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Travel hacking is a slang term for using points and miles earned from credit cards and loyalty programs to save on travel costs while upgrading your experiences. It’s a game of strategy that turns everyday spending into rewards for flights, hotels and more.
With the right approach, you can unlock benefits like free travel, premium-class flights and exclusive perks, all while sticking to your budget. The key is to stay disciplined, plan ahead and make the most of the opportunities available.
Use credit card rewards and loyalty points to save on travel and access premium upgrades.
Join airline and hotel loyalty programs to start earning rewards without a credit card.
Maximize points through welcome bonuses and everyday spending while avoiding interest charges.
Earn rewards via dining programs, shopping portals and direct bookings.
Avoid overspending, redeem rewards before they lose value and diversify the programs you earn with.
Travel hacking refers to using rewards earned from credit cards and loyalty programs to pay for flights, hotels and other travel expenses.
The best part is saving money, as rewards can offset thousands of dollars in expenses while unlocking perks like premium flights and upgraded hotel rooms. These benefits let you stretch your budget while enjoying elevated travel experiences.
No matter your type of traveler, using these programs to your advantage allows you to maximize value and elevate your journey without overspending.
To get started with travel hacking, sign up for loyalty programs with major airlines and hotel chains. Even if you can’t earn credit card rewards right away, you can still accumulate valuable points and benefits directly through travel.
If you have a strong credit score and are open to applying for a new credit card occasionally, you can earn welcome bonuses and rewards from your spending. Travel credit cards also offer added perks like travel insurance, spending credits and complimentary loyalty program status.
For beginners, the best part to start with is the end goal in mind: what do you want to accomplish? It can be as simple as saving on a yearly trip or as grand as taking a first-class flight to a five-star resort in the Maldives. Once you have an end goal in mind, you can start to figure out what rewards you need and which credit cards can get you there.
The simplest way to rack up points and miles is through credit card spending. Issuers like Chase and American Express offer various credit card options, from cobranded with travel partners to their own proprietary cards. Here’s how you can start earning points:
These bonuses are available to new cardmembers, where you can earn a large number of points right at the start of your card membership. For example, a card could offer 50,000 miles after spending $3,000 in the first three months of card membership. This bonus is not a scam but rather a way to get you started earning rewards.
This is where you have to be strategic with where you’re spending. For example, if you’re spending regularly at grocery stores, consider a card like the American Express® Gold Card that earns 4X at grocery stores. If you’re traveling often, the Chase Sapphire Preferred earns 2X on all travel purchases.
The key to making the most of credit card rewards is to avoid carrying a balance. Interest charges can quickly eat into your rewards, reducing their value. Travel hacking is all about earning points on spending you’d do anyway, without incurring extra costs. Paying interest every month defeats the purpose entirely.
You can earn significant credit card rewards from welcome bonuses and everyday expenses. But there are plenty of ways to earn points and miles without swiping or tapping your card.
Flying with an airline or staying at a hotel can earn you rewards, but you usually need to book directly through the airline or hotel’s website. Third-party travel sites might offer their own rewards programs, but these are generally less valuable than the rewards that brands offer.
Shopping portals are referral links to your favorite brands that offer incentives to users. For example, if you're shopping at Home Depot online, you can go to CashBackMonitor to see what bonuses are available. At the time of writing, you can earn up to 7.5 Delta SkyMiles per $1 spent at HomeDepot.com just by using Delta's shopping portal link. It only takes a few seconds to check for these opportunities, and it doesn't cost anything extra.
Consider signing up for SkyMiles Dining and other loyalty dining programs to see if you can earn extra miles on your next restaurant visit.
Whether you earn points from credit card spending or traveling, the points are all deposited into your loyalty program account. Within each account, there are ways to maximize the rewards and travel experiences. Here are a few things to consider:
Each major airline has its own respective loyalty program. You can earn miles and potentially earn status if you fly enough. Regularly flying with one airline can earn perks like free checked bags, lounge access and seat upgrades. Additionally, many airlines are part of airline alliances where you can use your miles to fly with their respective airlines. For example, if you have American Airlines miles, you can book a flight with Alaska Airlines or British Airways.
For those who simply wish to get from A to B and don’t fly enough to earn status, it’s best to focus on earning airline miles to save money.
Earning status in hotel loyalty programs can be easier, as many hotel credit cards offer complimentary status for simply owning a cobranded credit card. If you decide not to have a cobranded card, you can earn status by spending enough nights at a specific hotel brand. Having status within a hotel loyalty program can qualify you for benefits like room upgrades, early check-in and more.
For most travelers, airline points are much more valuable than hotel points. For example, if you’re traveling a far enough distance where driving doesn’t make sense, you need to fly. On the other hand, accommodations offer more flexibility beyond traditional hotels — you can choose options like Airbnb, hostels or staying with friends and family.
