Hi there, it's Ernest from Trip Astute. In this video, we're taking a step back and
talking about things I wish I knew before I started getting into credit
card points.
(light chiming music)
Before we get started, I just wanted to run through a couple of
updates. One, congratulations to Enrique T. for winning our Loctote Flak Sack Sport
giveaway. Enrique, you should be receiving your bag soon. Secondly, if
you're new to our channel, I just wanted to mention that we are a travel channel
that is focused on sharing ways to make travel easier, affordable, and more
enjoyable. Traveling can be stressful and expensive, so we're looking for ways to
help you maximize your experience through travel tips, points and miles, and
innovative gear. If you're watching this video, you're probably a points and miles
collector, so you know how complicated and crazy this hobby can be, and also the
types of crazy behaviors that can come from collecting points. If you don't know,
then definitely watch our "Crazy Habits of a Points Collector" video. It might
give you comfort knowing that you're not alone. Over the past few months, I've
noticed a lot of the same comments come up on my videos. Things like "how can I
get the Chase Sapphire Reserve, Freedom, Freedom Unlimited, and Ink Business Cash
all at once. Basically, people have been asking me things that remind me of when
I was first starting and obsessing about my points and cards. So today, I thought I
would share 9 things that I wish I knew before starting the points and miles
hobby. Some of the list is serious while others
are more fun, but I'm hoping that it will help you especially if you're new to the
credit cards game. And for those of you who've been doing this for a while, I'm
hoping you'll get something out of this too. If anything, I hope you can relate
and also share your experience and knowledge with others in this community.
So, let's get started with the list. Number 1: Points almost always go down in
value. I think it's important to remember that points rarely appreciate in value.
This means that you shouldn't horde points. I know ... I've been there and I've
always wanted to see how many points I could hold on to. But know that it's
better to use your points rather than save them since they'll likely lose value
over time. Number 2:
Okay, maybe it's not quite Maroon 5, but the best travel credit cards seem to
have specific lifespans. For example, the American Express
Platinum Card was once the standard when it comes to luxury travel points and
perks. Then when I got the Chase Sapphire Preferred in 2012, I was convinced that
it would have a permanent place in my wallet. Though in 2016, that card was
replaced by the Sapphire Reserve card. In the last few years, we've seen a lot of
new players in the game which was primarily dominated by American Express
and Chase. Companies like Citi, US Bank, Barclaycard, and many more have created
some incredible credit card products. And while I love my Chase "quinfecta". Okay,
not sure that's the right terminology. But I know that I'll likely have
different cards in my wallet in the next year or two.
Number 3: Rules change all the time. This one is frustrating. You might sign
up for a card loving all the perks that you get only to find out that the
benefits are no longer valid or available after a year or two. This is
almost to be expected. In fact, Chase recently announced a bunch of changes
and a lot of people were worried that they would lose many of their benefits
like transferring points between cards. Luckily, that didn't happen, but it
definitely might happen next year. Again, this is an uncertain hobby and you have
to be willing to adapt and pivot when necessary. Number 4: It gets harder to
get credit cards. One thing that I didn't realize when I started is how difficult
it is to get more credit cards when you already have a lot of extended credit.
For example, I have 17 active cards and whenever I apply for a new credit card,
it seems like the issuer wonders why I need more credit. So I've had to slow
things down a bit since I can't justify having more credit from the issuers.
Number 5: Everyone thinks you're crazy. Once you get into this game, you have to
know that most people will either think you're a genius whose gaming the system
or an insane person. I've been using credit card points to pay for my travel
for years now and I swear I still have friends who are convinced that I'm doing
something illegal or that I'm in a huge amount of credit card debt. It's more
funny than anything, but I am conscious of the fact that people will judge me on this
hobby. And while it may not matter in your
personal life, there have been times where I've held back at work since I
didn't want people to perceive me in a certain way. Again, you may be less
self-conscious than me, but I definitely like to warn people that there can be a
stigma when it comes to getting lots of credit cards, even if you're completely
responsible with them. Number 6: My travel expectations have changed. This is
one thing that I didn't realize would happen until I actually started
traveling with points. While I wouldn't say that I'm a high maintenance traveler,
I do prefer to stay in nice hotels rather than hostels. And I think a lot of
has to do with the fact that I've been able to stay at hotels using my points.
So when giving the option, I now prefer a nice hotel. This may or may not be a good
thing. But if anything, I definitely see more value in having a nice, clean, and
private space when traveling, especially when I want to make sure I get the most
of my trip. Even knowing that I could get more rest is definitely worth the extra
cost. Number 7: Collecting cards is a marathon, not a sprint.
I've mentioned this in a couple of other videos. I get a lot of comments and
questions from people who are trying to apply for every major credit card offer
within a couple of months. While some people are able to pull it off, I'm a lot
more conservative with my advice. I know a lot of people said that I was being
too cautious in my Chase 2/30 video, but honestly, I always try to see it from the
issuer's perspective. I just think it looks risky to the issuers to be overly
eager to get more credit. Again, it might just be me, but I think you're fine that
the longer you're in this game, the more you want to develop a relationship with
the banks to help build that trust. Number 8: Always research before applying.
Guess who applied for the United Mileage Explorer card when they got an offer but
didn't bother to check whether there was a better offer online? Yeah, I totally
regret doing that. So don't be like me and make the same mistake. Anytime you're
even thinking of applying, just do a quick Google search to see if there are
any other bloggers reporting on a better opening bonus or offer. There have been
many instances where there is a better offer available. Even a few months ago, I
noticed that a lot of credit card bloggers were recommending the Chase
Sapphire Preferred and providing an affiliate or referral link. The affiliate
link offered 50,000 points to open the account. However, just going to the Chase
website, they were advertising a 60,000 point bonus to open an account.
I don't think the credit card bloggers were trying to mislead anyone, but it
definitely highlights why you should always do some research on potential
offers. Number 9: Don't obsess about your points. Okay, I'm gonna be honest.
There have been times in my life where I probably spent more time researching
what to book in order to get a fraction of a cent more in redemption value. I'm
guessing some of you might have done this too. It's so easy to get sucked into
obsessing about point values and maximum redemptions. Just remember your time is
valuable. I think it's always good to try to find the best deal, but just remember
not to lose track of the big picture. At the end of the day, it's unlikely that
you'll reflect on your trip and wish you had tried to redeem at a higher rate. In
fact, some of my best travel memories were booked with points without really
digging into the point values, like our trip to Mexico last year and our stay at
the Andaz Mayakoba resort. What are the things that you wish you knew before
getting into this hobby? Please let us know in the comment section below.
If you enjoyed this video, please give us a thumbs up and consider sharing our
video and channel with others, especially other points and miles nerds in your
life. Until next time, travel safe and travel smart.