How to Actually Get Free Points: A Step-by-Step Guide to Responsible Credit Card Spending

Here’s the thing nobody in the points world wants to say out loud:

Most people shouldn’t open a credit card for points.

Not because points aren’t valuable — they absolutely are. I haven’t paid for a hotel room in over a year. But I’ve also watched friends rack up thousands in credit card debt chasing “free” travel, paying 24% APR for hotel nights they could’ve booked for less with cash.

The points are only free if you never pay a cent in interest. Period.

If you can commit to that, this guide will show you exactly how to do it right. We’ll use the Hilton Surpass bonus (expiring January 14th) as our working example, but these principles apply to any card.

Disclosure: This post contains affiliate links. If you apply for a card through my links, I may earn a commission at no extra cost to you. See my full disclosure for details.

Jump to:

The Only Rule That Matters
Understanding Your Statement (This Is Where People Mess Up)
Step-by-Step: Hitting the Hilton Surpass Bonus Responsibly
Set Up Autopay the Right Way
The Responsibility Test
What If Something Goes Wrong

The Only Rule That Matters

Pay your statement balance in full by the due date. Every single month. No exceptions.

That’s it. That’s the whole strategy.

If you do this, you will never pay interest. Your points cost you nothing. The credit card company is essentially paying you to use their card instead of your debit card.

If you don’t do this — if you pay the minimum, or pay “most” of it, or pay it “when you can” — you will pay interest. And credit card interest rates are brutal. We’re talking 20-29% APR on most rewards cards.

Let’s do the math on the Hilton Surpass:

Sign-up bonus: 155,000 points (worth roughly $775-$930 in hotel stays)
Spend requirement: $3,000 in 6 months
If you carry that $3,000 balance for 6 months at 24% APR: You’d pay roughly $360 in interest

Suddenly your “free” points cost you $360. You’d have been better off just paying cash for the hotel.

Understanding Your Statement (This Is Where People Mess Up)

Credit card billing is confusing on purpose. Here’s what you actually need to know:

Current Balance vs. Statement Balance

When you log into your credit card account, you’ll see two numbers:

Current Balance: Everything you’ve charged, including purchases from today
Statement Balance: What you owed on your last statement closing date

You only need to pay the Statement Balance by the due date to avoid interest.

Here’s an example:

Your statement closes on January 15th
Your statement balance is $1,200
Your payment is due February 10th
Between January 15th and February 10th, you charge another $400
Your current balance shows $1,600

You only need to pay $1,200 by February 10th to avoid interest. The $400 in new charges will appear on your next statement.

This is called the grace period — the time between your statement closing and your payment due date (usually 21-25 days). As long as you pay each statement balance in full, you’ll never pay interest on purchases.

The Minimum Payment Trap

Your statement will also show a “Minimum Payment Due” — usually $25-35 or 1-2% of your balance.

Ignore this number.

The minimum payment exists to keep you in debt. If you only pay the minimum on a $3,000 balance, you’ll be paying it off for years and spend more on interest than the original purchase.

Always pay the full statement balance.

Step-by-Step: Hitting the Hilton Surpass Bonus Responsibly

Let’s walk through exactly how to earn 155,000 Hilton points without paying interest.

The Goal

Spend $3,000 in 6 months
That’s $500 per month
Pay your statement balance in full every month

Step 1: Do the Math BEFORE You Apply

Before you even apply for the card, figure out if you naturally spend $500/month on things you’d buy anyway.

Add up your typical monthly spending on:

Groceries
Gas
Subscriptions (Netflix, Spotify, etc.)
Phone bill
Insurance
Regular Amazon orders
Dining out

If that adds up to $500+ per month, you’re golden. Put those purchases on the new card instead of your debit card.

If it doesn’t add up to $500/month, do not apply. Spending money you wouldn’t otherwise spend just to hit a bonus defeats the entire purpose.

Step 2: Keep the Cash in Your Account

This is crucial: only charge what you already have cash for.

If you have $600 in your checking account for groceries and gas this month, you can put $600 on the credit card. If you have $200, you can only put $200 on the card.

The credit card is just a middleman. The money still comes from your bank account — it’s just delayed by a few weeks.

I keep it simple: every time I make a purchase on my card, I mentally subtract it from my checking account. Some people transfer the money to a separate savings account to make it more concrete. Whatever works for you.

Step 3: Track Your Progress

Most credit card apps show your progress toward sign-up bonuses. Check it.

For the Hilton Surpass:

Month 1: $500 spent, $2,500 to go
Month 2: $1,000 spent, $2,000 to go
Month 3: $1,500 spent, $1,500 to go
Month 4: $2,000 spent, $1,000 to go
Month 5: $2,500 spent, $500 to go
Month 6: $3,000 spent — bonus earned!

