10 Travel Hacking Mistakes to Avoid

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I’m an enormous fan of journey hacking. It’s remodeled 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 could money in at no cost flights, flight upgrades, lodge stays, and extra — all with none additional spending. In quick, it’s a approach 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 additional 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 most effective playing cards and perks are within the US, journey hacking is accessible 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 individuals about taking part in the points-and-miles sport. I’ve additionally seen tons of newbies make numerous errors — errors that impression their skill to journey at no cost (or at the least for affordable).

Here 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 Starting at All

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

The largest motive that individuals don’t begin journey hacking is that they assume it’s too sophisticated, it’s just for individuals who journey usually (or are massive spenders), or that it’s a rip-off.

But side-stepping the points-and-miles sport solely is the largest mistake you would make. It’s akin to saying no to free cash. If you repay your bank card every month, you’re shedding out when you aren’t incomes factors and miles, that are merely perks that you simply 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 aim. Think in regards to 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 aim, you’ll do not know what card (or playing cards) are greatest for you, as every gives completely different advantages that can match completely different life, budgets, and journey objectives.

Remember: there isn’t a good card. There is simply the proper card for you.

Are you curious about 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 use their factors with a wide range of journey firms. They every have their very own rewards applications and factors that may be transferred to a number of airways or lodge companions or used to e-book journey straight by their very own journey portal web sites.

Determine your aim(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 generally be a whole lot of {dollars} per yr. Surely the bank card firms are simply taking your cash, proper?

Not precisely.

While it’s true that you simply’ll must resolve whether or not playing cards with larger charges are value it for you, playing cards with annual charges are normally a lot better than no-fee playing cards: they provide extra worth, higher bonus classes (so you’ll be able to accumulate factors quicker), and different perks, equivalent to higher journey safety and entry to particular gives. For me, even the playing cards with the very best annual charges are value it, as I’ve saved extra money on journey than I’ve ever spent on charges.

But you don’t must go for the playing cards with the very best annual charges proper off the bat. There are many “starter” playing cards that waive the price the primary yr, and after which might be simply $95 per yr. That method, you’ll be able to 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 possibility. This game-changing card gives you the flexibility to earn factors by paying your hire (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 hire), this can be a must-have card.
 

4. Not Meeting Signup Bonuses

The greatest journey playing cards provide a large introductory provide, additionally known as “welcome offers” or “sign-up bonuses.” This is while you earn many factors directly by spending a sure amount of cash 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 annually. They’re tremendous vital, as they jump-start your account and instantly get you nearer to a free flight or lodge keep. Sometimes these gives are even large enough to get you a free flight proper off the bat!

One of the largest errors you can also make shouldn’t be making the most of 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 when you can meet their minimal spending necessities for the welcome bonus along with your regular spending. If you might be spending extra money than you normally just do to get these factors, then the factors are now 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 quick, these are some issues you are able to do:

• Ask associates or household if they’ve any massive purchases arising. You 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 along 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 basically. Do not 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. If you’re paying curiosity, the factors are now not free.

If you’ll be able to’t repay your stability 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’ll be able to rack up loads of factors rapidly. Hotel bank cards are infamous for this, commonly providing sign-up bonuses of over 100,000 factors and bonus spending classes that may be as much as 26x factors per $1 spent (supplied by IHG on spending for IHG properties).

But what’s vital to know is that one level will go additional in some applications than others. The worth of some extent shouldn’t be mounted. It shouldn’t be the identical throughout applications. 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 mathematics is definitely fairly easy: take the money worth (what you’d pay when you 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 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 mentioned, loads of redemption comes right down to the non-public worth that you simply assign to these factors. Would you moderately redeem them for flying in first-class, or would you moderately take two economic system flights for a similar variety of factors? Would you moderately keep in a five-star lodge for a weekend or keep in a three-star lodge for every week?

Point worth is within the eye of the beholder.

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

7. Not Maximizing Bonus Categories

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

But good journey hacking is rarely 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 way more rapidly.

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 Express Platinum Card for airfare (5x factors).

Never settle for one level per greenback spent. Otherwise, it would take method too lengthy to build up sufficient factors at no cost journey.
 

8. Not Taking Advantage of Card Benefits and Perks

Travel 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 playing cards offer you a particular elite loyalty standing or different additional 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.

Here are the perks I personally prioritize:

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

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

9. Not Getting Transferable Points

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

However, many individuals shrink 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 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 understand 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 moderately 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 (equivalent to you’d get with an airline bank card), as these can’t be moved anyplace. Delta factors can solely be used on Delta flights (or their alliance companions), and when you discover a higher flight with United, that’s too dangerous — you’ll be able to’t use your Delta factors to reap the benefits of it.

While it might sound sophisticated, it’s simpler than you assume — it’s nearly discovering the best card on your wants, shifting factors to an airline or lodge associate, after which reserving. This course of is less complicated than ever due to the brand new points-booking search engine, level.me.

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

10. Hoarding Your Points

Many individuals, as soon as they amass some factors, are afraid to make use of them in any respect. They both don’t know find out how 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, lodges, and airways alter their applications. Unfortunately, which means your factors may lose a big quantity of worth in a single day (don’t fear, this doesn’t occur steadily, but it surely does occur).

Points are meant for use. They’re a automobile for getting you free flights and lodges with the intention to get on the market and see the world. Don’t sit round watching your factors stability climb larger 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 educational curve can appear steep, when you get began, all of it comes into focus rapidly, and also you’ll be questioning why you didn’t begin sooner.

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