If you're not using points/miles to travel, I'm here to convince you that you're missing out. In lots of cases, the availability of my points/miles were the difference between affording a trip and being forced to save it for another time. I flew to Europe TWICE without spending a single dime on my flights.
So before you start closing this web page, muttering about how impossible or irresponsible or crazy travel hacking is, give me a chance to ease your mind.
1) No, it will not ruin your credit score. I have 4 credit cards at a given time and my credit score is, according to Credit Karma "excellent." In truth, your utilization amount (i.e. how much of your available credit is being used) will impact your score far more than your amount of accounts. In fact, having more than 11+ accounts open in your name (including loans, credit cards, etc.) is actually good for your credit! Use Credit Karma's Credit Simulator to see how your score would change by opening a new card, paying off a balance, or getting a new loan. I absolutely love this tool and frankly, travel hacking or not, you should familiarize yourself with it. Better credit scores = better offers, so do what you can to bump that baby up!
2) No, it's not "sketchy." I vividly remember thinking this when I first heard of people applying for cards just to get the intro bonus miles, only to cancel the cards later. Something about that just seems awfully skeezy, doesn't it? But here's the thing: it really, really isn't. Just like it isn't skeezy to buy a pair of pants because they're on sale and it isn't skeezy to get a free manicure after getting enough punches on your membership card. Banks want you to use their products. They know that they hook people with these intro bonuses, and they certainly expect those intro bonuses to be used. I will say, don't open and close cards rapidly. You want your average account age to grow over time, not shrink.
3) No, you don't have to spend exorbitant amounts of money to see the benefits. While you will, most likely, need to hit a minimum purchase amount in a given time (think $3,000 in 3 months), that can typically be easily reached by putting all of your normal expenses on that credit card. Phone bills, gas, groceries, Netflix-- you name it, I put it on my credit card. Additionally, I typically time my credit cards against a big purchase I knew I'd make or I'd offer to make a big purchase for someone else and they would simply Vemno me. For example, I bought my brother's fancy new computer for him, he wrote me a check, and I was suddenly halfway to my minimum amount to receive my bonus miles!
(Note that this is not an excuse to buy things you don't need or can't afford. You should be essentially treating your credit card as a debit card and paying it off each month.)
4) No, it isn't complicated. At least, it doesn't have to be. If you're just starting to dabble in it, pick one card. Start with just one, keep track of your rewards and balances, and make sure you're comfortable before immersing yourself. Additionally, I try to limit my new cards to ~1 a year simply to minimize the impact on my credit score. If you need help organizing and keeping track with your rewards, use resources like AwardWallet to help you track it all! I can't believe I didn't discover this tool sooner.
So what cards are my favorites?
Best for Beginners: Barclaycard Arrival+
This was my first real reward-focused credit card, and it's still one of my favorites. (1/24/19) The card currently offers 70,000 bonus miles at sign up (that's SEVEN. HUNDRED.DOLLARS.) plus 2x points per dollar. Also, possibly my favorite thing about this card, is that redeeming points is SO EASY. In fact, unlike airline specific cards, you can redeem for anything travel related. That means Uber rides, AirBnBs, your monthly transportation pass, etc. can all be paid for with points! I used this card to completely cover the cost of my flights to Paris and Croatia in 2014 and 2016 and when I took a travel break in 2017, this card covered my daily subway rides to/from work.
Best for Those Wanting to Dive In: Chase Reserve
Now I will say, the annual fee can be off putting. This card definitely isn't for someone who isn't serious about wanting to travel. Having said that, for a $450 annual fee, you get $300 annual travel credits (mine get used pretty quickly on Uber rides), $100 towards GlobalEntry or TSA PreCheck, plus the sign on bonus with points that are worth 50% more than they are with other Chase cards. That means, by the end of the first year, between all of the awards, I had paid $450 for roughly $1,600+ worth of rewards. If the annual fee is off-putting, the Chase Sapphire Preferred card is a really strong substitute- 1st year annual fee is waived and points are worth 25% more than other Chase cards.
I'm not typically a fan of Airline specific credit cards. I have the AAdvantage card with American Airlines, and while it was nice to have free checked bags and priority boarding, it was a bit frustrating to encounter so many black out dates or dates where the points needed for a given route fluctuated wildly. Also, they tend to nail you on various fees. My Guatemala ticket would have been 100% free had I paid with rewards on my Barclaycard, but I used my AAdvantage card and was stuck paying $55 in fees.
Frankly, I only suggest getting an airline specific card if you're A) very loyal to a specific airline or B) know that you want to go to a given destination and that given destination is best served by a specific airline. Otherwise, go with one of the two cards above.
Want to do your own research before signing up? (Please, please do!) Here are some of my favorite websites to help!
1. The Points Guy: This site has been around for ages and I always consult it before picking a new card. Super easy to navigate, and clearly lays out pros and cons of each card.
2. NerdWallet: I think this site is really helpful in many ways, but the one big lacking point is that it focuses less on the intro bonuses, which is a huge part of travel hacking.
3. Mint: If you aren't already using a website to help you budget, you definitely should, regardless of your (dis)interest in travel hacking. My favorite is Mint.com for a plethora of reasons, but it also gives you a personalized list of recommendations ranging from credit cards, to investment ideas.
Questions? Comments? Want help choosing a card that fits your needs? Comment below or shoot me an email!
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