How to Start Applying for Miles & Points Credit Cards

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Million Mile Secrets reader Michael emails:

I have a friend I’m trying to bring into the miles game.  He has good credit (740), but only has … wait for it …. just ONE credit card, which he’s had for years.  Only a $2,500 limit.  100% pay on time.

Is he ready to apply for the big bonuses?  Or should he get a few more cards and a little more cumulative credit limit by starting with cards like the Chase Freedom, and other beginner cards?

Basically, is a 700+ score and only a single card enough to swing for the fences and apply for 4 or 5 cards with 50,000+ bonuses right out of the gate?

This is a great question!   What should you do if you want to start applying for miles and points cards, but only have ONE long-established credit card currently (with a good credit score)?

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What’s the Best Way to Start Applying for Miles & Points Credit Cards?

Before jumping in and applying for lots of cards, Michael’s friend should consider the impact applying for cards will have on his credit score.

He should start off with 1 to 2 cards and make sure he can stay organized.  Then, keeping his travel goals in mind, he could start applying for more cards in a few months.

Rule #1:   Start Slow

Link:   The 5 Dangers of Applying for Credit Cards

It’s tempting for folks who are new to miles and points to start applying for as many cards as they can.  But until you know how multiple card applications affect your credit score, and if you’re able to meet minimum spending requirements, it’s best to start slow and apply for just a couple of cards at once.

And make sure to pay the balance in FULL each month!

You’ll need to see for yourself if you can manage and track minimum spending requirements and payment due dates.  It takes organization and planning.

You don’t want to overwhelm yourself at the start and get frustrated.  There’s no rush and there will still be good offers.

Rule #2:  Keep an Eye on Your Credit Score

Link:   Does Applying for Credit Cards Ruin Your Credit Score?

Link:   Credit Karma

Link:   Credit Sesame

In the short term, yes, applying for credit cards will decrease your credit score (typically between 3 and 5 points per application, in my experience.)  But if you make your payments on time (and pay balances in full), your credit score should bounce back after a few months.

Before applying for cards, you can check your credit score on free sites like Credit Karma or Credit Sesame.  Then, after applying for and using cards for a few months, you can see what impact it’s had on your score.

Your credit score is calculated on a number of factors:

  • 35% Payment History
  • 30% Amounts Owed
  • 15% Length of Credit History
  • 10% New Credit
  • 10% Types of Credit
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Your Credit Score Is Determined By a Number of Factors

By far the biggest impact to your credit score is your payment history and amounts owed.  So as long as Michael’s friend hasn’t maxed out his 1 credit card, and has paid his bills on time, the impact to his score should be favorable.

Where Michael’s friend may have an issue is in types of credit.  But even if he only has 1 credit card, he may have other loans, mortgages, or store cards that add to the mix and improve his score.

When he applies for new cards, his length of credit history will decrease and amount of new credit will increase.  That’s why his credit score will decrease temporarily.  But as time goes on, provided he doesn’t carry a balance, there should be an improvement in the score because of the extra credit available to him and good payment history.

With a 740 credit score, Michael’s friend has a great chance of being approved for new credit cards.

That said, I don’t know that applying for 4 or 5 cards right away is a good idea.  Michael’s friend may well get approved for all of them, but just because you can doesn’t mean you should!  I’d start of with 1 or 2 cards and see if he’s comfortable applying for more.

Rule #3:  Consider Your Travel Plans

Link:   Bank Points Cards

Link:   Airline Cards

Link:   Hotel Cards

Before you consider applying for cards, it’s best to think about your travel goals.  Do you prefer low-cost, coach class, domestic travel?  Or are you dreaming about flying in Business or First Class to exotic destinations?

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Consider Your Travel Goals and Plans Before Applying for Cards

My advice to folks new to miles and points credit cards is to begin with cards that give them the most flexibility in using their miles and points.  Points that can be transferred to partner airlines and hotels, or cards that give statement credits for travel expenses are a good start.

The Best Cards for Starting Out

Here are 3 of my favorites.

1.   Chase Sapphire Preferred

Link:   Chase Sapphire Preferred

The Chase Sapphire Preferred card might be a good starting point for Michael’s friend.  I like this card because Chase Ultimate Rewards points transfer 1:1 to partner airlines and hotels, including United Airlines, Southwest, and Hyatt.  You get 40,000 Chase Ultimate Rewards points after meeting minimum spending requirements, plus 5,000 more if you add an authorized user.

