Miles and points beginners often ask which travel rewards credit cards for beginners are the best. It’s understandable.
First, there are so many travel rewards credit cards available. Second, many people believe credit card myths which make even thinking about where to start so stressful!
This post will highlight:
- the Chase 5/24 rule,
- which Chase credit cards you should start out with, and,
- the timing to consider as you get started with travel rewards.
Before continuing, though, it’s important to understand, you’ll need a credit score of 700+ to qualify for most travel rewards credit cards. Many credit cards offer customers the ability to check their credit score.
If you don’t have one that does, use a service like Experian to find out your FICO 8 credit score for just $1. And lastly, responsible miles and points enthusiasts always pay off their credit card balances in full at the end of the month. If you have trouble doing so, travel hacking isn’t the right hobby for you.
Travel Rewards Credit Cards for Beginners:
The First 5 to Get + a Strategy
I’ve outlined a step-by-step strategy for beginners getting started with travel rewards credit cards. Keep in mind this strategy is the ideal in order to maximize Chase’s travel rewards given their 5/24 rule. No matter what, you should always do what’s best for your travel goals and finances.
What is the Chase 5/24 rule and Why is It so Important to Know?
The major banks have their application rules and Chase, by far, has the most restrictive. If you’ve been approved for 5 or more credit cards in the last 24 months from any bank, Chase will deny your application even if you have a stellar credit score. Travel hackers affectionately refer to this rule as 5/24.
Combine this with the fact that Chase offers some of the best travel rewards credit cards, in terms of welcome bonuses and long-term spending value, and you can begin to see the problem this rule can unknowingly pose to miles and points beginners.
Too many credit cards from other banks in the last 24 months likely means being locked out of the Chase Ultimate Rewards travel program until time passes and less than 5 new credit card applications show on your credit score report.
Chase 5/24 Rule: Subject to vs Adding to your Overall Count
As mentioned above, Chase will not approve you for any of their travel rewards credit cards if you’ve gotten 5 or more new credit cards in the last 24 months.
It’s important to understand that all Chase travel rewards cards, including Chase business cards like the Ink Preferred, are subject to the 5/24 rule.
This means Chase will consider and apply this rule to determine if you’re eligible for the card.
However, some credit cards won’t add to your overall 5/24 count.
These include:
- Chase Business Credit Cards, like the Ink Business Preferred, and
- Business Credit Cards from other banks.
For example, if you’re 4/24 and try for a Chase business card like the Ink Preferred, Chase would apply the 5/24 rule to your application because the card is subject to the 5/24 rule.
You’d be hypothetically approved because you have less than 5 new cards in the last 24 months. After being approved, though, you’d still be seen as 4/24 by Chase because business cards don’t add to your 5/24 count.
Step 1- Choose 1 of the 2 credit cards below.
Chase allows customers to have 1 card in the Sapphire family and to be eligible for a Sapphire welcome bonus only if it’s been more than 48 months since your last Sapphire bonus.
So, it’s important to compare each Sapphire card’s benefits carefully and choose the card best for you.
Chase Sapphire Reserve
This premium credit card made its debut in August 2016. It’s considered one of the best travel rewards credit cards and for good reason.
The Chase Sapphire Reserve comes with a solid welcome bonus after meeting a set minimum spend. The card has a $450 annual fee but comes with a $300 travel credit each year you renew your card. You can read my card review here.
Chase’s definition of what counts as travel is quite generous. In addition to flights, hotels, and car rentals, the $300 credit is good for things like highway tolls, taxis, parking expenses, and commuter transportation like subways and trains.
Cardholders get free Priority Pass membership, which has 1k+ airport lounges across the globe offering amenities like free drinks. snacks/food, wifi, and more. The membership also allows up to 2 travel companions to join cardholders in the lounges and at participating restaurants for free.
The Sapphire Reserve also comes with a $100 Global Entry credit and no foreign transaction fees.
The card earns 3x the points for every dollar spent on travel and dining. These points can be transferred to a variety of airline and hotel partners or used with an added 50% bonus within Chase’s travel portal for a 1.5 cent per point redemption value.
