I Feel Sad When Someone Pays With the “Wrong” Card

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I Feel Sad When Someone Pays With the “Wrong” Card

KeithI Feel Sad When Someone Pays With the “Wrong” CardMillion Mile Secrets Team

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

Keith:   While in line in the supermarket last week, I witnessed a young man (late 20s) purchase a pint of ice cream and pay with a co-branded airline credit card earning him 1 mile per $1.  His friend followed up by making a separate purchase with a debit card earning zero rewards. 😮

As a miles & points obsessive, I often get heart palpitations when I see folks pay with a card that’s not earning the most (or any) rewards.  Haven’t they been reading our daily newsletter with tips & tricks for turning credit card rewards into discounted or free vacations?

I Feel Sad When People Use The Wrong Card
Strategically Using Credit Cards for Everyday Spending Has Allowed My Wife and Me to Accumulate Lots of Rewards. That’s How We’ve Taken Amazing Trips to Destinations Like Cape Town for a Fraction of the Retail Price!

I understand most folks prefer simplicity.  There’s no need to carry around a dozen cards like me to get Big Travel with Small Money.  But making small shifts in your purchase habits to make the most of credit card rewards can have a HUGE return!

There’s No “Right” or “Wrong” in the Miles & Points Hobby

Everyone has different financial and travel goals.  So there’s no one size fits all credit card rewards earning strategy.  Some folks are completely satisfied earning cash back, while others prefer to squeeze the value out of every point by booking luxury award travel.

That said, I’m often approached by friends and family who think miles & points sound too good to be true.  They tell me that accumulating enough rewards for a free hotel night or flight must take years.  Even though most skeptical folks would love to save money on travel, they generally just keep a cash back card that earns 1.5% back on purchases.

The truth is that anyone eligible for rewards credit cards can follow the same miles & points earning strategy that’s allowed my wife and I to take unforgettable trips to destinations like Bali and New Zealand.

I Feel Sad When People Use The Wrong Card
When I Started in the Miles & Points Hobby ~4 Years Ago, I Never Would Have Imagined Taking Nearly Free Luxury Vacations to Destinations Like Bali!

The first step is to take advantage of lucrative card offers with valuable sign-up bonuses.  After that, the key is to pay for purchases with a card that earns you the most rewards.

Using a card that earns bonus miles or points for purchases can have a meaningful impact on how quickly you accumulate rewards!

Run the Numbers to See How You Could Be Missing Out on Value!

Let’s say you use a credit card for $10,000 worth of purchases per year.  If you use a 1.5% cash back card, you’ll earn $150 worth of rewards.

But let’s say you put that same spending on a card that earns flexible rewards points, like the Chase Sapphire Preferred® Card.  With this card, you earn:

  • 2X Chase Ultimate Rewards points per $1 on travel and dining
  • 1X Chase Ultimate Rewards point per $1 on all other purchases

Let’s say your $10,000 in annual spending is made up of:

  • $3,000 in dining purchases
  • $2,000 in travel purchases
  • $5,000 in non-bonus spending

If you put all of this spending on the Chase Sapphire Preferred, you’ll earn 15,000 Chase Ultimate Rewards points ($5,000 in travel & dining X 2 points per $1 + $5,000 X 1 point per $1).  These flexible points are worth:

Chase Sapphire Preferred cardholders could transfer 15,000 Chase Ultimate Rewards points directly to Hyatt to book a free night at a Category 4 hotel, like the Park Hyatt Washington, DC.  Room rates at this hotel are ~$400+ per night if you pay cash.  See how shifting your spending to a different card can get you a lot more value?

I Feel Sad When People Use The Wrong Card
Turn Your Everyday Purchases Into Valuable Travel Rewards That Can Quickly Get You Free Hotel Nights!

The example above is the most common one I use to show folks the power of accumulating bonus points on ordinary purchases.  And how it can translate into valuable travel redemptions!

I encourage folks to check out our Hot Deals page and detailed credit card reviews to find a card (or cards) that match your spending habits and travel goals.

Bottom Line

When I chat with friends and family about travel credit cards, they love the idea of earning valuable rewards to save money on travel.  That said, most continue to use a debit or straightforward cash back card for all purchases.

Not everyone needs a dozen credit cards and spreadsheet tracker to monitor their miles & points balances.  But I typically encourage anyone new to the hobby to find a card that fits their spending habits and helps achieve their travel goals.

Most folks don’t realize they’re essentially leaving money on the table by not making the most of credit card bonus spending categories.  For example, earning 2X or 3X points for purchases you’re already making can boost your rewards balance more quickly!

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Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Chase Sapphire Preferred® named a 'Best Travel Credit Card' by MONEY® Magazine, 2016-2017
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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