Why doubling down on a rewards program might be better than diversifying

The scoring game is one of the games strategy. You want to choose earned loyalty programs types of rewards you can make the most of it and get it related credit card provide levels of income and benefits where you can maximize your advantage.

You should also diversify the types of points and miles you earn. That’s because of monetary rewards — whether that is Airline frequent flyer milesHotel loyalty points or transferable credit card points – can change significantly and suddenly (and in the worst case, lose value).

However, there are also some good reasons to double down on one or two specific points programs.

For example, there might be one Increase welcome bonuses on credit cards which you qualify for even if you already have another co-branded card with the same plan. If you already have a credit card participating in a program, you may find you can earn more or enjoy better perks by carrying additional perks with the program. with family rewards.

Just keep in mind that you should think both long and short term about any loyalty strategy, and focusing on some programs now may mean you’ll need to expand your reach yours later — or vice versa.

Here are seven reasons why doubling down on credit cards with a points program may be better than diversifying.

Related: Better Together: The Ultimate Guide to the Best Ways to Pair Credit Cards

Get the high welcome bonus while it lasts

We’ve seen historically high welcome offers on many different airline and hotel cards, like Delta SkyMiles® Platinum American Express Cardfemale Marriott Bonvoy Brilliant® American Express® Cardand Hilton Honors American Express Surpass® Card.

In fact, some of these deals are so good that even if you already have a card with the same rewards program, you might consider signing up for another card just to earn more bonus points for flights or stays. residence.

A higher offer is always worth considering, especially if it’s the best offer ever.

Related: The best credit card welcome bonuses available today

You can learn (certain) eligibility rules and exclusions

Most credit card issuers There are strict regulations about who is and is not eligible for a particular credit card. Chase has it 24/5 rulefor example; it will automatically reject most new card applicants if they have opened five or more cards (from any and all issuers, not just Chase) within the past 24 months.

So let’s say you’re getting close to that number and are trying to decide between several different new credit cards from various issuers. Since other banks don’t have identical rules, you can choose a Chase card before you reach the five-card limit and then applies to the product from other issuers and other programs later.

Increase your income

Often, different credit cards within the same loyalty program will earn points or miles at different rates.

For example, American Express Platinum® Card Earn 5 points per dollar spent on flights booked directly with airlines or through Amex Travelfor up to $500,000 per calendar year (then 1 point per dollar) and for prepaid hotel bookings made through Amex Travel. It earns 1 point per dollar spent on everything else.

On the other hand, American Express® Gold Card Earn 4 points per dollar spent at restaurants (up to $50,000 per calendar year, then 1 point per dollar) and 4 points per dollar spent at US supermarkets (up to $25,000 per calendar year, then 1 point per dollar).

The card also accumulates 3 points per dollar spent on flights booked with airlines or Amex Travel, 2 points per dollar spent on prepaid hotels and other purchases booked through Amex Travel and 1 point per dollar spent on everything else. These earnings rates are in exchange for an annual fee of $325 (see exchange rates and fees).

By carrying both of these cards, you can increase your earnings significantly by earning 5 points per dollar spent on qualifying flights and hotel bookings with Amex Platinum and 4 points per dollar spent on qualifying U.S. restaurant and supermarket charges with Amex Gold.

Related: How to make sure you earn rewards points on your grocery purchases

Opens up more and better redemption options

With certain rewards programs, such as Chasing the ultimate reward And Citi ThankYou RewardsThere are basic cards that earn simple cash back, and more premium cards that accumulate points that can be transferred to various hotel and airline partner programs.

That’s what makes the pairing of a card like Pursue Unlimited Freedom® with Reserve Chase Sapphire® so strong. Freedom Unlimited earn 5% cash back on travel purchases through Chase Travel℠, 3% back on dining (including eligible takeout and delivery) and pharmacy, and 1% back .5% on all other purchases.

