5 TRAVEL HACKS THAT WILL SAVE YOU MONEY
We'd like to start by saying: we are not financial advisors. BUT, we are highly experienced travelers with a lot of knowledge in traveling points, air miles, and penny-pinching to reach our travel goals. So hear us out and do your own research (we're gonna give you some great tools for that).
2020 put a lot of people in financially tough times, making it almost impossible to even imagine going on a trip. But if you are financially savvy and try the tips below, you'll be packing up for your next vacation in no time. Take a look at our 5 budget-friendly travel hacks:
1: Pick an Airline and Get Their Credit Card
Most credit cards have built-in points programs where you receive points every time you use your credit card to purchase something. Think of every purchase as an investment toward your next trip. There really is no right or wrong card for you, it all depends on what you're looking for in a credit card and if you've got traveling on your mind, take into consideration where you want to travel. If you know you'll really only be traveling domestically, perhaps a Southwest credit card would work for you. But if you're looking to travel internationally, Delta, United, or American Airlines have points that can be put toward international travel. Read this article from The Points Guy on the Best Airline Credit Cards to have in January 2021.
2: Find a Points Program to Go To Your Fave Vacation/Resort
Many credit card programs allow you to transfer your points to partners and then redeem them for award flights or hotel stays. By doing so, you’ll often pay a fraction of the price for the flight or hotel than you would with cash, especially when redeeming your points or miles for luxury flights or hotels. These are called “transferable points,” and they’re a key component in the points and miles world. This part definitely takes research and a decision on what you'd like to achieve with your points. Check out the resources below to being your research on credit card points and how to use them:
RESOURCES:
The Points Guy
If you want an honest, very detailed assessment of most credit card point programs out there, this is your guys (hence the name). He has the inside scoop on the best programs to the worst. The website the chock-full of reviews, the latest news on traveling (very important during these times), money-saving tips and the latest, greatest deals.
God Save The Points
With a name like this, they must be from the UK. This site is a little more travel-oriented, including the best places to visit when in a particular country, rules of etiquette, and how to spend your time there. It also includes detailed reviews of credit card points, frequent flyers, and hotel loyalty programs.
Nerd Wallet
This is more about finances than points. Many helpful articles to help you understand credit scores, top picks on credit cards, and money expertise to help you save.
Please remember that any "expert " or broad view website is probably linked with an affiliate promotion to any credit card or company you see on their site. So be sure to do your own research and apply your preferences accordingly.
3: Pay Attention to Promotions
Research, research, research is your friend here. Start scouring the internet to see what credit cards are doing the best promotions. Don't just read one article, go to the credit card company's websites. Read all the details, and compare specifics. Don't forget the fine print. APR charges, fees, and penalties all matter.
Some travel cards offer statement credits for Global Entry or TSA Precheck purchases. Making your travel life even easier and give you no excuse for gaining this extra perk in your travel life. Make sure the points promotions match up with your actual spending habits. If you get 2x points for every dollar spent for dining out and gas, yet in your personal life you cook at home and ride your bike work or telecommute, then this card probably isn't the right fit for you. Find a card that matches your current lifestyle and spending. Don't get a card that may tempt you into extraneous purchases just for points. The whole point is to build up your credit, not to get in debt.
4: Get on the Phone
If you've narrowed down your choices to just a few (maybe choosing between a specific airline) try going the old fashion route and make a phone call. You'll be amazed at the results. Here are a few tips for getting the most out of a phone call to credit card companies:
Be personable: Talk to a representative, start off by being nice and personable (We've never worked in a customer service call center but we can only imagine most of their interactions aren't with pleasant customers). Start out with something like, "Hey (insert name—be sure to remember their name to sound more personal), I am new to this, so I really appreciate you taking the time to walk me through this and providing the information I need."
Remember that your customer service agent is also a sales rep for the company. How many calls to your credit card company or cell phone provider end with your representative saying "let me look into your account and see if there is something better we can do, or did you know you can add this to your account for this low fee."
Dig a Little Deeper: Tell them you're looking into starting a new account and trying to choose between a few options. You've started your research but I called to talk to an expert and wanted to see if there was any more information or suggestions they can provide you. It's important to make the representative feel knowledgeable and empowered at this point. Sometimes, they do know more than the company's website, internal company information is sometimes easier to transmit and takes less time than it does to get in publicly online. Be specific and tell them about the promotion you saw, then ask if this is the only promotion available and do they have something better coming up in the future. You'll be surprised what you may be told.
Story Time:
One time Minx called a company that was offering a 4.99% Balance Transfer and a low intro APR for the first year. From a 10-minute phone call and a few minutes of hold time, she found out from the representative that if she waited a month and a half there was a new offer coming out with a 1.99% balance transfer and 0% APR for all new purchases for a year. She was so grateful for that information. She thought 4.99% was low but 1.99% balance transfer was better and throw in 0% for a year. She patiently waited a month and a half and called back and got that deal.
5: Pay the Payments
On-time, every time. Late payments affect your credit score and on some cards can increase your APR. Set Up a minimum auto payment, to make sure you never miss your payment date. Of course, paying just your minimum payment won't help you but at least you'll never miss a payment. You can always make an additional payment at any time in the month to reduce your debt; keep in mind that every day extra that you are carrying debt over the due date, you are also increasing your interest rate payment. So pay them on time, set-up a calendar alert on your phone.
6: Build Credit
Playing the credit card "game" is actually essential to building your credit. It is kind of like a "game"; you take certain actions and you build points. Think of purchases and paybacks like Mario Brothers—smashing mushrooms and getting power-ups, builds point. But if you don't play the game well and get hit, you shrink to normal size and lose points. This is similar to a credit score.
Your credit score is based on you using credit, responsibly. The higher your credit score the easier it is to apply for loans, car payments & leases, buying a home, getting better credit cards with better promotions and higher limits, and more. Having higher limits isn't a bad thing, it's only a bad thing if you spend what you can't pay back in full when the bill is due. Having a higher limit can help improve your credit score, not only does the higher dollar amount count, the actual ratio of your charges compared to your limit matters.
"If you're spending most or all of your available credit every month — even if you pay off your balances — that can damage your scores. The general rule of thumb for good credit utilization is to use 30% or less of your limit on each card and overall." - Nerd Wallet
Things to Remember:
No more than 30% of debt to credit ratio on your cards.
- You can't rack them up to the max and pay the minimum. It's recommended to only use your cards for cash you actually have in hand.
- Not only can you not rack them up, but you should also keep your purchases to 30% of the total limit of your card unless you want those valuable Super Mario Brother Points (credit card score) going down.