Mel’s Journey with Travel Hacking
Hey everyone, I wanted to talk about travel hacking. It’s played such a great role in my life, allowing me to experience all sorts of destinations without breaking the bank.
But first, let’s be clear – this isn’t suited to everyone. It’s perfect for you if you’re great at paying off your credit card balance, like, every month without fail. Why is being responsible with your credit crucial, you ask? Well, that’s given the high-interest rates that travel reward cards often carry. You definitely wouldn’t benefit if you miss a payment or two!
Ever since I started this adventure with my travel rewards card in 2014, I’ve been rotating through cards, a practice that’s known as churning. Simply put: get a new card, use it enough to earn the terrific sign-up bonus, then close it and move on to the next.
You might think constantly opening and closing credit cards could harm your credit score but, in my experience, the opposite happened. I started with a credit score in the nice 750-775 range and, despite all the changes, it’s soared above 800 now. Even if each new card inquiry dinged my score a little, my credit remaining low and the total credit available bumped it up more.
Over time, this strategy saved me a lot of money on trips to destinations like New Orleans, Hawaii, Iceland, Las Vegas, and Montreal. Plus, I also managed to earn cash rewards which proved handy during financially tight periods.
Yep, there have been times when I forgot to cancel a card on time and was charged an annual fee. Yet, what I’ve made from travel hacking has always outweighed these minor losses.
Recently though, I’ve decided it’s time for a finance simplification exercise. After going through several cards, I realized I’ve managed to reopen some in a couple of years, bagging the same sign-up bonus all over again. Now, I’m planning to eliminate all cards except a few personal and work ones and my oldest card from college days.
While I enjoy the no-fee Barclaycard that has been my default for some time, considering my travel patterns, I feel having one card that comes with excellent travel perks, even if it carries an annual fee, makes sense.
So, my friends, if any of you know of such a card, do drop me a line. Your recommendations would be much appreciated!
Comments and shares are always welcome. You can also read my other posts on travel hacking and credit card churning for more tips and insights. Happy Travel Hacking!