Are you fed up of spending a fortune on airfare? Well, good news! Travel hacking could be the solution to all your travel problems. It’s a fun way to convert sign-up bonuses and incentives into miles which you can use to score discounted or complimentary flights for your ideal destinations. With a little creativity and some insider knowledge, you can be jet-setting for free in no time.
The Basics of Travel Hacking
Travel hacking is the art of swapping credit card sign-up bonus and incentives for airline miles. These miles can then be used to buy discounted or even free flights. Certain credit cards will also let you redeem miles to pay for hotel stays or rental car discounts.
How Does it Work?
The most effective method for successful hacking travel is taking advantage of the credit card sign-up bonus and building out frequent flyer miles on a select group of airlines. When it comes time to book a flight, evaluate the cost. If the flight is under $300, it’s generally better to pay in cash and save your miles to take a more costly flight. If the prices start to rise over $500, you’ll need to review the frequent flyer account and see which airline can give you the best deal. It all comes down to the number of points or miles in your travel account for each airline.
Begin by Getting Started with Travel Hacking
Ready to learn the secrets to hacking travel? The first step is opening a credit card with a sign-up bonus. There are plenty of great credit cards that provide a variety of features and benefits. It is all dependent on the airline, spending habits and what features are important to you.
Top Credit Card Picks
Here are some credit cards perfect to use for hacking travel:
- Chase Sapphire Reserve
- Chase United Explorer
- JetBlue Mastercard
- Capital One Venture X
After you’ve been accepted for a credit or debit card, you’ll have to meet the spending limit for minimum expenditure in order to receive the bonus. Every card has different rules, so make sure to check for this information. Then it’s all about building up miles and using them to book your dream vacation!
Ready to jet-set with your goals?
Now that you’ve built up the points balance, it’s time to cash them in for some delicious vacation! Different credit card providers will have different methods for redeeming your points. Here are a few examples from some of the providers I’ve had experience with:
Escape with Chase Ultimate Rewards
If you own an Chase cards, you are able to redeem your points through the Ultimate Rewards portal. Within it, you’ll have access to almost every airline, and you can make use of a combination of the points as well as cash in order to book your travel. You can book your flight entirely with points if you’ve the funds to pay for it! Sometimes even if you don’t possess enough points for the total price, you can book flights using the Chase Ultimate Rewards portal and pay the balance cash using every credit card.
United
Are you tired of paying full price for your flights? Did you realize that when booking directly through United you can choose the option to pay with either points or dollars? But, be careful in case you don’t have enough points, you aren’t able to combine dollars and points on the same flight. If you’re only a couple of point short United provides the option to purchase additional miles.
JetBlue
Looking for a flight within the United States? Take a look at JetBlue! JetBlue provides an enjoyable and comfortable flight experience with extra space and complimentary snacks. Additionally, their booking process is similar to United’s that allows passengers to book flights using JetBlue points or dollars however, not both. But, JetBlue is unique in that they offer a feature that allows you to pool your points together with family members to accrue points twice as fast. Make sure to verify that you are a family member before trying to hack the system.
Hit that Minimum Spend
If you’re like me or my travel companion Becca, you’re probably pretty thrifty and it’s difficult to think of spending thousands of dollars in order to meet the minimum amount required to earn credit card bonuses. However, don’t be worried, we’ve been through it and we’re here to share our tricks and tips.
Pay your rent (if you can)
This is a huge one! If you’re able pay your rent with credit card, then do it! Be prepared to be charged a fee, typically at least 3%. It might be worth it in the long run in the event that the bonus is substantial enough.
Pay a medical bill
Another great way to hit the spending limit is to cover an medical bill. If you do not have any medical expenses coming up, ask your relatives if you could pay them for theirs, and they can reimburse you.
Make a payment to pay off a loan
If you have any loans take into consideration paying them off with an credit card. Make sure to pay the credit card balance completely so that you don’t accumulate additional debt.
Ask your family members for help
Talk to your family and determine if they’ve got any major expenses in the near future that you can help pay for. Make sure that you are able to have confidence in the person you are talking to and they know why you’re doing it.
Give presents
If it’s the holiday season take into consideration buying all of your gifts with the credit card you have. This way you can meet the minimum spending limit and be ready for giving gifts. Make sure that you’re not spending more than you were already contemplating to.
There are many ways to get the most from using your credit or debit card for travel. accumulate miles or points that you can use towards the cost of flights or other expenses related to travel. Here are some additional suggestions for maximising your rewards
Make travel reservations using your credit card
If you’re planning a trip, use your travel credit card for booking your flight, hotel, rental car, and other travel costs. Not only will you be able to hit the minimum spend to qualify for a credit card reward and earn points, but you’ll also earn points or miles to cover the expenses.
Use your credit card for all your daily costs
Another way to meet the minimum spend to earn rewards is by using your credit card to pay for every day expenditures. This could be things like food, gas, and even your phone bill. Make sure you pay the balance off in full every month to ensure you don’t accrue interest charges.
Take advantage of bonus categories
A lot of travel credit cards provide miles or points in exchange for certain types of purchases, like dining or travel. Be sure to review the rewards program of your credit card and avail any bonus categories that match with your spending habits.
Consider a balance transfer
If you have existing debt on a credit card, think about transferring the balance to the travel credit card which has the introductory APR of 0% for balance transfers. This will enable you to pay off your debt without accruing interest, and also help you hit the minimum spending requirement for the credit card bonus.
Make use of your miles or points carefully
Once you’ve accumulated a substantial amount of miles or points make sure you use them wisely. Check out the rewards program on your credit card and then compare the value of different redemption options. For instance using your points to book a ticket directly with the airline might provide you with a greater value than using them to purchase an gift card.
Another tip is to use rewards cards that allow you to transfer points to other loyalty programs. This will let you have a wider range of choices and more flexibility when redeeming your rewards. For instance, you might be able to transfer your rewards to the frequent flyer program of an airline or a Hotel rewards programme. This will give you access to a greater selection of hotels, flights and other travel benefits which are not available through the rewards program on your credit card.
In addition, you should find out whether your credit card has some perks that could save you money on travel-related expenses. A lot of credit cards provide travel insurance and rental car insurance, baggage protection, and other benefits that can be very beneficial when traveling.
Finally, when you’re traveling with a friend, both of you can get rewards on your credit card. Make sure you don’t divide the cost with the same card, and be sure to keep track of your rewards in a separate manner.
The key to reaping the maximum benefits from your travel rewards is to know your credit card’s rewards program and ensure that you’re using your credit card in the most efficient way possible. By using an array of strategies I’ve listed, you’ll be able to get rewards in a short time, use them for travel experiences that are worth it and take advantage of a broad range of travel perks.