10 Travel Hacking Mistakes to Avoid

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I’m an enormous fan of travel hacking. It’s remodeled my travels and saved me 1000’s of {dollars} over time.

Journey hacking is the artwork of signing up for journey bank cards and gathering factors and miles that you may money in without cost flights, flight upgrades, lodge stays, and extra — all with none additional spending. Briefly, it’s a solution to get extra for much less.

Through the years, I’ve loved numerous free upgrades, free flights, free lodge stays, and different perks — all with none additional spending. Journey hacking has helped open the world to me, so I’m an enormous advocate for it, as I’ve seen what a distinction it’s made in my travels.

And, whereas the perfect playing cards and perks are within the US, journey hacking is obtainable all all over the world too (Canada, the UK, Australia, New Zealand, and Europe all have journey hacking choices lately).

Since I’ve been journey hacking for years, I’ve talked with numerous individuals about enjoying the points-and-miles recreation. I’ve additionally seen tons of newbies make numerous errors — errors that influence their potential to journey without cost (or a minimum of for affordable).

Listed below are the largest journey hacking errors that I see individuals making with the intention to keep away from them, save your factors and miles, and make your journey greenback go additional:

1. Not Beginning at All

Once I ask most individuals why they don’t journey hack, they simply shrug their shoulders and say, “I don’t know. Appears laborious, I suppose.”

The largest cause that folks don’t begin journey hacking is that they assume it’s too sophisticated, it’s just for individuals who journey usually (or are huge spenders), or that it’s a scam.

However side-stepping the points-and-miles recreation solely is the largest mistake you could possibly make. It’s akin to saying no to free cash. Should you repay your bank card every month, you’re shedding out if you happen to aren’t incomes factors and miles, that are merely perks that you just get for being sensible about your spending.
 

2. Not Having a Aim

Earlier than you join your first card, an important factor to do is make a purpose. Take into consideration the journey you wish to take, the place you wish to keep, and the way you wish to get there. Then get the travel credit cards that can show you how to get there.

With out making a purpose, you’ll don’t know what card (or playing cards) are finest for you, as every gives totally different advantages that can match totally different existence, budgets, and journey targets.

Keep in mind: there isn’t a excellent card. There may be solely the perfect card for you.

Are you interested by loyalty to a model, free rewards, or avoiding charges? Would you like free flights and/or lodge stays? Is elite standing an important perk for you?

Should you simply need factors to spend wherever you select, get playing cards with transferable factors (Chase, Amex, Citi, and Capital One are the primary examples of those) as a result of you should use their factors with a wide range of journey corporations. They every have their very own rewards packages and factors that may be transferred to a number of airways or lodge companions or used to e book journey instantly by their very own journey portal web sites.

Decide your purpose(s) after which discover the playing cards that match it/them, in addition to your spending habits.
 

3. Not Getting Playing cards with an Annual Payment

In terms of choosing a travel credit card, many individuals balk at excessive bank card charges, which might typically be lots of of {dollars} per 12 months. Absolutely the bank card corporations are simply taking your cash, proper?

Not precisely.

Whereas it’s true that you just’ll should determine whether or not playing cards with increased charges are price it for you, playing cards with annual charges are often significantly better than no-fee playing cards: they provide extra worth, higher bonus classes (so you’ll be able to accumulate factors sooner), and different perks, resembling higher journey safety and entry to particular gives. For me, even the playing cards with the best annual charges are price it, as I’ve saved more cash on journey than I’ve ever spent on charges.

However you don’t should go for the playing cards with the best annual charges proper off the bat. There are a lot of “starter” playing cards that waive the charge the primary 12 months, and after which are simply $95 per 12 months. That means, you’ll be able to see whether or not it’s price it to you.

Should you actually don’t wish to pay a charge however nonetheless wish to get in on the sport, the Bilt Rewards card is my favourite no-fee possibility. This game-changing card gives you the flexibility to earn factors by paying your lease (the one card that does this), plus 3x factors on eating and 2x factors on journey. It gives stable journey protections too. Should you’re simply beginning out (and pay lease), it is a must-have card.
 

4. Not Assembly Signup Bonuses

The best travel cards supply a large introductory supply, additionally referred to as “welcome gives” or “sign-up bonuses.” That is while you earn many factors directly by spending a sure sum of money inside a sure time interval after opening your account (e.g., spending $3,000 within the first three months would possibly earn you 60,000 factors).

These welcome gives are how I earn one million points each year. They’re tremendous vital, as they jump-start your account and instantly get you nearer to a free flight or lodge keep. Typically these gives are even sufficiently big to get you a free flight proper off the bat!

One of many greatest errors you can also make shouldn’t be benefiting from these bonuses. Once more, it’s like leaving cash on the desk (I hope you’re seeing a sample right here).

With that in thoughts, solely apply for playing cards if you happen to can meet their minimal spending necessities for the welcome bonus along with your regular spending. In case you are spending more cash than you often just do to get these factors, then the factors are now not free. Solely spend what you usually would and never a penny extra.

If you end up near reaching a sign-up bonus however are nonetheless falling quick, these are some issues you are able to do:

• Ask associates or household if they’ve any massive purchases arising. You may then pay for the merchandise in your card and get them to pay you again.
• When out to eat with associates, put the whole lot on one invoice and pay it along with your card. Then get everybody to pay you again individually.

