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"The most simple things can bring the most happiness." — Izabella Scorupco

A recent chat with a friend inspired this particular blog post.

She recently signed up (and was approved!) for one of the best credit cards for miles and points. 🎉 And now . . . she’s not sure of the next step.

Who can blame her?

• Should she learn all there is to know about how to travel on points before putting hers to use?

• Where can she learn it all?

• How will she be sure to “do it right”?

• How can she maximize the value?

So. Many. Questions.

We’ve all had them — well, anyone who has ever used miles and points for travel anyway. 😉

Most continue to have questions.

FOMO (and not getting it “right”) is real, my friends!

We want to use our credit card rewards for travel in the most efficient and valuable way.

Today, I’m here to tell you that there is no “perfect” way. There is only the way that is right for you, in this moment.

And guess what? It doesn’t have to be HARD! 👏

So, let’s talk about credit card travel benefits known as “points and miles” and just how to start putting them to work for you.

Because they aren’t doing you any good just sitting in your account waiting to be used. Actually putting them to use is what is going to lead to realizing their value . . . and to creating your richer life.

Why Points and Miles?

Let’s rewind. What exactly ARE points and miles? Why do we care about this particular credit card travel benefit?

Very simply, points and miles are rewards you earn when using certain travel reward credit cards.

There are bank travel credit cards that are tied to a specific airline or hotel group. Or, there are cards that earn points with the bank itself, which can later be redeemed or transferred to various travel partners.

While branded cards tied to airlines or hotels may have their place, it is the points-earning bank cards that tend to offer more flexibility in redeeming your rewards.

When you make purchases, you’ll earn either points or miles (depending on the card) based on how much you spend and sometimes, where you spend it. Some of these miles and points credit cards even offer extra rewards for spending in specific categories, like travel, dining, or groceries, to name a few.

Many cards also offer a sizable welcome offer if you spend a certain amount on the card within the first few months. And if you are someone who manages their credit like cash, and can fully pay off the balance each month, utilizing these welcome offers is one of the best travel rewards strategies.

Points and miles from welcome offers and from everyday spending accumulate over time and can be redeemed for things like cash back, travel, gift cards, merchandise, and more.

Points and Miles Tips

Before we get into just how to start reaping the benefits of accumulating points and miles, let’s first review a couple of quick tips for making the most of your rewards:

Tip #1 - Pay Your Balance in Full Each Month:

If you carry a balance on your rewards card, the resulting interest charges may negate any benefit from the points and miles earned.

You really want to make sure that you can effectively manage credit AND pay it off in full each and every month, before diving into the world of travel using miles and points.

Tip #2 - Welcome Offer Required Spend:

It is extremely important to understand the amount and timing of the required spend. Every offer will explicitly state how much needs to be spent on the card and in what period of time, in order to achieve the welcome offer.

Most often, the spend can be easily hit if you simply put most of your monthly expenses onto the card. Even if it is an expense you normally pay for in cash and don’t normally charge, could you? So long as it gets paid off at the end of the month, you’ll end up in the same place . . . just with MORE points or miles!

As mentioned above, just be sure to pay it off in full by the due date each month.

Pro Tip: Whenever I sign up for a new card, I consider the timing of my larger recurring expenses. Knowing this, it is much easier to decide if I should be able to hit the spend requirement.

And if you know you have some large expenses coming up, for heaven’s sake . . . apply for one of the best rewards credit cards, like some of my favorites here, and start reaping the rewards!

Tip #3 - Maximize Category Bonuses:

Review the categories that may provide elevated points and miles on your particular card(s). This way, you can maximize what you earn on your spend.

If one card offers 2x the points on groceries and another offers 3x on dining, you can bet that I’ll be using each of those different cards! (**Unless I’m working on a Welcome Offer, see above, and funneling EVERYTHING onto that one new card, until I hit the required spend).

Easy Redemption Options That Anyone Can Use

Once you've started earning points and miles, it’s time to put those rewards to good use! The great news is that redeeming points can be as simple as earning them.

You don't need to be an expert or have a ton of points saved up to start enjoying the benefits. Let’s dive into the most common and straightforward ways to redeem your rewards.

1. Gift Cards for a Variety of Retailers

How It Works: Many credit card issuers offer gift cards as a redemption option, and you can often redeem points for popular brands like Amazon, Target, Starbucks, and more. These gift cards are available in various denominations and can be delivered digitally, making them quick and convenient.

Why It’s Great: Gift cards offer a flexible way to use your points, especially if you have specific stores in mind. They also make for easy gifts if you want to share the perks of your rewards cards with friends or family.

