TRAVEL HACKING: FAQ's
- Nov 12, 2022
- 4 min read
Updated: Nov 30, 2023
What is travel hacking and how do I do it?
Are you ready to unlock the secret to the world of travel hacking? Let me show you how to maximize your travel experience and make the most of your budget. As a new travel hacker, it can be hard to keep up with the latest strategies and tips or even know where to start. I'm here to help you make the most of your travel hacking journey. Read along for a detailed explanation of how travel hacking works and how to get started.
What is travel hacking?
Traveling hacking is the skill of using points and miles earned from a combination of credit card welcome bonuses and everyday spending to travel for free or nearly free. Travel hacking or sometimes it's referred as award travel is completely within the rules set by the banks, airlines, and hotels.
How to start?
Sign up for a credit card that offers points and miles after you spend a certain amount (this is called the minimum spend, usually you will need to hit this amount within a 3-6 month time frame)
Receive the "Welcome" bonus points or miles after hitting the required minimum spend.
Use the points and miles to travel
Repeat with another card
What is a minimum spend?
Minimum spend is the amount of money that you need to spend in order to get the welcome bonus points or miles. This dollar amount will vary from card to card. There is also usually a timeframe on this. An example would be something like, spend $3000 in 3 months and get 60,000 miles. I recommend meeting the minimum spend by putting all of your normal spending on the card. DO NOT go into credit card debt trying to meet a minimum spend. Be sure you can pay off the full balance of the card every month. DO NOT carry a balance...if you do you are not really going to be traveling for free if you are paying interest every month.
I like to open a new card once 3-6 months has passed since I opened my last card and time it for when I have a large expense. (Think new dishwasher, Christmas, etc.) By doing this it will make it a lot easier to hit the minimum spend.
What about my credit score?
Credit cards and how they affect your credit score is always one of the first questions people ask when they first hear about travel hacking. My credit score is 800+ as is my husband's. The main things to remember is to pay your card in full and on time every month, and do not close your oldest card.
Another question I often get is will my credit score dip if I open and close cards often. I only close cards if there is an annual fee and I don't feel as though the benefits outweigh the annual fee. If this is the case, I always see if I can downgrade to a card with no annual fee before closing. If this is not an option then I would close the card.
Should I cancel once I've hit the minimum spend?
NO, don't cancel! Wait until the annual fee hits your account and then cancel before it is due. Your points and miles can be taken back if you cancel before the one year mark. If your card has an annual fee, you can always ask to downgrade to a card that does not have an annual fee. Be aware that if you cancel you may loose all of your points if you have not transferred them to a travel partner such as Hyatt, United, Southwest, etc.
What card should I get first?
If you are just getting started with travel hacking, I recommend starting with Chase Ultimate Reward cards first. They offer flexible points that are extremely valuable because of their lineup of airline and hotel transfer partners. Starting with these credit card makes the most sense due to Chase's rule of only being able to open 5 cards from any bank within a 24 month period. (Chase 5/24 rule)
Best Cards to Start With:
Can I get a business card?
You bet! If you have a small side hustle, you can apply as a sole proprietor with your social security number. Business cards usually have a higher welcome bonus and the banks that offer business cards often have more cards to choose from and the best part is that they don't count against Chase's 5/24 rule.
How do I keep earning more points?
You will earn the most points/miles when you signup and earn a great welcome bonus. You can also continue to earn more points/miles by using the right card for the right purchase. Some cards will offer 2x on dining or 5x on gas. I use the app CardPointers to help me decide what card to use when. Another way to continue to earn points and miles is to use shopping portals. Referring friends and family to sign up for cards that you already have will usually get you a referral bonus.
Isn't this a lot of work?
I learned how to do this while being a busy mom and working. I did so by reading a lot of blogs and listening to a lot of podcasts. I decided to start this blog to have a spot you can go to find easy to understand posts on travel hacking.
Is travel hacking a lot of work? I don't think so. If you put in just a little effort the rewards will be amazing!
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