The Best Credit Cards for Someone New to Points and Miles

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If you’re new to earning points and miles through credit cards, you have many options when it comes to what cards you can get and earn the bonus on.

This changes when someone has been signing up for cards for a while due to some rules that various credit card issues have. Deciding which cards to get first is pretty straightforward if you know what to look for.

Since most people who are relatively new to points and miles don’t know the best starter cards, here are our top three choices.

Chase Sapphire Reserve℠  vs. Chase Sapphire Preferred® Card – Which one to Choose?

These two cards have always been hot topics in points and miles and due to Chase’s 5/24 rule, Chase cards are often the best place to start. Both cards generally offer a decent sign-up bonus and offer bonus points for spending on travel and at restaurants–something that a traveler is likely going to do.

Chase Sapphire Reserve®

INTRO APR on Purchases
N/A
INTRO apr on Balance Transfer
N/A
Regular APR
17.49% to 24.49% Variable±
Annual Fee
$450
Rewards Program
Ultimate Rewards®
Bonuses & Rewards
  • 3x Points on Travel and Dining
  • 1x Points on All Other Purchases
  • $ $300 Annual Travel Credit
  • 50,000 bonus points after you spend $4,000 in the first 3 months
  • 50% more value when you redeem for travel through Chase Ultimate Rewards
  • No Foreign Transaction Fee
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Chase Sapphire Preferred® Card

INTRO APR on Purchases
N/A
INTRO apr on Balance Transfer
N/A
Regular APR
17.49% to 24.49% Variable±
Annual Fee
$0 first year, then $95
Rewards Program
Ultimate Rewards®
Bonuses & Rewards
  • 2x Points on Airfare, Hotels and Dining
  • 1x Points on All Other Purchases
  • 50,000 bonus points after you spend $4,000 on purchases in the first 3 months
  • Earn an additional 30,000 bonus points after you spend $30,000 on purchases within your first year of account opening
  • Refer a friend and receive 10,000 points if they become a cardholder
  • 25% bonus for points redeemed for travel through Chase Ultimate Rewards
  • No Foreign Transaction Fee
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The Chase Sapphire Reserve® is the newer and premium version of the card, coming with a higher annual fee but also more benefits. It earns a higher bonus on travel and dining purchases and gives you access to the Priority Pass network of over 1,000 airport lounges around the world.

What’s the difference in the annual fee, you ask? The answer on paper is the Chase Sapphire Reserve® has a $450 annual fee while the Chase Sapphire Preferred® Card has a $95 annual fee, but it’s really a little more complicated than that. The Chase Sapphire Reserve® also has a $300 annual travel credit benefit that works for any kind of travel purchase including airfare, hotels, and car rentals.

Assuming you spend at least $300 on travel per year, this really can be considered to be an annual fee offset. At this point, your Reserve annual fee is effectively $150 compared with the Preferred’s $95 annual fee.

Are the extra benefits of the Chase Sapphire Reserve® worth an extra $55? To me, without a question. Lounge access, a Global Entry/TSA Pre Check fee credit once every five years, and more bonus points on restaurant and dining purchases are easily worth $55 annually to me. If you agree, the Chase Sapphire Reserve® is for you. If not, you can start earning Chase’s Ultimate Rewards points through the Chase Sapphire Preferred® Card instead.

Starwood Preferred Guest® Credit Card – Best for Points-to-Miles Transfer

The key to being able to use your miles is flexibility and diversification. The more flexible you are when planning your travels, the more likely it is that you can use your miles. Likewise, if you have a bunch of different kinds of miles you can draw from, it is more likely that you will be able to find miles that you can use to book flights based on the current availability for your upcoming trip.

