I’ve never paid for any flight and been traveling for free since 2015. It may sound unreal, getting flights around the world for free, but travelers have been doing this for some years now. It’s called travel hacking. I didn’t believe that it was doable in the beginning but after I started last 2014 and got the hang of it, it changed my life. I was able to travel and see many countries I never thought I would visit and for free! It’s surprisingly easy but it’s not like winning a lottery and then you’ll get unlimited free flights all over the world instantly. It’s more like a mini project or a side project that needs some time, research, organization, and smart spending practices. Once you figure out how things work then the rewards are remarkable. It can change the way you travel, you’ll be able to go to your dream destinations, and it can change your lifestyle like what happened to us.
There are millions of ways to collect miles and credit card points that’s why some people call travel hacking as an art. But for me, it’s just a big puzzle of airline alliances and credit card rewards because I love solving puzzles. Once you figure it out, meet the requirements, and organize it for your advantage then your prize will be years or maybe a lifetime of free travel. The hardest part, like any other project, is to get started. So here are three simple steps to help you get started:
1. Sign up for three or four travel credit cards that give sign-up bonuses.
How to apply for credit cards: I won’t detail in this article the requirements to be able to apply for credit cards (credit score, credit history, social security, etc.) because it’s different for every country and credit card company. The important thing to know is that anyone can do this. Travel hacking is easier if you’re in countries like US, Canada, Australia, or the UK because they have more credit card options with great sign-up bonuses but if you’re able to figure out how to pass the requirements then you can apply from any part of the world. For example, I’m a Filipino but I’m able to leverage the US credit card bonuses even if I’m not a US citizen and even if I’m traveling and not physically in the United States. Credit card application can all be done online and I’ll provide the links below. You just need to fill up the online form and most of the time you’ll get the approval decision right away.
Which credit cards to choose: There are many credit cards out there that offer sign-up bonuses but for this article, I’ll focus on the US credit cards because that is what I use and know the most. Before choosing the right credit card for you, it’s good to have a goal on where you want to travel this year or in the next few months. For example, if you’re planning to visit Mexico or the Carribean, then Southwest Airline credit cards might be a good choice or if you’re planning a trip to London and other European countries, then British Airways credit card might be a good option. Choose the credit card that’s aligned to the airline that will help you reach your goal destination. It may take a little research and after some research, you’ll get yourself familiarized with the 3 main airline alliances, Star Alliance, Sky Team, and One World. But, don’t be overwhelmed with all these airline information right now. In time and as you delve more into travel hacking, you’ll naturally be more familiarized with the different ways to maximize your miles and travel to different parts of the world using the airline alliances. The important thing right now is to get you started so I listed down below the main travel credit cards to get you started. Apply three or four of these credit cards this year and you can’t go wrong. Take note that you can apply for all three or four credit cards all at the same time but I do not recommend it because it will be more work for you to track and meet the spending requirements for each. Take it easy and don’t rush on applying for multiple credit cards. Remember that you’ll apply for 3 to 4 credit cards every year so take it slow, plan the timing of your application based on your spending and consider this as a long-term miles collecting project.
2. Meet the spending requirements.
Now that you have applied for the credit card, make sure to meet the spending requirements. Read carefully the requirements and make sure you don’t miss any detail. All of this effort will be for nothing if you do not meet the requirements and also you cannot re-apply for the same credit card so you won’t have a second chance to earn that sign-up bonus. There are different tips and tricks out there that travel hackers do to meet the spending requirements. You can find it in many blogs and you can come up with your own techniques based on your lifestyle and spending routine. I personally never really did much work to meet the spending requirement as I always plan my credit card application according to my normal spending habits. I just make sure that I use the right credit card for my daily and monthly expenses like food, grocery, taxi/uber, drinks, shopping, hotel, sometimes utilities, etc. and if I’m planning a big purchase like a new MacBook, an iPhone, or my travel insurance, I align it to my credit card application to help meet the spending requirement faster. Spend wisely and keep track of your expenses. It’s easy plus you’ll be more aware of your spending habits. Here are some important reminders while using your credit card:
- Do not spend more than what you earn or what you currently have. This is a simple equation to not get into debt. Some people get the credit card and treat the credit limits like they earned it already or like its free money. A simple technique to prevent this is to always pay your credit card balance in full. Most travel reward credit cards carry high interest rates. Keeping a balance every month will negate the miles or points you earn plus will have a negative impact on your credit score. Instead of you hacking the system, the credit card companies will be hacking you if you keep an outstanding balance. Be organized and always spend within your means so you can pay the full balance monthly.
