The Best Credit Card Combo for Miles and Points Beginners

The Miles and Points hobby can be somewhat daunting for those just starting out.

There are just so many loyalty and credit card programs to keep track of!

But, as with anything new, if you start off slowly and build as your comfort level grows, what was overwhelming will soon become second nature.

Which is why, for those just entering the hobby, I always recommend picking one travel goal and an accompanying credit card or two to help you achieve that goal.

And the best credit card combo for Miles and Points beginners to make that happen?

It’s hard to argue against the:

• Chase Freedom
• Chase Sapphire Preferred

Why Chase Freedom and Sapphire Preferred?

Why do I recommend the Freedom and Sapphire Preferred as your first two Miles and Points earning credit cards? Well, there are a few reasons.

1. Chase’s 5/24 policy.  If you’ve opened 5 or more credit cards – with any bank – in the previous 24 months, you will not be approved for most Chase cards.  Which makes Chase credit cards first on the application list for those just starting out.
2. Chase Ultimate Rewards program.  Chase’s Ultimate Rewards program is arguably the best transferable points program currently available.  Ultimate Rewards points can be transferred to a number of airline frequent flyer programs such as United, Southwest, and British Airways to name a few.  And its hotel partners include Hyatt, Marriott, IHG and Ritz Carlton.  All transfers rates are 1:1, making Ultimate Rewards points extremely valuable for adding to your various loyalty accounts.
3. Earn multiple Ultimate Rewards points per dollar with category bonuses.  The Freedom card earns 5 Ultimate Rewards points per dollar on rotating quarterly categories.  And the Sapphire Preferred earns 2 Ultimate Rewards points per dollar on dining and travel purchases.  Earning multiple points per dollar is the key to building sizable – and usable – loyalty program balances.

Applying for the Sapphire Preferred and Freedom Cards

The Sapphire Preferred currently has a sign-up bonus of 50,000 Ultimate Rewards points after spending $4,000 in the first 3 months of card membership.  The $95 annual fee is waived the first year,  and you can receive an additional 5,000 Ultimate Rewards points by adding an authorized user who makes a purchase within that first 3 month time period.

The Freedom card currently has a 15,000 Ultimate Rewards points* sign-up bonus after spending $500 in the first 3 months from account opening.  The Freedom card does not have an annual fee, and you can get an extra 2,500 Ultimate Rewards points by adding an authorized user who makes a purchase in the first 3 months.

*It’s important to note, the Freedom card is really a cash back earning credit card.  However, when paired with a premium Ultimate Rewards earning credit card the cash back can be transferred and used as Ultimate Rewards points.  The Sapphire Preferred is a premium Ultimate Rewards earning card.

A quick calculation shows that applying for both of these cards and meeting the minimum spends required to get the bonuses would result in 65,000 Ultimate Rewards points.  If you added authorized user bonuses as well, your total would be 72,500 Ultimate Rewards points.  Add in your minimum spend amounts and your total is even more.

Now that’s a nice way to begin your journey into the Miles and Points hobby.

While you might be able to apply for both the Freedom and the Sapphire Preferred on the same day and get approved, the safer route would be to apply for the Sapphire Preferred first and then the Freedom 2-3 months later. That also spaces out your minimum spends, making them a little easier to meet.

Ultimate Rewards Points

Here’s a very brief look at what 70,000 Ultimate Rewards points could get you.

• 2 United Airlines economy class, roundtrip tickets within the continental U.S. with points left over.
• 1 business class, one-way ticket U.S.- Europe on United or one of its partner airlines.
• 2 free nights at the highest tier Hyatt with points left over.
• At least 3 free nights in a mid-tier Marriott.

Of course, those travel redemptions are the result of the sign-up bonuses only.  Continue to use both the Freedom and Sapphire Preferred for your every day spending, especially by taking advantage of each card’s category bonuses, and you’ll be surprised at how your Ultimate Rewards points balance will grow.

Wrap Up

The Chase Sapphire Preferred and the Chase Freedom credit cards make for a very solid Miles and Points foundation on which to build.

Most of the Ultimate Rewards transfer partners (United, Southwest, Marriott, etc.) also have their own co-branded credit cards that can be applied for as well, making it that much easier to build individual loyalty account balances.

But for a Miles and Points beginner’s strategy – and for long-term ongoing spending/points earning – it’s very hard to beat the very strong combination of the Sapphire Preferred and Freedom credit cards.

Addendum:  Some may argue the Chase Sapphire Reserve should take the place of the Sapphire Preferred in my beginner’s combo.  If you don’t mind a $450 annual fee – $300 of which can be offset if you use the card’s travel credits each year – then I would tend to agree.  For those who definitely will utilize the $300 travel credits, the Reserve effectively becomes a $150 annual fee card ($55 more than the Preferred) whose increased Ultimate Rewards earning will likely offset the additional cost.