How to Start Travel Hacking with Points and Miles
Are you tired of feeling held back by your budget when it comes to travel? You’re not the only one. The good news is that there’s a way for you to take that trip you’ve always dreamed of without breaking the bank. You could be relaxing, sipping a cocktail on a destination beach, all thanks to points and miles. Sound too good to be true? With travel hacking, it’s just within reach.
In this post, I’ll be your guide to the exciting world of discounted travel through points and miles. Whether you’re a seasoned traveler or just skimming the surface of travel possibilities, there’s something for everyone. So, let’s get started.
What is Travel Hacking?
Maybe you’ve heard the term ‘travel hacking’ before and wondered what it’s all about. Basically, it’s a way to snag free or discounted travel from flights to hotels to other travel perks. This is done by strategically using rewards programs and credit cards to score sweet deals on travel.
It’s not as complicated as it sounds once you get the hang of it. With some research and knowing the ins and outs of your loyalty programs, you’ll be on your way to your dream destination before you know it.
Does Travel Hacking Work?
I get it. I was skeptical, too. It wasn’t until this last year that the fruits of my labor paid off, and I could fly to Africa from NYC in business class solely on points and miles. Truth be told, I wasn’t sure it was going to work until I had my ticket in my hand. And let me tell ya, the trip went off without a hitch!
So, travel hacking with points and miles definitely works. It takes some effort to get the hang of things, but with a bit of dedication anyone can do it.
What are points and miles?
Let’s get into the basics: What are points and miles?
Points are usually associated with credit card or hotel programs. When you use certain credit cards for your purchases, you earn points per every dollar spent. These points can later be used for cashback, travel, or other things. The key is to maximize those credit card points. Maximizing credit card points depends on 1. which card you choose, and 2. your spending habits. Different cards have different reward structures, so choosing the one that goes with your lifestyle is best.
For example, if you spend a lot on eating out, you might want a credit card that offers more points per dollar when used at restaurants.
The same applies to hotel programs. When you book stays at certain hotels, you can earn points that can be used for free stays or other perks. Some of these hotels are part of a larger program, in which these points can be used for any hotel that has a partnership with the program.
Now, some credit cards are co-branded with credit cards or hotels. This means that the points you earn on those cards can only be used with that company. On the other hand, many travel credit card programs let you transfer your points to a bunch of different airline or hotel partners. Giving you more flexibility to redeem rewards based on where you want to go.
Miles refer to the distance flown during your trip. After you’ve finished your flight, the airline credits your account with your miles. But be warned, not all miles are created equal. Depending on the airline and ticket fare, you might only earn some of the miles flown. Generally, the more expensive the ticket, the more miles you’ll get credit for.
So, what can you do with these points and miles? You can redeem them for flights or stays within the airline or hotel’s network. Giving you a chance to travel at a fraction of the cost.
Lots of these airlines and hotels have loyalty programs. These are called frequent flyer or rewards programs, which are free to join. These programs keep track of your points and miles, which helps you redeem rewards for travel later on.
How to earn points and miles
Credit Card Sign-up Bonuses
One of the quickest and easiest ways to earn points is credit card sign-up bonuses. If you’re looking to rack up points fast, this is how to do it. Many credit card companies offer these bonuses as an incentive to get you to sign up for the card. By spending a specific amount in a certain amount of time, you will earn this large lump sum of points.
For instance, when I signed up for my American Express Gold Card, if I spent $4,000 in three months, I would earn 90,000 points! This massive amount of points was one of the ways I flew to Africa extremely cheaply.
Okay, I know you’re probably getting excited about these point possibilities, but before you do anything, you have to make sure you approach the sign-up bonuses strategically. Keep your eyes on credit cards that match your spending habits. Also, make sure the spending minimum is within your budget.
A strategy I use is that when I know I have a big purchase coming up, like a wedding expense, flight, or whatever, I use whatever card I need to meet the minimum spend.
Don’t forget to keep a close eye on your credit card score. Apply for cards that you know you’ll get approved for, and try not to sign up for a lot of cards within a short period.
Everyday Spend
With earning points, don’t overlook the power of everyday spending. One of the most effective ways to earn points is through your day-to-day purchases. Many credit cards are designed to help you earn extra points in specific categories like dining, travel, groceries, or gas.
So, like I said earlier in the post, it’s better to choose a card that will align with your lifestyle and be used for things you normally spend money on. If you cook at home a lot, then it’s a good idea to look into a card that gives bonus points for spending at grocery stores. This will maximize your purchases and boost your points earnings.
Flying
Flying with airlines with loyalty programs can be one of the most effective ways to earn miles. Signing up for these programs is simple. However, I see lots of my nurse friends missing out on valuable points because they don’t want to take 5 minutes to sign up for the loyalty program, so don’t be like them!
