Travel hacking, or finding affordable flights and hotels, can be easy and cost-effective, primarily through travel credit cards. This article will explore the various types of credit cards available.
Please note, that this is not financial advice; it’s crucial to understand your financial situation and make decisions based on your needs. When searching for credit cards, choose those that align with your goals. For instance, some may prioritize earning points for travel, while others might prefer cash back. Additionally, ensure to take advantage of sign-up bonuses, which can be quite generous.
Travel credit cards are among the best options for those who want to travel. They allow you to earn points or miles based on your spending, effectively rewarding you for purchases you would make anyway. Here’s a breakdown of the three credit card tiers:
Tier 1: No Annual Fee Credit Cards
- No annual fee cards, which truly cost nothing to own. Common cards include the Chase Freedom Unlimited, Discover It, and Bilt Rewards. Notably, the Bilt Rewards card is the only one in this tier that lets you earn actual points, which can be transferred to various travel partners like Flying Blue, United, Marriott, and World of Hyatt. Plus, you can pay rent with this card without incurring convenience fees, as long as you use it at least five times a month.
Tier 2: Entry Level Annual Fee Credit Cards
- These cards have annual fees and include options like Capital One Venture, Chase Sapphire Preferred, and Citi Strata Premier. The average annual fee is $95 for these cards but the value you earn is life-changing. They earn points that can be transferred to partners and often offer sign-up bonuses—such as receiving 60,000 points after spending $4,000 in three months. Elevated bonuses may offer even more points for the same spending, though these opportunities are rare and time-sensitive.
Tier 3: Premium Travel Credit Cards
- Premium travel cards have hefty annual fees starting at $325, these cards include the American Express Platinum, Chase Sapphire Reserve, and Capital One Venture X. In addition to the benefits of Tier 2 cards, these premium options offer perks like travel lounge access, TSA Pre-Check/Global Entry, and monthly store credits.
Currently, we utilize the American Express Gold and Platinum, Capital One Venture, Chase Freedom Unlimited, and Bilt Rewards cards. Together, these have helped us accumulate around 500,000 points for hotels and flights. (Check out our New York City blog where we paid for the trip entirely by points!) We also plan to add the Chase Sapphire Preferred or Reserve card to access World of Hyatt, maximizing our hotel value.
This overview is just the beginning of understanding travel credit cards and their advantages for frequent travelers. However, if you’re not paying your statement in full each month, this strategy might not be for you. As much as we want you to explore the world and travel for cheap, it’s essential to remain financially responsible. Stay tuned for a deeper dive into each travel credit card to find the best fit for your financial situation!
Happy Travels!
– A & K