Avoid These 10 Costly Points and Miles Mistakes

Earning and using points and miles to fly business class might be the best travel hack I’ve ever learned. Not only do I save thousands of dollars on flights each year, but I also get to kick off my trips with an incredible experience before I even set foot at my destination.

But here’s the thing: when I first started, I made a lot of mistakes. And over the years, I’ve seen plenty of travelers make the same ones, costing them points, money, and missed opportunities for free travel.

To help you maximize your points, I’m breaking down some of the biggest points and miles mistakes travelers make, and how to avoid them.

Quick disclaimer: I’m not a financial advisor, and this isn’t financial advice. Everything here is based on my own experiences and research.

This post may contain affiliate links. If you make a purchase using one of these links, I may receive compensation at no extra cost to you. Read my disclosure for more information. Thanks for supporting the blog!

Mistake 1: Carrying a Balance on Your Credit Card

We are not opening travel credit cards and carrying a balance.

Repeat after me: Pay off your credit card in full every month.

Travel rewards credit cards are fantastic for earning points and miles, but they also come with some of the highest interest rates, often 20% or more. That interest quickly cancels out any rewards you earn.

Put simply, if you’re paying interest on your balance, your “free” travel isn’t actually free.

✔️ Rule #1: Only open a travel rewards credit card if you can pay it off in full each month.

💡 Pro Tip: Set up autopay to cover your full statement balance automatically. This way, you never miss a payment or risk paying interest. 

Mistake 2: Opening a Credit Card Without a Plan to Meet the Minimum Spend 

I’ll be honest. I’ve made this mistake myself. I was so tempted by one of the most massive sign-up bonuses I’d ever seen that I applied without thinking about how I’d meet the minimum spend. 

Fast forward a few weeks, and I was scrambling, begging friends and family to put purchases on my card just to hit the requirement. Not a fun experience.

Don’t make the same mistake.

The welcome offer through a new card is one of the fastest ways to earn points and miles, but only if you can meet the minimum spend requirement without unnecessary spending. 

The sign-up bonus (often called a SUB, or “sign-up bonus,” if you see that term elsewhere) is what makes new cards so valuable but if you can’t hit the requirement, you get nothing and it’s a complete waste. For example, some credit cards have a bonus of 90,000 points. Trust me, you want those points.. 

✔️ Before applying for a new card, be sure the amount of money you need to spend is something you can realistically meet with your normal expenses. It shouldn’t push you to overspend just to earn points (unless you really want to splurge…hey, I’m not judging)

💡 Pro Tip: Time your credit card applications around big expenses like a vacation, home improvement, or annual bills so you can hit the minimum spend with purchases you were going to make anyway.

Mistake 3: Not Putting the Right Spend on the Right Card

One of the most common mistakes (one I’ve definitely made before!) is not using the right card for the right purchases. If you’re not taking advantage of bonus categories, you’re missing out on bonus points that could allow you to earn points and miles that much faster on your everyday purchases. 

But don’t stress because it happens to everyone occasionally. The goal isn’t perfection, but making sure the majority of your spending is earning you the most points possible. Otherwise, you’re leaving easy rewards on the table.

Using the right credit card for each purchase is a great way to earn bonus miles without spending more.

How to Avoid This Mistake

✔️ Review your card’s bonus categories. When you open a new credit card, take a minute to check which spending categories earn extra points.
✔️ Use the best card for each purchase. For example, the Amex Gold earns 4x points on restaurants and groceries so every time you dine out or shop for groceries, that’s the card you should be using.

Taking advantage of bonus categories is one of the simplest ways to maximize your points without extra effort.

💡 Pro Tip: You don’t need a dozen credit cards to get started. One or two solid beginner cards can set you up for major rewards but just make sure you’re using them strategically!

Mistake 4: Avoiding Credit Cards with Annual Fees 

I get it. No annual fee sounds like the better deal. Why pay just to earn points, right?

But here’s the mistake: Many of the best travel credit cards do have annual fees, and in most cases, the value far outweighs the cost.

Why Some Annual Fee Cards Are Worth It

Many credit card companies offer bonus categories, perks like a statement credit, and protections that no-annual-fee cards simply don’t match. Some benefits you might be missing out on:
✔️ Higher earning rates on dining, travel, and groceries
✔️ Statement credits for travel, dining, or rideshares
✔️ Trip delay and cancellation protections
✔️ Airport lounge access for a more comfortable travel experience

How to Decide If an Annual Fee is Worth It

The key is to look at the annual fee versus the benefits and perks. If the value you get from the card exceeds the cost of the fee, it’s worth keeping in your wallet. If you can’t justify a hefty annual fee, don’t get the card.

For example:

• The Amex Gold comes with dining credits, including Dunkin, but if you never go to Dunkin, that perk is meaningless to you.
• The Capital One Venture X has a $395 annual fee, but you get:
  • $300 annual travel credit
  • 10,000 points each year on your account anniversary
  • Unlimited lounge access
  • More perks that make this fee a no brainer

💡 Pro Tip: If you’re unsure about annual fees, start with a mid-tier card like the Chase Sapphire Preferred. It offers strong travel rewards, a reasonable annual fee, and solid travel protections.

Mistake 5: Letting Points and Miles Expire 

Yup, I’ve been guilty of this one too and there’s nothing worse than realizing your miles have disappeared. 

The good news? This mistake doesn’t apply to credit card points (which don’t expire as long as you keep your account open), but airline and hotel miles absolutely can expire.

How to Avoid Losing Your Miles

✔️ Check the expiration date and policies for each loyalty program. Some airline miles expire after 12-24 months of inactivity, which means you could lose years of effort. Yikes. 

