Traveling Expats

What precisely does the term “travel hacking” mean?

Using credit card points and miles to offset the cost of travel. 

Won’t opening multiple credit cards ruin my credit?

NO! Opening several credit cards has not impacted our credit score but remember to keep the following things in mind:

• Pay off credit card balances in full each month to avoid interest charges.
• Wait a minimum of 90 days before applying for another personal credit card.
• Keep all credit cards for at least a year.
• If you no longer need a card, downgrade to a $0 card instead of canceling it.
• Avoid opening new credit cards if you plan to buy a house within the next year.
• Refrain from closing your oldest credit card account.

Who is considered an ideal candidate for travel hacking?

• People who love to travel!
• Most suitable for individuals with a credit score exceeding 700-750 or higher.
• Individuals who exhibit financial responsibility by paying their credit card balances in full and on time every month.
• Individuals who are financially stable and have a solid foundation of personal finance.

Wouldn’t receiving cash back be more advantageous?

Cash back is great but it’s not really better. Not if you plan to book ANY travel at all this year. Because you can manipulate your points to get you incredible redemptions (for example, needing only 45K points for a $1,200 hotel stay). But if you just took the cash from 45K points it’s only $450. 

How are points and miles different?

It’s understandable to feel confused about the terminology used for rewards programs. While some programs refer to them as points, others call them miles, with hotels typically using points as it aligns with their loyalty programs. However, airlines such as Southwest have adapted this terminology, making it more challenging to distinguish between the two. In essence, they are equivalent, regardless of the terminology used.

How can I earn enough miles/points to use for free travel?

A widely-used tactic involves signing up for a new credit card, preferably one with a substantial sign-up bonus that aligns with your objectives, satisfying the minimum spending requirements, receiving the bonus, waiting for the 90-day period, and subsequently signing up for another personal credit card.

What about paying multiple annual fees?

Many people, including myself, have reservations about paying annual fees for credit cards. However, after careful consideration, we have come to the realization that the benefits of certain cards can outweigh the fees.

For instance, some cards offer compelling rewards programs that justify the annual fee. Alternately, the sign-up bonus in the first year might offset the cost of the fee.

What should I do after having the credit card for one year?

Several credit cards provide exceptional value, making the annual fee worthwhile. Once the annual fee is charged, you have three options: maintain the current card, downgrade to an available card with no annual fee, or cancel the card altogether.

Remember, it’s not advisable to cancel a card before the one-year mark.

Can this be sustained over an extended period?

Even if you limit yourself to opening a maximum of three personal credit cards each year, you may still feel as though you’re missing out on some fantastic options. With numerous excellent credit cards available, and new ones being introduced regularly by issuers, the possibilities for enhancing your financial prospects are abundant.

Do you have any other questions?

Please do not hesitate to reach out with any questions you may have or to share any successes! Your comments and messages mean a great deal to us.

Happy Travels,

Betty and Lee