Podcast Summary
Travel for free or less with credit card points: Maximize travel rewards with select credit cards and everyday spending for up to 80% value with 20% effort
It's possible to travel for free or at a significantly reduced cost using credit card points. This strategy is ideal for young people who want to travel but may not have the financial means. Over the last couple of years, the speaker and her husband have taken approximately 20 trips using points to cover airfare and hotel rooms, staying at high-end locations without compromising. This method is replicable for individuals with a good credit score and a relatively low monthly spend. The strategy involves using a select number of credit cards that offer travel rewards and maximizing points earned through everyday spending. With careful planning and management, one can get 80% of the value of travel rewards hacking with about 20% of the potential effort. The speaker emphasizes that this is not a complicated or time-consuming process and encourages anyone, regardless of their credit card history, to give it a try.
Effectively using travel credit cards requires good credit and organization: Maintain good credit, pay off cards on time, apply strategically, and stay organized to maximize travel credit card rewards.
Having good credit and being organized are essential to effectively utilizing travel credit cards for rewards. Contrary to popular belief, applying for multiple credit cards does not negatively impact your credit score if done correctly. In fact, having more credit cards increases the amount of available credit, which can improve your credit score. However, it's crucial to pay off your cards in full and on time every month to maximize the benefits. Being organized and keeping track of credit card rewards, credits, and expiration dates is also necessary to avoid missing out on benefits. New credit from new credit cards accounts for only 10% of your overall credit score, so having older credit cards in your history is also important.
Consider downgrading cards instead of closing them: Downgrading cards to no annual fee versions keeps line of credit open, maintains credit age and available credit, and can lead to free vacations and improved credit scores.
If you have credit cards with annual fees that you no longer want, consider downgrading them to no annual fee options instead of closing them. This helps keep your line of credit open and maintains your credit age and available credit. Additionally, it's important to keep cards that offer ongoing value and benefits, rather than just signing up for cards for sign-up bonuses and then closing them, which can negatively impact your credit score. If you find yourself no longer wanting to pay the annual fee for a card, consider downgrading it to a no annual fee version. Just be careful not to downgrade if you still have points left on the card. This strategy can lead to free vacations and potentially improved credit scores, as long as you pay off your balances in full and on time every month.
Applying for credit cards: timing and limits matter: Apply for one card every three months, avoid applying during loan process, and be aware of Chase 524 rule to maximize rewards and minimize drawbacks
When applying for credit cards to earn sign-up bonuses, it's essential to be aware of timing and application limits. A spend threshold is the amount a card issuer requires you to spend within a specific timeframe to receive the bonus. Typically, this period is three months. To avoid raising red flags with credit bureaus and to ensure enough time to meet spend thresholds, it's recommended to apply for one card every three months, allowing for up to four cards in a year. Additionally, avoid applying for new credit cards during the loan application process, as it could impact your credit score and potentially affect your loan interest rate. Lastly, be aware of the Chase 524 rule, which restricts individuals from opening five or more personal credit cards from Chase in the past 24 months. By understanding these guidelines, you can effectively maximize your credit card rewards while minimizing potential drawbacks.
Chase's Popular Travel Rewards Cards and Their Perks: Chase's 524 rule limits card approvals, making their generous offers popular. The Freedom Flex offers cashback on travel, rotating categories, and converting points, while the Sapphire Preferred has a valuable sign-up bonus for a low fee.
Chase is a top choice for travel rewards due to its generous offers and extensive lineup of partner and travel agnostic cards. To prevent customers from churning, Chase implements the 524 rule, which limits card approvals to five every 24 months, regardless of the issuer. Therefore, it's common for people to prioritize getting Chase cards before applying for others. For those starting their credit card journey, the Chase Freedom Flex is an excellent cashback card with no annual fee, offering 5% back on travel and rotating categories, 3% cash back on dining and drugstores, and 1% on everything else. An added benefit is the ability to convert cash back points to more valuable travel points with a second card. The Chase Sapphire Preferred card is another standout option, with a sign-up bonus that provides significant value for its low annual fee of $95. To earn the bonus, one must spend $4,000 within the first three months of account opening. This card is a must-have for travel enthusiasts seeking to maximize their rewards.
Discover the value of the Chase Sapphire Preferred Card and the Southwest Rapid Rewards Priority Card: The Chase Sapphire Preferred Card offers a sign-up bonus of 100,000 points worth $2,000 in travel, 5x points on travel booked through Chase, and a $50 annual hotel credit. The Southwest Rapid Rewards Priority Card offers valuable points for low-cost flights and a companion pass with 125,000 points in a year.
