Credit card points are a currency. Every time you swipe your card, you earn some amount of that currency based on what you spent. The question is how you spend that currency when it's time to travel, and that's where most people leave a massive amount of value on the table.
The two kinds of points worth understanding
Airline and hotel loyalty points
Earned directly with specific programs like Delta SkyMiles, Marriott Bonvoy, or Hilton Honors. These are tied to one company and can only be used within that ecosystem.
Transferable credit card points
Programs like Chase Ultimate Rewards, American Express Membership Rewards, Capital One Miles, and Citi ThankYou Points can be transferred to dozens of different airline and hotel partners. This flexibility is what makes them so valuable, and it's the foundation of most serious points strategies.
Why transferable points win
Airline-specific miles lock you into one ecosystem. Transferable points give you the freedom to shop across dozens of programs and pick the best redemption for whatever trip you're planning. More options almost always means better value.
The cards worth building your strategy around
The cards that earn transferable points are the ones worth focusing on. A few of the most commonly used ones:
- →Amex Gold — earns Amex Membership Rewards
- →Amex Platinum — earns Amex Membership Rewards
- →Capital One Venture X — earns Capital One Miles
- →Chase Sapphire Preferred — earns Chase Ultimate Rewards
- →Chase Sapphire Reserve — earns Chase Ultimate Rewards
You don't need all of them. Picking one or two and earning toward the same transferable currency is the right starting point for most people.
What comes next
Once you understand what points are and which kind to earn, the next question is how to accumulate them quickly. That's what Part 2 is about, and the answer is sign-up bonuses.