✔️ Track expiration dates. Use tools like AwardWallet to monitor your balances and alert you before points expire. Or keep a simple spreadsheet that you check often.

✔️ Keep your miles active. Most programs allow you to extend the validity of your miles with a small qualifying transaction, such as:

• Making a purchase through an airline’s shopping portal
• Earning miles through a dining rewards program
• Transferring points from a credit card
• Buying a small number of miles

💡 Pro Tip: Every loyalty program has different expiration rules so make sure you check each one individually to avoid surprises!

Mistake 6: Doing a Test Transfer of Points

This mistake breaks my heart because I see it happen all the time in points and miles groups.

A traveler gets excited about booking their first redemption, but they’re also nervous. So, they do a test transfer which is moving a small number of points to the airline to make sure everything works. When those points show up, they transfer the rest… only to find that the second transfer doesn’t go through immediately.

🚨 What can go wrong?

• Some airlines flag multiple transfers as fraud, especially if they’re made within a short period.
• Transfer times vary, even for the same program, so your second batch of points might take longer.
• By the time the points arrive, the award seat you wanted may be gone. 

✔️ The Fix: The best way to ensure a smooth transfer is to send the full amount at once, rather than doing a test transfer.

Mistake 7: Transferring Points Without Confirming Award Availability

If you’re using a tool like Seats.aero, Point.me, or ExpertFlyer to check award space that’s great! These tools are incredibly helpful. In fact, using Seats.aero is exactly how I booked Lufthansa First Class round trip.

But here’s the mistake: Don’t assume that just because a tool shows availability, the flight is actually bookable.

Why?

• Award availability can change by the second, especially for premium cabins.
• Some tools don’t update in real-time, so the flight could be gone before you even log in.

✔️ The Fix: Before transferring your points, it’s always a good idea to go directly to the airline’s website and search for the award flight. If you see the flight available for booking on the airline’s site, then it’s safe to transfer your points.

💡 Pro Tip: If an award seat is really competitive, consider placing a hold (if the airline allows it) before transferring your points.

Mistake 8: Cashing Out Points for Gift Cards or Using Them at Checkout 

Picture this: You’re checking out on Amazon, and a little pop-up says, “Want to use your 24,000 points on this purchase?”

The answer is NO.

Also, bye, Amazon. We don’t support your practices.

Why This Is a Mistake

You want to avoid low-value redemptions. Redeeming your points for gift cards or checkout credits is one of the lowest-value redemptions you can make.

• Gift cards typically give you 1 cent per point (or less).
• When used strategically, those same points can be worth 3x, 5x, or even 10x more for travel.

For example, I once redeemed 60,000 points for a business class flight to Japan. The cash price of this plane ticket was nearly $8,000.

So, let’s compare:
$600 gift card vs $8,000 business class flight

Which one sounds like the better deal?

When redeeming points, always compare redemption values to make sure you’re getting the best deal possible

When It Might Make Sense

At the end of the day, your points are yours. If you’re in a situation where cashing out is the best financial move for you, then go for it. I just want to make sure you’re making an informed decision.

💡 Pro Tip: If you’re ever unsure whether you’re getting a good deal, divide the dollar value of what you’re redeeming by the number of points required (this is called cents per point (CPP)). Aim for at least 1.5-2 CPP and ideally much higher!

Mistake 9: Hoarding Your Points Instead of Using Them

I get it. It can feel hard to part with the points you’ve worked so hard to earn.

But that’s the whole point: to use them.

Why Hoarding Points Is a Bad Strategy

✔️ Points devalue over time. Airlines and hotels adjust redemption rates and introduce dynamic pricing, meaning your stash of points could lose value overnight.
✔️ You don’t need a million points before redeeming. Some people think they need to stockpile points like a savings account but in reality, the best strategy is to earn and burn.
✔️ Earning with a goal in mind is smarter. Instead of hoarding, set a travel goal and earn toward it. For example, I know I want business class flights to New Zealand, so I’m focusing my points strategy around that redemption.

Back in the day, my dad was a points and miles expert before blogs even existed. He flew around the world in first class multiple times because finding premium award seats was so much easier.

Sigh. The good old days.

The Moral of the Story

Drop the scarcity mindset and use your points. You earned them to travel so don’t let them sit in an account collecting dust. 

Mistake 10: Not Transferring Points to Travel Partners for Maximum Value 

Let’s end with the biggest mistake travelers make when using points and miles: not transferring points to travel partners for maximum value. Programs like Chase Ultimate Rewards, American Express Membership Rewards, Capital One Miles, etc have transferable points and allow you to transfer points to airlines and hotel partners. 

If you’re redeeming your points directly through a credit card’s travel portal, you’re almost always leaving value on the table. To get the most value from your points, always check airline and hotel transfer partners before redeeming through a travel portal.

Why Transfer Partners Matter

Many travel credit cards allow you to transfer points to airline and hotel loyalty programs, where you can often book the same flight or hotel for far fewer points than you’d need in a travel portal.

Still not convinced? Here’s a real-world example:

Lufthansa business class flight using Capital One’s travel portal

Same flight booked via Aeroplan (a Capital One transfer partner)

That’s a massive difference just by transferring your points!

✔️ The Fix: Always, always check transfer partners before redeeming your points as it’s usually where you’ll find the best value. A little extra research can save you tens of thousands of points and allow you to fly that bucket list flight that you’ve had your eye on. 

Bottom Line

Mistakes happen. It’s how we all learn.

There’s a bit of a learning curve with the world of points, but avoiding these points and miles mistakes will help you maximize your travel rewards and award bookings faster. 

By steering clear of these 10 mistakes, you’ll set yourself up for more business class flights, luxury hotels, and incredible travel experiences, all without overpaying.

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