Chase Sapphire Preferred
The Sapphire Preferred also offers a generous welcome bonus after meeting the initial minimum spend. However, the annual fee is considerably less at $95. The card has no foreign transaction fees, making it also good to use while traveling.
In addition, the Sapphire Preferred earns 2x the points on travel and dining and has access to the same travel partners linked to above with the Sapphire Reserve. Chase Ultimate Rewards points redeemed in the Chase travel portal return a 1.25 cent per point value.
Both Sapphires also include primary coverage on rental cars, as well as protection against trip delays, cancelations, and interruptions.
Step 2- Choose 1 of the Freedom Cards
This no-fee card comes in 2 varieties, Freedom and Freedom Unlimited. On their own, the Freedom cards offer typical cashback rewards and/or the option to book travel solely through Chase’s travel portal at a 1 cent per point value.
Both cards offer welcome bonuses, however, they’re typically less than those offered with the more premium Sapphires.
Chase Freedom
The original Freedom card offers 5% or 5x the points for every dollar spent within specific bonus categories. These categories rotate each quarter and cap out at $6k for the year or $1,500 per quarter. All other purchases earn 1% or 1 point per dollar.
Read my Freedom Card review.
Chase Freedom Unlimited
This card does not have bonus categories. Instead, it offers 1.5% or 1.5x the points on all purchases all the time. There is no cap on annual spending. It’s a great credit card to have for any non-bonused spending in your budget.
Both Freedom cards do have foreign transaction fees so these are not the credit card to use outside the U.S.
Sapphire and Freedom Credit Card Duo
The best value comes when pairing a Freedom card with a Sapphire, like the Sapphire Preferred. Rewards points earned with a Freedom card don’t have access to the same airline and hotel transfer partners on its own.
However, cardholders with both a Freedom and a Sapphire card (or an Ink card, see below for more info.) can merge their Freedom Ultimate Rewards points with their Sapphire rewards points.
The benefit is a better redemption value when transferring points to Chase’s travel partners or for use within Chase’s travel portal compared to the fixed 1 cent per point return value with a Freedom card alone.
What Type of Credit Score Do You Need For These Cards?
The Chase Freedoms and the Sapphire Preferred require good to excellent credit scores. If you decide to go for the Sapphire Reserve, you’ll need excellent credit.
If your credit score is low, consider starting first with a Freedom card instead of a Sapphire. By spending responsibly and paying off your bill in full each month, you’ll help your credit score and build a relationship with Chase for future applications.
You can also avoid unnecessary credit card denials. Visit a Chase bank near you and ask a representative about the offers you’re already pre-qualified for and fill out an application in the bank branch.
Step 3- Consider a Chase Business Card.
Beginners often don’t realize they can qualify for business credit cards. Side businesses like selling items on eBay, tutoring, plowing snow, consulting, owning rental properties, even having a blog can all qualify as businesses.
The key is knowing how to honestly explain your business to the bank. The most important thing to remember is, to be honest! Fill out the application properly and possibly provide the bank with additional information should they request it.
Remember, all of these business cards are subject to the 5/24 rule but won’t add to your overall count. You could/should even consider more than 1 Ink card before any cards mentioned in Steps 4 and 5.
Chase Ink Business Preferred
This Chase business credit card replaces the Chase Ink Business Plus, which is no longer available for new applicants. The Ink Business Preferred comes with a lucrative welcome bonus after meeting the required minimum spend and the annual fee is $95.
With this card, you’ll earn 3x the points on travel, shipping, internet, cable, and phone services, as well as on social media and search engine advertising costs. All other purchases earn 1x the points.
The card has no foreign transaction fees and returns a 25% bonus (1.25 cents) on points redeemed within Chase’s travel portal.
The Ink Business Preferred also offers great cell phone protection when you use your card to pay for your phone.
All points earned can be combined with other Ultimate Rewards points earned and transferred to Chase’s transfer partners. Remember, though, you’d only want to combine points to a Sapphire or combine everything with your Ink card because Freedom cards offer the lowest return value and don’t have access to the airline and hotel transfer partners.