Every time you fly with an airline that has a loyalty program, you earn miles that can later be used for flights, upgrades, or other perks. The number of miles you earn varies between programs. As I said earlier, many airlines base it on ticket prices. If you find yourself sticking with the same airlines, it might be worth staying with them to build loyalty to that program.
The perks of loyalty programs are even better than just earning miles. You can get status or other things like priority boarding, free checked bags, or lounge access.
Hotel Stays
Another great way to earn travel perks is through hotel loyalty programs. Many popular hotel chains let you earn points when you stay with them, which you can later use for free stays, upgrades, etc.
By becoming a loyalty member, you get points, exclusive member rates, promo offers, and other amenities like a snack or late check-out. Many hotel chains have partner hotels that let you earn and use points just the same, helping you access even more travel options.
Co-branded Credit Cards
If you’re looking to add even more travel points and miles, think about getting a co-branded credit card with your favorite airline or hotel. These cards usually have more perks associated with them and some even give you status with that program!
But keep in mind that the points earned with specific co-branded credit cards can only be used with that company or its transfer partners. So, keep that in mind when planning your travel because they’re not as flexible as having a plain travel credit card.
Shopping Portals
Did you know that you can earn extra points and miles by doing your regular everyday shopping? I didn’t either when I started my travel hacking obsession, but that’s okay because I’m going to break it down for you.
Tons of credit card companies, airlines, hotels, and even some apps offer shopping portals. You can earn points just by shopping through their special sites.
Depending on the company, when you shop through these portals, you earn a percentage of points or miles for every dollar spent. And these aren’t random no-name stores. They have everything from Ulta to Target to Walmart. During sales, a lot of sites offer promo deals where you can earn even more points from shopping through their portal.
Just don’t forget to compare rewards offered through different companies to make sure you’re maximizing those points. By making a habit of shopping through these portals you can supercharge your points earnings.
Buying Points
Okay, this one is a bit sticky. But you can buy points directly from that airline or hotel. Generally, it’s not a good idea to buy points. The cost per point can be preeetty high, and it is usually not a better deal than paying for your flight or hotel outright.
However, I will say, there are some instances where buying points is a good idea. An example of this would be if you’re just a few thousand miles short of being able to redeem a first class ticket. For things like this, buying points could be the smarter move.
Sometimes, these programs offer point bonuses, where if you purchase X amount of points, you get another large amount of bonus points. On the other hand, if you know you’re going to be planning a trip with this airline or hotel chain in the near future, then it could be a good idea to take advantage of the point bonus when offered.
So, if you’re on the fence about buying points, make sure you do your research. Compare the costs of buying the points with paying for the hotel or flight in cash.
How to get started with point redemptions
Once you have the points and miles saved up, it’s not enough to simply log in and redeem your points. This is why getting the best value from your rewards is so important.
Start by familiarizing yourself with the loyalty program’s redemption options. Different companies offer different redemptions and award availability. Yes, you heard that right. There has to be award availability in order to use your reward points and miles. So, knowing the specifics about your program will help you strategize your redemptions.
A common theme with travel hacking is flexibility with your travel plans. Obviously, that’s easier said than done, but it can help a lot when redeeming your points. Think about booking flights during off-peak times and being flexible enough to stretch your miles further. Many airlines have award charts on their website to give you an idea of how many miles you’ll need for specific routes. This makes it easier to plan for your redemptions. Also, many times throughout the year, airlines offer promos that could get you discounted redemptions.
For hotel stays, add up the number of points you’ll need compared to the cash price for the room. Sometimes, it’s more worth it to pay in cash than using points.
This is how I go about planning my trips:
1. Choose your travel destination: By knowing what airlines and hotel programs are available to the destination you want, you can choose the best reward programs. You’d hate to rack up all these points and miles just to find out later that the points you earned don’t transfer to the airline you plan on.
2. Get a travel rewards credit card: Think about applying for a card with a big sign-up bonus, and make sure to hit the minimum spend! It should also have high points/miles earning rates and travel perks. Make sure this credit card has the transfer partners you need. They should apply to your selected location.
3. Earn points and miles: Use your travel reward credit card for everyday purchases to earn points and miles. Take advantage of shopping portals and cash-back apps to maximize your point-earning potential.
4. Understand redemption options: Familiarize yourself with redemption options in your rewards program, including flights, hotels, rental cars, and other travel-related expenses.
5. Plan your trip: Once you’ve earned enough points and miles, check the rewards availability for flights and hotels at your destination.
6. Maximize redemptions: Find ways to maximize the value of your points and miles. Use them strategically during promotions or special redemption opportunities from that loyalty program.
It’s very common for credit card companies to offer promos like a 25% transfer bonus from their credit card points to one of their partners. You can save even more by taking advantage of these offers. But only do this if it makes sense for your travel plans.
