Using Your Credit Cards & Other Methods to Travel Hack Responsibly and Safely

Travel hacking may be a good option if you’re looking to take a vacation without spending much money. Some people have even used “hacking” to finance their vacations around the world. The reality is if you aren’t careful, your trip could take a wrong turn quickly.

Travel hacking does not involve hacking into computers or data servers. In its simplest form, it means making the most of rewards that credit cards, airlines and hotels have to offer. The end goal in all cases remains the same — saving money.

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Finding good deals is one part of travel hacking, but it’s not everything. It’s also about using certain programs to make your journey easier and more lucrative. To start, you should look closely at credit card, airline and hotel rewards which can help you score easy upgrades, travel points and bonuses.

MORE: Best Credit Card Combinations to Maximize Rewards

Despite the benefits that travel hacking has to offer, it comes with risks as well. For instance, you might end up paying more in interest than the value of the points you earn if you maintain revolving balances on your credit card accounts. In general, it’s best to err on the side of caution.

If you stay informed, you’ll be able to avoid many of the most common risks associated with travel hacking, including increased debt, account closures and credit hits. Below are a few issues to take into account.

Some people get carried away in the euphoria of earning bonus reward points and end up spending more money than they normally would. No deal is worth the trouble if it causes you to accrue large amounts of credit card debt.

Keep in mind that some credit card companies have an idea that people may be travel hacking. If an issuer notices a cardholder has a pattern of using a credit card just to earn and redeem points, the credit card company might decide to shut down an account.

Making repeated credit inquiries can have a negative impact on your credit score. You also need to account for the impact that canceling a card might have on your debt to credit or credit utilization ratio. This essentially represents the total amount you owe in comparison to the total credit you have available, and it should ideally remain below 30%. Stick to responsible spending habits to keep your credit score on track.

As much fun as it is to get a good deal, here are some additional tips to keep in mind when it comes to travel hacking safely and responsibly.

Travel hacking by using credit cards, airline and hotel reward programs is not only legal — it’s a key part of the travel industry. As long as you abide by the fine print, you’re not doing anything out of the ordinary. Credit card issuers and airlines know how travel hacking tricks work and craft their promotions accordingly. Just be sure to understand the rules so you can get them to work in your favor.

From airfare aggregators to tools that can help you keep track of multiple reward programs, many resources can help you start travel hacking.

• AwardWallet: This website can help you keep a track of all your hotel and frequent flyer rewards. It works by automatically logging into a user's loyalty accounts on their behalf to retrieve miles and points.
• Skiplagged: A relatively new kid on the block, this airfare aggregator for cheap flights shows hidden-city ticketing trips, in addition to routine deals offered by sites like Expedia, KAYAK and Travelocity.
• Momondo: Momondo functions as an online travel agency and can help you plan your trip. It searches across hundreds of travel sites, from major booking sites to individual companies, to show you the best prices.
• Skyscanner: Skyscanner is a flight aggregator that continues to hold its own by consistently offering the lowest fares across various sectors. It also provides helpful fare alerts.