In talking about points and cards every day I often find that I run out of time explaining the basic strategies to people new to the game. There is no one-size-fits-all credit card point strategy as everyone has different goals in mind when they want points. However, this suggested beginner’s strategy is mostly for people in their early-mid 20’s or even earlier that are just getting their first few relevant credit cards and are trying to establish more credit history while wanting to travel.
This strategy is mainly to build your credit while maximizing flexible bank points and minimizing annual fees. This does not at all mean you should not open up that American Airlines card with a 50K point bonus if you fly AA and have a reward destination already in mind. If that is the case then go for it and cancel the card later assuming your credit history is solid enough, which we will get into a bit more later on.
Most importantly before we get started, you MUST be able to pay off your credit cards each and every month. Paying just the minimum and drowning in credit card interest (debt) is the worst possible thing for you and your credit score at this time in your life. As your history builds up over the years and you pay everything on time with no late/interest fees, you should have no issue getting a mortgage or a larger loan later on in life as your credit score should be fairly excellent if you play by their rules and plus, they'll give you free trips via points for a good score.
