I used to think I’d be flying business class with a glass of champagne in my hand by my late 20s. This was before I found out that flying from NYC to LA in business would cost thousands of dollars.
And definitely before I realized my vision of flying first class to Asia would be tens of thousands of dollars. Don’t ask me why I thought I’d get those first-class seats in Crazy Rich Asians.
But not all hope was lost.
Over time, I realized these premium flights that cost thousands, sometimes tens of thousands of dollars in cash, could be less in points. When I discovered the world of points and credit card strategies, I finally could plan my next getaway without paying much out of pocket.
The Strategy
At the core of this strategy that I am going to introduce is the Chase trifecta, which is the strategic combination of three Chase credit cards.
This is not a novel strategy, but I don’t think enough people leverage it!
Before you roll your eyes thinking this is sponsored by Chase (I wish), hear me out.
I think that the Chase ecosystem is optimal for beginners looking to maximize their rewards.
First, Chase is restrictive with opening new cards, so it is best to start with them- they do not like when you apply for over 5 credit cards in under 24 months. So you’ll find it easiest to start with Chase before you open other credit cards as you build your strategy.
Secondly, their ecosystem is intuitive, and their UI is easy to use. In addition, Chase is one of the most versatile when it comes to hotel and flight transfer partners.
Lastly, leveraging the Chase trifecta (the three credit cards I’ll introduce) significantly increases your potential reward amounts and their value through point transfers.
OK, let’s dive in:
Step 1: Open up a Chase Freedom Unlimited card
Pre-requirement: This strategy is best for you if you already have some credit with at least one credit card. It’s also crucial that you pay your balances off diligently. Do not utilize this strategy if you have a spending problem.
Photo: Chase
This is a great beginner credit card because it’s simple and has a low barrier to entry.
This no-annual fee card starts you off with a decent 20,000 point intro bonus which is worth $200 in value. Not life-changing, but it’s a nice little bonus if you are spending that money already.
The requirement for getting the bonus is also easy because you just have to spend $500 in 3 months. I don’t know about you, but money escapes me every time I leave the house so this feels like a piece of cake.
You get 3x on dining, and in the first year, you get 5x on groceries and gas. At $0 with so much simplicity, this card nails it.
And it even gives a bit more with the 1.5x back on all purchases, which is higher than the 1x back on most other cards. Purchases like clothing or electronics which usually get you back 1x, will give you a little more with this card.
Hit the $500 spend requirement by just using this card for your regular transactions. You’ll get there in no time and get $200 worth of points plus some more from the rewards.
Step 2: After 3+ Months, Open a Chase Freedom Flex
Photo: Chase
Once you feel like you are ready to add another card to the mix, whether it is 3 months or 1 year, you can open its sibling card, the Chase Freedom Flex. This card is very similar to the Chase Freedom Unlimited.
It’s another no-cost card with a 20,000 point intro bonus when you spend $500 in the first 3 months. It even has the same 5x back on groceries and gas the first year.
The biggest difference of Chase Freedom Flex vs the Unlimited is its rotating quarterly rewards categories. Aside from the first-year rewards, Freedom Flex gives 5x back on selected categories each quarter. For example, for Q1 of 2024, you can get 5x back on groceries, gym memberships, and self-care or spa facilities.
I find this to be another low-commitment card that’s a great complement to the Chase Freedom Unlimited. While you get 1.5x back on your everyday purchases and some more, you can also use the Freedom Flex on the quarterly categories.
Because this takes a bit more strategizing and planning than the Freedom Unlimited, I put this as the second step.
Step 3: After Another 3+ Months or When You’re Ready, Open Up the Chase Sapphire Preferred
Photo: Chase
First, note that the Chase Sapphire Preferred card has a $95 annual fee, which is a commitment.
It does however come with a higher intro bonus of 60,000 points, but you will need to spend $4k within the first 3 months of opening the card. This is significantly higher than the first two cards.
With the $95 annual fee and spending requirement, I’d recommend opening the card with a trip to book in mind within the next year and a few big upcoming purchases that will help you meet the $4k spend. You do not want to make unnecessary purchases to meet the $4k spend requirement.
This card gives 5x back on Lyft and travel through Chase, 3x back on dining and streaming, and 2x back on non Chase travel. It also provides a free DashPass membership, annual $50 hotel credit, and quarterly $15 Instacart credits. These perks in addition to the potential $750 intro bonus make this card well worth the $95 annual fee.