Chase Ink Business Cash
As with the other cards mentioned in this article, the Ink Business Cash offers a solid welcome bonus after meeting a set minimum spend. It also has no annual fee.
Ink Business Cash earns 5% or 5x the points at office supply stores and for telecommunications, including your cell phone, cable, and internet service up to $25k annually. In addition, you’ll earn 2% or 2x the points for gas and restaurants, also up to $25k.
Like the Freedom cards, points earned with the Ink Business Cash have the same fixed 1 cent per point value. However, all points can be merged with an Ink Preferred or Sapphire to have access to Chase’s transfer partners.
The Ink Cash card also comes with collision insurance for business car rentals and purchase protection.
Chase Ink Business Unlimited
The card is meant to somewhat mirror the Freedom Unlimited on the personal credit card side. Ink Business Unlimited earns 1.5% or 1.5 Ultimate Rewards points per dollar on all purchases with no annual spending cap. This is in addition to the boost of points you get after meeting the minimum spend on the card’s welcome bonus.
As with the Ink Business Cash, the points earned can’t be transferred to Chase’s travel partners but they can be combined with your Ink Preferred or Sapphire points.
Purchase protection, collision coverage for business car rentals, and extended warranty perks come along with the card’s non-bonused spend earn rate.
Step 4- Decide on your travel goals. Choose 1 of the following options.
Option A: Southwest Credit Cards
Southwest’s Rapid Rewards program offers a companion pass once you earn 125k Rapid Rewards points in a calendar year. What makes this deal so phenomenal is that your companion flies with you for free (except for the tax) as many times as you’d like for the rest of that calendar year AND the whole following year!
You get to keep the 125k points, too. So while your companion flies for free, you can use your Rapid Rewards points for award flights. It’s a super sweet deal!
If your travel goals include domestic travel and destinations in the Caribbean, Mexico, and Central America, then the Southwest companion pass just might be your new best friend.
Consider whether the personal and/or business Southwest credit cards are right for your travel goals. You’d need 1 Southwest personal card and 1 business card to get close or even reach the amount needed for the companion pass. Or, you could also consider 2 Southwest business cards.
There are 3 personal credit cards. These include:
As their names suggest, each one scales upward with its perks and benefits. Each year you renew your card, you’ll get a varying number of Rapid Rewards points (depending on your card) as an anniversary bonus.
For travelers looking to take advantage of Southwest’s international destinations in the Caribbean, Mexico, and Central America, the Priority and Premier cards come with no foreign exchange fees.
Chase also offers 2 Southwest business credit cards. These cards include:
These credit cards also offer varying welcome bonuses after meeting the minimum spend. You’ll earn bonus points when you use your card to pay for Southwest flights and other amenities while flying with them. Both cards also have no foreign exchange fees.
And remember, two bags fly free on Southwest, but the cards let you check an extra one at no cost.
Option B: United Explorer Card & a Co-Branded Hotel Card
If your travel goals include more international travel than domestic, a United miles/hotel points combo will be more useful than Southwest Rapid Rewards points.
United miles are good for domestic and international travel on United or any of their Star Alliance partners. Even with United ditching their award charts, there are still ways to redeem United miles for a solid value.
Additionally, United is one of Chase’s travel partners. You’ll be able to transfer Chase Ultimate Rewards points earned with your Sapphire, Ink Business Preferred, and Freedom (when paired with a Sapphire or the Ink Preferred) directly to United at a 1:1 ratio.
As with all the above mentioned Chase credit cards, the United Explorer card offers a solid welcome bonus for meeting a minimum spend.
Cardholders also get 2 United Club passes each year, priority boarding, a free checked bag, a $100 Global Entry Fee, and exclusive award space seen only by cardholders.
The card earns 2x restaurants and hotel accommodations booked directly with the hotel and it has no foreign exchange fees.