The Chase Sapphire Preferred Card is a valuable addition to any wallet, especially when it comes with a sign-up bonus of 100,000 points, equivalent to $2,000 in travel. One of the best ways to use these points is by transferring them to hotel programs like Hyatt, where they're worth more. For instance, a night at the Hyatt Zilara in Cancun costs 44,000 points in the Chase travel portal but only 25,000 points through Hyatt. The card also offers a $50 annual hotel credit, 5x points on travel booked through Chase, and 3x points on dining, streaming services, and online grocery purchases. Additionally, cardholders receive a 10% annual points bonus based on their spending. For those with some travel rewards history, the third card recommendation is an airline card, specifically the Southwest Rapid Rewards Priority Card. Its points are highly valuable, allowing for low-cost flights, and if one can earn 125,000 points in a year, the companion pass is unlocked, enabling a travel companion to fly for free. Both the Chase Sapphire Preferred Card and the Southwest Rapid Rewards Priority Card are recommended for their versatility and value in the travel rewards landscape.
Southwest Rapid Rewards Priority Card and Marriott Bonvoy Boundless Card Offer Valuable Rewards: Frequent Southwest flyers can benefit from the upgraded boardings, annual travel credit, and anniversary points of the Southwest Rapid Rewards Priority Card. Marriott Bonvoy Boundless Card offers a valuable sign-up bonus of three free nights at hotels in their extensive network.
The Southwest Rapid Rewards Priority Card offers excellent value for frequent Southwest flyers due to its upgraded boardings, annual travel credit, and anniversary points. With these perks, the annual fee is easily justifiable. For those not living in a city served by Southwest, the United card is another lucrative option. Switching gears to hotels, Marriott's Bonvoy program is recommended due to its extensive property network and the valuable sign-up bonus of three free nights with the Marriott Bonvoy Boundless card. The free nights certificate can be applied to hotels with equal or fewer points required, making it a versatile reward.
Marriott Bonvoy Boundless Credit Card: A Valuable Option for Frequent Travelers: The Marriott Bonvoy Boundless Credit Card offers a 60,000-point sign-up bonus, 6x points on Marriott purchases, a free night certificate worth 35,000 points annually, and a fifth night free on award stays, making it a valuable addition for frequent travelers, justifying its $95 annual fee.
The Marriott Bonvoy Boundless Credit Card offers a great value for frequent travelers. With a 60,000-point sign-up bonus after spending $3,000 in the first three months, 6 times points on Marriott purchases, and a free night certificate worth 35,000 points every year, this card can provide significant savings on hotel stays. Additionally, if you book four nights, the fifth night is free. These benefits make the $95 annual fee worthwhile, especially when considering the potential value of a 35,000-point free night certificate, which can cost up to $400. If you're looking for other options for your fifth card, consider the Chase Ink Business Preferred Card, which offers a 100,000-point sign-up bonus, or the Hyatt Credit Card, which has a $95 annual fee and lucrative Hyatt points. Remember, these cards can be justified beyond their sign-up bonuses, making them valuable long-term additions to your wallet.
Southwest and Marriott programs offer the most value for credit card users: The Southwest Rapid Rewards and Marriott Bonvoy programs, along with their respective credit cards, offer the most value for credit card users. However, the American Express Platinum Card's impressive welcome bonus and recurring benefits justify its high annual fee.
While alternative credit cards like those offered by United and Hyatt may have their uses, for those looking to maximize value, the Southwest Rapid Rewards and Marriott Bonvoy programs, along with their respective credit cards, offer the most bang for your buck. However, the American Express Platinum Card, despite its hefty annual fee, continues to be a worthwhile investment due to its impressive welcome bonus and recurring benefits, including airport lounge access, travel credits, and credits for services like Uber, Saks Fifth Avenue, and TSA PreCheck or Global Entry. These benefits, combined with the points earned through travel purchases, easily offset the annual fee and can provide significant value, especially for frequent travelers.
Maximizing travel rewards with strategic credit card applications: Start with Chase Sapphire Preferred, followed by a Southwest or airline card, Marriott Bonvoy Boundless, and a wild card from Chase for free travel worth thousands through sign-up and referral bonuses. Structure spending wisely on Chase Sapphire Preferred and Amex Platinum for maximum points.
An effective strategy for maximizing travel rewards involves carefully selecting and applying for specific credit cards in a particular order. This includes starting with the Chase Sapphire Preferred, followed by a Southwest Airlines or other airline card, Marriott Bonvoy Boundless, and a wild card from Chase for additional hotel or travel benefits. By doing this, you can potentially earn thousands of dollars in free travel through sign-up bonuses and referral bonuses. Additionally, structuring your spending wisely, primarily on the Chase Sapphire Preferred and American Express Platinum cards, can help you earn the most points. And, if you're traveling with a partner, you can implement a "2 player mode" strategy to double the rewards. Remember, while this strategy may involve referrals, it's a legitimate way to earn travel rewards and provide a free vacation for someone else.
Maximizing travel rewards through networking: Leverage your network to earn travel rewards by sharing referral links and expanding your points
Leveraging referral links is an effective way to earn travel rewards even before starting a blog. This strategy was successful for the speaker as they had numerous friends who wanted to follow in their footsteps. By sharing referral links, they were able to generate more points and expand their rewards. This tactic demonstrates the power of networking and building a community in the pursuit of travel rewards. If you're looking to maximize your rewards, consider reaching out to your network and sharing referral links with friends and family. Remember, every point counts, and small actions can lead to significant rewards.
