How I Prioritize my Credit Card Applications

I’ve said this before, but it’s worth repeating: I get the majority of my miles and points for free travel from signing up for new credit cards when the welcome bonuses are high. See Beginner’s Guide: 7 Steps to Free Travel with Miles and Points.

But, all credit card signup bonuses are not equal. So, which cards to I prioritize?

First Priority: Cards with Flexible Miles and Points

My most valuable credit cards are the ones with flexible points issued by the major banks. These currencies can be used to book travel through a portal, get statement credits, or transfer points to airlines and hotels. Examples include Chase Sapphire Preferred card, Capital One Venture Rewards card, American Express Gold card, etc.

Advantages:

• You can use the points for multiple purposes (booking travel, transferring to airline partners, etc.)
• The points aren’t limited to only one airline or hotel. This gives you more options when looking for award availability and lowers the impact from award devaluations for a specific airline or hotel.

Disadvantages:

• These flexible points cards are often more difficult to get approved for than co-branded airline and hotel credit cards
• The rules on bonus eligibility can be stricter than the rules for co-branded airline and hotel cards. For example, you can only get the bonus on a Chase Sapphire card every 48 months, but the rule for Chase Southwest cards is 24 months. See this post for more details on application rules by bank.

Second Priority: Airline Credit Cards

My family of 5 prefers flying over road trips. And, the last few years, we’ve been renting vacation homes/condos more than staying in hotels. So, cards that give airline miles are more useful to my family than hotel credit cards. Examples include Barclays Citi AAdvantage Aviator card, Bank of America Alaska Airlines card, etc.

Advantages

• Co-branded cards are usually easier to get approved for than flexible points cards
• Many cards come with other benefits besides miles like free bags, early boarding group, etc.

Disadvantages

• Miles from airline cards are only good on that airline and its partners. If you can’t find award space, you can’t use the miles.
• If the airline raises the price of award tickets, you’re out of luck

Last Priority: Hotel Credit Cards

Hotel stays aren’t cheap. Using hotel points can save travelers a lot of money. My husband and I personally own Hyatt, IHG, and Hilton hotel credit cards.

Advantages:

• Some hotel credit cards include a free night stay on card anniversary
• Using points during high peak travel dates can yield outstanding value
• Some cards include other benefits like free breakfast, late checkout, etc.

Disadvantages

• Not all hotel brands have a presence in the places you want to travel
• Many hotel rooms only work for smaller families (or just 2 people, especially international hotels)
• You are limited by the availability of hotel standard rooms. Sometimes, hotels play games with what they consider a standard room available on points
• If the hotel raises the price of award nights, you’re out of luck

When all my kids are grown and flown, I can see focusing more on hotel credit cards when my husband and I travel as a couple.

What about business credit cards?

Small business credit cards are available in all of those categories, and I still prioritize flexible points over specific airline and hotel cards. See Am I Eligible for a Business Credit Card?

Final Thoughts

At this stage of life, my family prioritizes flexible miles and points credit cards and some airline credit cards over hotel credit cards. But, your travel needs may be different. At any rate, I’m excited every time we are approved for a new credit card that adds more miles and points to my stash.