While this travel rewards world may seem enticing, sometimes it proves to be tricky. For many enthusiasts, the same mistakes are made over and over again on points and miles, costing them valuable opportunities. This guide will help you spot and avoid those pitfalls, so you get the absolute most from your loyalty programs.

1. Not Understanding the Value of Points and Miles

Of all the mistakes that one can do with points and miles, the most blatant would be not knowing what they are worth. Every program has different redemption rates. So, knowing the value of your points is key.

Key Points:

• The value of the points, on average, for each program should be known.
• The Points Guy’s monthly valuations to be used as a guide
• Value for potential cash and travel redemptions

Example:

Program	Estimated Value per Point
Chase Ultimate Rewards	2.0 cents
American Express Membership Rewards	2.0 cents
Capital One Miles	1.4 cents
Marriott Bonvoy	0.8 cents

Remember, these values can fluctuate based on how you redeem your points. Always calculate the cents per point (CPP) for each redemption:

• CPP = (Cash price of ticket or hotel stay / Number of points required) x 100

2. Allowing Points to Expire

The second critical error involves points and miles: Allowing hard-won rewards to go to waste. The views of the policy of expiration for earned points differ from one program to another. You should track them.

How to prevent Expiration:

1. Create a spreadsheet or use an app that tracks dates.
2. Use regular point-earning activity.
3. Transfer your points, when possible, among programs.
4. Use co-branded credit cards for small purchases.

Notable Policies on Expiration:

• Delta SkyMiles and JetBlue TrueBlue–point do not expire.
• United MileagePlus miles expire after 18 months of inactivity.
• American Airlines AAdvantage miles expire after 24 months of inactivity.
• Marriott Bonvoy points expire after 24 months of inactivity.

Pro Tip: In many programs, even a small transaction will reset the clock. For example, buying a magazine through a shopping portal.

3. Ignoring Credit Card Sign-Up Bonuses

This can be one of the fastest ways to rack up your earnings of points and miles. It is among the top errors people make with points and miles: overlooking these offers. This will cost you thousands of dollars in potential travel value.

How to Max Out Sign-Up Bonus Opportunities:

1. Research into current offers and historical highs.
2. Timing your applications to coincide with increased bonus offers.
3. Looking into business credit cards for more opportunities.
4. Be aware of the rules of the applications: Chase 5/24, Amex’s once-per-lifetime.

Example of a Lucrative Sign-Up Bonus:

The Chase Sapphire Preferred® Card has a sign-up bonus of 60,000 points. You get them after spending $4,000 in the first three months. This would be worth $750 in travel. That’s based on a very low valuation of 1.25 cents per point. This is when you redeem them through the Chase travel portal.

You could get more value. It’s sometimes over $1,200 in travel rewards. This is if transferred to partners like United or Hyatt.

4. Not Diversifying Your Points Portfolio

A lot of errors in points and miles come from putting all the eggs in a single basket. Diversification will let you get the most out of sweet spots across several programs, while insuring yourself against devaluations.

Diversification Advantages

• More Award Availability
• A mixed cabin can be booked.
• Protection from program-specific devaluations.
• Flexibility to choose between the best redemption for each trip.

How to Implement Diversification Strategies:

1. Earn transferable points, such as Chase Ultimate Rewards or Amex Membership Rewards.
2. Sign up with different airlines and various hotel loyalty programs.
3. Explore less-popular programs like CapitalOne Miles or Citi ThankYou Points
4. Cash Back—these are also a nice addition for some flexibility.

Yes, diversification is important, but over-diversification is not. There has to be a fine balance between maximizing and being in so many that it is overwhelming when your targets for travel are already well-defined.

5. Not Making Use of Transfer Partners

Some of the grossest mistakes in using points and miles are not being able to make use of transfer partners. A lot of the credit card rewards programs permit the transfer of points to various airline and hotel partners, often at a 1:1 ratio.

Why You Should Care About Transfer Partners:

• Access to premium cabin awards.
• Can book with airlines that aren’t directly partnered with your credit card.
• More high-value redemption options.

Example Transfer Partners:

Program	Notable Transfer Partners
Chase Ultimate Rewards	United, Hyatt, British Airways
Amex Membership Rewards	Delta, ANA, Marriott
Citi ThankYou	Turkish Airlines, Etihad Guest
Capital One	Air France/KLM, Emirates

Pro Tip: Always check transfer ratios and current bonuses before transferring points. Some programs offer transfer bonuses. They let you get more value out of your points.

6. Using Points for Low-Value Redemptions

One of the biggest mistakes people make with their points and miles is redeeming them for low-value options. It might be very tempting to use the points for everyday purchases or cash back. But, this usually gives poor value.

