Why I moved from cash-back rewards to points and miles cards

My wallet has come a long way.

I’ve always believed that credit cards are a gateway to smart spending, eventually leading to top-tier rewards.

But when I was just getting started, I couldn’t simply apply for a premium card like The Platinum Card® from American Express. I needed to start with an option better suited for beginners, such as a cash-back card.

When I turned 18, my mom set me up as an authorized user on her Disney® Visa® Card (see rates and fees).

I swiped the Disney Visa more to learn than to earn since the card’s Disney-centered earnings don’t necessarily fit my preferences like my mother’s. Still, I learned to spend within my means. I took time to turn TPG’s credit card commandments into habits: Credit cards aren’t “free money.” Don’t let rewards expire.

Once I had the basics down, I was ready to dive into all that a proper credit card strategy can unlock — cash-back rewards, transferable points and miles and premium benefits — but I still took it one step at a time.

I personally value earning multiple currencies because I want to unlock the ability to transfer to as many loyalty programs as possible, so this is the path I took.

Choosing a simple cash-back card

Let’s be real — I was intimidated by points and miles in my early 20s. My hours were filled with internships, job applications and final projects to finish my college degree. I cared about credit cards but valued simplicity in my setup.

Enter the Discover it® Cash Back Credit Card, a no-annual-fee card that earns 5% cash back on the first $1,500 in purchases you make each quarter with select rotating merchants (after you enroll).

The information for the Discover it Cash Back card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

I loved how this card made me think about my spending. I was excited to learn which categories would be covered by the 5% bonus each quarter. While there wasn’t a traditional welcome offer, Discover matched all the cash back I earned at the end of my first year.

This was a pretty sweet deal, as it meant that all of my first-year spending earned at least 2% back. Even better, the rotating 5% categories actually earned 10% back when you consider the dollar-for-dollar match at the end of the year.

The Discover it Cash Back was a perfect middle ground for me. I wanted to dip my toes into earning rewards but didn’t want to spend a lot of time thinking about how to redeem them. I exclusively redeemed my cash-back rewards for statement credits at face value.

Once my lifestyle shifted, I began to prioritize rewards differently. I had the time to learn about points and miles and how to redeem them for travel, which was a goal of mine.

So, I started checking out cards from every issuer and adding them to my wallet, with two goals in mind: earning multiple currencies and maximizing my everyday spending.

Related: The pros and cons of cash-back credit cards

The perfect travel card for beginners

My first travel credit card was the Chase Sapphire Preferred® Card (see rates and fees).

First, Chase Ultimate Rewards is an incredibly valuable currency (worth 2.05 cents per point, per TPG’s September 2025 valuations). Plus, I was lured in by the card’s elevated earning rates on dining (3 points per dollar) and general travel (2 points per dollar).

When I factored in how I valued Chase points along with the Sapphire Preferred’s $50 annual hotel credit for bookings made through Chase Travel℠, it was easy for me to justify its $95 annual fee.

I’ve transferred my Chase points to World of Hyatt for impromptu weekend hotel stays, and I’ve had fun exploring redemption options in the Chase Travel portal with Points Boost.

New Sapphire Preferred applicants can earn 75,000 bonus points after spending $5,000 on purchases in the first three months of account opening.

I’d recommend this card to anyone who wants to play around with what a travel rewards card can offer without having to pay more than $100 in annual fees.

Related: After more than 15 years, why the Chase Sapphire Preferred should still be your first rewards card

A no-brainer for renters

My next priority was finding a credit card to maximize my top monthly expense: rent. If I’m going to be paying it anyway, why not earn rewards? I applied for the Bilt Mastercard® (see rates and fees) and never looked back.

TPG founder Brian Kelly is a Bilt adviser and investor.

You can access the Bilt Rewards ecosystem without the card, but having the no-annual-fee Bilt Mastercard allows you to earn 1 point per dollar spent on rent payments without any transaction fees (see rates and fees). You can earn up to 100,000 points on rent per calendar year, and you must make at least five transactions on the card every statement period to earn points (see rewards and benefits).