Starwood Preferred Guest® Credit Card from American Express

INTRO APR on Purchases
N/A
INTRO apr on Balance Transfer
N/A
Regular APR
17.49% to 26.49% Variable±
Annual Fee
$0 first year, then $95
Rewards Program
Starwood Preferred Guest®
Bonuses & Rewards
  • 6x Starpoints at Participating Starwood and Marriott Rewards Hotels
  • 2x Starpoints on All Other Purchases
  • + 1 Free Night Award every year after Card account anniversary
  • 75,000 bonus points after spending $3,000 within the first 3 months
  • Receive a 5,000 Starpoint bonus when you transfer 20,000 Starpoints to a participating frequent flyer program
  • No Foreign Transaction Fee
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For these reasons, I think the Starwood Preferred Guest® Credit Card from American Express is a great one that should be in everyone’s wallet. Even though SPG points are hotel points, they can be transferred to a huge number of airline transfer partners at a 1:1 ratio. Even better if you can transfer in increments of 20,000 SPG points because you will be rewarded with a 5,000 mile bonus into the program that you are transferring to.

Earning SPG points gives you even more flexibility because you can redeem your Starwood points for stays at Starwood hotels and you can also transfer your SPG points at a 1:3 ratio to Marriott hotels and redeem points for stays there as well!

While the earning rates on this card aren’t super stellar, the transfer bonus effectively makes it a 1.25 mile per dollar spent card on all purchases if you always transfer in increments of 20,000 points which is pretty great for spending that doesn’t otherwise fall into a category bonus.

Chase Freedom® Card and Discover IT – Boost Rewards with 5% Earnings

An easy way to boost your Chase Ultimate Rewards point earning is through spending on the Chase Freedom® Card. The Chase Freedom® Card is a great no annual fee card that can help you rack up a few thousand extra points per year pretty easily.

The Chase Freedom® Card has quarterly rotating categories that earn 5 Ultimate Rewards per dollar spent. Categories frequently include the likes of gas stations, groceries, and Amazon.com. In other words, places that most people are very likely to spend money throughout the year!

Chase Freedom® Card

INTRO APR on Purchases
0% Intro APR for the first 15 billing cycles that your Account is open
INTRO apr on Balance Transfer
0% Intro APR for the first 15 billing cycles that your Account is open
Regular APR
16.49% to 25.24% Variable±
Annual Fee
$0
Rewards Program
Ultimate Rewards®
Bonuses & Rewards
  • % 5% cash back each quarter on up to $1,500 in combined purchases in that quarter's bonus categories
  • % 1% on all other purchases
  • $150 bonus after you spend $500 in the first 3 months
  • $25 bonus after you add your first authorized user and make your first purchase within this same 3-month period
  • 3% foreign transaction fee
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The Discover it® - Cashback Match™ operates in basically the same way as the Chase Freedom® Card, but instead of earning Ultimate Rewards, you’ll be earning 5% cash back on quarterly rotating categories. If you feel like you are already earning plenty of miles, this is a great way to earn a little bit of extra cash to spend on vacation instead.

Discover it® - Cashback Match™

Discover it® Miles Card
How to apply
To apply for this offer please contact
Discover Bank
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INTRO APR on Purchases
0% intro APR for 14 months from date of account opening
INTRO apr on Balance Transfer
0% intro APR for 14 months from date of first transfer, for transfers under this offer that post to your account by August 10, 2018
Regular APR
13.49% to 24.49% Variable±
Annual Fee
$0
Rewards Program
Cashback Bonus®
Bonuses & Rewards
  • % 5% in rotating categories each quarter like Gas, Dining, Amazon.com, Wholesale Clubs and more
  • % 1% on Travel
  • % 1% on Groceries
  • % 1% on All Other Purchases
  • Up to 5% cash back
  • Discover automatically matches all the cash back you earn dollar for dollar at the end of your first year
  • No Foreign Transaction Fee
  • % 3% balance transfer fee
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What’s next?

Beyond these cards that offer extreme versatility, the cards that you consider should be based on your individual travel goals. If you never stay in hotels, ignore those hotel cards. If you’re planning a honeymoon and want to redeem at an extremely fancy hotel, focus on cards that offer a sign-up bonus in terms of number of nights instead of points.

If you always fly with your wife or husband and travel mostly domestically and to the Caribbean, the Southwest cards might be a great option–and make sure you do it in a way that you earn the Southwest Companion Pass while you’re at it!

There are a bunch of great credit cards that offer extremely valuable rewards, you just have to decide what you want and look at what credit cards will best help you get there. Above we listed three cards that will be great for nearly everyone, but there are many more that will fit individual travelers’ needs and help you achieve your travel goals if you have a particular route in mind.