If you don’t have a Chase card that earns Ultimate Rewards points, those rewards are only valid for various cash back redemptions.

However, if you have a points-earning Chase card like the Chase Sapphire Reserve, you can combine the points you earn on it with Freedom Unlimited rewards and redeem them for travel through Chase Travel at a rate of 1.5 cents each. units (already a 50% increase in value over the Freedom) or roll them into the Ultimate Rewards program 14 airline and hotel partners.

Related: Power of Chase Trifecta: Sapphire Reserve, Ink Preferred and Freedom Unlimited

Layer the benefits

Just as the earning rates with cards from the same group can vary, many cards also have different perks. So you may want to carry one for certain benefits and another for others.

For example, United Club℠ Unlimited Pass Earn bonus miles in a variety of categories, including United Airlines purchases, travel and dining. The cardholder’s main benefit is receiving United club member and a statement credit of up to $120 toward Global Entry or TSA PreCheck application fees every four years.

Despite these benefits, you may also want to stay open United℠ business card. This card offers the same travel-day perks as United Club Infinite, such as free checked bags and priority boarding, with some exceptions.

United Business cardholders earn bonus miles at gas station and office supply stores as well as on local public transportation and travel shoppingplus a 5,000-mile anniversary bonus if you also have a United personal credit card. You also get two United Club cards once per year that you can use to bring more travelers with you to United Club.

Enjoy multi-night or multi-flight trips

Banks seem to assume that most people are only interested in one Single credit card from a particular airline or hotel, so they tend to offer similar benefits across their product lines. However, if you’re willing to double down on your card with a specific loyalty program, you can stack certain benefits for more (almost) free travel.

For example, Delta SkyMiles Platinum Amex and Delta SkyMiles® Reserve American Express Card both come with a year companion certificate can be redeemed for a second ticket in the same booking as the cardholder for round-trip travel within the contiguous United States and select international destinations.

The Delta Amex Platinum companion certificate is good for traveling with Main Cabin fares, while Delta Reserve lets you redeem companion certificates for Main Cabin, Comfort+, and even first class.

So if you have both cards, you can save two trips for yourself and your companion – or, if you’re a family of four (or more), parents can fly up to in advance while the kids can travel on the coach, and you’ll enjoy almost half of the flights on your holiday.

Looking at the hotel’s co-branded tag, Hilton Honors American Express Aspire Card comes with one annual reward night per card membership year (and the second time each year you spend $30,000, plus the third time after spending $60,000 or more on purchases).

Pair this with Hilton Honors Amex passes and spend $15,000 on it in a calendar year to earn additional free night rewards to use on the same or a different stay.

By taking advantage of seemingly overlapping benefits, you can actually combine things like companion tickets or anniversary nights to extend any trip you plan to use them for.

Information about the Hilton Aspire Amex card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: The best hotel credit cards come with a free night every year

Reach elite status faster

Specifically, in the case of hotel credit cards, carrying more than one product from the same loyalty program can put more elite status within reach.

For example, if you have Marriott Bonvoy Brilliant American Express Card and Marriott Bonvoy Business® American Express® Cardyou are credited with 15 elite nights per card per year to achieve program status. That amount amounts to 30 nights per year – five more than you need Mid-level Gold statusand 45 nights from the elusive Titanium, all before you set foot in the hotel.

Related: Best credit cards for achieving elite status

Bottom line

When it comes to points and miles, diversifying the number of loyalty programs you participate in is a tried and true strategy that will help you weather sudden depreciation. However, it might be a good idea to stick with one or two individual points programs within a specific time frame.

Doing so allows you to take advantage of any short-term bonuses that arise, to enjoy stackable benefits, and to get the rewards you need for impending redemptions even faster. Evaluate your current card lineup and see if there’s an opportunity to duplicate a program or two so you can get to rewards even faster.

Related: Why points and miles are a bad long-term investment

For Amex Gold rates and fees, click This.