How To Earn 1 Million Miles and Points Per Year

Using miles and points is an essential tool in the belt of today’s professional digital nomad. Not only has it provided us with tens of thousands of dollars in free travel, but it has also greatly improved our QUALITY of travel – business and first-class flights, five-star hotels, upgrades, VIP airport lounges, expedited security, and customs processing. Mastering travel rewards credit cards, miles, and points can provide the very best of travel while removing all the hassle and much of the cost.

Prior to leaving on our first round-the-world trip, we were able to save about 1 million miles and points. We were then able to use those points to pay for over twenty flights, about a month of lodging, and several weeks of rental cars, not to mention several other VIP travel benefits.

Today, even though we are not traveling as much as we used to, our miles and points goal remains the same – earning 1 million miles and points each year. Once we figured out the formula for doing so, we repeated the process each year for the last six years. It has allowed us to travel the world with very little out-of-pocket costs without negatively impacting our credit score.

The golden rule of this formula is to pay the interest-bearing balance in full at the end of each month so that you don’t incur any interest or fees. By doing so the only cost to the cardholder for using a credit card instead of a debit card or cash is an annual fee. Not all credit cards have annual fees, however, and many will either wave the fee for the first year or offset it with an annual statement credit. It’s also worth mentioning that credit card rewards vary by country, with the US, UK, and western Europe offering the best credit card reward programs.

The three key components to earning 1 million miles and points per year described below are 1) credit card signup bonuses, 2) credit card spending, and 3) credit card referrals.

Note: We may receive a referral bonus when you use any of the links below. We greatly appreciate it when you choose to use our links when signing up for a new credit card offer. It helps us cover our costs and keep doing what we do. Thanks for your support!

Most rewards credit cards provide a signup bonus to attract new applicants. To earn the bonus, a cardholder must spend a minimum amount of money on the card within a specific amount of time (usually between $1k – $3k in the first 90 days). Good travel credit card signup bonuses are usually 75,000 points or more – the equivalent of $750+ in free travel. Bonuses vary by card and change throughout the year, so it is best to apply for a card when the bonus is high.

Once we open a new card, we will typically use it exclusively until we reach the signup bonus minimum spending amount. We don’t cancel the card right away and will often continue using it for certain spending categories that it rewards best (i.e., using the Chase United Quest card for all of our United flight bookings).

We each typically open two to four new credit cards per year. This may sound excessive, particularly given the myths about how having multiple credit cards is bad or that they hurt your credit score. The truth is that, if we abide by the golden rule above and pay our balances in full each month, increasing our available credit (i.e., opening new credit cards) can IMPROVE our credit score.

Credit (or FICO) scores are weighted based on the following categories: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%). Opening a new credit card is likely to only impact two of these categories – INCREASING the ‘amounts owed’ (calculated as a % of current balances divided by total available credit) while DECREASING ‘new credit’ (based on how often new credit is applied for). We have seen our score go up and down a couple of points, but over time, it has remained roughly the same. This is particularly true for those with longer credit histories, as a single change will have a smaller impact on the whole.

Between the two of us, opening six new rewards credit cards per year with an average signup bonus of 100,000 per card earns us roughly 600,000 points per year (the equivalent of $6,000+ in free travel).

Official Referral Link:

Chase United Quest Card – 70,000 bonus miles

Credit Card Transactions: In addition to a signup bonus, cardholders also earn points for each transaction made on a rewards credit card. Each travel reward credit card has its own “currency” as well as spending categories that it rewards. For example, Marriott-branded credit cards’ reward currency is Marriot Bonvoy points, and they best reward cardholders for money spent at Marriot Bonvoy properties (up to 17 Bonvoy points per dollar spent). Non-branded travel rewards cards, such as the Chase Sapphire Reserve, use Chase Ultimate Rewards and provide great rewards on flights, hotels, rental cars, and restaurants (3 Ultimate Rewards per dollar spent). Chase and American Express will provide even higher travel rewards (up to 10x per dollar spent) if cardholders use the bank’s own booking platform when making reservations.

Earning Double Miles: In addition to earning rewards from each transaction made on a credit card, it is also possible to earn additional miles and points with loyalty programs. For example, when booking a flight on United, a traveler can earn up to 4 United miles per dollar from the credit card transaction AND up to an additional 11 United miles per dollar for being a member of United’s Mileage Plus loyalty program. For a ticket that costs $500, a traveler can earn as much as 7,500 United miles or about $75 in free travel. There are some limitations to earning “double miles” to watch out for, however. If a cardholder uses a bank (e.g., American Express Travel) or third-party booking platform (e.g. Expedia) to make hotel reservations, for example, hotel loyalty programs typically will not also award a guest points as they normally would if the reservation was made through the hotel’s website or app.

Miles and points pros love finding creative ways to maximize the number of points they earn for every dollar they spend. We prefer simplicity and focus on two areas – 1) determine which credit card best rewards a certain spending category and use that card consistently, and 2) always check multiple booking options to determine the best price, including potential miles and points on every booking. Here is a rough example of how we earn points from credit card spending each year:

Credit card transactions: $4,000 per month = 350,000 points per year

• Travel – $2,000 per month x an average of 5 reward points per dollar = 10,000 points per month or 120,000 per year
  • Airline loyalty programs – $1,000 per month x an average of 5 miles per dollar = 5,000 miles per month or 60,000 per year
  • Hotel loyalty programs – $1,000 per month x an average of 10 points per dollar = 10,000 points per month or 120,000 per year
• Other – $2,000 per month x an average of 2 reward points per dollar = 4,000 points per month or 50,000 per year

Strategically using travel rewards credit cards for our typical monthly expenses and participating in hotel and airline loyalty programs earn us roughly 350,000 points per year (the equivalent of $3,500+ in free travel).

Official Referral Links:

Chase Sapphire Reserve Card –  60,000 bonus miles

Marriot Bonvoy Brilliant Card – 150,000 bonus points

Finally, most rewards credit cards offer a referral bonus to cardholders for referring others. The credit card company will provide a link that can be shared and when someone who applies for the credit card using that link is approved, you will receive a points bonus.

For couples, this is a no-brainer and easy way to earn an extra 50,000+ points per year. For example, when a new credit card offers a big signup bonus, one of us will get the card first and then refer the other one to apply for the same card a few weeks later. By staggering when we open the cards, we can also ensure our typical expenses will be enough to meet the spending requirements for the signup bonus.

While we don’t suggest pestering your family and friends to apply for credit cards, this can be an easy way to earn extra points throughout the year within your own household.

By referring one new cardholder each quarter, an average referral bonus of 12,500 points earns us roughly 50,000 points per year (the equivalent of $500+ in free travel).

Bottom Line

Maximizing the use of travel rewards credit cards, miles and points can unlock countless benefits. It is an essential tool for anyone who aspires to become a professional digital nomad. This formula for earning one million travel rewards per year is simple and can be used by anyone with decent credit and a couple of thousand dollars in monthly credit card expenses.