Chase’s co-branded hotel cards include the:
- World of Hyatt Credit Card
- Marriott Bonvoy Boundless Visa Signature
- IHG Rewards Club Traveler Credit Card
- and Ritz-Carlton Credit Card.
Depending on where you travel and your overall travel style, one brand may be better for you than another.
Hyatt offers the most value because of its upscale properties, reasonable award chart, and the ability to transfer Chase Ultimate Rewards points to Hyatt. The downside is they have a smaller, (albeit growing) geographic footprint than Marriott or IHG.
And, yes, Marriott and IHG are Chase Ultimate Rewards transfer partners. However, it’s a much better value to earn points with these programs respectively instead of transferring valuable Ultimate Rewards points.
Finally, if you’re just getting started with miles and points, you may not realize Marriott is also its own flexible currency. The program has 40+ airline transfer partners, some of which cannot be accessed through other travel rewards programs, like American and Alaska Airlines.
Timing Matters
By now, I hope you’re thinking about your first 5 travel rewards credit cards from the options above.
However, you cannot try for all of them at once! In fact, the steps in this guide could easily play out over 12 months 0r more! Not to mention, Chase has become tougher on individuals with too many applications in a short window of time. In some cases, even shutting down their accounts altogether!
- First and foremost, start slowly. Be smart about each credit card decision. Keep your travel rewards goal in mind.
- Consider the minimum spend on each credit card and what you can responsibly handle. There’s no point in opening a new card and not getting the welcome bonus.
Technically, Chase will typically only approve you for 2 credit card applications every 30 days. Each time you try for a new credit card, banks do a hard pull of your credit score. Personally, I recommend opening no more than 1 Chase card every 30 days and typically wait longer than this before applying for another one myself.
Put it all together: What does this strategy look like?
A beginning credit card strategy could look like this, but remember to play it smart! Don’t compare yourself to others and just do what makes sense for you.
FIRST
1. Choose the Chase Sapphire and Chase Freedom that are right for you. Personally, I like the Chase Sapphire Preferred for anyone starting out and the superpower of earning 5x with the Chase Freedom. Wait at least 30 days between applications.
SECOND
2. After at least a month+ has passed since your last application and, and preferably after you’ve met any minimum spends on the previous cards, check out the Chase Ink Business Preferred and/or the Ink Business Cash or Ink Business Unlimited.
THIRD
3. If you’re interested in a Southwest Companion Pass or even just earning Rapid Rewards points for your travel goals, look at a Southwest Business card like the Southwest Rapid Rewards Premier Business.
FOURTH
4. After at least a month (& preferably more!) has passed and you have the Southwest Rapid Rewards Premier Business credit card, consider a personal card, like the Southwest Rapid Rewards Priority card.
OR
4a. If you’re not on the Southwest path and went for the Ink Business Preferred, look at the United Explorer Card. Follow this up with a co-branded hotel card choice that fits your travel goals.
No matter which options you choose, you should consider carefully your first 5 Chase credit cards. This is a critical key to success when starting out in order to maximize your miles and points earnings. Don’t lock yourself out of earning these welcome bonuses and the travel rewards they continue to bring with everyday spending.
As always, make sure you’re thoughtful in your approach. Go slowly. Have a plan for the travel rewards you’re earning. Don’t take on more than you can handle financially and organizationally. And, be sure to pay off your bills in full and on time each month.
So, which travel rewards credit cards for beginners are you interested in?
Like this post? Please share it on social media using the share buttons below.
I will definitely check out this card looks like a good bonus opening offers too.
The Chase travel rewards cards have great bonuses, Anne! Perfect for starting out with miles and points. 🙂
Your post made something that can be really intimidating much more approachable! I have the Chase Sapphire myself and I love it- it’s such a great card. I hope to get the Reserve soon also!
Awesome, Nathan! Glad the post helped to make things clearer. The Sapphire Preferred is a great card. Keep earning those rewards. 🙂
What a great post!! its so informative and useful to know about travel rewards from credit cards 🙂 Thanks for sharing with us 🙂
Thanks, Hra. I’m glad it’ll be useful for you.
