Are you tired of spending thousands of dollars on travel? Good news! Travel hacking could be the solution to your travel-related problems. It’s an exciting method to convert credit card welcome bonuses and other incentives into airline miles that can then be used to get discounted or even free flights to your dream destinations. With a little imagination and a little bit of insider knowledge, you can be jet-setting for free within a matter of minutes.
The Basics of Travel Hacking
Travel hacking is all about exchanging credit card sign-up bonuses as well as incentives to earn airline miles. These miles can then be used to purchase cheap or free flight tickets. Some credit cards also let you redeem miles to pay for hotel stays or rental car deals.
How Does it Work?
The key to successful travel hacking is to take advantage of credit card sign-up bonuses and establishing a frequent flyer mile program on a select group of airlines. When it comes time to book a flight, evaluate the cost. If the cost is under $300, it’s generally better to pay cash and save your miles to book a higher-priced flight. When the flights start getting over $500, you’ll need to look into the frequent flyer account and determine which airline offers you the best price. All it boils down to is the amount of miles or points in your travel bank for each airline.
Get Started with Travel Hacking
Are you interested in learning the secrets to travel hacking? The first step is to open a credit card with a sign-up bonus. There are a lot of fantastic credit cards with various features and benefits. It all depends on your preferred airline, your spending habits, and the features that are most essential to you.
Top Credit Card Picks
Here are some credit cards that are great to hack travel
- Chase Sapphire Reserve
- Chase United Explorer
- JetBlue Mastercard
- Capital One Venture X
If you’ve been approved for a credit card, you’ll need to reach the minimum spend limit in order to get the bonus. Every card has different rules, so make sure to check for this information. Then, it’s all about racking miles and then using them to book your dream trip!
Ready to jet-set with your points?
After you’ve accrued the points balance, it’s time to cash them in for some sweet getaway! Different credit card companies have different methods for redeeming your points, but here are some examples from some of the providers I’ve had experience with:
Escape with Chase Ultimate Rewards
If you’re a holder of a Chase credit card, then you can redeem your points through the Ultimate Rewards portal. In it, you’ll have access to almost every airline and you can combine the points as well as cash in order to book your travel. You can book your flight entirely on points if you have the funds to pay for it! Sometimes, even if you don’t possess enough points for the full cost, you are able to buy flights with Chase Ultimate Rewards portal and pay the balance cash using the credit card of your choice.
United
Are you fed up of paying the full cost for your flights? Did you realize that when booking directly through United You have the option of paying using dollars or points? Be careful, if you do not have enough points you cannot combine dollars and points for the same flight. If you’re just a few points short, United provides the possibility of purchasing additional miles.
JetBlue
Looking for a domestic flight? You should look no further than JetBlue! JetBlue offers an enjoyable and comfortable flight experience , with more space and complimentary snacks. In addition, their booking procedure is like United’s, allowing customers to book using either JetBlue dollar or points, however, not both. But, JetBlue offers a distinct feature that lets you pool your points together with your family members and earn points twice as fast. Be sure to verify that you are a family member before trying to hack the system.
Reach that Minimum Spend
If you’re anything like me and my travel companion Becca, you’re probably pretty thrifty and it’s daunting to try to spend thousands of dollars in order to meet the required amount to qualify for the credit card bonus. However, don’t be worried because we’ve been there and we’re here to share our tips and tricks.
Pay your rent (if you can)
This is a big one! If you’re able pay your rent with a credit card, do it! Make sure you pay a fee, usually at least 3%. It could be worthwhile over the long term in the event that the bonus is substantial enough.
Make a payment on a medical expense
Another great way to hit the minimum spend is to cover a medical bill. If you do not have any medical expenses coming up, ask your family members if you can pay for theirs and they will pay you back.
Repay a loan
If you’re a borrower take into consideration repaying them using the credit card you have. Just make sure you pay off the balance on your credit card in full so you don’t accrue additional debt.
Ask family for help
Discuss your family with them and see if they have any large expenses coming up which you could help pay for. Just make sure you have confidence in the person you are talking to and they are aware of the reason for taking the initiative.
Purchase presents
If you’re in the middle of the holiday season you should consider purchasing all your gifts using your credit card. This way you can reach the minimum spending requirement and be ready to give gifts. Be sure to avoid spending more than you were already thinking of.
There are plenty of methods to get the most of using your credit or debit card for travel and earn miles or points to be used towards flights or other travel-related expenses. Here are a few more ways to maximize your rewards:
Book travel expenses with your credit card
Whenever you’re planning a trip, use your travel credit card for booking your hotel, flight or rental car, as well as any other travel expenses. You’ll not only achieve the minimum spend to earn your credit card reward as well, however, you’ll also earn points or miles on the expenses.
Utilize your credit card to pay to pay for your everyday expenses
Another way to hit the minimum amount of spending in order to accumulate points making use of your credit card for daily expenditures. This can include items like groceries, gas, and even your phone bill. Just make sure to pay the balance off in full every month to ensure you don’t accrue interest charges.
Benefit from bonus categories
Many travel credit cards offer bonus points or miles on certain kinds of purchases, like dining or travel. Make sure you review your rewards program on your credit card and take advantage of any bonus categories that align with your spending habits.
Consider a balance transfer
If you have existing debt on a credit card, you might want to transfer that balance to a travel credit card with the introductory APR of 0% for balance transfer. This will enable you to pay off the debt without accruing interest. It will also aid in achieving the minimum spend for the credit card’s bonus.
Utilize your miles and points carefully
When you’ve earned a significant amount of points or miles make sure you use them in a responsible manner. Review the rewards program for your credit card and then compare the benefits of different redemption options. For instance, using your points to book a ticket directly with the airline might offer better return than using them for a gift card.
Another option is to get a rewards card that allows you to transfer your reward points into other loyalty programmes. This will let you enjoy a greater variety of options and greater flexibility in you want to redeem your rewards. For instance, you might be eligible to transfer your reward to an airline’s frequent flyer program or Hotel rewards programme. This will give you access to a greater variety of hotels, flights, and other travel perks that aren’t offered through the rewards program on your credit card.
Additionally, try to determine the card’s benefits. some perks that could save you money on travel-related expenses. Many cards offer travel insurance as well as rental car insurance baggage protection, and other benefits that are very beneficial when traveling.
When you travel with a companion, both of you can get rewards on your own credit card. Make sure you don’t share the costs on the same card. Also, make sure to keep track of your rewards separately.
Overall, the key to maximizing your travel rewards is to understand the rewards program on your credit card and make sure you’re making use of your credit card in the most effective method. Through a combination of the strategies I’ve listed, you’ll be able to earn rewards fast, exchange them for travel experiences that are worth it and benefit from a wide range of travel perks.