Are you tired of paying thousands of dollars on travel? Then, there’s a good news! Travel hacking is the answer to all your travel problems. It’s an exciting way to convert credit card sign-up bonuses and incentives into airline miles which can be used to obtain discounted or cheap flights from your dream destinations. With a bit of imagination and some knowledge, you can travel for free in no time.
The Basics of Travel Hacking
Travel hacking is all about exchanging credit card sign-up bonuses and incentives for airline miles. These miles can later be used to purchase discounted or even free flights. Certain credit cards permit you to use miles towards hotel stays or rental car deals.
How Does it Work?
The secret to success in travel hacking is to take advantage of the sign-up bonuses for credit cards and establishing frequent flyer miles on a select group of airlines. When it comes time to make a booking take a look at the price. If the price is under $300, it’s best 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 look into your frequent flyer accounts to see which airline can give you the most value. It all comes down to the number of points or miles you have in your travel savings account for every airline.
Start with Travel Hacking
Are you interested in learning the secrets to travel hacking? Your first task is to open the credit card that comes with a sign-up bonus. There are plenty of great credit cards with various features and benefits. It depends on the type of airline, spending habits and the features that are most important to you.
Top Credit Card Picks
Here are some credit card options that can be excellent for travel hacking:
- Chase Sapphire Reserve
- Chase United Explorer
- JetBlue Mastercard
- Capital One Venture X
After you’ve been accepted for a credit card you’ll need to reach the spending limit for minimum expenditure in order to get the bonus. Each card has its own rules, so make certain to verify this information. From there it’s all about building up miles, and then using them to book your dream trip!
Ready to jet-set with your points?
Once you’ve accumulated the points amount, it’s time to use them towards delicious getaway! Different credit card providers will have different methods for redeeming your points. Here are a few examples from some of the companies I’ve worked with:
Escape through Chase Ultimate Reward
If you’re a holder of an Chase cards, you are able to redeem your points via the Ultimate Rewards portal. Within the portal, you’ll get access to virtually every airline, and you can make use of a combination of points and cash to book your travel. You can even book entirely with points if you’ve the funds to pay for it! Sometimes even if you don’t have enough points to cover the total price, you can buy flights with Chase Ultimate Rewards portal and pay the balance in cash using the credit card of your choice.
United
Are you fed up of paying full price for your flights? Did you know that when you book directly through United, you have the option to pay with dollars or points? But, be careful that if you don’t have enough points you aren’t able to combine points and dollars on one flight. Don’t worry, though, if you’re a few points away, United gives you the option to purchase additional miles.
JetBlue
Looking for a domestic flight? You should look no further than JetBlue! JetBlue offers an enjoyable and comfortable flight experience with extra legroom and free snacks. Additionally, their booking process is like United’s which allows passengers to book flights using JetBlue either dollars or points, but not both. But, JetBlue is unique in that they offer a feature that allows you to join your points with your family members and earn points twice as fast. Just make sure you can establish that you’re a real family member prior to trying to hack into the system.
Reach that Minimum Spend
If you’re like me or my travel companion Becca, you’re probably pretty frugal and it can be daunting to try to spend thousands of dollars in order to meet the required amount to qualify for a credit card bonus. Don’t worry, we’ve been through it and are here to share our tips and tricks.
Pay your rent (if you can)
This is an important one! If you’re able pay your rent with credit card, then do it! Be prepared to pay a fee, usually around 3%. It might be worth it in the long run in the event that the bonus is substantial enough.
Pay for a medical bill
Another excellent way to meet the required spending is to pay for a medical bill. If you don’t have any medical bills in the near future, ask your family members to pay for theirs and they will pay you back.
Make a payment to pay off the loan
If you’re in the middle of a loan, consider paying them off with an credit card. Be sure to pay off the balance on your credit card completely so that you don’t end up with more debt.
Ask your family members for help
Talk to your family and see if they have any major expenses in the near future that you can contribute for. Just make sure you trust the person and they know why you’re taking the initiative.
Buy gifts
If you’re in the middle of the holiday season take into consideration buying all your gifts using the credit card you have. This way you can reach the minimum spending requirement and also be ready for gift giving. Make sure that you’re not paying more than you already thinking of.
There are plenty of methods to get the most of your travel credit card. You can accumulate miles or points that you can spend on the cost of flights or other expenses related to travel. Here are a few additional ways to maximize your rewards
Pay for travel expenses using your credit card
When you’re planning your next trip, use your travel credit card to book your flight, hotel or rental car, as well as any other travel-related expenses. You’ll not only be able to hit the minimum spend to qualify for a credit card and earn points, but you’ll also be earning points or miles on the expenditures.
Use your credit card for all your daily costs
Another method to reach the minimum spend in order to accumulate points using your credit card to pay for every day expenditures. This can include things like gas, groceries, and even your phone bill. Be sure to pay the balance off in full every month to ensure you don’t pay interest.
Benefit from bonus categories
A lot of travel credit cards provide miles or points in exchange for specific types of purchases, such as eating out or travelling. Be sure to review your credit card’s rewards program and make use of any bonus categories that align with your spending habits.
Take into consideration the possibility of transferring your balance
If you are currently in debt on a high-interest credit card, think about transferring that balance to a travel credit card with a 0% introductory APR for balance transfer. This will let you pay off your debt without accruing interest, and also help you hit the minimum spending requirement for the credit card bonus.
Use your points or miles prudently
If you’ve amassed a large amount of points or miles Make sure to utilize them in a responsible manner. 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 the purchase of a gift card.
Another tip is to use a rewards card that allows you to transfer your rewards to different loyalty program. This allows you to get a wider selection of choices and more freedom when it comes to making use of your rewards. For instance, you might be capable of transferring your rewards to an airline’s frequent flyer program or a reward program for hotels. This can give you access to a larger variety of hotels, flights as well as other travel perks that aren’t offered through your credit card’s rewards program.
Also, determine whether your credit card has some perks that could reduce your travel expenses. Many cards offer travel insurance, rental car insurance, baggage protection and other benefits that are extremely valuable when you’re traveling.
Finally, when you’re traveling with someone else and both of you earn rewards using your credit card. Make sure you don’t share the costs on the same card, and be sure to track your rewards separately.
The key to making the most of your travel rewards is to know your credit card’s rewards program and make sure you’re using this program in the most effective method. Utilizing all of the methods I’ve described, you’ll be able to earn rewards quickly, redeem them for travel experiences that are worth it and benefit from a wide assortment of travel-related perks.