The Newbie Guide to Points & Miles

Welcome to the world of travel rewards. If you're new to points and miles, this guide will give you everything you need to get started – from the basic concepts to your first steps toward earning and redeeming.

What Are Points & Miles?

Points and miles are loyalty currencies earned through credit cards, airline frequent flyer programs, and hotel loyalty programs. Instead of paying cash for flights and hotels, you can redeem these currencies for free travel – often in premium cabins that would otherwise cost thousands of dollars.

How Do Canadians Earn Points?

There are three main ways to earn points in Canada:

1. Credit Card Welcome Bonuses

The fastest way to earn points. Canadian credit cards offer welcome bonuses ranging from 10,000 to 100,000+ points for meeting a minimum spending requirement within the first few months. A single welcome bonus can be worth $500 – $2,000+ in travel value.

2. Everyday Spending

Once you have the right credit cards, every purchase earns points. Premium cards earn 2x – 5x points in bonus categories like groceries, dining, and travel. Over a year, this can add up to tens of thousands of points.

3. Loyalty Programs

Airlines and hotels reward you for flying and staying with them. Elite status unlocks upgrades, lounge access, and bonus points on every interaction.

Key Concepts

Transferable Points

Some credit card programs (like Amex Membership Rewards and RBC Avion) let you transfer points to multiple airline and hotel partners. This flexibility is extremely valuable because you can choose the redemption that gives you the best value.

Points Valuations

Not all points are created equal. An Aeroplan point is worth roughly 2.1 cents, while a BMO Rewards point is worth about 0.67 cents. Understanding these valuations helps you pick the right cards and make smart redemptions.

Check our Points Valuations page for the full breakdown.

Sweet Spots

Some award bookings offer exceptional value – we call these "sweet spots." For example, booking ANA business class from Vancouver to Tokyo for 75,000 Aeroplan points (worth $6,000+ in cash) is one of the best sweet spots available to Canadians.

Your First Steps

1. Check your credit score – You'll need good credit (680+) for most premium rewards cards
2. Pick your first card – Start with the Amex Cobalt or a no-fee Aeroplan card
3. Meet the welcome bonus – Earn the signup bonus by meeting the minimum spend
4. Learn about programs – Visit our Points Programs hub to understand the major loyalty programs
5. Plan your first redemption – Use Ask Prince of Travel to help plan an award booking

Common Mistakes to Avoid

• Don't carry a balance – Interest charges will wipe out any rewards value. Always pay your credit card in full every month.
• Don't hoard points – Points devalue over time. Earn with a purpose and redeem when you have enough.
• Don't ignore annual fees – A $150 annual fee card that earns you $2,000 in travel value is a great deal. Evaluate the net value, not just the fee.
• Don't apply for too many cards at once – Space out applications by 3 – 6 months to avoid credit score impacts.

Ready to Go Deeper?

• Browse our Credit Cards hub to find the best card for your spending
• Explore Award Sweet Spots for the best redemptions
• Ask Prince of Travel anything – click the chat button in the bottom right corner