And there are lots of ways to earn extra Chase Ultimate Rewards points, like dining out (earn 2X points, or 3X points if it’s the 1st Friday of the month), shopping through the Chase Ultimate Rewards shopping portal, or using the card for travel (earn 2X points on categories like hotels, cruises, travel agencies, parking, and taxis).

Emily and I like transferring our Chase Ultimate Rewards points to partner airlines and hotels because we get far greater value from the points that way.  For example, we’ve transferred points to Hyatt and stayed at some amazing hotels!

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We’ve Stayed In Some Amazing Hyatt Hotels, Like the Park Hyatt Goa

So even if Michael’s friend doesn’t know exactly where he wants to travel, he’ll have a lot of options with Chase Ultimate Rewards points.

2.   American Express Starwood Preferred Guest

Link:   American Express Starwood Preferred Guest (Personal)

You’ll get 25,000 Starwood points after spending $5,000 in the 1st 6 months on the American Express Starwood Preferred Guest card.

There are lots of ways to use Starwood points (you don’t just have to use them at Starwood hotels).  They transfer to partner airlines, usually at a 1:1 ratio.  But the best part is the 5,000 mile transfer bonus you get for every 20,000 Starwood points you transfer!

Here’s my series on how to best use Starwood points.

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Starwood Points Can Be Used at Hotels or Transferred to Partners Like American Airlines

So if Michael’s friend gets this card, he’ll be able to transfer his points to ~30 transfer partners.  That’s great flexibility!

3.   Barclaycard Arrival Plus

Link:   Barclaycard Arrival Plus

If you prefer getting cash back instead of miles, the Barclaycard Arrival Plus could be a good choice.  You’ll earn 2.2% cash back when you redeem miles for travel.  So the card’s 40,000 mile sign-up bonus is worth $440 when used for travel purchases.

And Barclays recently upgraded the card and expanded their travel categories, which gives you even more choices for how you redeem your miles.

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Barclays Recently Upgraded the Arrival Plus Card

This could be a good card for Michael’s friend if he doesn’t want to focus solely on airlines and hotels.  That’s because you can get cash back for lots of other travel expenses, like cruises, campgrounds, public transportation, and tourist attractions.

Bottom Line

Folks who are new to miles and points and want to sign-up for credit cards should start slow and only apply for a couple of cards to start.  That way, they can see the impact to their credit score and decide if they want to apply for more later.

If you’re just starting out, you might want to choose credit cards that offer a lot of flexibility (airline and hotel transfer partners, for example) in how you use your points.  That way you keep your travel options open, especially if you don’t have firm plans yet.

As always, do what’s comfortable for you.

Thanks for emailing, Michael!

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These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

17 responses to “How to Start Applying for Miles & Points Credit Cards

  1. Thanks for the post!! I canceled my chase sapphire preffered card a few months ago because the annual free was not worth it for me. How long must I wait before applying again and being able to receive the signup bonus? Thanks again!

  2. @Aaron, you will not be able to get another sign up bonus for the CSP. Chase only gives one sign up bonus per card, you cannot churn their cards. Before closing a credit card completely, you should downgrade the card (Chase Sapphire or Chase Freedom) or move the credit line to another Chase card.

  3. Thanks for this. Im trying to get my gf into a rewards card, she just got denied due to a lack of credit history. She recently just opened a store credit card last month. How long do you think until she could get approved for a low end rewards card, like the Freedom?

  4. I started the miles game a year ago and have accumulated 280,000 miles! To clarify, as long as all my miles have transferred to my loyalty program account, is any time a good time to cancel a card? I know I should keep at least one long term to establish credit history. TIA.

  5. @vicki yes. Once u transferee all the points out u are fine. However if there is no activity in ur airline account for 12 months (some more) u will lose the miles. And yes, u should keep a card like the chase freedom

  6. Hi,

    I applied for Barclays arrival card few months back, got the 40k bonus and closed it, can I apply the card again after 6 months as it has changed the name ?

  7. HI,
    We currently have a Chase card that is connected to Amazon (1% cashback). Can we transfer this card’s balance to Sapphire Preffered card (which we need to apply and open) and get the sign up bonus?
    Also we have a no reward Navy Federal Credit card and are interested in opening Flagship signature card. Should we keep the current one and apply for Flagship or close the current one?
    How do you all go about opening a new card when you have old card that has no reward?? Thank you.

