Why doubling down on a rewards program might be better than diversifying

Points game is one of them strategy. You want to choose a loyalty program where you can earn the following rewards Reward type You can take full advantage and get Linked credit card Offer yields and benefits that maximize your advantage.

It’s also a good idea to diversify the types of points and miles you earn. That’s because reward currency—either Airline Frequent Flyer Mileshotel loyalty points or transferable credit card points – can undergo significant and sudden changes (and in the worst case scenario, depreciation).

However, there are also some good reasons to double down on one or two specific points programs.

For example, there might be a Add a credit card welcome bonus You are eligible even if you already have another co-branded card with the same program. If you already have a credit card that includes this program, you may find that you can earn more or enjoy better benefits by carrying more cards over the term. Also reward family members.

Remember that you should think about any loyalty strategy from both a long-term and a short-term perspective, and focusing on some programs now may mean you need to expand your coverage later, and vice versa.

Here are seven reasons why doubling down on your credit cards with a points program might be better than diversifying.

Related: Better together: The ultimate guide to the best credit card pairings

Take advantage of the high welcome bonus while it lasts

We’ve seen historically high welcome offers on various airline and hotel cards, e.g. Delta SkyMiles Platinum American Express Cardthis Marriott Bonvoy Brilliant® American Express® Card,as well as Hilton Honors American Express Surpass® Card.

In fact, some of these offers are so good that even if you already have a card with the same rewards program, you might want to consider applying for another card to earn extra rewards points for flights or stays.

It’s always worth considering an increased offer, especially if it’s the best offer ever.

Related: The best credit card welcome bonuses out there

You can bypass (some) eligibility rules and exclusions

Most credit card issuers have strict rules About who is and is not eligible for a specific credit card. Chase has it 5/24 rulefor example; it will automatically deny most people who apply for a new card if they have opened five or more cards in the past 24 months (from any and all card issuers, not just Chase).

So, let’s say you’re close to that number and you’re trying to choose between a few different new credit cards from different card issuers. Since other banks don’t have the exact same rules, you can choose a Chase card before you hit the five-card limit, and then Apply for product That has since come from other issuers and other programs.

increase your income

Often, different credit cards within the same loyalty program will earn points or miles at different rates.

For example, American Express Platinum Card® Earn 5 points per $1 spent on flights booked directly with or through the airline American Express Travelup to $500,000 per calendar year (then 1 point per dollar), and prepaid hotel reservations through Amex Travel. Earn 1 point for every $1 spent on everything else.

on the other hand, American Express® Gold Card Earn 4 points per $1 spent at restaurants (1 point per dollar spent up to $50,000 per calendar year) and 4 points per $1 spent at U.S. supermarkets Points (1 point per dollar spent on purchases up to $25,000 per calendar year).

Earn 3 points per $1 spent on flights booked with airlines or Amex Travel through the card; earn 2 points per $1 spent on prepaid hotel bookings and other purchases through Amex Travel; and earn 2 points per $1 spent on other purchases through Amex Travel Earn 1 point for every USD 1 spent on merchandise. These yields come at a $325 annual fee (see Rates and fees).

By carrying both cards, you can earn 5 points per dollar spent on eligible flight and hotel bookings with Amex Platinum, and 4 points per dollar spent on eligible U.S. supermarket and restaurant purchases with Amex Gold Points to significantly increase your income.

Related: How to make sure you get reward points when buying groceries

Open up more and better exchange options

Through certain reward schemes e.g. Chase the ultimate reward and Citi Appreciation Rewardsthere are basic cards that earn simple cash back and premium cards that earn points that can be transferred to various airline and hotel partner programs.

That’s why card pairing Chasing Freedom® and Chase Sapphire Reserve® Too powerful. Freedom Unlimited Earn 5% cash back on travel purchases, 3% cash back on dining (including takeout and eligible delivery services) and pharmacies, and 1.5% cash back on all other purchases through Chase Travel℠.

