My Podcast Interview on Swipe!

Just a quick post to give you the link to my podcast interview on Swipe! the Podcast. Host, Polly Bauer, invited me to talk about Travel Hacking. There was a lot of information to discuss. I was thrilled to be interviewed to share my Travel Hacking insights. Note that there are two back to back episodes. Number 77 and Number 78.

Click on the Swipe! Logo to listen to Part One; Episode #77 Podcast Here:

Click the Swipe! Logo to listen to Part Two; Episode #78 Podcast Here:

Topics Discussed

As this is a short form podcast, I couldn’t possibly share everything I know about the world of travel rewards points and miles. We talked about who this hobby is for and the definition of Travel Hacking. As well, we discussed how travel hackers use credit cards. Next, I shared a detailed description of the types and uses for points and miles. This was just some of what we talked about.

Please do take the time to listen as I’m sure you’ll learn a lot about this great hobby. Share this post with family and friends. The sooner they learn about the value of earning points and miles, the sooner they can start to save on their travels. Than you for taking the time to listen to my podcast interview on Swipe!

Travel Hacking Basic Strategy

Travel hacking Basic Strategy. It's time to refresh our memories on the important elements of how to save money using credit card points and miles.

Today, we dive back into Travel Hacking basic strategy. It never hurts to refresh our memories on how to get great value from the points and miles we earn from travel rewards credit cards.

Goals and Dreams

When I started out using credit card points and miles, my first goal was to redeem American Airline Miles for a free round trip ticket to San Diego. My motivation was that I wanted to take that trip to San Diego to see some dear friends. I saved $379 on the cost of the airline ticket. However, there’s no way to put a price on the experience of spending time with people who mean so much to me.

Everyone has different travel goals and dreams. Before you start down the road of applying for a travel credit card, get clear on what you want out of the hobby. Is there an exotic destination on your bucket list? Do you have a family member or friend whom you haven’t seen in years? What would it mean to give that person a hug? Maybe your goal is to save money on a weekend getaway with your best friends or significant other. The possibilities are endless. Choose one goal to get you started. It will make the savings that much more meaningful. After all, it’s a lot easier to reach your destination if you know where you’re going.

Your Credit Score and Travel Hacking

My Wells Fargo FICO Credit Score Fluctuation over One Year. Having 14 credit cards has helped me maintain my credit score over time.
My Wells Fargo FICO Credit Score Fluctuation over One Year

There’s a myth floating around that having more than a couple of credit cards can hurt your credit score. The reality is that if you use credit responsibly, you can maintain and even improve your credit score while having ten or more credit cards. My credit score has remained in a range of 25 points for the last 12 months. The key to remember is to continue to spend the same amount that you did before starting in the hobby. Responsible spending comes before all else.

Your First Travel Credit Card

Congrats; you have a travel goal and are ready to start! Now it’s time to choose your first (of likely many) travel rewards credit card. It’s no secret here on the Joyful Travel blog that the Chase Sapphire Preferred credit card is my go to recommendation for your first card. Earning $750 in free travel with one sign up bonus is a big win. However, you may have a specific travel goal that makes airline miles a better first sign up bonus. Please do not hesitate to reach out to me for a recommendation tailored to your situation.

The Sign Up Bonus

When you apply for travel rewards credit cards, it’s the sign up bonus that gives you the point or miles that make up the $500-$1000 value you can use towards travel. Sign up bonuses are “buckets” of points or miles that the credit card company awards you after you’ve met the minimum spending requirement. These can range from 30,000 points or miles on the low end to 80,000 and more on the higher end.

The Minimum Spending Requirement

In order to meet the minimum spending requirement, you are required to spend a specific amount in a 90 day period. Typically that minimum spending requirement is from $3,000 to $5,000. This equates to roughly $1,000 to $1,700 per month in the first three months. For many households, this is an easy requirement to meet. If this is too big a nut to crack, check out this post where I explain How to Meet Minimum Spending Requirements.

What’s Next?

You’ve applied for and received your first travel rewards credit card. Then, you met the minimum spending requirement in less than the 90 day window. You did this just to be sure that every charge posted to your account in time. The bonus points or miles have now landed in your account. At this point you have options and decisions to make.

Option One

You can redeem the points or miles right away on a specific travel purchase. This can be airfare, hotel, rental car, train and other kinds of travel expenses. If you happen to have Chase Ultimate Rewards Points, it’s easy to redeem your points for travel in the Chase online portal for all kinds of travel.

You may have received a sign up bonus of airline or hotel miles/points. In this case, you’ll head to the website or app of the airline or hotel where you want to redeem points. There, you’ll be able to use your points/miles to cover airfare or hotel rates. There are many options if you have even the slightest bit of flexibility when booking. It’s amazing how easy it is these days to use your sign up bonus.

If you started out with a Capital One Venture Rewards credit card, you have likely earned $560 in travel savings. With this card, you use the card to book your travel with any travel company. Then use the “purchase eraser” within 90 days, to effectively remove the charge from your account. It almost feels like magic!

Option Two

As we continue to learn Travel Hacking Basic Strategy, you may have a bigger travel goal in mind. In this case, you want to keep earning more points/miles so you’ll have even bigger savings on that first travel experience. Now you have a decision to make.