- Always pay on time. Credit card companies charge late penalty fees plus late payments will impact your credit score. This is just unnecessary fees that can be totally avoided. Use the auto-pay feature to make sure you’ll never miss any payments.
- Avoid foreign transaction fees. You love traveling to different countries but be aware that every purchase you make in a foreign currency or country will incur a 1-3% foreign transaction fee. You can easily avoid this by using the right credit card. Before you travel to a foreign country, make sure you have with you at least one credit card that waives foreign transaction fees.
- Understand and maximize the features of your credit card. Every time you buy a new phone or a new car, you want to know its cool features and be able to use it. Same as a credit card. A credit card is a very powerful tool if you know how to use it. Understand the category bonuses for your credit card to maximize the points you can earn. You can ear 3x to 4x points if you use the right credit card for a specific spending category. Check the annual bonuses of your card like for example, you can get free hotel stays or free dinners every year with a total worth of $500. Know the travel benefits of your credit cards like free first checked-in luggage which is worth $25-$50 every flight. Understand the insurance benefits of your credit card. I rented a car in Argentina last 2017 and got into a bumper accident but good thing my Chase credit card paid for all the car damages worth $800. There are multiple other features for each and every credit card and it’s worth reading and understanding it.
After 3 to 6 months, depending on your application and spending requirements timeframe, you’ll start seeing the miles and points reflect on your account. Congratulations! You did it! You can start redeeming these miles and points for free flights. You can start experimenting on how to transfer points to miles, combining it to different airline alliances, and maximizing it’s usage. You’ll start flying in business or first class for free! (Theres a whole lot more information and tips on who to redeem miles and points and how to maximize its use but that’s for a separate article) You’ll start dreaming for your next destination and travel goals for next year and that’s when we move to step 3.
3. Rinse and Repeat. Apply for new credit cards and cancel the credit cards you don’t use.
Apply for new credit cards. After 1 year of earning miles and enjoying your free flights and credit card benefits, it’s time to apply for new credit cards to refresh your miles and points collection! You will go back to step number 1 but this time you have more knowledge on how the system works and the different airlines and credit card rewards. Make sure to check-out the new credit card offers and promos as they change every year.
Avoid the annual fee. Every year, I assess which credit cards I want to keep and which one I want to get rid off. Most of these credit cards have annual fees which is not cheap and can really cost damage especially if you own multiple credit cards. But, before you cancel a credit card, make sure to check the annual bonuses because depending on your needs or travel routine, some of these annual or anniversary bonuses are worth or maybe more than the annual fee. Another trick that I do before I cancel the credit card is to call the customer service number at the back of the credit card and ask for options to waive the annual fee or to downgrade my card to a no annual fee. Most of the time they would waive or come up with an agreement to waive the annual fee becausethey want to keep you as their customer.
Cancel credit cards you don’t use. If you don’t really need the credit card anymore then cancel it. You can call the number at the back of the credit card and you can cancel it easily. Canceling credit cards won’t hurt your credit score. Keep the credit cards that don’t have an annual fee and transfer the credit line and remaining points to it. Make sure you don’t have debt so you’ll always have a good debt to credit ratio even if you cancel some of your cards.
If you want to read more, I listed below some blogs and sites that have a great deal of information about travel hacking. They’ve been rocking it and doing this for years so check out their updates, especially for promos, offers, and airline updates.
I hope this helps you to get started on travel hacking so you can travel more! And, if you are traveling soon, here are some helpful tools that we personally use:
- SafetyWing Travel Medical Insurance: It’s always smart to have insurance when traveling for unforeseen emergencies, travel delays, or interruptions. We’ve been traveling full-time since 2018 and for us, this is the best, travel insurance. We highly recommend it because it’s simple, affordable, and easy to claim plus our favorite part is that they have amazing customer service. They really help you travel stress-free and with peace of mind.
- Get 25% OFF Trusted House Sitter. Our favorite way to travel is house sitting and TrustedHousesitters is definitely our recommended house sitting platform. They have the largest community worldwide and they have a very handy mobile app. If you’ve never heard about house sitting, you can check out our Ultimate House Sitting Ebook to know more.
- Get 15% OFF Booking.com: The easiest and most affordable way to book accommodation. They have the biggest database of accommodation options from luxury hotels to cheap apartments and hostels. They provide flexible cancellation policies, an easy-to-use mobile app, and good customer service.
Have fun and enjoy your travels! Please leave a comment if you like this article or if you have any questions.
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