Great tips for those who can apply for these credit cards. Such a great way of saving for travel and making your spend work as hard for you as possible.
Exactly, Kerri! It’s not about spending more, but making your money work for you!
I’ll be honest with you. I’ve never had a credit card and I have absolutely no clue about how does it work. I always travel with my credit card and never taken advantage of any of the reward programs. In march, I’m going back to the road for 6 months at least. I’m really thinking of getting one credit card. For now, I’m pinning your article for reading it later. I’m from Spain, does this work for Spanish people?
Thanks for reading, Joan. 🙂 These cards are primarily for people in the U.S. There are other cards for Europeans and it would definitely be beneficial to be earning some rewards as you begin your travels again in March.
Thanks for shedding light on such a murky topic. I have the Chase Sapphire card which I love and a newer United Mileage Plus for the travel benefits. The one question that is still not clear is “how many credit cards” is too many for travel hacking purposes? Do you have any recommendations?
Hi Rosemary,
You have 2 excellent cards right now. In terms of how many is too many, it all depends on what your comfortable with and your goals. There are travel hackers who apply for 2-3 cards every 3-4 months. They may close cards as well, but you can do the math on that over the course of the year. While others prefer to strike when a hot deal comes along. It’s really entirely up to you. One thing I would say is it’s never good to have miles and points just sitting for lengths of time in accounts unless. Programs devalue and changes are made. You also want to make sure, especially if the points are really specific (i.e. Southwest points), you have a true purpose for them. Hope that helps!
I have never been able to get miles and credit points into my head! But reading this has certainly given me a bit clarity about everything. Thanks I hope I’d be able to implement this and save some money for traveling!
Glad the info will be useful, Harsh! Here’s to saving all we can on travel!
I always got confused with the credit card system. I am not really sure about the air miles and stuff. I just need to do more research on this.
Hopefully, this helps Gokul! The Chase rewards card are the best place to get started.
Thanks for this Jackie 🙂 We have the Chase Sapphire Preferred and love it – we figure the savings we make from the travel points we accrue more than makes up for the annual fee. I’m always recommending it though have never actually put together anything with tips for the application process, so will bookmark so I can forward on. Thanks!
Thanks, Meg! Glad you find the info useful and thanks for sharing! 🙂
Unfortunately I can’t take advantage of these as I’m Canadian. I highly recommend the Capital One Aspire travel reward card. That’s the one I use here!
Great tip for Canadians! Thanks, Lauren.
I’m hoping you have some insight on my situation.
In March I received the Chase Sapphire Reserve card and then applied in May for the Chase Ink Business since I have a small side business in social media management in addition to teaching. I received notification that I was turned down for the card despite the fact that I have a credit score well over 800. They cited the fact that my business hadn’t been around long enough (1.5 months), the income wasn’t high enough, and the fact that I’d opened the Reserve in March. I called the reconsideration line on Monday, and they cited the same info. The guy also said that my credit limit on the Reserve was really high and that was a factor. I asked if it would make a difference to reduce it, and he said no because business was a different line of credit. Well, if it’s different, why cite it as a factor in the first place?
I told him I was shocked since I have such a high credit limit, was a 20-year customer of Chase, and had a home mortgage with them. It’s really odd, since my colleague’s brother-in-law was able to get the Ink card based on the fact that he had just opened a consulting business — so no actual income yet.
Do you have any idea what is happening? I haven’t applied for any cards in years until the Reserve. Thanks!
Hi Paula, Sorry to hear about such a frustrating experience. Chase definitely makes it a bit tougher than other banks to get their business cards. I was in a similar boat to you in terms of credit score, mortgage and new business. I actually had to open a business checking out with Chase to finally get the approval. I’d try again, but this time I’d go into a Chase branch and talk with a representative. It might take a little extra leg work but it’s worth it. Good luck!
Can I get the bonus from Chase Sapphire if I am already a Chase United card holder? Thanks
Yes. They are different products offered by Chase. 🙂
Hi Jackie! Thank you very much for a very useful article! It helps quite a bit:) Do you keep the miles once you decide to close Chase United Explorer credit card? Thanks!!