Low-Value Redemptions to Avoid:

1. Statement credits—usually 1 cent per point or less
2. Gift cards—typically 1 cent per point
3. Merchandise—often less than 1 cent per point
4. Economy flights on short and inexpensive routes

High-Value Redemptions to Target:

1. Business and First Class international flights
2. Luxury hotel stays
3. Last-minute bookings when cash prices are high
4. Peak season travel

Example: Using 50,000 points for a $500 statement credit gives you 1 cent per point. The same 50,000 points might be able to book a business class flight worth $2,500 or more.

7. Not Maximizing Category Bonuses

Failing to use category bonuses is a points and miles mistake. It can greatly slow your point earning. Many credit cards offer bonus points for spending in specific categories.

Common Bonus Categories:

• Travel (including flights, hotels, and car rentals)
• Dining and restaurants
• Groceries
• Gas stations
• Streaming services

Strategies for Maximizing Category Bonuses:

1. Use the right card for each purchase
2. Consider rotating category cards like the Chase Freedom Flex℠
3. Take advantage of temporary bonus offers
4. Use shopping portals in conjunction with category bonuses for double-dipping

Example Card Strategy:

• Chase Sapphire Reserve®: 3x on travel and dining
• American Express Gold Card: 4x at U.S. supermarkets (up to $25,000 per year) and restaurants
• Citi Premier® Card: 3x on gas stations

By using these cards well, you could earn 3-4x points. This applies to much of your everyday spending.

8. Ignoring Airline Alliances

Many people overlook a key point and miles mistake. It is not understanding and using airline alliances. These partnerships allow you to earn and redeem miles across airlines.

Major Airline Alliances:

1. Star Alliance (includes United, Lufthansa, ANA).
2. Oneworld (includes American Airlines, British Airways, Cathay Pacific).
3. SkyTeam (includes Delta, Air France, Korean Air).

Benefits of Understanding Alliances:

• Book flights on partner airlines using your preferred program’s miles.
• Earn miles when flying on partner airlines.
• Access to more destinations and routes.
• Potential for better award availability does exist.

For example, you can use United MileagePlus miles to book flights. You can book them on any Star Alliance partner. You might find better availability or routes than what United itself offers.

Pro Tip: Sometimes booking through a partner program can require fewer miles. This is true than booking with the airline you’re flying. Always compare options across alliance partners.

9. Failing to Use Shopping Portals

A common points and miles mistake is not taking advantage of shopping portals. These platforms allow you to earn extra points or miles. You get them for online purchases you’re already making.

How Shopping Portals Work:

1. Start at the portal website.
2. Click through to the desired retailer.
3. Make your purchase as normal.
4. Earn bonus points or miles on top of your credit card’s rewards.

Popular Shopping Portals:

• Rakuten (formerly Ebates)
• Chase Ultimate Rewards Shopping
• American Airlines AAdvantage eShopping
• United MileagePlus Shopping

Tips to Max Out Shopping Portals:

• This is the use of Cashback Monitor to compare rates at different portals.
• You can stack the rewards from a portal with an credit card category bonuses.
• Look out for increased earnings promotions, especially holidays.
• Use of browser extensions that remind one to go through the portal.

Example: Suppose you are making a $100 purchase at Macy’s. A shopping portal that offers 5x miles on the dollar would offer you 500 miles on this purchase. Then take a card that will give you an extra 2x points for every purchase. That’s 700 miles on a $100 buy.

10. Not Taking Advantage of Hotel Status Benefits

The final mistake we’re going to discuss is not making the most of hotel status benefits. Many hotel loyalty programs have some truly nice perks that can really make your stays more enjoyable and save you money in the process.

Common Hotel Status Benefits:

• Room upgrades
• Late check-out
• Free breakfast
• Lounge access
• Bonus points on stays
• Welcome amenities

How to Get Hotel Status:

1. Stay frequently with one particular hotel chain
2. Get a co-branded hotel credit card
3. Status match or challenge programs
4. Some credit cards give you status automatically. For example, the American Express Platinum gives you Hilton Gold and Marriott Gold.

Maximizing Hotel Status:

• Always mention your status at check-in
• Use suite night awards when available
• Take advantage of status challenges during periods of heavy travel
• Consider splitting stays between brands to maintain multiple statuses

For example, American Express Platinum comes with Hilton Honors Gold status. It gets you free breakfast at most Hilton properties. For a family of four, five nights would be an easy $300-plus in food from the free breakfast alone.

Conclusion

These frequent points and miles mistakes need to be avoided in order to have a vastly different experience with regard to travel rewards. Just remember the value of your redemption. Keep your points alive. Maximize the earning through category bonuses and shopping portals by using sign-up bonuses and transfer partners. Be strategic and informed, and you will have unforgettable travel experiences due to your earned points and miles.

Safe travels, and may the points take you further!