What Are Points and Miles?

What Are Points and Miles?

If you're new to the world of travel rewards, you've probably heard people talk about using "points and miles" to fly for free or book luxury hotels at a fraction of the cost. But what exactly are these points and miles? And how can you start using them to save big on your travel adventures?

Let’s break it down in a simple, practical way.

💳 What Are Points and Miles?

At the core, points and miles are rewards you earn from credit card spending, travel bookings, and loyalty programs. Think of them like a special travel currency. The more you collect, the more free or discounted travel opportunities you unlock.

The term “points” is often used when referring to credit card rewards programs like Chase Ultimate Rewards®, Amex Membership Rewards®, or Capital One Miles. These programs allow you to earn points from your everyday purchases—groceries, gas, dining, etc.—which you can later use to book flights, hotels, and more.

“Miles,” on the other hand, usually refer to airline loyalty programs like Delta SkyMiles, United MileagePlus, or Southwest Rapid Rewards. You typically earn miles by flying with an airline or transferring credit card points into your airline account.

✈️ Are Points and Miles the Same Thing?

They work similarly, but they’re not identical.

• Transferable Points - Credit card points (like Chase, Amex, Citi, Capital One) are usually more flexible—you can transfer them to various airline and hotel partners.

• Airline miles are tied to a specific carrier and are best used within that airline’s booking system.

• Hotel Points work similarly but are tied to specific hotel loyalty programs such as Hyatt World of Hyatt®, Hilton Honors®, and Marriott Bonvoy®. You can earn hotel points by staying at properties within the chain, booking through their websites, or transferring points from certain credit card programs. Hotel points can be redeemed for free nights, room upgrades, and even exclusive experiences.

For example:
Let’s say you have 50,000 Chase Ultimate Rewards points. You can transfer those points to Southwest Airlines, United, or even to a Hyatt hotel stay, depending on your travel goals.

That flexibility is what makes transferable points so powerful.

🏆 Why Do People Use Points and Miles?

The biggest reason? To save thousands on travel.

Smart travelers use points and miles to:

• Book first-class or business-class flights for the price of economy

• Stay in luxury hotels without spending a dime

• Take more trips throughout the year—without blowing the budget

• Treat their family to memorable experiences they otherwise couldn’t afford

All by being strategic about how they spend and earn.

🧠 Pro Tip: Not All Redemptions Are Equal

Not every use of points gives you equal value.

For example:

• Transferring points to airlines or hotels often gives you the best value, sometimes over 2 cents per point or more.

• Using points for gift cards or statement credits tends to offer a much lower value—often 0.5 to 1 cent per point.

That’s why we always say: save your points for flights and hotels, not toasters or cashback.

🧩 Where Do You Start?

It begins with the right travel rewards credit card. Choose one that earns transferable points and aligns with your travel goals (like Southwest flights, Hyatt stays, etc.).
Then, learn how to maximize bonus categories, welcome offers, and partner transfers.

📌 Action Step: Set Your First Goal

• Decide on one dream trip you’d love to take in the next 12–18 months.

• Research the cost in points or miles using the airline or hotel’s website.

• Write it down — this will be your first travel hacking target.

Having a clear destination in mind will keep you motivated and focused as you start collecting points and miles.