7. Stay Informed: The travel industry and point values are always changing. Keep an eye on any updates on your points and miles.
How to Choose the Right Reward Credit Card
Picking the right reward travel credit card is essential for maximizing reward travel.
To do this, you can first take a good, honest look at your spending habits—do you spend more on dining, groceries, or travel? Then, look for credit cards that offer more bonus points in those categories.
Next, look at the sign-up bonuses. Many cards offer a large sum of points to entice you to sign up for their card. But make sure you read the terms and conditions to understand how much you need to spend and in what timeframe to get the point bonus. Also, be sure to check out the annual fees. I find that the more rewards available with a specific card, the more expensive it tends to be. But I’ll also say that with the amount of perks available to you, the cards usually pay for themselves.
Another consideration is whether you’re able to redeem points easily for travel that aligns with your travel goals. Some cards have a more strict redemption process than others, which might not be worth the hassle.
Lastly, check for any additional perks that can up your travel experience. Many travel cards come with benefits like, no foreign transaction fees, travel insurance, or access to airport lounges. For me, these are the kinds of things that make my travel experience 10x better.
By doing the research and putting some thought into your spending habits and travel goals, you can maximize rewards and make every purchase work for you.
Staying Organized with Your Travel Rewards
This may not be an initial thought, but it’s important to stay organized to maximize your travel rewards and keep track of all those points and miles. With multiple credit cards and loyalty programs, having a system in place can keep you from missing out on some great opportunities.
For instance, you could start by creating a simple spreadsheet. Log your points and miles there, and keep track of expiration dates, balances, status, etc. This can give you a good idea of where you’re at in your progress.
You could also set up alerts for important dates, like when special promos are being offered or expiration dates. Regularly reviewing your strategy and progress can help you decide what’s working for you and what needs improvement.
Beginner Travel Credit Card Recommendation
Chase Sapphire Preferred
My favorite card for beginner travel hacking is the Chase Sapphire Preferred. It’s a staple in the points and miles community and has many perks. Right now, this card is offering a 60K points sign-up bonus.
This card offers:
- $50 annual Chase Travel Hotel credit
- 5x the points on hotels and car rentals purchased through Chase Travel
- 2x points on all other travel purchases
- 3x points on dining
In addition, the card offers 10% anniversary points based on the previous year’s card spend. One of my favorite benefits of this card is that it provides rental car coverage when used for car rentals. The Chase Sapphire Preferred has an annual fee of $95, but it’s well worth it. In addition to its many benefits, this card has 11 transfer partners to choose from when planning your travel.
Sign up for yours here.
Common Mistakes to Avoid
While travel hacking can be a great way to save money, there’s a few things to steer clear of, and I’m speaking from my mistakes.
Letting Points or Miles Expire
Many loyalty programs have expiration policies, so it’s important to keep track of your balances and to make sure your account stays active. It’s a good idea to look at the fine print before going all in, to make sure your strategy is doable.
Not Taking Advantage of Elite Benefits
Having done this myself, I’ve noticed that many people overlook the perks of loyalty programs, like priority boarding, free checked bags, or upgrades. If you are earning points, make sure you take advantage of the benefits that come with your status.
Spreading Yourself Too Thin
Try not to spread yourself too thin by joining a bunch of loyalty programs all at once. Instead, focus on a few programs that you know you’ll use to maximize your earnings.
Accumulating Debt
Travel credit cards have a very high interest rate. It makes absolutely no sense to open one of these cards if you won’t be able to pay it off. It can be very tempting to spend to earn points, but the debt will just cancel out the value of your travel points.
Disclaimer
I know I said it already but I really want to make sure you get the point: It’s important to use credit cards responsibly. This is especially true for travel credit cards. These cards offer great chances to earn points and miles, but they can also have high APRs and annual fees. Paying your credit card bills on time and in full each month is crucial to make sure you don’t end up in debt.
Also, tracking your spending and staying within your budget is essential. It can be tempting to overspend to earn more points, but this can lead you down a financial hole that you may not be able to get out of. Only charge what you can afford to pay off each month.
Another tip for using credit cards is not to carry a balance. This avoids interest charges, which can eat into your rewards.
Finally, look at the terms and conditions. They apply to credit card rewards and loyalty programs. Some programs have expiration dates for earned points or miles. So, know the rules and use your rewards before they expire.
Final Thoughts On Beginner Travel Hacking
Using the power of points and miles is a game-changer when experiencing the world of free and discounted travel. Maximizing your everyday spending can earn you points and miles to make your dream trip a reality.
So, what are you waiting for? Start earning points and miles today. Explore your travel opportunities and experience unforgettable adventures. Let me know in the comments how travel hacking has helped you. Happy travels!
Resources
Favorite Travel Hacking Blogs:
Favorite Travel Hacking Podcasts: