Who doesn’t love the idea of exploring exotic destinations without emptying their wallet?

Travel hacking with credit card points and miles can turn that dream into reality.

Whether you’re a newbie or a seasoned pro looking to refine your skills, you’ve come to the right place. James Knight, the Education Editor at Invezz.com, a London-based investment fintech, is here to guide you through the ins and outs of travel hacking in a straightforward way in this easy-to-follow guide.

What is Travel Hacking?

Travel hacking involves using credit card points, miles, and other rewards to travel for free or at a significantly reduced cost. It’s about maximising the benefits from everyday spending to score free flights, hotel stays, and other travel perks.

Choosing the Right Credit Card

First things first, you need the right tools for the job. Not all credit cards are created equal, so here’s what to look for:

• Sign-Up Bonuses: These are the golden tickets. Many cards offer hefty bonuses if you spend a certain amount within the first few months. Look for cards like the British Airways American Express Card or the Virgin Atlantic Reward Card that give you significant sign-up bonuses.

• Reward Rates: Pay attention to how many points or miles you earn per pound spent. Some cards offer bonus points for specific categories like dining, groceries, or travel.

• Annual Fees: Some of the best travel cards come with annual fees, but the perks often outweigh the costs. If you’re just starting, consider a no-fee card until you get the hang of things.

• Redemption Options: Make sure the card you choose has flexible redemption options that suit your travel style.

Earning Points and Miles

Once you have your card, it’s time to start racking up those points and miles. Here are some tips:

• Use Your Card for Everything: From groceries to utility bills, use your card for as many purchases as possible. Just be sure to pay off your balance each month to avoid interest charges.

• Shop Through Online Portals: Many credit cards have shopping portals that give you extra points for purchases made through their links. The Avios eStore is a great example.

• Take Advantage of Promotions: Keep an eye out for promotions that offer bonus points. These can come from the credit card company or from airlines and hotel chains.

Maximising Your Rewards

Earning points is just the beginning. Here’s how to make the most of them:

• Transfer Partners: Some credit cards allow you to transfer points to airline and hotel partners. This can often get you more value than redeeming directly through the credit card’s travel portal. For UK travellers, Avios and Virgin Atlantic Flying Club are key transfer partners.

• Book in Advance: Flights and hotel rooms booked with points or miles can disappear quickly. Try to book as far in advance as possible.

• Look for Sweet Spots: Every loyalty program has sweet spots where your points can get you more value. For example, using miles for short-haul flights within Europe can be a great deal.

Keeping Track of Your Points and Miles

With multiple cards and programs, it’s easy to lose track of your points and miles. Here’s how to stay organised:

• Use an App: Apps like AwardWallet or Points.com can help you track your balances and expiration dates.

• Set Reminders: Make a note of important dates, like when your points expire or when an annual fee is due.

Tips for Responsible Travel Hacking

While travel hacking can be incredibly rewarding, it’s important to do it responsibly:

• Pay Off Your Balance: Always pay off your credit card balance in full each month. The interest charges on unpaid balances can quickly outweigh any travel benefits.

• Stick to a Budget: Don’t overspend just to earn points. Stick to your normal spending patterns.

• Know the Rules: Be aware of the rules for earning and redeeming points, as well as any fees or restrictions.

Knight concludes:

“Travel hacking with credit card points and miles can make your travel dreams more attainable. With a bit of strategy and careful planning, you can turn everyday purchases into free flights and hotel stays. Choose the right card, maximise your points through smart spending, and redeem them wisely. Start planning your next trip and enjoy the benefits of your hard-earned rewards.”