Do these 5 things when you start travel hacking
Travel hacking is a great way to spend less and travel more, but you should never go into debt or spend irresponsibly to earn points to do so.
As you start your travel hacking journey, here are some things we recommend doing to ensure you are smart with spending:
???? Use your credit card like a debit card. This one is key – only spend what you can pay for as if you had to pay the amount at the time of purchase. If you can’t pay off your credit card in full every statement, you may want to look at your budget and spending before starting travel hacking.
???? Have a plan for your minimum spend. To receive the high sign-up bonuses offered by credit cards, there will be a minimum spend amount. Certain amounts for a sign-up bonus (SUB) are unattainable for certain people and their spending habits. And that’s okay! When you do decide to open a card, make sure the amount required for the sign-up bonus is aligned with your actual spend. There is no penalty for not hitting a SUB, but you will have used one of your 5/24 spots.
???? Set up auto-pay. You don’t want to have to pay interest, so set it and forget it! Adding recurring payments to hit a SUB can help tremendously without you realizing it.
???? Be honest about your budget. Pick a card with a realistic SUB for you – it may not be the highest number of points but you don’t want to feel pressured to spend more than you have just to hit the minimum spend and earn the sign-up bonus.
???? Understand your credit score. Any time you apply for a new card, your credit score will be reviewed. If it’s too low, you won’t be approved for a card. A general recommendation is to not start travel hacking if your credit score is below 700. If this is you, focus on getting your spending in order before trying to open new cards for a sign-up bonus.
Remember to be financially smart! Travel Hacking is a great way to pay for trips, but only if you are responsible about it.