If you don’t have a Chase card that earns Ultimate Rewards points, these rewards are only available on various cash back redemptions.

However, if you have a Chase card that earns points (such as the Chase Sapphire Reserve), you can combine the points you earn on that card with rewards from Freedom Unlimited and redeem them through Chase for 1.5 cents each Travel (already a value 50% better than free), or transfer it to the Ultimate Rewards program 14 airline and hotel partners.

Related: The Power of Chase Trifecta: Sapphire Reserve, Ink Preferred and Freedom Unlimited

Layering benefits

Just as the earn rates can vary across cards within the same family, many cards also vary in their benefits. Therefore, you may want to carry one to get certain benefits and another to get more.

For example, United Club℠ Unlimited Card Earn bonus miles in a variety of categories, including United purchases, travel and dining. As a key benefit, cardholders receive United Club Membership Get a statement credit of up to $120 on the Global Entry or TSA PreCheck application fee every four years.

Despite these benefits, you may also want to turn on United℠ business card. The card offers similar travel-day benefits as United Club Infinite, such as free checked bags and priority boarding, but there are some exceptions.

United Business Card holders can earn bonus miles in the following ways: Gas station and office supply stores as well as local transportation and Commuting purchaseand get a 5,000-mile anniversary bonus if you also have a personal United credit card. You’ll also receive two one-time United Club lounge passes each year, which can be used to bring more travelers into United Club lounges.

Multiple nights or flights make your trip more exciting

Banks seem to think that most people are only interested in single credit card from a specific airline or hotel, so they tend to offer similar benefits in their product line. However, if you’re willing to double down on a card with a specific loyalty program, you can stack certain benefits to get even more (almost) free travel.

For example, Delta SkyMiles Platinum Card American Express Card and Delta SkyMiles® Reserve American Express Card Both come with year Companion Certificate Can be redeemed for a second ticket on the same reservation as the cardholder for round-trip travel within the United States and select international destinations.

Delta American Express Platinum Companion Certificates are available for traveling on economy fares, while Delta Reserve lets you redeem companion certificates for Economy, Comfort+ or even First Class.

So if you have both cards, you can save yourself and your companions the cost of two trips, or, if you’re a family of four (or more), the parents can fly while the kids sit in economy cabin, and you’ll get nearly half off your vacation airfare.

Judging from the hotel co-branded card, Hilton Honors American Express Aspire Card Comes with a Annual Awards Night Each year of card membership (a second when you spend $30,000 per year, plus a third when you spend $60,000 or more on purchases).

compare this with Hilton Honors Amex Surpass And spend $15,000 in a calendar year to earn another free night award, which can be used on the same stay or a different stay.

By taking advantage of seemingly overlapping benefits, you can actually combine them with things like companion tickets or anniversary nights to extend any trip you plan to use them on.

Hilton Aspire Amex Card information is independently collected by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: The best hotel credit cards that offer annual free nights

Earn elite status faster

Specifically, when it comes to hotel credit cards, carrying multiple products from the same loyalty program can put a higher level of elite status within reach.

For example, if you have Marriott Bonvoy Premier American Express Card and Marriott Bonvoy Business® American Express® Cardyou get 15 elite nights per card per year to qualify for the program. This is equivalent to 30 nights per year — Five more than you need Intermediate gold leveland 45 nights of the elusive Titanium, all before you even set foot on the property.

Related: The best credit cards to achieve elite status

bottom line

When it comes to points and miles, diversifying the number of loyalty programs you participate in is a proven strategy that can help you cope with sudden devaluations. However, it might be a good idea to go all-in on one or two separate points programs within a specific time frame.

Doing so allows you to take advantage of any short-term bonuses that arise, enjoy stackable benefits, and accumulate the rewards you need for upcoming redemptions more quickly. Evaluate your current card lineup and see if there’s an opportunity to double down on one or two items so you can earn rewards faster.

Related: Why points and miles are a bad long-term investment

For Amex Gold rates and fees, please click here.