Are you tired of paying thousands of dollars on travel? Good news! Travel hacking could be the solution to all your travel problems. It’s an exciting method to convert credit card sign-up bonuses and incentives into airline miles which you can use to get discounted or even free flights to your desired destinations. With a bit of imagination and some knowledge, you can fly for no cost within a matter of minutes.
The Basics of Travel Hacking
Travel hacking is all about trading credit card sign-up bonuses and rewards for airline miles. These miles can later be used to pay for cheap or free flight tickets. Certain credit cards will also allow you to redeem miles towards hotel stays or rental car offers.
How Does it Work?
The key to success in hacking your travel plans is to take advantage of credit card sign-up bonuses and building out a frequent flyer mile program for a specific group of airlines. When it’s time to make a booking, evaluate the cost. If the flight is less than $300, it’s generally better to pay in cash and use your miles to pay for a more expensive flight. When the flights start getting higher than $500, it’s best to look into your frequent flyer accounts to see which airline can give you the most value. It all boils down to the number of points or miles you have in your travel savings account for every airline.
Start with Travel Hacking
Ready to learn the secrets to travel hacking? Your first task is to open an account with a sign-up offer. There are plenty of great credit cards with many features and benefits. It is all dependent on the airline, your habits with spending and the features that are most important to you.
Top Credit Card Picks
Here are some credit cards great for travel hacking:
- 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 have to meet the minimum spend limit in order to qualify for the bonus. Every credit card has its own set of guidelines, so make sure to check for the details. Then, it’s all about racking miles and using them to plan your dream trip!
Are you ready to set sail with your ideas?
Once you’ve accumulated the points amount, it’s time to redeem them for some nice travel! Different credit card providers will offer different ways to redeem your rewards, here are some examples from some of the providers I have experience with:
Escape through Chase Ultimate Reward
If you own an Chase card, you are able to use your points to redeem them through the Ultimate Rewards portal. Within the portal, you’ll get access to almost every airline and you can make use of a combination of money and points to book your travel. You can even book completely using points if you’ve got enough balance! Sometimes even if you don’t possess enough points for the full cost, you still can buy flights with Chase Ultimate Rewards portal and pay the balance in cash using the credit card of your choice.
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 with either points or dollars? But, be careful in case you do not have enough points you aren’t able to combine dollars and points for flights. Don’t worry, though, if you’re just a few points short, United gives you the possibility of purchasing additional miles.
JetBlue
Looking for a flight within the United States? Take a look at JetBlue! JetBlue offers an enjoyable and comfortable flight experience , with more space and complimentary snacks. Plus, their booking process is like United’s that allows passengers to book flights using JetBlue either dollars or points, however, not both. The difference is that JetBlue has a unique feature that allows you to combine your points with your relatives to earn points twice as quickly. Be sure to prove you’re really family before trying to hack into the system.
Reach that Minimum Spend
If you’re like me and my travel companion Becca, you’re probably pretty thrifty and it’s difficult to think of spending thousands of dollars to reach the minimum amount required to earn the credit card bonus. Don’t worry, we’ve been through it and we’re 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 with credit card, then do it! Be prepared to pay a fee, usually around 3 percent. It could be worthwhile over the long term when the bonus is large enough.
Pay a medical bill
Another excellent way to meet the spending limit is to cover the medical bills. If you do not have any medical expenses due Ask your relatives if you could pay their medical bills and they’ll repay you.
Repay the loan
If you have any loans take into consideration making payments on them with your credit card. Make sure to pay off the balance on your credit card in full so you don’t accumulate more debt.
Ask your family members for help
Discuss your family with them and look into any big expenses coming up which you could 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.
Purchase gifts
If you’re celebrating the holidays you should consider purchasing all of your gifts with the credit card you have. This way you can hit that minimum spend and be ready for gift giving. Make sure that you’re not paying more than you planning to.
There are many methods to get the most of the travel credit card and accumulate miles or points that you can use towards flights or other travel-related expenses. Here are a few additional suggestions for maximising your rewards
Pay for travel expenses using your credit card
Whenever you’re planning a trip, make use of your travel credit card to book your flight, hotel or rental car, as well as any other travel expenses. In addition, you’ll achieve the minimum amount of spending required to qualify for a credit card reward and earn points, but you’ll also earn points or miles to cover those expenditures.
Utilize your credit card to pay for everyday expenditures
Another method to reach the minimum amount of spending to earn rewards is by using your credit card to pay every day costs. This could be things like gas, groceries and even your telephone bill. Just make sure to pay off the balance in full each month so you don’t accumulate interest.
Benefit from bonus categories
Some travel credit cards will offer miles or points in exchange on certain kinds of purchases, like eating out or traveling. Check out your credit card’s rewards program and take advantage of the bonus categories that are in line with your spending habits.
Consider a balance transfer
If you’re in the middle of a debt on a credit card, think about transferring that balance to the travel credit card which has an introductory rate of 0% for balance transfer. This will let you pay off your debt without accruing interest, and also help you hit the minimum spend for the credit card’s bonus.
Use your points or miles prudently
Once you’ve accumulated a substantial amount of miles or points make sure you use them wisely. Examine the rewards program of your credit card and compare the value of different redemption options. For example, using points to book a flight directly with the airline might offer better value than using them for an gift card.
Another tip is to use an rewards card that permits you to transfer points to other loyalty programs. This will let you have a wider range of options and greater flexibility in redeeming your rewards. For instance, you might be capable of transferring your rewards to an airline’s frequent flyer program or reward program for hotels. This will give the benefit of a greater selection of hotels, flights as well as other travel perks that aren’t offered through your credit card’s rewards program.
Additionally, try to determine if your credit card offers certain benefits that will help you save money on travel costs. Many cards offer travel insurance and rental car insurance, baggage protection and other benefits that are extremely valuable when you’re traveling.
If you’re traveling with someone else, both of you can earn rewards with your own credit card. Just remember that you can’t divide the cost with the same card. Also, make sure to keep track of your rewards separately.
In the end, the most important thing to do to making the most of your travel rewards is to know the rewards program on your credit card and ensure that you’re using your credit card in the most effective method possible. Through an array of strategies I’ve outlined, 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 variety of travel benefits.