The Top Points and Miles Mistakes to Avoid When Earning and Redeeming

If you love to travel or want to travel more, you might be taking steps to earn points and miles that you can redeem for flights and hotels. This is an excellent strategy that can help you travel the world for less money, visit places you never thought possible, or fly in business class affordably. 

But the world of points and miles can be complicated, and whether you’re just getting started with earning miles or have redeemed points for several trips, you may be making errors that can keep you from getting the most from your hard-earned points. 

Here are a few of the most common points and miles mistakes and how to avoid them. 

Here’s what to avoid when earnings points and miles 

Using credit cards to earn points and miles for everyday purchases is a smart money move. But there are some easy-to-make mistakes to be aware of so you can take steps to avoid them. These are some of the most common points and miles-earning mistakes that travelers make: 

Being too intimidated to start 

Points and miles programs can feel overwhelming, especially if you’re a beginner. But don’t let the complexity of these programs keep you from missing out. It’s never too late to learn something new. 

There are hundreds of blogs and educational resources (including point.me!) that can teach you how to earn and redeem travel rewards. Keep in mind, you’ll gain more confidence and knowledge as you gain more experience. And the sooner you start, the sooner you can start putting your points to good use. Dreaming of a summer getaway in business class? If you apply for a card at the beginning of the year and spend strategically, you can earn enough points to cover your flight within a few months. 

Choosing a card that doesn’t provide transferable points 

One of the best ways to maximize the value of your travel rewards is by having a credit card that earns transferable points. These are points that you can transfer to multiple airlines; for example, American Express points transfer to more than a dozen airlines, including Hawaiian, Air Canada, Delta, and JetBlue. 

Being able to transfer your points or miles to airline and hotel loyalty programs can allow you to make higher-value redemptions and shop around for the best fares rather than being locked into one program. And, transferring your points to an airline rather than redeeming them in your credit card’s travel portal is a much better value. For example, a $1,000 roundtrip economy flight from NYC to Paris might cost 100,000 points in the credit card portal but only 34,000 points if yo transfer those points to the airline. 

Meanwhile, cash-back redemptions may offer less value. If you need assistance understanding the best transfer partners and how to transfer your points or miles, check out point.me’s guide on how to transfer credit card points to airline miles. 

Choosing a card that isn’t aligned with your spending and travel habits 

There are many popular travel rewards credit cards to choose from, but not every card will be the right fit for you. It is wise to get a credit card that aligns with your typical spending patterns. This strategy can help you maximize your reward potential. 

Choose a card with bonus rewards in the purchase categories you typically spend money on. 

For example, if you typically spend a significant amount of money on travel, look for a card that offers bonus rewards in that category. For bonus reward categories, aim to earn two or more miles or points per $1 —  the more, the better. Some of the best travel credit cards earn 3 points per $1 or more on travel purchases. 

If you have more varied spending, getting a flat-rate credit card for purchases outside those bonus categories can be helpful. With this kind of credit card, you’ll earn a set reward rate for all purchases made with your card. For example, you may earn 1 point per $1 for any purchase, regardless of the purchase category. 

Being strategic when choosing a credit card can yield more rewards. If you need help selecting the right credit card for you, point.me offers a points strategy consultation in which you’ll meed with an advisor to discuss your spending habits and earnings goals, and then receive a customized plan to help you get there.

Not earning a welcome offer 

Many airline and travel credit cards have generous welcome offers; the terms typically require you to spend a certain amount of money (often $3,000-$4,000) in a certain amount of time (usually three to four months) in order to receive a certain amount of bonus points. 

If you qualify for a welcome bonus and meet the terms of the offer, you can earn a sizable points or miles bonus — often enough for a roundtrip economy flight or one way business class flight. Before applying for a new rewards credit card, check whether a welcome bonus is available and if you’re eligible to earn it. 

If you can’t afford to spend the minimum amount needed to earn the bonus, you may want to wait to apply until you have more spending planned. For example, it may be easier to achieve a welcome bonus around the holidays or when you’re planning to book a big trip or do some home repair. 

Additionally, you should only try to earn a welcome bonus if you can afford to pay your statement balance off every month so you avoid expensive credit card interest charges. Racking up credit card debt will cancel out any bonus rewards you’ve earned. 

Not getting a Bilt Mastercard to earn points on rental payments 

Many travelers who rent have the Bilt Mastercard in their wallet. With this credit card, you can pay your rent and earn rewards — and you can set it up so that your rent payment is still automatically withdrawn for your bank account each month, so there’s no temptation to rack up a hefty balance on the card. 

For many people, rent is their largest monthly expense, so it’s advantageous to earn rewards for this spending. You can redeem your rewards with Bilt’s travel transfer partners, which include more than a dozen hotel and airline partners. 

Not putting your credit card perks to use 

You’ll get more value from your credit cards by using the included card perks. It’s important to choose credit cards that offer benefits that you value. Otherwise, you may be wasting money on benefits that you don’t use. 

Many of the best travel credit cards offer valuable perks, such as annual travel credits that provide savings to frequent travelers. Another example is complimentary airport lounge access, which frequent fliers can retreat to while waiting to board their flights. These perks can prove valuable, but only if you’re using them. 