5. Not Paying Off Your Credit score Playing cards Month-to-month

This can be a central tenet not solely of journey hacking however bank card use typically. Don’t ever carry a steadiness on these playing cards, because the sky-high rates of interest will wipe out any potential profit you’d get from them. Should you’re paying curiosity, the factors are now not free.

Should you can’t repay your steadiness in full, you shouldn’t be journey hacking.
 

6. Considering That Factors Have Intrinsic Worth

When you begin signing up for journey bank cards, it may be simple to get excited at big sign-up bonuses and spending classes the place you’ll be able to rack up loads of factors shortly. Hotel credit cards are infamous for this, repeatedly providing sign-up bonuses of over 100,000 factors and bonus spending classes that may be as much as 26x factors per $1 spent (provided by IHG on spending for IHG properties).

However what’s vital to know is that one level will go additional in some packages than others. The worth of some extent shouldn’t be fastened. It’s not the identical throughout packages. One IHG level shouldn’t be the identical as one United level, identical to one Chase level shouldn’t be the identical as one Hyatt level.

When assigning a price to factors, the maths is definitely fairly easy: take the money value (what you’d pay if you happen to didn’t have factors), divide by the variety of factors required, and multiply by 100 to get the per-point worth in cents. I discover The Points Guy’s monthly valuation chart to be essentially the most correct as a useful cheat sheet to make use of as a baseline for what is taken into account per-point worth.

That stated, loads of redemption comes right down to the non-public worth that you just assign to these factors. Would you relatively redeem them for flying in top quality, or would you relatively take two economic system flights for a similar variety of factors? Would you relatively keep in a five-star lodge for a weekend or keep in a three-star lodge for per week?

Level worth is within the eye of the beholder.

(Simply by no means redeem factors for money. That is the least worthwhile use of factors.)
 

7. Not Maximizing Bonus Classes

Talking of level worth, seeing {that a} flight “prices” 30,000 factors will be intimidating, thanks to a different widespread mistake: pondering that you must spend $1 to get 1 level.

However good journey hacking isn’t about getting just one mile or level per greenback spent. It’s simple to get 2-5x (or extra!) for each greenback you spend. This helps you earn factors rather more shortly.

For instance, I exploit Chase Sapphire Reserve when eating at eating places (3x factors), the Chase Ink for workplace spending (5x factors), and the American Categorical Platinum Card for airfare (5x factors).

By no means settle for one level per greenback spent. In any other case, it should take means too lengthy to build up sufficient factors without cost journey.
 

8. Not Taking Benefit of Card Advantages and Perks

Journey hacking isn’t just about simply getting factors and miles. It’s additionally about what else comes with the cardboard that may make your life and travels simpler. Many cards give you a special elite loyalty status or other extra perks. Don’t make the error of getting a card after which not taking full benefit of the whole lot that it has to supply.

Listed below are the perks I personally prioritize:

• No international transaction charges
• Free lodge stays
• Lounge entry
• Free checked baggage
• Precedence boarding

You might need totally different priorities, however irrespective of the case, make sure to discover the advantages of your chosen card(s) and really use these that include it.
 

9. Not Getting Transferable Factors

Transferable factors are these that you may switch to totally different packages. These are on the coronary heart of each good journey hacking technique.

Nevertheless, many individuals draw back from utilizing them, because it appears too sophisticated. They may get a card with transferable factors however redeem them by a journey portal or select to get money again as a substitute. But transferable factors are how one can get wonderful worth.

You may earn transferable factors with bank cards issued by Chase, Capital One, Bilt, Citi, and American Categorical, although understand that these are all separate “currencies.” With Chase, you earn Final Rewards factors, when you earn Membership Rewards factors with American Categorical.

These factors are transferable not to one another however relatively to their respective airline and lodge companions, with whom you’ll be able to then e book a flight or lodge keep.

It’s usually higher to get transferable factors than, say, airline-specific factors (resembling you’d get with an airline credit card), as these can’t be moved wherever. Delta factors can solely be used on Delta flights (or their alliance companions), and if you happen to discover a higher flight with United, that’s too unhealthy — you’ll be able to’t use your Delta factors to benefit from it.

Whereas it might sound sophisticated, it’s simpler than you assume — it’s nearly discovering the suitable card in your wants, shifting factors to an airline or lodge companion, after which reserving. This course of is simpler than ever due to the brand new points-booking search engine, point.me.

(I additionally go extra in-depth into transferable factors and the best way to use them in my Travel Hacking Guide.)
 

10. Hoarding Your Factors

Many individuals, as soon as they amass some factors, are afraid to make use of them in any respect. They both don’t know the best way to use them or wish to anticipate the “absolute best worth.”

However factors burning a gap in your digital pocket aren’t going that can assist you. The worth of factors adjustments on a regular basis as bank card corporations, motels, and airways alter their packages. Sadly, meaning your factors might lose a big quantity of worth in a single day (don’t fear, this doesn’t occur ceaselessly, but it surely does occur).

Factors are meant for use. They’re a car for getting you free flights and motels with the intention to get on the market and see the world. Don’t sit round watching your factors steadiness climb increased and better — use these factors, get on the market, and begin touring!

It’s by no means been simpler to earn free flights, lodge stays, and different journey perks. And whereas there are some widespread errors to keep away from and the training curve can appear steep, when you get began, all of it comes into focus shortly, and also you’ll be questioning why you didn’t begin sooner.

So long as you make concrete targets, repay your invoice every month, and focus your spending on the suitable card(s), you’ll be capable to get pleasure from time-saving perks and free journey very quickly — and all simply by spending the cash you’d have spent anyway!