Hi Anya,
Thanks so much for reading. Yes, you would keep your miles.
Glad the post is helpful!
Jackie
Thanks for this information, Jackie! I do have a question for you however. My husband has a Chase Sapphire Reserve card, I am a secondary cardholder. Can I apply for the Chase Sapphire preferred card or would that be considered two cards in the same household?
Thanks for reading, Chris. 🙂 You should be fine trying for the Sapphire Preferred as long as your under 5/24. Keep in mind being an authorized user on your husband’s Sapphire Reserve counts as 1 of your of your 5 “slots” with Chase. If need be, you can remove yourself from being an authorized user and get that “slot” back.
Great article! Can we pay for one ticket from points earned on two different cards?
Thanks for reading, GF. So yes it’s possible but it depends on what your situation is. For example, if you have a Chase Sapphire Preferred and a Chase Freedom, you can combine the Freedom points with your Sapphire balance. Same if you have one Chase Ultimate Rewards card (Sapphire, Freedom)card and a spouse has the other. If 2 different cards have the same transfer partners, you could combine as well. For example, Chase points transfer to Virgin Atlantic and Amex points transfer to Virgin Atlantic. You can move points from both into Virgin Atlantic for one lump of miles. Lastly, you can also book an award ticket as one-ways with many programs. For example, book your departure with United miles and book your return with American miles. Hope that helps! 🙂
Hi, Jackie!
We will be getting married this June, and since I want to afford a dream honeymoon (before we have kids!) And so I’ve been “studying up” on travel hacking with pts /miles. This article confirmed what I’d been thinking/planning! I have a few questions. Now, can my (future) husband and i apply for this cards in combination and have this plan still work? (Ex. I get Saff Reserve & Ink Preferred Business, and he get the Freedom and whichever one of the others) Can we transfer pts/miles to my S Reserve account (or vice versa) so we can get the most out of Ult Rewards? Or do they all have to be connected to five primary cardholder… my other question- I worry about trying for a business card because I work as an education consultant for a nonprofit. I’m the Ag Ed Coordinator for two counties Ag in the Classroom program. I mainly work from home, besides when doing the programs at schools and community events. I pay for all my materials and then at the end of the month I submit receipts and I and am reimbursed for it. Since my “business” isn’t technically generating income, do you know if I’d qualify for a business card? It would be nice to cover my monthly expenses and obviously from the rewards card standpoint. Thank you! Ive read a lot of your posts since reading up on travel hacking!
Thanks for reading, Anna, and congrats on getting married! 🙂 You and your fiance/spouse can combine your UR points into one account, i.e. your Sapphire Reserve. Remember, it doesn’t matter that you’re married. You can have a Sapphire and so can he. This goes for all cards. You can still try for a business card (Ink Preferred for example) even if you don’t have a business. In your case, it can be as simple as wanting to keep your business expenses apart from personal expenses to better track spending and if you get reimbursed for things. Hope that help and thanks for joining the FB group, too! 🙂
Hi Jackie,
Love your article and very informative.
I have two questions for you and need your advice.
I’m a little comfuse about the 5/24 rule.
This regards to chase ink and you said it’s subject to 5/24 but doesn’t count towards the rule. Currently, I’m at 3/24 and I do have a business that I owned about 20 years.
I would like to apply for CSR and two of the ink’s cards. Based on your info, should I apply for business cards first before personal CSR? So I could have all three cards with 3/24 stat currently?
Also, can I share my UR with my direct family members?
Thanks in advance.
TK
Thanks for reading, TK. Yes, apply for the Chase biz card first. You will stay at 3/24 once approved. Wait AT LEAST 30-60 days before applying for another Chase card. If you successfully get approved for all 3 cards and do the 2 biz cards first then the CSR, you’d be at 4/24 afterward. You can share your UR with a one member of your household like a spouse. Otherwise, you cannot share. However, you could transfer UR points to a partner (for example United) and then book a flight for a family member through your United account.