then set aside a portion of that for fees instead – because the cards should be replacing and exceeding what you’d spend anyway.
We personally pay around $1,600 in total annual fees across our cards. Last year we did around $40,000 in travel – flights, hotels, Disney, and international trips. The fees are a small fraction of what we get back.
Questions We Hear Most
The most common questions we get from beginners – answered honestly.
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What happens to my credit score?As long as you are paying your cards on time and in full, you will likely see your score go up over time – not down. Having a lot of credit extended to you and using it responsibly is a positive signal to credit bureaus. We’ve personally seen scores rise 50+ points doing this hobby correctly.
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How often do you pay off your cards?We pay off every Sunday – one day a week. The key is treating your credit cards exactly like a debit card. Only spend money you already have sitting in your checking account.
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How do you keep track of everything?A budgeting app like Rocket Money lets you see all your cards from different banks in one place and track your expenses. For card opening timelines and point balances, a simple Google Sheet works great.
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What do you do with a card after the first year?You have three options: (1) Keep it open if you’re still getting value. (2) Downgrade it – many cards can be moved to a no-annual-fee version in the same family. (3) Cancel it if you won’t use it and don’t find value in keeping it.
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What’s the Chase 5/24 rule?Chase will only approve you for a personal card if you’ve opened fewer than 5 personal credit cards across all banks in the last 24 months. This is why we say to start with Chase first – before opening cards at other banks that could burn through your 5/24 slots. Chase business cards do not count toward this limit.
Tools We Actually Use
These are the free apps and websites that make managing points and finding great redemptions much easier.
Free app that tracks all your cards, shows your Chase 5/24 status, suggests new cards based on where you are in the process, and tells you when you’re ready to open your next card. The best starting tool for beginners.
A free search engine (for the first couple of searches per day) that shows hotel points availability including Hyatt, which doesn’t have a great calendar view on their own app. Great for finding award availability before you transfer points.
A search engine for award flights. Enter what point currency you have and where you want to go, and it shows you award availability across partners. Especially useful for international travel. Amex Gold and Platinum cardholders get access included.
An app that tells you which credit card to use on each purchase to maximize your points earning. Great for people who want fewer cards but want to make sure they’re getting the most out of what they have.
