Points influencers are everywhere. Some trips look too good to be true.

Travelers have been saving money for decades by taking advantage of loyalty and rewards programs from airlines, hotels and credit cards, and American Express and American Airlines were among the first players. 1980s.

Complex rules make the world of points and miles inaccessible to anyone but the most frequent business traveler, but as the barrier to entry is lowering, the audience is expanding. Today, there are hundreds of blogs and social media accounts detailing the nuances of points and miles. But you can’t trust them all.

The world of points and miles is a game, albeit a long one, and if you play responsibly, it can be worth it.

Influence Business

Max Do was a full-time graphic designer in San Diego before transitioning to creating content around points, miles, and travel rewards in 2019. Maximum Mileage Points The account was launched in November 2017, and since then, Du said there has been a surge in influencer participation.

“I wasn’t the first, but over the last few years Instagram and TikTok have become inundated with travel-focused points and miles creators,” he says.

Creators captivate their audiences with their travel experiences: Often these are videos of luxurious business or first class flights and stays in five-star hotels and resorts, all presumably booked with points.

Meanwhile, other accounts focus more on the educational side of travel rewards, detailing the specific ways you can accumulate points or miles and redeem them later (commonly referred to as “earn and spend”).

“When creating posts and videos, we try to think not only of our most passionate rewards users, but also of those new to rewards,” Du says.

For creators who focus on rewards programs, posting travel videos can be lucrative. As the influencer business continues to flourish, creators can usually earn revenue in the form of paid partnerships, sponsored content, or, as in this case, product sales.

“A trend I’m seeing in general is personal finance creators using their own travel stories to promote travel credit cards,” said Katie Gatti Tassin, founder of the personal finance brand. Katie and MoneySince launching our site and social media profiles in 2020, we have seen an increase in accounts with credit card affiliate links.

Here’s how these links work: You open Instagram, watch a creator’s video, and then feel the need to apply for a credit card through that creator (often via a link in the account’s bio). If you’re approved, the creator earns a commission, which Gatti-Tassin says can amount to hundreds of dollars per card.

For consumers, credit card bonus offers are the quickest way to rack up points or miles in a hurry. Sign-up offers of over 100,000 points are not uncommon. Once you apply for the card, get approved, and spend a certain amount within a certain period of time, the points are deposited into your account.

Travel inspiration vs. smart money

Gen Z and millennials are increasingly relying on social media apps as search and recommendation tools, and when it comes to points and miles, the lines between the two niches of travel inspiration and personal financial advice often blur.

“There are a lot of creators out there who just post footage of their amazing first-class seats or overwater villas and say they redeemed it all with points and then hold up their credit cards,” said Du, who said such content is “overly simplistic” to grab people’s attention.

Some of the issues Do considers red flags include:

• Videos advertising first or business class seats that are very difficult to replace
• Claims that you can earn hundreds of thousands (or millions) of miles quickly
• The claim that there is only one “right” way to use points for travel

Overall, there is often a lack of nuance, leaving the viewer with more questions than answers.

“You often see people humblebragging about how many credit cards they have in their wallet, but the average person probably doesn’t want to handle 20 cards, no matter how many bonus points they get,” Du says.

Credit card rewards can offer great value to travelers, but it’s important to know when they seem too good to be true or when they represent an unrealistic points get-rich-quick scheme.

“Rewards can save you a lot of money or give you travel experiences you might not otherwise be able to afford,” Gatti-Tasin says.

Influencer Advertising Rules

Because there are financial implications associated with a credit card, the risk is greater than, say, someone sharing an outfit that can be purchased through an affiliate link.

Organizations such as Federal Trade Commission (FTC) Additionally, the Consumer Financial Protection Bureau (CFPB) requires influencers to disclose if paid affiliate links are being used.

Meanwhile, while the Department of Transportation doesn’t directly oversee credit card marketing practices, it works closely with the CFPB because travel is so intertwined with the U.S. financial system. At a joint hearing on May 9 between the CFPB and the Department of Transportation on credit cards, airlines, and hotel rewards, Secretary of Transportation Pete Buttigieg said, “When customers make important decisions like not only which airline to fly, but which credit card to use, it’s important that the rewards they get for those decisions are as advertised.”

Each credit card company also has a compliance team that ensures products are properly communicated to customers. “How our products are presented is important to us so that potential customers have accurate information when deciding to apply for our credit card, and so that existing customers understand the benefits of their card,” a Capital One spokesperson said.

“Travel rewards require a level of financial literacy that the average consumer probably doesn’t have, so as creators we have a responsibility to educate them before encouraging them to apply,” Gatti-Tasin said.

This includes subtleties regarding how credit works.

Advice for new cardholders

The first rule of using points is simple: if you’re already struggling with credit card debt, you shouldn’t be asking for more money in pursuit of the illusion of a “free” vacation.

“If you have credit card debt, it doesn’t make sense to pay 20 percent or more interest in order to get a few percent of air miles, hotel points, or cash back,” says Ted Rothman, senior industry analyst at Bankrate. “Nearly two-thirds of people with credit card debt make the mistake of chasing rewards while paying high interest.”

Rothman points out that while applying for a rewards card may initially lower your credit score, it could have a positive impact in the long run.

“After you apply for a credit card, your credit score will usually drop a bit (often 5 to 10 points), but after using your cards responsibly for a few months, your credit score will likely be higher than it was before,” he adds. “A good payment history helps, and so does keeping your card usage low.”

How to responsibly earn points and miles with credit cards: Don’t think about the world of rewards until you get your first or second card and have established solid credit habits. Paying off your credit card in full every month is key.

“Over time, more and more expenses will add up, and eventually you may find yourself paying for all of your everyday purchases on your credit card, earning points while avoiding interest,” says Rothman.

Don’t forget there are cashback cards too. Cashback is Credit card functionality In the U.S., it’s substantially higher, according to Bankrate.

“Travel rewards are high margin, but they also require a lot of work,” Rothman emphasized.