And since you’re redeeming points, it’s essentially “free money” to spend at your favorite spots!

Pro Tip: Keep an eye out for promotional deals where issuers offer discounted gift cards or offer special redemption rates. For instance, around the holiday season, you might find that a $25 gift card only costs $20 worth of points. These promotions can help you stretch your rewards further and get extra value.

2. Cash Back or Statement Credits

How It Works: Many rewards cards allow you to redeem your points for cash back or as a statement credit, which directly reduces your balance.

This is one of the easiest and most versatile ways to use points, especially if you’re looking to save on everyday purchases or reduce your monthly bill.

While it doesn’t get the most value back for your points, it is a solid option to easily “erase” charges.

Lots of travelers will use this method to "erase" travel charges they weren’t otherwise able to purchase using points (e.g., bus tickets, AirBnb’s, etc.)

Why It’s Great: Cash back is straightforward—no blackout dates, no restrictions, and you can use it however you like. Whether you want to cover a portion of your groceries, save for an upcoming trip, or even fund a special treat, this option offers flexibility.

Pro Tip: Some cards offer higher redemption rates when you choose cash back or statement credits, so make sure to check your card's terms.

Sometimes, instead of offsetting a specific charge on your card, you can gain even more value by using your points in the issuing bank’s travel booking portal . . .

3. Travel Rewards: Flights, Hotels, and Car Rentals

How It Works: Individual bank travel booking portals are a fantastic and easy way to elevate the value of your points, especially if you enjoy exploring new destinations. Most cards allow you to book travel directly through their online portal.

Why It’s Great: With online travel portals, you’re sometimes able to get much higher value for your points compared to the other redemption options discussed so far.

This option lets you book flights, hotels, or even car rentals using your points, reducing or eliminating out-of-pocket costs on your trips.

Pro Tip: The typical value of your points on a travel portal is 1 cent. However, some banks allow you to get even more value by increasing the point value to 1.25 or even 1.5 cents when redeemed for travel through their portal. Be sure to review the card’s offer details to understand if point values are elevated in the travel portal.

For example, a hotel night that would normally cost you $100 cash, could be purchased through the online travel portal using 10,000 points instead. But, if your travel rewards credit card is with a bank that offers a 25% higher redemption value, that same stay would only use 8,000 points!

And don’t be alarmed by those numbers either. Remember welcome offers? Frequently you will find those in the 60,000 to 90,000 (or higher🤯) range!

Travel Reward Strategies - The Next Step

Maybe you have a bit of time to devote to finding an even better redemption value for your travel credit card points and miles. Or perhaps you’re looking for options which may not be available in your particular bank’s travel portal.

If either of these describe you, well, I’ve got you covered! 😉

When you’re ready to consider a more advanced option for putting your points to work, I’ve got two words for you . . . Travel. Partners.

Understanding the options available to you (as well as any special pricing or deals on any particular day) can be a full time job. I’m NOT looking for another full time job.

Instead, I personally rely on a free daily newsletter to do that job for me.

If you’d like to really understand how some of these more advanced redemption strategies work and where to find them, sign up for your own subscription. The 3-5 minutes a day it takes to review the newsletter and learn how you can stretch your travel miles and points further is a great investment of time. And with over 1 million subscribers, I'm not the only one who thinks so! 👍

Personally, with some of the deals I’ve scored based on information in the newsletter, I’ve saved thousands of dollars in travel costs!

And even if you’re not into the more advanced points-spending strategies yet, the newsletter also covers day-to-day ways to maximize earning points and miles. Learn the options at your own pace.

Follow some of these suggestions, learn some of the techniques for putting points and miles to use, and then when you ARE ready to dive in, you’ll have the stash of points ready to go!

Final Thoughts on Redeeming Your Rewards

Remember, there’s no one-size-fits-all approach to redeeming your points and miles.

The best redemption option is the one that aligns with your lifestyle and goals.

Whether you’re looking to offset everyday expenses with cash back, save on travel, or treat yourself to a unique experience, your points can work for you in countless ways.

Earn travel miles and points. And USE them. Then earn some more.

It becomes a happy cycle . . . especially as you begin to learn just how far they can go for you!

But, start somewhere.

It doesn’t have to be some slam-dunk-deal. It just needs to, well, bring a smile to your face.😀 Whatever point redemption does THAT today, in this moment, is the right way to use your points and miles.

And, to Deb,😉who inspired this article, and everyone reading it . . . Happy traveling!