Many of us have a passion for traveling but are often deterred by the costs associated with planning a successful vacation or adventure. Wouldn’t it be wonderful if there was a way to bypass these financial barriers? Well, there is.
A few years ago, I discovered a method involving the accumulation of large amounts of credit card reward points which are then redeemed for discounted or even free travel. I know it sounds unbelievable, but when done right, it truly works.
Through this method known as travel hacking, I have managed to secure free flights, save money on hotel stays, and even had an unforgettable honeymoon in Jamaica that cost only $400 – an all-inclusive deal that covered flights, accommodation, meals, drinks and activities.
Clearly, travel hacking is effective, but there are several misconceptions about this hack that might discourage you from trying. Here are five commonly believed myths about travel hacking that you should ignore.
1. TRAVEL HACKING IS DECEPTIVE OR ILLEGAL
The term ‘travel hacking’ may give the impression of engaging in illicit activity or taking dishonest advantage of the system by accumulating credit card points for travel. But that’s just not true.
Travel hacking is entirely legal, and while not always lauded by airlines and hotel companies, they did set up these reward systems in the first place. Some travel hackers open credit cards only to avail of the reward bonuses, then close them afterward once the points are secured. While doing this can affect your credit score and should be done cautiously, there’s no harm in using a credit card specifically to reap sign-up rewards. In fact, some credit cards permit you to apply for the same card and achieve the same rewards after two years, so taking advantage of these offers is entirely permissible. The companies benefit by getting more customers and you benefit by attaining discounted travel.
2. YOU NEED TO TRAVEL FIRST TO EARN POINTS
The thought of needing to travel before earning travel-related credit card reward points might feel like a catch-22. Fortunately, this isn’t true. In most instances, you can accumulate a significant amount of credit card reward points simply by using your card for everyday buys. There’s no requirement for international travel or specific trip prerequisites. While card usage for travel-oriented reservations can bring in points, sign-up bonuses are usually the real winners.
3. TRAVEL HACKING IS A WALK IN THE PARK
It might sound simple, but travel hacking requires some planning and effort, especially if you’re aiming for maximum benefit. You need to conduct some research, have a strategy and monitor your spending to keep debt at bay.
4. YOU HAVE TO SPLURGE A LOT
Some credit card sign-on bonuses may overwhelm you as they sometimes require significant spending amounts. But remember, if the sign-on bonus spending minimum makes you uncomfortable, don’t go for it. It is not worth going into credit card debt just for rewards points or cashback. The best approach is to use your card for regular, necessary purchases.
5. ANYONE CAN PARTICIPATE
Another common myth about travel hacking is that anyone can dabble in it. Unfortunately, that’s not entirely accurate. Firstly, to be eligible for a credit card with attractive sign-on bonuses and travel rewards, you need a good credit score. Secondly, those who struggle with spending discipline may not fare well with travel hacking. Lastly, if you’re already dealing with significant debt, travel hacking might not be the right move for you.
However, if the desire to travel drives you and you believe you can follow the necessary guidelines for effective travel hacking, I would urge you to pursue it.
Were you familiar with these travel hacking myths?
