Travel hacking can be a great way to save money and travel more. By using credit cards and loyalty programs strategically, you can earn points and miles that can be used for free travel. However, if you're new to travel hacking, it's easy to make mistakes that can cost you money or prevent you from maximizing your rewards. In this article, we'll cover 15 common travel hacking mistakes and provide tips on how to avoid them.
- 1. Not understanding how travel hacking works
- 2. Applying for too many credit cards at once
- 3. Failing to meet minimum spending requirements
- 4. Not maximizing category bonuses
- 5. Ignoring foreign transaction fees
- 6. Not tracking your points and miles
- 7. Not planning ahead
- 8. Not considering the value of your points and miles
- 9. Redeeming points and miles for low-value rewards
- 10. Not considering the opportunity cost
- 11. Not diversifying your points and miles
- 12. Failing to check for blackout dates and restrictions
- 13. Not reading the fine print
- 14. Not using a travel rewards card for everyday spending
- Conclusion
1. Not understanding how travel hacking works
One of the biggest mistakes people make when trying to travel hack is not understanding how the system works. This includes not understanding how credit card rewards programs work, how to earn points and miles, and how to redeem them.
2. Applying for too many credit cards at once
Another common mistake is applying for too many credit cards at once. This can negatively impact your credit score and make getting approved for future credit cards harder.
3. Failing to meet minimum spending requirements
Many credit cards offer sign-up bonuses in points or miles but often come with minimum spending requirements. Failing to meet these requirements can mean missing out on the sign-up bonus.
4. Not maximizing category bonuses
Many travel rewards cards offer category bonuses, which means you can earn more points or miles for spending in certain categories. Failing to maximize these bonuses means missing out on valuable rewards.
5. Ignoring foreign transaction fees
If you plan on using your travel rewards card while traveling internationally, paying attention to foreign transaction fees is important. Ignoring these fees can result in unexpected charges on your statement.
6. Not tracking your points and miles
It's important to keep track of your points and miles to ensure you don't let any rewards expire or go to waste. This can be done using a spreadsheet or an app for tracking rewards.
7. Not planning ahead
Travel rewards programs often require advanced planning. Not planning can mean missing out on the best redemption options or paying higher prices for flights or hotels.
8. Not considering the value of your points and miles
It's important to consider the value of your points and miles when redeeming them. Some redemptions offer better value than others, and failing to consider this can mean wasting valuable rewards.
9. Redeeming points and miles for low-value rewards
Another common mistake is redeeming points and miles for low-value rewards, such as merchandise or gift cards. These redemptions often offer poor value compared to travel redemptions.
10. Not considering the opportunity cost
When redeeming points and miles, it's important to consider the opportunity cost. This means considering what you could have earned if you had used cash instead of points or miles.
11. Not diversifying your points and miles
Relying on a single rewards program can be risky. It's important to diversify your points and miles to ensure you have options if one program devalues its rewards or experiences an outage. Diversifying your rewards portfolio can also help you earn more rewards overall.
12. Failing to check for blackout dates and restrictions
Some travel rewards programs have blackout dates or restrictions on when rewards can be redeemed. Failing to check for these can result in frustration and missed opportunities.
13. Not reading the fine print
Travel rewards programs often have complex terms and conditions. Failing to read the fine print can mean missing out on valuable rewards or getting hit with unexpected fees.
14. Not using a travel rewards card for everyday spending
Many travel rewards cards offer bonus points or miles for everyday spending. Failing to use these cards for everyday spending means missing valuable rewards.
Conclusion
Travel hacking can be a great way to save money on travel, but avoiding common mistakes is important. By understanding how travel rewards programs work, diversifying your rewards portfolio, planning, and maximizing your rewards, you can save money and enjoy more travel. Remember to read the fine print, check for restrictions, and track your rewards to avoid wasting valuable rewards.
