So I've raved about travel hacking enough. Now it's time to teach you how to do it!
Warning: Travel hacking is highly addictive and will result in enhanced experiences, amazing memories and an unquenchable desire for more travel!
At the end of 2016, I stumbled across this thing call "travel hacking" and it shaped an amazing 2017 year of travel for me. Travel hacking is an art! It involves using credit card miles/ points to book travel instead of money. It sounds like some sort of sorcery or complicated trick that pulls the wool over the eyes of credit card companies but that's not the case. They offer amazing promotional offers for signing up for their credit cards and they encourage you to use them toward their product (hotels, airlines etc...).
If I can do you, you can too! In my first year of travel hacking I earned just over $5,000 in free travel! It was a piece of cake and I'm going to show you how to do it!
Travel hacking takes crazy discipline and good credit ( because you need to be able to get approved for the credit cards). Although travel hacking is easy and anyone can do it, it is not for everyone but amazing travel benefits aren't only reserved for the rich!
Travel hacking is NOT for you if:
You have bad credit. You will need to be able to get approved for credit cards. And let's go ahead and address the myth that this will ruin your credit; it won't. It made mine better!
You are not disciplined. You must pay your credit card off every month. Paying interest on outstanding balances doesn't equate to free travel.
Travel is not your #1 priority. Travel hacking does require some minor changes in the way you spend and how you spend. If you aren't committed to putting all of your spend on a credit card ( including monthly bills), then you will not see your points balance increase...what's the point?
If you're still reading, I imagine that you feel like travel hacking is something you can do. OK, let's dig in! Here are the steps to becoming a real life travel hacker:
1. Determine your targets, check promotions and apply. Targets are the credit cards that you wish to "hack". Targets should be brands that you like and frequent. For example: Hilton is one of my favorite hotel chains so I obtained the Hilton Honors American Express Card. Sometimes it works to start with your goal then apply for the products to get you there. Make sure the target card has a good promotional balance that is feasible for you. If you do not meet the promotional spend minimum, you will forfeit the promotional points. No bueno!
2. Meet the promotional spend minimum. Usually the credit card offer will ask you to spend X amount of dollars in Y amount of time to earn Z amount of points/miles! Pay attention to the terms. You do not want to come short and forfeit the offer. It has always worked for me to divide the promotional minimum by the number of months. For example: Hilton wanted me to spend $1,000 in 3 months. That's $333 per month! Between my cell phone bill, cable bill and groceries alone I far exceeded that per month.
3. Once you have enough points, book your travel. If you are lucky, your promotional points/miles alone will send you on your way but if not, you may need to spend a little more to earn more miles/points for your goal. These cards always earn points; I've made them my primary cards so that I can constantly earn points on my spending. You are probably thinking, travel hacking isn't as easy as 1,2,3... you're off; but it really is! The process to earning your first free night, plane ticket or whole trip may take 6 months or so but as long as you meet your promotional spend, you will have a heck of a head start within 3 months to meet a big goal or take a small getaway.
One important point is that you need to know what you are after. Are you after one big goal like my Hawaii trip that cost 210,000 Hilton Honors points and 110,000 Delta Skymiles or several smaller traveling events like a free night here or there? At first I didn't know; I was happy to have points and they burned a hole in my pocket so I was spending them as fast as I earned them but when I realized the value of the points and what they could get me ( ie: dream vacation to Hawaii), I started hoarding them towards the grand prize!
If I haven't won you over yet and you are still skeptical, I'll address a few myths!
Myth #1: This will hurt your credit. Nope! To the contrary. It helped my credit. Keep in mind you are not carrying a balance on these cards.
Myth #2: Your credit has to be perfect. Not true. You can travel hack with decent credit. It doesn't have to be perfect but it can't be the lowest of lows. Your credit will only determine the types of cards you can get approved for.
Myth #3: It's not really free travel if you have to use a credit card. It is! I use my credit cards to pay regular bills. Things that I have to pay regardless of the method of payment. Water bill, car insurance, phone bills etc... Instead of paying these bills out of my checking account, I pay them with my points earning card then pay off the card. Never charge up a card with unnecessary purchases to get points.
Myth #4: There is some sort of catch. Nope, not really. Can you get the credit card? Can you meet the minimum spend? Then you too can earn free travel. No catch! The credit card companies know what they are doing when they offer promotions like this. Although the name "travel hacking" may sound sneaky and deceptive, it's not!
Myth #5: You can't earn points if you don't travel. Not true! 90% of my airline miles I earned on the ground! Yes, points and miles are earned through travel but they are also earned through spend. For example: some cards may give you 3x the points on gas station and grocery store purchases. Travel hacking does require you to modify your spending habits!
It really is easy! The perks are incredible. $5,000 in free travel in a year's time! I can tell you, this has changed my life. Not only can I travel to places for FREE that my money couldn't take me but I can travel more, I spend less and the memories that travel hacking are affording me are priceless!
What are you waiting for? join the wonderful world of travel hacking!
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