Why doubling down on 1 rewards program may be better than diversifying

The points game is one of strategy. You want to pick loyalty programs that earn the types of rewards you can get the most use out of, and obtain the associated credit cards that offer earning rates and benefits you can maximize to your advantage.

It’s also a good idea to diversify the types of points and miles you earn. That’s because rewards currencies — whether it’s airline frequent flyer miles, hotel loyalty points or transferable credit card points — are subject to significant and sudden changes (and, in the worst-case scenarios, devaluations).

However, there are also some good reasons to double down with a particular points program or two.

For example, there might be an increased welcome bonus on a credit card for which you qualify even if you already have another cobranded card with the same program. If you already have one credit card with a program, you might find you can earn even more or enjoy better perks by carrying additional ones within the same rewards family.

Just keep in mind that you should be thinking both long- and short-term about any loyalty strategy and that focusing on a few programs now might mean you’ll need to expand your reach later on — or vice versa.

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

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

Get in on elevated welcome bonuses while they last

We have seen historically high welcome offers on various airline and hotel cards, like the Delta SkyMiles® Platinum American Express Card, the Marriott Bonvoy Brilliant® American Express® Card, and the Hilton Honors American Express Surpass® Card.

In fact, some of these offers have been so good that even if you already had a card with the same rewards program, you might have considered applying for another just to earn extra bonus points for a flight or stay.

An elevated offer is always worth considering, especially if it’s a best-ever offer.

Related: The best current credit card welcome bonuses

You can get around (certain) eligibility rules and exclusions

Most credit card issuers have strict rules about who is and isn’t eligible for specific credit cards. Chase has its 5/24 rule, for instance; it will automatically turn down most folks applying for a new card if they’ve opened five or more cards (from any and all issuers, not just Chase) within the past 24 months.

So, let’s say you’re getting close to that number and are trying to decide among a few different new credit cards from various issuers. Since other banks don’t have the exact same rules, you might opt for a Chase card before you hit the five-card limit and then apply for products from other issuers and other programs after that.

Supercharge your earning

It’s often the case that different credit cards within the same loyalty program earn points or miles at different rates.

For instance, The Platinum Card® from American Express earns 5 points per dollar spent on flights booked directly with airlines or through Amex Travel, on up to $500,000 per calendar year (then 1 point per dollar), and on prepaid hotel reservations made through Amex Travel. It earns 1 point per dollar spent on everything else.

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

The card also accrues 3 points per dollar spent on flights booked with airlines or Amex Travel, 2 points per dollar spent on prepaid hotels and other purchases booked through Amex Travel, and 1 point per dollar spent on everything else. These earning rates come in exchange for a $325 annual fee (see rates and fees).

By carrying both these cards, you could ramp up your earnings dramatically by accumulating 5 points per dollar spent on eligible flight and hotel bookings with the Amex Platinum and 4 points per dollar spent on eligible U.S. supermarket and restaurant charges with the Amex Gold.

Related: How to ensure you earn bonus points for grocery purchases

Open up more and better redemption options

With certain rewards programs, such as Chase Ultimate Rewards and Citi ThankYou Rewards, there are basic cards that earn simple cash back and more premium cards that earn points that can be transferred to various airline and hotel partner programs.

That’s what makes the pairing of a card like the Chase Freedom Unlimited® with the Chase Sapphire Reserve® so powerful. The Freedom Unlimited earns 5% cash back on travel purchased through Chase Travel℠, 3% back on dining (takeout and eligible delivery services included) and drugstores, and 1.5% back on all other purchases.

If you don’t have a Chase card that earns Ultimate Rewards points, those rewards are only good for various cash-back redemptions.

However, if you have a points-earning Chase card like the Chase Sapphire Reserve, you can pool the points you earn on it with the Freedom Unlimited’s rewards and redeem them for travel through Chase Travel at a rate of 1.5 cents apiece (already a value boost of 50% over the Freedom), or transfer them to the Ultimate Rewards program’s 14 airline and hotel partners.

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

Layer the benefits

Just as earning rates with assorted cards from the same family may vary, many also field different perks from one another. So you might want to carry one for certain benefits and another for still more.

For example, the United Club℠ Infinite Card earns bonus miles in a variety of categories, including United Airlines purchases, travel and dining. As a major benefit, cardholders receive United Club membership and a statement credit of up to $120 for either a Global Entry or TSA PreCheck application fee once every four years.

Despite these benefits, you might also want to open the United℠ Business Card. The card offers similar day-of-travel perks as the United Club Infinite, such as free checked bags and priority boarding, with a few exceptions.

United Business cardholders earn bonus miles at gas stations and office supply stores and on local transit and commuting purchases, plus a 5,000-mile anniversary bonus if you also have a personal United credit card. You also receive two United Club one-time passes each year that you can use to bring extra travelers with you into a United Club.

Make more of a trip with multiple nights or flights

Banks seem to figure most folks are only interested in a single credit card from a particular airline or hotel, so they tend to offer similar benefits across their product lines. If you’re willing to double down on cards with a specific loyalty scheme, though, you can stack certain benefits for even more (nearly) free travel.

For example, the Delta SkyMiles Platinum Amex and the Delta SkyMiles® Reserve American Express Card both come with an annual companion certificate that can be redeemed for a second ticket on the same reservation as the cardmember for round-trip travel within the contiguous United States and select international destinations.

The Delta Amex Platinum companion certificate is good for travel on Main Cabin fares, while the Delta Reserve lets you redeem its companion certificate for Main Cabin, Comfort+ and even first class.

So if you had both cards, you could expect to save on two trips for yourself and a companion — or, if you’re a family of four (or more), the parents could fly up front while the kids could sit in coach, and you’d be enjoying nearly half off your vacation flights.

Looking at hotel-cobranded cards, the Hilton Honors American Express Aspire Card comes with an annual reward night each year of card membership (and a second one every year you spend $30,000, plus a third one after spending $60,000 or more on purchases).

Pair this with the Hilton Honors Amex Surpass and put $15,000 of spending on that in a calendar year to earn another free night reward to use either on the same stay or a different one.

By leveraging benefits that seem to overlap, you can actually combine things like companion tickets or anniversary nights to extend whatever trips you intend to use them on.

The information for the Hilton Aspire Amex 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.

Related: The best hotel credit cards that come with an annual free night

Get to elite status faster

In the case of hotel credit cards, specifically, carrying more than one product from the same loyalty program could put a higher echelon of elite status within reach.

For instance, if you have the Marriott Bonvoy Brilliant American Express Card and the Marriott Bonvoy Business® American Express® Card, you are credited with 15 elite nights per card per year toward status with the program. That amounts to 30 nights each year — five more than you need for midlevel Gold status, and 45 nights from the elusive Titanium, all before you’ve even set foot in a hotel.

Related: The best credit cards to reach elite status

Bottom line

When it comes to points and miles, diversifying the number of loyalty programs you participate in is a tried-and-true strategy that will help you weather sudden devaluations. However, it can be a good idea to go all-in with one or two individual points programs for a specific time frame.

Doing so allows you to take advantage of any short-term bonuses that arise, to enjoy stackable benefits and to rack up the rewards you need for an imminent redemption even faster. Evaluate your current card lineup and see if there might be any opportunities to double down on one or two programs so you can rack up the rewards even faster.

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

For rates and fees of the Amex Gold, click here.