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 hundreds of {dollars} through the years.

Journey hacking is the artwork of signing up for journey bank cards and amassing factors and miles that you would be able to money in free of charge flights, flight upgrades, resort stays, and extra — all with none additional spending. In brief, it’s a technique to get extra for much less.

Through the years, I’ve loved numerous free upgrades, free flights, free resort 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 most effective playing cards and perks are within the US, journey hacking is offered all world wide 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 affect their potential to journey free of charge (or not less than for affordable).

Listed here are the most important journey hacking errors that I see individuals making so that you could keep away from them, save your factors and miles, and make your journey greenback go additional:

1. Not Beginning at All

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

The most important purpose that folks don’t begin journey hacking is that they assume it’s too difficult, it’s just for individuals who journey typically (or are massive spenders), or that it’s a scam.

However side-stepping the points-and-miles recreation completely is the most important mistake you can make. It’s akin to saying no to free cash. For those who repay your bank card every month, you’re shedding out for those who aren’t incomes factors and miles, that are merely perks that you just get for being sensible about your spending.
 

2. Not Having a Purpose

Earlier than you join your first card, a very powerful factor to do is make a objective. 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 provide help to get there.

With out making a objective, you’ll do not know what card (or playing cards) are greatest for you, as every provides completely different advantages that can match completely different life, budgets, and journey objectives.

Bear in mind: there isn’t any excellent card. There’s solely the perfect card for you.

Are you curious about loyalty to a model, free rewards, or avoiding charges? Would you like free flights and/or resort stays? Is elite standing a very powerful perk for you?

For those who 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 need to use their factors with a wide range of journey firms. They every have their very own rewards packages and factors that may be transferred to a number of airways or resort companions or used to ebook journey instantly by way of their very own journey portal web sites.

Decide your objective(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

On the subject of choosing a travel credit card, many individuals balk at excessive bank card charges, which may typically be tons of of {dollars} per 12 months. Absolutely the bank card firms are simply taking your cash, proper?

Not precisely.

Whereas it’s true that you just’ll should determine whether or not playing cards with greater 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 possibly can accumulate factors sooner), and different perks, akin to higher journey safety and entry to particular provides. For me, even the playing cards with the very 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 very best annual charges proper off the bat. There are numerous “starter” playing cards that waive the charge the primary 12 months, and after which can be simply $95 per 12 months. That means, you possibly can see whether or not it’s price it to you.

For those who 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 choice. This game-changing card provides 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 provides strong journey protections too. For those who’re simply beginning out (and pay lease), this can be a must-have card.
 

4. Not Assembly Signup Bonuses

The best travel cards supply a large introductory supply, additionally known as “welcome provides” or “sign-up bonuses.” That is while you earn many factors without delay 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 provides are how I earn one million points each year. They’re tremendous essential, as they jump-start your account and instantly get you nearer to a free flight or resort keep. Typically these provides are even large enough to get you a free flight proper off the bat!

One of many largest errors you may make shouldn’t be making the most of 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 for those who can meet their minimal spending necessities for the welcome bonus together with your regular spending. If you’re spending more cash than you often do exactly 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 possibly can then pay for the merchandise in your card and get them to pay you again.
• When out to eat with associates, put all the pieces on one invoice and pay it together with your card. Then get everybody to pay you again individually.

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

It is a central tenet not solely of journey hacking however bank card use usually. Don’t ever carry a stability on these playing cards, because the sky-high rates of interest will wipe out any potential profit you’d get from them. For those who’re paying curiosity, the factors are now not free.

For those who can’t repay your stability in full, you shouldn’t be journey hacking.
 

6. Considering That Factors Have Intrinsic Worth

When you begin taking a look at signing up for journey bank cards, it may be straightforward to get excited at big sign-up bonuses and spending classes the place you possibly can rack up a number of factors shortly. Hotel credit cards are infamous for this, often 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 essential to grasp is that one level will go additional in some packages than others. The worth of a degree shouldn’t be fastened. It’s not the identical throughout packages. One IHG level shouldn’t be the identical as one United level, similar to one Chase level shouldn’t be the identical as one Hyatt level.

When assigning a worth to factors, the maths is definitely fairly easy: take the money worth (what you’ll pay for those who 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 an excellent per-point worth.

That stated, a number of redemption comes all the way down to the non-public worth that you just assign to these factors. Would you somewhat redeem them for flying in first-class, or would you somewhat take two financial system flights for a similar variety of factors? Would you somewhat keep in a five-star resort for a weekend or keep in a three-star resort for per week?

Level worth is within the eye of the beholder.

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

7. Not Maximizing Bonus Classes

Talking of level worth, seeing {that a} flight “prices” 30,000 factors could be intimidating, thanks to a different frequent mistake: considering that it’s important to spend $1 to get 1 level.

However good journey hacking is rarely about getting just one mile or level per greenback spent. It’s straightforward to get 2-5x (or extra!) for each greenback you spend. This helps you earn factors way more shortly.

For instance, I take advantage of 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’s going to take means too lengthy to build up sufficient factors free of charge journey.
 

8. Not Taking Benefit of Card Advantages and Perks

Journey hacking is not only 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 all the pieces that it has to supply.

Listed here are the perks I personally prioritize:

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

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

9. Not Getting Transferable Factors

Transferable factors are these that you would be able to switch to completely different packages. These are on the coronary heart of each good journey hacking technique.

Nonetheless, many individuals shrink back from utilizing them, because it appears too difficult. They could get a card with transferable factors however redeem them by way of a journey portal or select to get money again as an alternative. But transferable factors are how one can get superb worth.

You possibly can 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 somewhat to their respective airline and resort companions, with whom you possibly can then ebook a flight or resort keep.

It’s typically higher to get transferable factors than, say, airline-specific factors (akin to 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 for those who discover a higher flight with United, that’s too dangerous — you possibly can’t use your Delta factors to reap the benefits of it.

Whereas it may appear difficult, it’s simpler than you assume — it’s nearly discovering the proper card on your wants, shifting factors to an airline or resort associate, after which reserving. This course of is less complicated than ever due to the brand new points-booking search engine, point.me.

(I additionally go extra in-depth into transferable factors and how you can 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 how you can use them or wish to watch for the “absolute best worth.”

However factors burning a gap in your digital pocket aren’t going that will help you. The worth of factors adjustments on a regular basis as bank card firms, inns, and airways alter their packages. Sadly, which means your factors might lose a major 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 inns so that you could get on the market and see the world. Don’t sit round watching your factors stability climb greater and better — use these factors, get on the market, and begin touring!

It’s by no means been simpler to earn free flights, resort stays, and different journey perks. And whereas there are some frequent errors to keep away from and the educational 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 objectives, repay your invoice every month, and focus your spending on the proper card(s), you’ll have the ability to take pleasure in time-saving perks and free journey very quickly — and all simply by spending the cash you’ll have spent anyway!