Are you fed up of spending thousands of dollars on travel? Well, good news! Travel hacking can be the solution to your travel-related problems. It’s a fun way to convert credit card sign-up bonuses and incentives into airline miles, which can be used to obtain discounted or complimentary flights for your desired destinations. With a little imagination and some knowledge, you can be jet-setting for free in no time.
The Basics of Travel Hacking
Travel hacking is all about swapping credit card sign-up bonus as well as incentives to earn airline miles. The miles can be used to pay for discount or no-cost flights. Certain credit cards permit you to use miles towards hotel stays or rental car deals.
How Does it Work?
The most effective method for successful hacking travel is taking advantage of credit card sign-up bonuses and to establish frequent flyer miles on a select group of airlines. When it’s time to make a booking take a look at the price. If the price is under $300, it’s generally better to pay in cash and save your miles to take a more costly flight. If your flights begin to climb higher than $500, it’s best to look into your frequent flyer accounts and see which airline can give you the most value. It all comes down to the number of points or miles you have you have in your travel savings account for every airline.
Start with Travel Hacking
Ready to learn the secrets to hacking travel? Your first task is to open a credit card that comes with a welcome bonus. There are a lot of fantastic credit cards with many advantages and features. It is all dependent on the airline, your spending habits, and the features that are most crucial to you.
Top Credit Card Picks
Here are a few credit card options that can be great for travel hacking:
- Chase Sapphire Reserve
- Chase United Explorer
- JetBlue Mastercard
- Capital One Venture X
Once you’ve been approved for a credit card you’ll need to hit the minimum spend limit in order to qualify for the bonus. Each card has its own guidelines, so make certain to verify this information. Then it’s all about building miles and using them to plan your dream vacation!
Ready to jet-set with your ideas?
Once you’ve accumulated your points balance, you’re ready to redeem them for some delicious vacation! Different credit card providers will have different methods for redeeming your points. Here are some examples from some of the ones I’ve worked with:
Escape by using Chase Ultimate Rewards
If you’re a holder of an Chase credit card, then you can redeem your points via the Ultimate Rewards portal. Through this portal you’ll have access to virtually every airline, and you can use a combination of money and points to book your trip. You can even book entirely with points if you’ve the balance for it! Sometimes even if you don’t be able to accumulate enough points in order to pay for full price, you can book flights using the Chase Ultimate Rewards portal and pay the balance in cash with any credit card.
United
Are you tired of paying the full cost for flights? Did you realize that when booking directly through United You have the option of paying using either points or dollars? Be careful that if you don’t have enough points, you can’t combine dollars and points on one flight. No worries though, if you’re a few points away, United gives you the option of buying additional miles.
JetBlue
Looking for a flight within the United States? Take a look at JetBlue! JetBlue provides passengers a relaxing and pleasant flight experience , with more space and complimentary snacks. Plus, their booking process is similar to that of United Airlines which allows passengers to book flights using JetBlue either dollars or points, but not both. The difference is that JetBlue offers a distinct feature that allows you to combine your points with family members to accrue points twice as quickly. 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 and my travel companion Becca, you’re probably pretty frugal and it can be daunting to try to spend 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 some of our tricks and tips.
Pay your rent (if you can)
This is a big one! If you’re able to pay your rent with credit card, go for it! Be prepared to be charged a fee, typically at least 3%. It may be worth it over the long term when the bonus is large enough.
Make a payment on a medical expense
Another excellent way to meet the required spending is to pay for an medical bill. If you don’t have any medical bills in the near future then ask your family members to pay their medical bills and they will repay you.
Repay the loan
If you’re a borrower take into consideration repaying them using your credit card. Make sure to pay off the credit card balance in full so you don’t accrue more 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 contribute for. Make sure that you are able to trust the person and they are aware of the reason for taking the initiative.
Purchase presents
If it’s the holiday season take into consideration buying all your gifts with the credit card you have. This way you can meet the minimum spending limit and be ready to give gifts. Make sure that you’re not paying more than you planning to.
There are a lot of ways to get the most out of using your credit or debit card for travel. You can accumulate miles or points that you can spend on airfares or other travel-related costs. Here are a few additional suggestions for maximising your rewards
Book travel expenses with your credit card
If you’re planning a trip, make use of you travel credit card to pay for your hotel, flight, rental car, and any other travel-related expenses. Not only will you achieve the minimum amount of spending required to qualify for a credit card as well, but you’ll also be earning points or miles on the expenses.
Make use of your credit card to pay for everyday costs
Another way to hit the minimum spending requirement to earn rewards is by using your credit card to pay for everyday costs. This could be items like groceries, gas and even your telephone bill. Be sure to pay the balance off each month in full so you don’t accrue interest charges.
Make the most of bonus categories
Some travel credit cards will offer bonus points or miles for certain types of purchases, including eating out or travelling. Make sure you review the rewards program of your credit card and avail the bonus categories that are in line with your spending habits.
Take into consideration the possibility of transferring your balance
If you are currently in debt on a credit card, think about transferring that balance onto the travel credit card which has an introductory rate of 0% for balance transfers. This will enable you to pay off your debts without accruing interest, and also help you hit the minimum amount required to earn the credit card’s bonus.
Make use of your miles or points carefully
Once you’ve accumulated a substantial amount of points or miles Make sure to utilize the points or miles wisely. Examine the rewards program of your credit card, and evaluate the benefits of different redemption options. For example you can use your points to purchase a flight directly with the airline might provide you with a greater value than using them for an gift card.
Another tip is to use a rewards card that allows you to transfer your points to other loyalty programs. This will allow you to enjoy a greater variety of choices and more freedom when it comes to you want to redeem your rewards. For instance, you might be eligible to transfer your reward to frequent flyer programs of airlines or Hotel rewards programme. This can give the benefit of a larger variety of hotels, flights and other travel benefits that may not be accessible through your credit card’s rewards program.
In addition, you should determine if your credit card offers certain benefits that will help you save money on travel expenses. Some cards offer travel insurance, rental car insurance, baggage protection and other benefits that could be invaluable when you travel.
When you travel with a friend, both of you can earn rewards with your credit card. Make sure you don’t divide the cost with the same card and make sure to keep track of your rewards in a separate manner.
The key to maximizing your travel rewards is to know the rewards program on your credit card and ensure that you’re using it in the most efficient method possible. By using all of the strategies I’ve listed that you can earn rewards quickly, redeem rewards for valuable travel experiences and benefit from a wide variety of travel benefits.