Guide to Travel Hacking – Earn Credit Card Points Faster

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Fly for Free: My Guide to the Points & Miles Hobby

I’m so excited to share my experience with the points & miles hobby, which has allowed me to travel more without spending more. I’ve been doing this for almost ten years and haven’t paid for a flight in that time! I’m excited to share all the tips and tricks I’ve learned along the way, so you can experience the same freedom and flexibility in your travels.

Why I Started

My goal was simple: travel more without breaking the bank. It all started with a desire to explore the world without the limitations of a tight budget. The idea of flying for free was incredibly appealing, and I was determined to find a way to make it happen. I remember thinking, “There has to be a way to travel more without constantly worrying about the cost.” That’s when I stumbled upon the world of points and miles.

Basic Rules

Before diving in, ensure you have a good credit score (700+) and at least one year of credit history. The most important rule? Always pay your balance in full and on time, without fail. This is crucial for maintaining a good credit score and avoiding interest charges, which can quickly negate the value of your rewards.

Benefits of Points & Miles

You can use points and miles to book flights, hotels, and more. The best part is that you don’t have to spend more than you normally would; it’s about using the right cards strategically. By optimizing your spending and taking advantage of various earning opportunities, you can accumulate a substantial amount of points and miles without altering your lifestyle.

Goals of the Hobby

The main goals are to earn as many points and miles as possible, redeem them for maximum travel savings, and do it all with minimal additional spending. It’s a balancing act that requires careful planning and execution, but the rewards are well worth the effort.

How to Earn Points & Miles

While you can earn points and miles through everyday spending, shopping portals, dining programs, and travel, the biggest value comes from sign-up bonuses. For example, you might earn 50,000 points by spending $4,000 in 3 months. Just be sure to only pursue bonuses if the required spending fits within your normal budget. You don’t want to end up spending more than you can afford just to chase a bonus.

Credit Impact

Earning points strategically won’t hurt your credit score if managed responsibly. Opening new cards every 3 months works well for me, but you can adjust the frequency based on your comfort level. The key is to monitor your credit report regularly and ensure you’re not overextending yourself.

Types of Points & Miles

There are four main types: airline miles, hotel points, transferable points, and bank points. Transferable points are the most valuable because they offer the most flexibility. For example, Chase Ultimate Rewards can be transferred to Southwest, United, and Hyatt. This allows you to choose the best redemption option based on your travel needs and preferences.

Award Redemption Guide

Typical costs for domestic flights range from 25,000 to 50,000 miles for economy and 45,000 to 75,000 miles for business class. International flights range from 60,000 to 100,000 miles for economy and 110,000 to 190,000 miles for business class. These are just estimates, and actual costs can vary depending on the airline, route, and time of year.

Choosing the Right Card

Always prioritize cards offering the highest overall value after considering sign-up bonuses, benefits, and fees. The Chase Sapphire Preferred is a great starting point for beginners. It offers a generous sign-up bonus, valuable travel benefits, and a reasonable annual fee.

Managing Cards

Keep cards for at least one year to avoid bank penalties. Annually evaluate each card and decide whether to keep it, downgrade it, or close it. This will help you maximize the value of your rewards and minimize any unnecessary fees.

Advanced Strategies

Consider strategies like the Southwest Companion Pass, which allows a companion to fly free for nearly two years. Another option is the Player 2 strategy, where you and a partner open cards and refer each other to maximize points earning. These strategies require more effort and coordination, but they can significantly increase your travel rewards.

Tools & Resources

Utilize apps like Travel Freely and 10x Travel App to track your cards and bonuses. For redemptions, explore tools like point.me, roame.travel, and pointsyeah.com. These resources can help you find the best redemption options and maximize the value of your points and miles.

Pro Tips

Practice searching for award redemptions to get comfortable with the process. When redeeming, compare options across airlines and hotels before transferring points. Remember, more points don’t always equal more value. Take advantage of perks like TSA PreCheck, lounge access, and travel insurance. These perks can enhance your travel experience and provide additional value.