The Bilt Mastercard doesn’t provide a traditional welcome bonus, but I find it easy to rack up rewards by earning double points every first day of the month as part of Bilt’s Rent Day promo.

TPG values Bilt Rewards Points at 2.2 cents per dollar, and I love Bilt Rewards because of its transfer partners.

Specifically, I frequently transfer Bilt points to Atmos Rewards, which doesn’t partner with any other major currency. I use Atmos Rewards points to book American Airlines flights and have found some solid deals on domestic economy flights.

Related: Should you pay your rent with Bilt? We crunch the numbers

A card to fit my cooking hobby

Next, I began to focus on getting more than 1 point per dollar back for more of my spending. Already having options within the Chase Ultimate Rewards and Bilt Rewards programs, I was interested in earning a new currency.

When it came to bonus categories, I noticed a gap in the grocery department. I frequently cook at home and find myself running to the supermarket multiple times each week, so I wanted to earn some more points for that spending.

The American Express® Gold Card earns 4 points per dollar spent on purchases at U.S. supermarkets (up to $25,000 per calendar year, then 1 point per dollar).

Good news: My Amex Gold application was accepted.

I redeem my Membership Rewards points for everything from economy tickets to London via Virgin Atlantic Flying Club to stays at Hilton hotels. TPG values Amex points at 2 cents apiece, making Membership Rewards one of our most valuable currencies.

The Amex Gold was a big step for me, as I care about justifying annual fees. Given how often I’m bringing this with me on grocery runs, the $325 annual fee (see rates and fees) makes sense for me, so I won’t be letting it go.

Related: Is the Amex Gold worth the annual fee?

My first premium travel card

At this point, my wallet was optimized for my most frequent spending categories. However, I lacked a true premium travel card, and while I wasn’t super well versed in the airport lounge space, I wanted to give lounges a try.

The Capital One Venture X Rewards Credit Card was my perfect choice, with Capital One Lounge access and a Priority Pass membership. The $395 annual fee is easy for me to justify when I consider the annual $300 Capital One Travel portal credit, which lowers the effective annual fee to $95.

I’ve thoroughly enjoyed accessing lounges before flights, especially the uber-relaxing Escape Lounge at my home airport, Greenville-Spartanburg International Airport (GSP) in South Carolina.

Capital One miles are worth 1.85 cents each, according to TPG’s valuations, and transfer to 15-plus partners, giving me even more flexibility when I search for solid deals on award travel.

Related: 6 things to do when you get the Capital One Venture X

Deciding on a cobranded hotel card

My latest addition was the Hilton Honors American Express Surpass® Card. Before I really dove into its benefits, I hadn’t seriously considered a hotel card. I wasn’t particularly loyal to any chain (and I still love booking Hyatt stays with my Chase points).

But why not try out a card that comes with Hilton Honors Gold status, National Car Rental status, a gas bonus category and a solid welcome bonus? Plus, the $150 annual fee (see rates and fees) didn’t bother me for the value.

Hilton Gold isn’t top-tier status, but I’ve thoroughly enjoyed perks such as daily food-and-beverage credits or continental breakfast (depending on where I stay), space-available room upgrades and an 80% points earning bonus on paid stays.

Related: Why the Hilton Surpass won me over as someone who didn’t want a cobranded card

Bottom line

I’ve built my wallet with the intention of collecting currencies, diversifying my rewards and keeping annual fees relatively modest. I’m happy with my cards right now, though I’ll likely look into adding a Citi card in the near future — especially since Citi ThankYou Rewards has recently added American Airlines AAdvantage as a transfer partner.

Everyone’s needs are different. The best way to make your cards work for you is to take the time to logically think through what you value, how you spend and what you want from your setup.

Related: Why you should master a few credit card transfer partners and (most likely) leave the rest behind

For rates and fees of the Amex Gold, click here.
For rates and fees of the Hilton Surpass, click here.
See Bilt Mastercard rates and fees here.
See Bilt Mastercard rewards and benefits here.