Oh hey my name is Marc Ramos and today we're going over what points and miles
are how to earn them and how to burn them
[Music] Well, I mean how to use how to use them
burn whatever you know what i mean all right
let's do it [Music]
welcome to Power Pointers the show where I'll be guiding you through everything
you need to know to get started in the points and miles game
let's jump right into it what are points and miles
simply put points and miles are a type of currency there are three important
categories of points and miles airline miles which can be used to pay
for airline flights with a specific carrier
hotel points which can be used to pay for hotel stays with a specific chain
and credit card points which can be used for a number of things including cash
back statement credits paid travel and more
the industries of credit cards airlines and hotels are closely intertwined and
the point of the whole hobby is to use those currencies to travel the world for
little to no out-of-pocket costs using your points and miles to travel is
what we call an award redemption you're going to be hearing that term
floating around a lot a key strategy here is understanding
that points and miles currencies are all worth a certain amount of actual money
however not all points and miles are created equal and the value behind them
varies depending on the program for example
TPG currently values American Airlines miles at 1.4 cents per mile while we
value delta sky miles at 1.2 cents per mile
this means that generally speaking your american miles will get you more value
than your delta miles when you're using them to book a flight
cool so we got that covered now how do you earn points and miles
you earn points and miles anytime you sign up for an airline or hotel loyalty
program and either book a flight with that airline or book a stay with that
hotel chain but the easiest way to earn them is by making purchases using a
rewards credit card before i started working at the points guy i used to pay
for everything using my debit card and i've since learned that at tpg using
your debit card to pay for anything at all
is sacrilege
the reason being debit cards have no point
pun intended anytime you use a debit card you're
spending money and not getting back anything in return
but on the other hand when you use a rewards credit card anytime you spend
money on anything you get back valuable points and miles
that you can put towards your next getaway
and when I say spend money on anything i mean
anything online shopping points groceries
points uh your millionth takeout order of the
week you just supported a local business and
you got points depending on the type of card you have
certain spend categories might even get you bonus points for instance
some cards offer bonus points when you spend on gas and other cards offer bonus
points when you spend on dining but before we go any further
let me state the cardinal rule of the points and miles game one that is never
to be broken the rule is this
always pay your credit card bill on time and in full
every single month never
ever spend more than you can afford with a credit card or buy things that you
wouldn't have just bought in plain cash this rule is so important it took the
top spot on our list of 10 commandments for travel rewards credit cards
okay so you opened up a rewards credit card you put some charges on it you paid
off your bill on time and in full and now you racked up a whole bunch of
points sweet so how can you use those points to
book a trip this varies depending on the credit card
issuer but most credit card programs allow for some type of direct redemption
of their points via an online portal generally speaking through this portal
you would pay for your flights or your hotels using your points instead of
paying with cash which again is what we call an award redemption the
whole fun of the points and miles game is to keep cash in your pocket when
booking a trip or even better using your points and
miles for a flight or hotel room that you couldn't or wouldn't want to buy
with cash so you're often going to get the most bang for your buck if you use
your points and miles on the price your luxury flights and hotel stays but at
the end of the day it all comes down to personal preference
there are exceptions to every rule except the cardinal rule
other than that there are no right or wrong ways to play
the points and miles game what's really important here is making your travel
goals a reality so what did we learn today
we learned that points and miles are a type of currency
you can earn points and miles when you fly stay at a hotel or make a purchase
using a rewards credit card you can use those points and miles to
travel the world for little to no out-of-pocket cost
and most importantly you should always pay your credit card
bill on time and in full every single month
alright folks that does it for me but if you like this video throw us a little
thumbs up hit that subscribe button for more episodes of powerpointers
and I'll see you later [Music]