Airline Alliances

Airlines often partner with other airlines to form alliances, which can expand your redemption options and increase the value of your miles. For example, I once transferred Chase points to Air Canada and booked a business class seat on EgyptAir to Cairo for only 70,000 points, whereas the same flight on United would have cost 90,000 points.

Business Cards

Business credit cards can be a valuable addition to your points and miles strategy. They often offer higher sign-up bonuses and better benefits than personal cards. You don’t need to have a formal LLC or be a business owner to qualify for a business card. If you have a side hustle, freelance work, or even just a hobby that you’re passionate about, you can apply for a business card as a sole proprietor.

Chase 5/24 Rule

Chase has an unwritten rule called the 5/24 rule, which means that if you’ve opened 5 or more personal credit cards (with any bank) in the last 24 months, you won’t be approved for a new Chase credit card. Most business cards don’t count toward this rule, so it’s a good idea to prioritize Chase cards early on in your points and miles journey.

Sign-Up Bonus Restrictions

Be aware that there are restrictions on how often you can earn sign-up bonuses. For many bank credit cards, if you open a card and earn the sign-up bonus, you cannot be approved for that card again until at least 24 months have passed since the date that bonus was awarded. Some cards, like the Chase Sapphire cards and most Citi cards, have a 48-month waiting period. American Express generally limits you to one bonus per card per lifetime.

Player 2 Strategy

The Player 2 strategy is a great way to maximize your points earning with a partner. One person opens a card and then sends a referral link to their partner to open the same card. This allows both of you to earn the sign-up bonus and potentially earn additional points through the referral. Avoid adding each other as authorized users unless absolutely necessary, as this can count against your 5/24 status.

Southwest Companion Pass

The Southwest Companion Pass is a particularly lucrative points & miles strategy that gives you the ability to take a companion on any Southwest flight for upwards of 2 years. Earning one requires that you earn 135,000 qualifying points in the same calendar year (Jan – Dec), which is ideally done using a strategy of opening one or more Southwest cards and timing it such that their bonuses post early in the calendar year (Jan/Feb/March).

Deep Dive into Transferable Points Programs

• Chase Ultimate Rewards: One of the most valuable transferable points programs, Chase Ultimate Rewards points can be transferred to a variety of airline and hotel partners, including United Airlines, Southwest Airlines, JetBlue, Hyatt, Marriott, and more. This flexibility allows you to redeem your points for flights, hotel stays, car rentals, and other travel experiences.
• American Express Membership Rewards: Another popular transferable points program, American Express Membership Rewards points can be transferred to airline partners such as Delta Air Lines, Air Canada, and Virgin Atlantic, as well as hotel partners like Hilton Honors and Marriott Bonvoy.
• Citi ThankYou Rewards: Citi ThankYou Rewards points offer transfer options to airlines like JetBlue, Turkish Airlines, and Singapore Airlines, providing opportunities for unique and valuable redemptions.
• Capital One Miles: Capital One miles can be transferred to a growing list of travel partners, including airlines like Air Canada and Etihad Airways, and hotels like Wyndham Rewards and Accor Live Limitless.

Maximizing Everyday Spending

• Shopping Portals: Online shopping portals offer bonus points or miles for purchases made through their links. By starting your online shopping at a portal like Rakuten or TopCashback, you can earn additional rewards on top of the points or miles you earn from your credit card.
• Dining Programs: Many airlines and hotels have dining programs that offer bonus points for dining at participating restaurants. By linking your credit card to a dining program, you can earn extra points simply by paying for your meals with your card.
• Credit Card Bonus Categories: Some credit cards offer bonus rewards in specific spending categories, such as dining, groceries, or gas. By using the right card for each purchase category, you can maximize your points earning potential.

Conclusion

The points & miles hobby can seem daunting at first, but it’s incredibly rewarding. With a little effort and strategy, you can unlock amazing travel experiences without spending a fortune. So, start exploring the world of points and miles, and get ready to embark on your next adventure!