10 Travel Hacking Mistakes to Avoid

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

Travel hacking is the artwork of signing up for journey bank cards and accumulating factors and miles which you can money in without spending a dime flights, flight upgrades, lodge stays, and extra — all with none further spending. In brief, it’s a method to get extra for much less.

Over the years, I’ve loved numerous free upgrades, free flights, free lodge stays, and different perks — all with none further spending. Travel 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 very best playing cards and perks are within the US, journey hacking is out there all world wide too (Canada, the UK, Australia, New Zealand, and Europe all have journey hacking choices as of late).

Since I’ve been journey hacking for years, I’ve talked with numerous folks about taking part in the points-and-miles recreation. I’ve additionally seen tons of newbies make numerous errors — errors that affect their potential to journey without spending a dime (or no less than for reasonable).

Here are the most important journey hacking errors that I see folks making so as to keep away from them, save your factors and miles, and make your journey greenback go additional:

1. Not Starting at All

When I ask most individuals why they don’t journey hack, they simply shrug their shoulders and say, “I don’t know. Seems hard, I guess.”

The greatest motive 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 large spenders), or that it’s a rip-off.

But side-stepping the points-and-miles recreation totally is the most important mistake you might make. It’s akin to saying no to free cash. If you 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 good about your spending.
 

2. Not Having a Goal

Before you join your first card, a very powerful factor to do is make a objective. Think concerning the journey you wish to take, the place you wish to keep, and the way you wish to get there. Then get the journey bank cards that can aid you get there.

Without making a objective, you’ll don’t know what card (or playing cards) are finest for you, as every gives completely different advantages that can match completely different existence, budgets, and journey targets.

Remember: there isn’t any good card. There is just the right card for you.

Are you interested by loyalty to a model, free rewards, or avoiding charges? Do you need free flights and/or lodge stays? Is elite standing a very powerful perk for you?

If you simply need factors to spend wherever you select, get playing cards with transferable factors (Chase, Amex, Citi, and Capital One are the principle examples of those) as a result of you should utilize 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 lodge companions or used to e-book journey straight by way of their very own journey portal web sites.

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

3. Not Getting Cards with an Annual Fee

When it involves selecting a journey bank card, many individuals balk at excessive bank card charges, which may typically be tons of of {dollars} per yr. Surely the bank card firms are simply taking your cash, proper?

Not precisely.

While it’s true that you just’ll need to resolve whether or not playing cards with increased charges are value 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 may accumulate factors quicker), and different perks, reminiscent of higher journey safety and entry to particular gives. For me, even the playing cards with the best annual charges are value it, as I’ve saved more cash on journey than I’ve ever spent on charges.

But you don’t need to go for the playing cards with the best annual charges proper off the bat. There are many “starter” playing cards that waive the price the primary yr, and after which are simply $95 per yr. That manner, you may see whether or not it’s value it to you.

If you actually don’t wish to pay a price however nonetheless wish to get in on the sport, the Bilt Rewards card is my favourite no-fee choice. This game-changing card gives you the power 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 strong journey protections too. If you’re simply beginning out (and pay lease), it is a must-have card.
 

4. Not Meeting Signup Bonuses

The finest journey playing cards supply a large introductory supply, additionally referred to as “welcome offers” or “sign-up bonuses.” This is once 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 may earn you 60,000 factors).

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

One of the most important errors you may make will not be benefiting from these bonuses. Again, 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 not free. Only spend what you usually would and never a penny extra.

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

• Ask mates or household if they’ve any massive purchases developing. You can then pay for the merchandise in your card and get them to pay you again.
• When out to eat with mates, put every little thing on one invoice and pay it together with your card. Then get everybody to pay you again individually.

5. Not Paying Off Your Credit Cards Monthly

This is a central tenet not solely of journey hacking however bank card use on the whole. Do not 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. If you’re paying curiosity, the factors are not free.

If you may’t repay your steadiness in full, you shouldn’t be journey hacking.
 

6. Thinking That Points Have Intrinsic Value

Once you begin signing up for journey bank cards, it may be simple to get excited at large sign-up bonuses and spending classes the place you may rack up a number of factors shortly. Hotel bank 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).

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

When assigning a price to factors, the mathematics 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 month-to-month valuation chart to be probably the most correct as a useful cheat sheet to make use of as a baseline for what is taken into account a great per-point worth.

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

Point worth is within the eye of the beholder.

(Just by no means redeem factors for money. This is the least helpful use of factors.)
 

7. Not Maximizing Bonus Categories

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

But 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 Express Platinum Card for airfare (5x factors).

Never settle for one level per greenback spent. Otherwise, it should take manner too lengthy to build up sufficient factors without spending a dime journey.
 

8. Not Taking Advantage of Card Benefits and Perks

Travel 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 playing cards offer you a particular elite loyalty standing or different further perks. Don’t make the error of getting a card after which not taking full benefit of every little thing that it has to supply.

Here are the perks I personally prioritize:

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

You may need completely different priorities, however irrespective of the case, you’ll want to discover the advantages of your chosen card(s) and really use these that include it.
 

9. Not Getting Transferable Points

Transferable factors are these which you can switch to completely different packages. These are on the coronary heart of each good journey hacking technique.

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

You can earn transferable factors with bank cards issued by Chase, Capital One, Bilt, Citi, and American Express, although remember the fact that these are all separate “currencies.” With Chase, you earn Ultimate Rewards factors, whilst you earn Membership Rewards factors with American Express.

These factors are transferable not to one another however reasonably to their respective airline and lodge companions, with whom you may then e-book a flight or lodge keep.

It’s usually higher to get transferable factors than, say, airline-specific factors (reminiscent of you’d get with an airline bank 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 may’t use your Delta factors to benefit from it.

While it might sound difficult, it’s simpler than you assume — it’s nearly discovering the precise card in your wants, transferring factors to an airline or lodge accomplice, after which reserving. This course of is simpler than ever because of the brand new points-booking search engine, level.me.

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

10. Hoarding Your Points

Many folks, as soon as they amass some factors, are afraid to make use of them in any respect. They both don’t know methods to use them or wish to watch for the “best possible value.”

But 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, motels, and airways alter their packages. Unfortunately, meaning your factors might lose a major quantity of worth in a single day (don’t fear, this doesn’t occur often, nevertheless it does occur).

Points are meant for use. They’re a automobile for getting you free flights and motels so as 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 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.

As lengthy as you make concrete targets, repay your invoice every month, and focus your spending on the precise card(s), you’ll be capable to take pleasure in time-saving perks and free journey very quickly — and all simply by spending the cash you’ll have spent anyway!