Building points and miles efficiently requires strategic choices. The best strategies include using transferable rewards, sticking to a single card, managing multiple cards or effectively leveraging large purchases and welcome bonuses.
If flexibility is your priority, focus on credit cards that offer transferable rewards. For example, the Chase Sapphire Preferred earns Chase Ultimate Rewards points, which you can transfer to various airline and hotel loyalty programs. This versatility lets you redeem points wherever you need them most.
Several credit cards, such as those earning Chase Ultimate Rewards or American Express Membership Rewards, allow you to accumulate transferable points across multiple cards and welcome bonuses. This strategy works well for travelers who don’t want to commit to a single airline or hotel brand and are comfortable managing multiple cards that earn the same points currency.
While the points and miles game can be fruitful by using multiple credit cards, there is value in keeping it simple. The single-card strategy is straightforward: pick one card and put every expense possible on it. You won’t hit bonus categories on every purchase, but you can quickly amass rewards on your chosen card.
This strategy is best for travelers who don’t need to maximize every purchase but still want to earn valuable rewards.
If you want to maximize every dollar spent, consider using multiple credit cards tailored to specific spending categories. For instance, one card might offer higher rewards on groceries, while another earns more on dining or travel. We recommend keeping track by labeling each card in your wallet with the expense category it aligns with. Though it requires more effort, this method can yield substantial rewards for those willing to invest the time.
Nearly every travel credit card offers a welcome bonus to entice new cardholders. However, you can earn the welcome bonus and then cancel the card before the annual fee is renewed. This strategy is called churning.
Scheduling is important with this strategy. You want to cancel the card 11 months after being approved, so you don’t have to pay the annual fee for the second year, if applicable. Although your credit score could drop slightly with this practice, paying bills on time will help you recover.
This strategy requires some finessing, but it’s a turn-key way to dramatically reduce travel costs.
If you know a big purchase is coming, such as a vehicle, home appliances or wedding costs, apply for a credit card ahead of time to maximize the rewards.
For example, let's say you have a $10,000 home improvement project that you can pay for with a credit card. Not only will you likely earn the points, but you can also earn the welcome bonus, leaving you with a nice chunk of travel rewards.
Some travel credit cards give cardholders a 0% introductory rate for a specified amount of time, which could come in handy if you need to finance the cost. Remember to avoid putting significant expenses on a card unless you already have the funds to pay it off. Interest charges can eat into the value of the rewards.
While earning points and miles is exciting, missteps like overspending, hoarding rewards or relying too heavily on one program can diminish their value. Stay mindful of these pitfalls to ensure your travel hacking efforts pay off.
Research has demonstrated that credit card spending doesn’t trigger the same pain receptors in our brains as paying with cash, making overspending easy. Stick to your budget to ensure your rewards aren’t outweighed by financial strain.
Some people love hoarding points and miles just to brag. However, this can be a losing strategy as points are subject to regular devaluation. Travel brands regularly make it more expensive to redeem their rewards, making your rewards effectively worth less over time. The purpose of earning points is to use them, save money on travel and create memories.
While loyalty is great, restricting yourself to a single rewards program can limit your options. If you love to fly with Delta, don’t force yourself to only earn Delta points. Cards like the American Express Gold Card allow users to transfer points directly to Delta, as well as several other loyalty programs.
Having an honest conversation with yourself is vital. Some consumers aren’t in the financial position to have a rewards credit card, and that’s perfectly okay. It’s best to get your financial life in order before diving into the world of points and miles. This includes paying off any existing credit card or other high-interest debt, building an emergency fund and saving for retirement.
We’ve addressed common concerns and provided practical tips to help you get the most out of your points, miles and credit card strategies.
Yes, travel hacking can be worth it. It doesn’t take much effort, and with a bit of strategy, you can save substantially on your travel costs.
When earning credit card rewards, be sure you’re using cards that give you the most rewards for the categories you spend in. Remember to avoid hoarding your rewards because they can be subject to devaluation.
You can increase your rewards by evaluating whether you’re using the right card for your expenses or potentially signing up for an additional card to earn a welcome bonus and pad your points balances.
From airfare aggregators to tools that can help you keep track of multiple reward programs, many resources are available to help you start travel hacking:
Discover more about maximizing travel rewards, from using credit card points for vacations to finding the best travel and airline credit cards:
About Brett Holzhauer, CPFC
Brett Holzhauer is a Certified Personal Finance Counselor (CPFC) and a personal finance reporter at MoneyGeek. He has written for several leading publications, including Forbes Advisor, LendingTree, CNBC and ValuePenguin.
Holzhauer has a journalism and mass communications degree from the Walter Cronkite School of Journalism and Mass Communications at Arizona State University.