You can continue using your one and only travel rewards credit card to earn more points/miles. Wouldn’t it be great though, to earn another large sign up bonus? I hope your answer is yes. If so, now you look for your next travel rewards credit card and apply. Meet the minimum spending requirement and receive another large sign up bonus.

Diversification

Some people want only one kind of point or mile. Others, like me, like to have several types of points and miles for more versatility. An example is a trip I’m taking to Orlando, FL in the spring. I used Chase points to book 5 nights in a hotel but used Southwest Airlines miles to book my round trip flight from Philadelphia.

I have a soft spot for Marriott and Hilton points too. It also never hurts to have some other airline miles of the airline that flies most out of your closest airport. By the way, I’m paying $11.29 out of pocket for my Orlando trip resulting in $1,683.78 in savings!! Can you see my huge smile?

Rinse and Repeat

The process is really that simple. You now have a blueprint for a Travel Hacking Basic Strategy. It doesn’t have to be complicated. Take it one destination and one credit card at a time. To be sure, there are next level strategies to really leverage your points and miles. All in due time. Start at the beginning and figure out your first travel goal and soon, you’ll be realizing crazy saving like I do.

College Travel with Points & Miles

Today, I have another way that you can use Travel Hacking. You can save money on college travel with points & miles. I had an interesting text exchange with my niece who is in her second year of college. She lives on the East coast and attends college in California. Lea was flying the next day back to school when we communicated.

How to save on the cost of College Travel with Points & Miles. Your college student can travel back and forth to school using travel hacking strategies. text exchange with my niece
Text Exchange with My Niece

Can you imagine how it felt to learn that Lea’s plane ticket back to California was free? I really do get so much joy out of other people’s travel savings. How about the fact that Lea knew that the flight was free?

How Did They Do It?

Kudos to my sister, Donna, who has stuck with me as I constantly talked about saving money on flights and travel in general. Donna took the actions necessary to earn the miles and or points needed to save the cost of Lea’s flights to school.

Donna uses American airline miles earned with her Barclay’s Aadvantage Aviator credit card to cover flight costs. However, sometimes, she uses fixed value points like Chase Ultimate Rewards points earned with the Chase Sapphire Preferred card to cover the costs of Lea’s flights. Over the course of a four year college experience, you can save a lot of money on travel costs.

Another Strategy

Did you know that once your child reaches the age of 18, he or she is eligible to apply for credit cards? Before we go any further, this is a strong reminder that you and your college student must use credit cards responsibly. That means paying off the balance in full every month. While in college, most students are considered to still live at home. This offers a unique opportunity for points and miles earning.

Qualifying on Total Household Income

When applying for credit cards, the banks allow the applicant to include all income earned in the household. That means that even if your child is not earning money while attending college, there’s an opportunity to apply for a credit card and be approved based on parent income.

This works the same way for married couples where one partner is not working and relies on the income earned by the spouse. When both members of a couple are applying for credit cards, it’s known as Two Player Mode in the Travel Hacking world. It’s a great way to accumulate additional miles and points.

Back to My Niece’s Free Flights

How to save on the cost of College Travel with Points & Miles. Your college student can travel back and forth to school using travel hacking strategies.
Save the Cost of College Travel with Points & Miles

American Airlines has the best flights to get my niece back and forth to California. To earn American Airline miles, there are several cards both personal and business available to you. The Barclay’s Aadvantage Aviator card is unique in the points and miles world. This is because, the card holder need only make a single purchase in any amount to earn the sign up bonus.

There is an annual fee, currently $99 not waived the first year. Think about how great this is. Buy a $5 coffee and earn 60,000 American Airline miles (the current offer). Those 60,000 miles are enough for a round trip flight to Europe! All for a $99 annual fee.

Credit Card Perks

Of course there are perks that come with this card as well. College students who schlep a large suitcase back and forth to school over the long recesses will appreciate the free checked bag perk. I bet their parents love this perk as well!! Other perks include 2 x points earned on eligible American Airline purchases for every dollar spent. At various times, there are offers of companion tickets for $99 plus tax. This is great when parents want to visit their students at college.

Strategies for Other Credit Cards

What about credit cards with large minimum spending requirements? In this case, you may want to have your college student apply for one of these credit cards. Timing of the application is important with this type of card. Have your child use the card to cover a large household expense. Then, you front the money to your child so he/she can pay the credit card bill when it comes due. This works well only if you are confident that your child can handle the credit card responsibly. Picking credit cards with smaller minimum spending requirements can be a great way to teach your child fiscal responsibility. This also helps to build your child’s credit history. Minimum spending requirements must be made within the first 90 days after the credit card approval date.

Examples of lower minimum spend requirements credit cards are:

I hope this has gotten you thinking in bigger ways when it comes to covering the cost of college travel with points & miles. Apply these strategies to more than just airfare. Think creatively and you will realize that college visits often require hotel or Airbnb stays. Why not get started now to earn the points to defray all or a large portion of these travel costs?

As always, I’m here to answer your questions. Please scroll down and leave a comment for me. It lets me know you are reading what I have written for you.