How to Choose Your First Credit Card for Points: A Beginner’s Guide to Starting Strong

 If you're just getting started in the world of credit card points and travel rewards, you might be feeling overwhelmed by all the options. There are cards tied to airlines, cards that give you free hotel nights, cards with high annual fees, cards with no fees at all—and they all promise big rewards.

So how do you know which one is the right first step?

Choosing your first credit card for points is one of the most important decisions you'll make on your travel rewards journey. The right card will give you flexibility, strong value, and a foundation you can build on as your strategy grows. The wrong card can leave you with points you can’t use or locked into one brand that doesn’t always work for your travel goals.

Here’s how to confidently choose your first card for earning points—and set yourself up for future travel success.

1. Start with Flexibility, Not Loyalty

When people first start earning points, they often jump into airline or hotel-specific credit cards. These can offer great perks—like free checked bags or elite night credits—but they’re not usually the best first card.

Why? Because they’re tied to a single brand.

Let’s say you get a credit card for a specific airline, earn a bunch of miles, and then realize that airline doesn’t fly to your preferred vacation spot… or doesn’t offer award seats when you need them. That can be frustrating.

Instead, it’s better to start with a card that earns transferable points—the kind that can be moved to a variety of airline and hotel partners. These points give you flexibility. You can search multiple loyalty programs for the best flights or hotel nights, instead of being locked into one brand.

Once you have a strong base of flexible points, you can layer in brand-specific cards later, when it makes strategic sense.

2. Look for Valuable Transfer Partners

Not all flexible points are created equal.

Some credit card points can be transferred to dozens of high-value airline and hotel programs. Others are more limited or have partners that don’t offer much value. When choosing your first card, look at who the points can transfer to—and whether those partners align with your travel goals.

A good rule of thumb: points that transfer to major airline alliances (like Star Alliance, SkyTeam, or Oneworld) and hotel programs like Hyatt, Marriott, or IHG are generally more valuable than points that only offer cashback or gift card redemptions.

Bonus tip: If you have a bucket list destination in mind (like Europe, Hawaii, or the Caribbean), research which airlines fly there and see if the card's points can transfer to those airlines.

3. Pay Attention to the Annual Fee (But Don’t Fear It)

Many of the best beginner cards come with an annual fee—often in the $95–$150 range. And that’s okay.

The key is making sure the value you get from the card (through points, travel protections, and other perks) exceeds the cost of the fee.

Here are some things that might justify a modest annual fee:

• A large welcome bonus (worth $750 or more in travel)

• The ability to transfer points to high-value partners

• Built-in travel protections like trip delay insurance, rental car coverage, or lost luggage reimbursement

• Bonus earning on common categories like dining, groceries, or travel

If you’re just starting out and want to avoid a fee altogether, there are no-annual-fee cards that can help you dip your toes in the water. Just make sure they earn points that can be transferred or combined with more advanced cards down the road.

4. Watch Out for Minimum Spending Requirements

Most travel rewards cards offer a welcome bonus—sometimes tens of thousands of points—but you’ll only get it after spending a certain amount in the first few months (typically $1,000–$4,000 in 3–6 months).

Before you apply, take a look at your regular spending to make sure you can comfortably meet the minimum without overspending. If you're planning a large purchase (like a new appliance, vacation, or insurance premium), that can be a great time to open a new card and hit the bonus organically.

Pro tip: Always pay your card off in full. The value of your points is completely lost if you carry a balance and pay interest.

5. Make Sure It Fits Your Lifestyle

Some cards offer elevated rewards on dining, others on groceries or gas stations. If you dine out often, a card that earns bonus points on restaurants might be a great fit. If you have a large family and spend more at the supermarket, look for a card that rewards grocery purchases.

Also consider if the card includes travel perks that matter to you, like:

• No foreign transaction fees

• Travel insurance coverage

• Airport lounge access (more advanced)

• Trip cancellation or delay benefits

Pick a card that complements your actual spending habits and lifestyle—not just what sounds cool in the moment.

6. Think About the Bigger Picture

Your first credit card for points is just the beginning.

Eventually, you may want to add hotel cards, airline cards, or premium cards with luxury perks. Starting with a solid, flexible points card gives you a strong foundation and keeps your options open.

Also, some points systems allow you to combine points between personal and business cards, or between family members. That means you can grow your balance faster over time.

As your strategy evolves, you can add more cards strategically—but for now, it’s all about making a smart first move.

Final Thoughts: Keep It Simple and Strategic

Getting started with points doesn’t have to be complicated. The best first card is usually one that:

• Earns flexible, transferable points

• Has a manageable annual fee

• Aligns with your spending habits

• Offers a solid welcome bonus

• Keeps your travel options open

If it was me starting out, this is the card I would start with.  Start there. Once you get your first win—a free flight, a hotel stay you didn’t have to pay for—you’ll understand why this strategy is worth learning.  

Remember: you don’t have to figure it all out at once. The key is to start smart.