Are you fed up of spending thousands of dollars on travel? Well, good news! Travel hacking could be the solution to all your travel woes. It’s a fun way to convert sign-up bonuses and incentives into airline miles that can then be used to get discounted or even cheap flights from your dream destinations. With a little bit of imagination and a little bit of insider knowledge, you can fly for no cost in no time.
The Basics of Travel Hacking
Travel hacking is all about swapping credit card sign-up bonus and rewards for airline miles. These miles can then be used to pay for cheap or free flight tickets. Some credit cards also allow you to redeem miles for hotel stays and rental car offers.
How Does it Work?
The secret to successful travel hacking is to take advantage of the credit card sign-up bonus and building out a frequent flyer mile program on a select group of airlines. When it comes time to make a booking take a look at the price. If the price is less than $300, it’s generally better to pay cash and use your miles to pay for a more expensive flight. When the flights start getting above $500, you’ll want to review your frequent flyer accounts and find out which airline will give you the most value. It all boils down to the number of miles or points you have in your travel savings account for every airline.
Begin by Getting Started with Travel Hacking
Are you interested in learning the secrets of travel hacking? Your first task is opening a credit card with a sign-up bonus. There are plenty of great credit cards with various features and benefits. It all depends on your preferred airline, your habits with spending and what features are crucial to you.
Top Credit Card Picks
Here are a few credit card options that can be great to use for hacking travel:
- Chase Sapphire Reserve
- Chase United Explorer
- JetBlue Mastercard
- Capital One Venture X
Once you’ve been approved for a credit or debit card, you’ll need to hit the minimum spend limit in order to qualify for the bonus. Every credit card has its own set of rules, so be sure to check for the details. Then it’s all about building miles and using them to plan your dream trip!
Are you ready to go on a jet-setting with your points?
Once you’ve accumulated the points balance, it’s time to redeem them for some nice travel! Different credit card companies will have different methods for redeeming your rewards, here are some examples from some of the companies I’ve had experience with:
Escape by using Chase Ultimate Rewards
If you own a Chase cards, you are able to redeem your points via the Ultimate Rewards portal. In this portal you’ll get access to almost every airline, and you can combine money and points to book your next trip. You can book your flight entirely using points if you’ve got enough balance! Sometimes, even if you don’t possess enough points for the entire cost, you are able to book flights using the Chase Ultimate Rewards portal and pay the balance cash using any credit card.
United
Are you tired of paying the full cost for your flights? Did you not know that when you book directly through United you can choose the option of paying using either points or dollars? Be careful in case you don’t have enough points, you aren’t able to combine dollars and points for the same flight. No worries though, if you’re a few points away, United gives you the option of buying additional miles.
JetBlue
Looking for a domestic flight? Take a look at JetBlue! JetBlue offers a comfortable and enjoyable flight experience with extra space and complimentary snacks. In addition, their booking procedure is like United’s which allows customers to book using either JetBlue either dollars or points, but not both. The difference is that JetBlue is unique in that they offer a feature that lets you pool your points together with your relatives to earn points twice as fast. Make sure to establish that you’re a real family member prior to trying to hack into the system.
Make sure you spend that minimum amount
If you’re like me and my travel companion Becca I’m sure you’re pretty thrifty and it’s daunting to try to spend thousands of dollars to hit the minimum spend for credit card bonuses. Don’t worry as we’ve done it and are here to share our tricks and tips.
Pay your rent (if you can)
This is an important one! If you’re able to pay for your rent using credit card, then do it! Be prepared to pay a cost, which is usually at least 3%. It might be worth it over the long term when the bonus is large enough.
Make a payment on a medical expense
Another way to reach the spending limit is to pay for a medical bill. If you don’t have any medical bills coming up Ask your family members if you can pay for theirs and they will reimburse you.
Pay off a loan
If you’re in the middle of a loan take into consideration repaying them using an credit card. Make sure to pay off the balance on your credit card in full so you don’t accrue more debt.
Ask family for help
Ask your family members to determine if they’ve got any large expenses coming up that you can help pay for. Make sure that you are able to have confidence in the person you are talking to and they understand why you’re taking the initiative.
Purchase gifts
If it’s the holiday season, consider buying all your gifts with the credit card you have. This way you can hit that minimum spend and be ready for giving gifts. Make sure that you’re not spending more than you were planning to.
There are a lot of ways to make the most of using your credit or debit card for travel. You can accumulate miles or points that you can be used towards the cost of flights or other expenses related to travel. Here are a few more suggestions for maximising the rewards you earn:
Book travel expenses with your credit card
Whenever you’re planning a trip, make use of you travel credit card to book your flight, hotel, rental car, and any other travel-related expenses. Not only will you achieve the minimum spend to qualify for a credit card reward and earn points, but you’ll also earn points or miles to cover these expenses.
Make use of your credit card to pay for all your daily expenditures
Another way to meet the minimum spending requirement and earn points is using your credit card to pay daily costs. This can include things like food, gas, and even your phone bill. Just make sure to pay the balance off each month in full so you don’t pay interest.
Take advantage of bonus categories
Some travel credit cards will offer bonus points or miles for certain types of purchases, including dining or travel. Make sure you review your rewards program on your credit card and take advantage of the bonus categories that are in line with your spending habits.
Take into consideration a balance transfer
If you have existing debt on a credit card, you might want to transfer that balance to the travel credit card which has a 0% introductory APR for balance transfers. This will enable you to pay off the debt without accruing interest and simultaneously help you hit the minimum amount required to earn the credit card’s bonus.
Use your points or miles carefully
Once you’ve accumulated a substantial amount of points or miles, be sure to use them wisely. Review the rewards program for your credit card and compare the worth of various redemption options. For example, using points to book a flight directly through the airline may provide you with a greater value than using them to purchase an gift card.
Another option is to get a rewards card that allows you to transfer your points to other loyalty programs. This will let you have a wider range of choices and more flexibility when you want to redeem your rewards. For example, you may be eligible to transfer your rewards to the frequent flyer program of an airline or a Hotel rewards programme. This will give the benefit of a wider range of flights, hotels as well as other travel perks that may not be accessible through the rewards program on your credit card.
Additionally, try to determine whether your credit card has certain benefits that will save you money on travel-related costs. Some cards offer travel insurance, rental car insurance, baggage protection and other benefits that are very beneficial when traveling.
If you’re traveling with someone else and both of you earn rewards with your credit card. Just remember that you can’t split the cost on the same card, and be sure you keep track of your rewards in a separate manner.
The key to maximizing your travel rewards is to understand the rewards program on your credit card and ensure that you’re making use of this program in the most effective method. Utilizing all of the strategies I’ve outlined in this article, you’ll be able earn rewards quickly, redeem them for travel experiences that are worth it and take advantage of a broad range of travel perks.