If you haven’t been utilizing all of your available card perks, you may want to start tracking your perks. A simple way to do this is with a spreadsheet. You can make note of what perks are available and whether or not you’re using the benefit provided.

If you’re looking for a more advanced way to track your card perks, another option is to use a mobile app like MaxRewards or WalletFlo. Having an organized system may help you better maximize your benefits. 

Failing to pay your credit card statement balances immediately 

You should only charge your credit cards for purchases that you can pay off in full as soon as the bill arrives. You’ll be charged interest if you don’t pay the entire statement balance listed on your credit card bill, which is expensive and can quickly lead to credit card debt. 

Don’t charge a purchase you can’t afford to pay in full to earn rewards. If you accumulate debt, that will cancel out any rewards earned. 

Here’s what to avoid when redeeming points and miles 

How you redeem your rewards can impact the value you get from your points and miles. Some travelers make costly redemption mistakes. Knowing what not to do before you make a redemption can allow you to get more value from your credit card rewards. These are some of the most common points and miles redemption mistakes you should avoid making: 

Only redeeming through travel portals 

Many credit card issuers allow cardholders to redeem their points or miles for travel purchases booked using a designated travel portal. While this is convenient, this redemption typically isn’t the best use of your rewards, as most portals offer a value of 1 cent per point, which means a $500 flight will cost 50,000 points. That same number of points could get you a one-way business class flight if you book directly with the airline.  

When booking using a transferable points currency (like Amex, Bilt, Capital One, Citi, or Chase points), you should always compare the fares you see in your credit card portal to those found across various programs. It may be a much better value to transfer your rewards to travel partners, though figuring out which ones offer the best value can be time-consuming. You can use point.me to explore the best award flight options for maximum value, as the search compares fares across more than 150 airlines and loyalty programs. 

Not researching fares across travel loyalty programs 

As said above, when considering how to redeem your points and miles, reviewing your options across multiple travel loyalty programs is vital for getting the best value. This way, you can find the most advantageous redemption option. 

Fares vary by loyalty program. If you research fares for only one travel loyalty program, you may not get the best value from your rewards. Point.me makes it easy to compare fares across multiple programs so you can make the best redemption. 

Booking too early or too late 

Redeeming your rewards at the wrong time could cost you. Many airline loyalty programs allow travelers to book award travel 11 to 12 months in advance of departure, and some of the lowest fares can often be found at this time. On the other hand, some airlines release additional seats at the last minute, so you can often find great fares during this time. 

Monitoring redemption prices over time can help you determine the best time to book. Start looking when airlines release availability nearly a year in advance, and if you don’t see a fare you like, keep checking throughout the year; something else may open up. And if you missed that early window, don’t discount the idea of finding something great at the last minute. 

Not being flexible with flight options 

Of course, we all want to find our ideal fare for the exact flight we want, but being flexible with any part of your trip can open up a lot more options, so consider where you can be flexible in order to save. 

Can you travel on slightly different days? Are you willing to fly with an airline that isn’t your top choice? Are you willing to fly out of an airport other than your home airport? Many travelers do this to get a better redemption. They book a separate positioning flight from their home airport to a departure airport with cheaper award flights. Being flexible with your flight options can help you stretch your travel rewards further. 

Redeeming your rewards for cash back or gift cards 

Redeeming your credit card rewards for cash back or gift cards can feel like a win, but these are typically low-value redemptions. If your credit card rewards program allows you to redeem your points or miles for travel by transferring them to eligible airline and hotel partners, this is usually one of the best, high-value ways to use your rewards. Always research all of your redemption options first so you can make the most advantageous redemption. 

Hoarding your points  

Unless you’re saving up and are close to having enough points or miles for a redemption, it’s not a great idea to hoard your points. Why? Points and miles can lose value, so hoarding can cost you money. The longer you wait to redeem your rewards, the less valuable they can become. It’s wise to redeem your points or miles sooner rather than later. This way, they don’t lose value.

Failing to check award flight availability before transferring your points or miles 

Always double-check award flight availability before transferring your points and verify whether a particular award flight is available for your desired date and time. Once you transfer your points to an airline, you can’t transfer them back. That means you’ll be forced to use them with that airline partner and will have less flexibility. Always verify availability first to avoid this costly error. 

Some airlines, like Air France and American, will allow you to place a seat on hold while you transfer your points. This often comes with a small fee but can be worth it to ensure the seat you want will still be there after your points transfer. 

Giving up because it’s too challenging

There is a learning curve when getting into points and miles. But, like many things, it gets easier the more you do it. Don’t give up because you’re feeling overwhelmed. 

If you’re feeling stuck, point.me has a concierge service. You can hire our experts for personalized guidance on maximizing your points and miles earnings, or let us find and book your flights when you’re ready to redeem your rewards. Don’t be afraid to get help. 

Make strategic moves so you can see more of the world 

Being strategic when applying for and using credit cards and redeeming the points and miles you’ve earned can allow you to see more of the world. By avoiding the above mistakes, you can set yourself up for greater success throughout your points and miles journey.

If you need help maximizing the value of your credit card rewards, pont.met is ready to help. Our search tool makes it easy to find award flight availability so you can put your travel rewards to good use.