Step 4: Move All Points to the Sapphire Preferred and Book your Vacation!
Once you completed steps 1 through 3 and meet the minimum spend requirements, you will have 100,000+ Chase points from the intro bonus and your spend.
Now if you want to maximize your points for your next vacation, I recommend combining your points to the Preferred card.
If you book your flight/hotel through the Chase portal, the Preferred card gives you 1.25x more value on your points in the Chase travel portal. This means your 100,000 points, originally worth $1,000, will now be worth $1,250! This is the easiest way to book your next vacation.
However, you can sometimes find really good value if you transfer your points to a Chase travel partner. This requires you to go on their websites and do your own research, so obviously this option is more time consuming. But it can be worth it! A lot of people find great value transferring points to Hyatt hotels, but you can also find some good values in airlines like JetBlue and SouthWest.
Whichever way you decide to go, you have now booked your vacation for almost no charge!
Bonus Tip: Refer Your Significant Other to These Cards
If you plan on traveling with a significant other, a way to more than double your points is to work together with them to accumulate points. Consider going through the steps together and even referring each other to the cards to get the referral bonuses in addition to the intro bonuses.
If you work with a partner to go through the above four steps, you can end up with almost 250,000 Chase points!
Other Great Beginner Credit Cards: BILT and Capital One Savor One
If you’re feeling ~strategic~ or have already opened the three Chase cards and want other options, consider opening up these two no annual fee credit cards:
BILT
Photo: Wells Fargo
BILT is the only credit card that can pay for rent (with no fees) and give points for it. Once you make sure you can pay rent with BILT, I would apply for this card ASAP.
The only catch is that you must use this card a minimum of 5 transactions a month to get the points, but this can be easily set up. For example, I have my BILT card connected to my Grubhub account where I get subsidized to order lunches 3x a week at work. You can also use it as a coffee card or put some of your monthly subscription payments on the card so you don’t forget.
BILT has great travel partners that also overlap a lot with Chase like Hyatt and United Airlines!
Capital One Savor One
Photo: Capital One
This is another great no annual fee credit card. The SavorOne intro bonus is $200 if you spend $500 in the first 3 months. You will get 3% back on groceries, dining, and streaming, and 10% back on Uber/Uber Eats purchases (along with a free Uber One membership) until November 2024!
Just to note, the SavorOne card is a cash back card so the points you receive from these purchases will only be able to be used as statement credit for your credit card bill.
Things to Keep in Mind
While I love a good credit card strategy, it should be the last priority after your finances are in order.
Some things to remember to make any credit card strategy to work:
– Know what you can afford vs can’t
– Only open a credit card with a high spend requirement if you have a big expense coming up (i.e. wedding)
– Pay off your balance in full (one exception: if your strategy revolves around a 0% APR card, but let’s hold off on this for now)
– Utilize a system that keeps you organized
– Don’t open up too many credit cards at once (I recommend at least 3 months between credit cards)
TLDR
There you go. The low-cost (almost free) strategy to copping around $1,500 worth of points.
With this guide, you can begin to leverage the Chase trifecta with the two no-fee cards (Freedom Unlimited and Freedom Flex) and a cherry on top with the Sapphire Preferred. Quick reminders:
Chase Freedom Unlimited:
– $0 Annual Fee
– 20,000 points intro bonus ($200 value) if $500 spend in 3 months
– 1.5x back on all purchases, 3x dining, 5x groceries/gas first year
Chase Freedom Flex:
– $0 Annual Fee
– 20,000 points intro bonus ($200 value) if $500 spend in 3 months
– 5x back on rotating categories (Q1 2024 Groceries), 3x dining, 5x groceries/gas first year
Chase Sapphire Preferred:
– $95 Annual Fee
– 60,000 points intro bonus ($750 value) if $4k spend in 3 months
– 3x back on dining and streaming, 2x back on travel, 5x back on Lyft, Dash Pass subscription
While opening multiple cards does come with some downsides like more things to think about and a temporary credit score dip, I think its upsides far outweigh the cons.
With a good strategy and system, credit card points really become your best friend and can fund your dream vacations.
Now, go have fun planning out your vacation. And stay tuned if you want more strategies!