You don’t need to hit exactly $500/month. Some months might be $300, others $700. As long as you hit $3,000 total within 6 months, you’re good.

Pro tip: If you’re close to the deadline and a little short, look for expenses you can prepay — annual subscriptions, insurance premiums, etc. Just make sure it’s money you were going to spend anyway.

Step 4: Pay Every Statement in Full

When your first statement closes (usually about 30 days after you open the card):

Log into your account
Find your Statement Balance
Pay that exact amount before the due date
Repeat every month

That’s it. Do this consistently and you’ll earn 155,000 points without paying a penny in interest.

Set Up Autopay the Right Way

The easiest way to never miss a payment is autopay. But you have to set it up correctly.

Autopay Options (Choose Wisely)

Most cards offer three autopay options:

Minimum Payment — NO. Never choose this.
Fixed Amount — Risky. What if your balance is higher than the fixed amount?
Statement Balance — YES. This is the one you want.

Always set autopay to “Statement Balance” or “Full Balance.”

This automatically pays whatever you owe each month. You’ll never pay interest, and you’ll never miss a payment.

When to Set It Up

Set up autopay as soon as you’re approved for the card. Don’t wait until your first statement. The Amex app and website make this easy — it takes about 2 minutes.

Keep Enough Cash in Your Bank Account

Autopay only works if the money is there. If you’ve charged $800 this month, make sure you have $800+ in checking when the payment pulls.

I keep a buffer of at least one month’s typical credit card spending in my checking account at all times. This way, even if I have an unusually high spending month, autopay won’t overdraft me.

The Responsibility Test (Before You Apply)

Be honest with yourself. Answer these questions:

1. Are you currently carrying a balance on any credit card?

If yes, stop here. Do not open a new card. Focus on paying off your existing debt first. The interest you’re paying on that balance is almost certainly more than any points you’d earn.

2. Do you have a track record of paying bills on time?

If you frequently miss payment due dates on rent, utilities, or other bills, a credit card will make things worse, not better. The late fees and interest will eat any value from points.

3. Can you resist the temptation to overspend?

Credit cards make spending feel less “real” than handing over cash. If you tend to spend more when using cards, this strategy isn’t for you.

4. Do you have an emergency fund?

If an unexpected expense hits and you don’t have savings to cover it, you’ll end up carrying a balance. Have at least $1,000 in savings before opening a rewards card.

If you answered “no” to any of these, work on that first. The points will still be there when you’re ready.

What If Something Goes Wrong

Life happens. Here’s how to handle common situations:

You Can’t Pay the Full Balance This Month

First, pay as much as you can. A smaller balance means less interest.

Then, stop using the card immediately. Every new purchase adds to your interest-accruing balance.

Make paying off the balance your top priority. Cut expenses elsewhere if you need to. The faster you pay it off, the less interest you’ll pay.

Once it’s paid off, decide if you want to continue using the card. If this might happen again, consider whether credit card points are right for your situation.

You Missed a Payment

Call the credit card company immediately. If this is your first missed payment, they’ll often waive the late fee if you ask nicely and pay right away.

Set up autopay so it doesn’t happen again.

One missed payment isn’t the end of the world, but it will likely trigger the penalty APR (often 29%+) on any balance you carry. Pay it off as fast as possible.

You’re Not Going to Hit the Bonus

It’s better to miss a sign-up bonus than to overspend and carry a balance.

If you’re coming up short and there’s no way to hit the spending requirement with normal purchases, just accept it. You’ll still earn points on whatever you did spend, and you’ll avoid debt.

Some cards have lower bonuses that might be more achievable. The no-annual-fee Hilton card only requires $2,000 in 6 months — that’s $333/month.

The Bottom Line

Credit card points can be incredibly valuable. Ansel and I have stayed at dog-friendly hotels across Florida without paying for rooms, all thanks to points.

But the game only works if you play it right:

Only spend money you already have
Pay your statement balance in full every month
Set up autopay for the full balance
If you can’t do these things consistently, don’t play

The Hilton Surpass bonus expires January 14th. That’s 155,000 points — enough for 3-4 free nights at most Hilton properties. If you can spend $500/month without changing your habits and pay it off every month, it’s a great deal.

If you can’t, that’s okay. There’s no shame in using a debit card. Paying cash for a hotel room is better than paying interest for a “free” one.

Questions?

If you’re unsure whether a sign-up bonus is right for your situation, I’m happy to help think it through. Drop me a line at woof@thepointspup.com.