Are you fed up of spending a fortune on airfare? Good news! Travel hacking is the answer to all your travel problems. It’s a fun way to convert welcome bonuses and other incentives into airline miles which you can use to get discounted or even free flights to your dream destinations. With a little bit of imagination and some 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 rewards for airline miles. These miles can later be used to buy cheap or free flight tickets. Certain credit cards will also let you redeem miles towards hotel stays or rental car discounts.
How Does it Work?
The most effective method for successful travel hacking is to take advantage of the credit card sign-up bonus and establishing frequent flyer miles with a limited number of airlines. When it’s time to make a booking, evaluate the cost. If the cost is under $300, it’s usually better to pay cash and save your miles for a more expensive flight. If the prices start to rise over $500, you’ll need to review your frequent flyer accounts to determine which airline offers you the most value. It all comes down to the amount of points or miles in your travel bank for every airline.
Get Started with Travel Hacking
Are you ready to discover the secrets of travel hacking? The first step is opening the credit card that comes with a sign-up bonus. There are many great credit cards with various advantages and features. It depends on the type of airline, your spending habits, and what features are important to you.
Top Credit Card Picks
Here are some credit cards that are excellent 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 need to hit the limit of spending minimum in order to get the bonus. Each card has its own rules, so be sure to check for the details. From there it’s all about building up miles, and using them to book your dream vacation!
Are you ready to go on a jet-setting with your points?
Now that you’ve built up the points balance, you’re ready to use them towards delicious vacation! Different credit card companies will have different methods of redeeming your points. Here are some examples from some of the companies I have experience with:
Take a trip with Chase Ultimate Rewards
If you’re a holder of a Chase card, you can redeem your points via the Ultimate Rewards portal. In it, you’ll get access to almost every airline and you can make use of a combination of points and cash to book your travel. You can even book completely with points if you’ve the balance for it! Sometimes even if you do not be able to accumulate enough points in order to pay for full cost, you are able to purchase flights through the Chase Ultimate Rewards portal and pay the balance in cash with the credit card of your choice.
United
Are you fed up of paying the full cost for flights? Did you realize that when booking directly through United you can choose the option of paying with dollars or points? But, be careful in case you don’t have enough points you cannot combine points and dollars on flights. No worries though, if you’re just a few point short United gives you the option of buying additional miles.
JetBlue
Looking for a domestic flight? You should look no further than JetBlue! JetBlue offers an enjoyable and comfortable travel experience that includes extra space and complimentary snacks. In addition, their booking procedure is like United’s which allows customers to book using either JetBlue dollar or points, but not both. But, JetBlue is unique in that they offer a feature that allows you to pool your points together with your relatives to earn points twice as fast. Just make sure you can prove you’re really family before trying to hack the system.
Hit that Minimum Spend
If you’re like me or my travel buddy Becca You’re probably quite frugal and it can be daunting to try to spend thousands of dollars to hit the required amount to qualify for a credit card bonus. But don’t fret as we’ve done it and are here to share some of our tips and tricks.
Pay your rent (if you can)
This is an important one! If you’re able to pay for your rent with a credit card, do it! Just be prepared to be charged a fee, typically about 3%. It could be worthwhile in the end in the event that the bonus is substantial enough.
Make a payment on a medical expense
Another great way to hit the required spending is to pay for a medical bill. If you do not have any medical expenses due Ask your relatives if you could pay for theirs and they will reimburse you.
Repay the loan
If you’re in the middle of a loan, consider paying them off with the credit card you have. Just make sure you pay the credit card balance in full so you don’t end up with more debt.
Ask family for help
Ask your family members to look into any large expenses coming up that you can contribute for. Make sure that you are able to are able to trust the person and that they understand why you’re doing it.
Purchase gifts
If you’re in the middle of the holiday season you should consider purchasing all of your gifts with cards from your credit account. So you’ll be able to meet the minimum spending limit and be ready for gift giving. Be sure to avoid spending more than you were thinking of.
There are many ways to get the most out of your travel credit card. You can accrue points or miles to 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
If you’re planning a vacation, make use of your travel credit card to pay for your flight, hotel or rental car, as well as any other travel-related expenses. Not only will you achieve the required amount to qualify for a credit card bonus, but you’ll also be earning points or miles to cover those costs.
Make use of your credit card to pay for all your daily expenses
Another method to reach the minimum amount of spending in order to accumulate points utilising your credit cards for every day expenditures. This could include things like gas, groceries, and even your phone bill. Just make sure to pay the balance off in full each month so you don’t accumulate interest.
Make the most of bonus categories
Many travel credit cards offer miles or bonus points for certain types of purchases, like dining or travel. Make sure you review your rewards program on your credit card and avail 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 onto the travel credit card which has an introductory rate of 0% for balance transfer. This will let you pay off your debts without accruing interest. It will also help you hit the minimum spend for the credit card’s bonus.
Utilize your miles and points wisely
Once you’ve accumulated a substantial amount of miles or points, be sure to use them wisely. Check out the rewards program on 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 give you a better value than using them to purchase a gift card.
Another tip is to use rewards cards that allow you to transfer your points to other loyalty programs. This will allow you to enjoy a greater variety of options and greater flexibility when you want to redeem your rewards. For example, you may be able to transfer your reward to frequent flyer programs of airlines or a Hotel rewards programme. This gives you access to a larger selection of hotels, flights and other travel benefits that may not be offered through the rewards program of your credit card.
Additionally, try to find out whether your credit card has some perks that could reduce your travel costs. Many cards offer travel insurance and rental car insurance, baggage protection and other benefits that could be invaluable when you travel.
Finally, when you’re traveling with a companion each of you will be able to earn rewards with your credit card. Be aware that you cannot divide the cost with the same card, and be 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 ensure that you’re making use of this program in the most effective method. Through all of the strategies I’ve listed, you’ll be able to get rewards in a short time, use them for valuable travel experiences and benefit from a wide assortment of travel-related perks.