  8. @David – I’d wait for 3 to 6 months of charging something small on the store card and paying the balance in full before applying.

    @ vicki – I usually wait 9 to 10 months and evaluate the annual benefit, before deciding if it is worth closing a card or not.

    @ Kim – Usually transferring balances doesn’t count towards the minimum spending requirement. Also, if you carry a balance, best to stay away from miles and points cards b/c they have higher interested rates.

  9. i just received my aadvantage card with a 30,000 miles then applied for aadvantage business and was approved with 50,000 sign up miles can i combine these i have chase freedom and chase sapphire not preferred for about 15 yrs can i combine these

  10. Hi, Thanks for your comments. We pay in full every month and we are not planning on carrying the balance (I don’t know why my statement came out that way ;o) . So if we want to open a Chase Sapphire card, would you recommend leaving the current one open or close? Is it bad to have two credit cards from the same company and one being inactive (the one we currently have will not be used much once we get new one that gives us points)?

  11. @tom – If both cards are American Airlines mile cards, you can combine them into 1 account.

    @Kim – You likely wouldn’t get another of the same card, but your partner could apply for one. Or you could apply for a different credit card.

  12. Hi, I too am new to this. Have/ had 800+ FICO score. Applied and got my 1st 2 cards. The AA World Elite w/ the 100,000 miles and the USAirways Barclay 40,000 card. (Up to 210,000 miles now!
    My question: With all these cards (have my next 2 planned IHG and AA Platinum, maybe Chase Sapphire) do I charge a little on each one each month or ok to have no activity, especially the USAir Barclay card that I only wanted for the mileage? How does no activity on several cards affect one’s credit score?

  13. Hi,

    Love your site, thank you so much! some questions:
    1. I have a Costco card issued by Amex, never use it b/c Costco is far away from my rural town. Is there any advantage in keeping it? If I cancel, how long before I can re-apply, if/when they give a good bonus?
    2. I have a Barclays US Airways account which I dont use. (The story behind is interesting, but they gave me a Zero % interest for lifetime- yes, that is true, they screwed up and I asked them to do something nice for me- and am paying off a large balance transfer month by month at 0% interest. So I want to stretch it out. (In the past, I could earn 7% on their money on balance transfers, but that game seems to be long gone, although not completely extinct.)
    The question is: if I cancel the card, will I have to pay balance-in-full? Do you know? And if I cancel and still retain the slow-repayment they gave me, when could I re-apply and get this card?
    Thanks for all your news and help.

  14. Thanks for all your informative posts. I just got started with churning and MS about 4 months ago. Can you explain how you use your CSP and your Barclays Arrival Plus card in different ways for MS/point redemption? I current have the CSP and am not sure how I would incorporate the Arrival Plus card into my MS strategy. Thanks!

  15. @Margaret – I usually put a small purchase on each card to keep some activity on the card. Some banks close cards if there is no activity.

    @Ritam108 – You likely won’t get the bonus again on a personal AMEX card. The Barclays card is a great deal. I don’t know the terms attached to your card, so I can’t comment specifically.

    @Alex – I like using Ultimate Rewards points for international travel and Arrival points for domestic travel.

  16. Hi D— I am about to apply for my first CC issued by Barclays. I am debating if I should get the Barclaycard Arrival Plus™ World Elite MasterCard or US Airways Mastercard . I have no major need of US air or AA miles in near future, just trying to accumulate some since my SW companion pass expires by end of this year. I understand that Arrival Plus waives the annual fee for first year and US Air mastercard doesn’t waive. Thoughts?

    Thanks a lot.
    Mr.D

  17. I have lots of cards at this point and together my husband and I have enough AA points to get both of us to Europe and our family of 4 to Maui. We also have enough Club Carlson to cover 8 nights in London/Paris. I signed up for Chase Ink Plus while it had 60,000 bonus. I was planning to use Chase UR points for Hyatt in Maui and then sign up for Hilton card for Grand Wailea. Now I have just received 2 great offers from Amex. 75000 points/$2000 spend/3 months/fee waived first yr. and an offer for 100,000-150,000 points/$5000-$15000 spend/3 months/$450 fee not waived. These offers are timed, so even though i wasn’t looking for Amex MR points right now, should i jump on one of these offers and get while the gettin’s good? I’m sure i will want to go to Europe again next year.

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