Travel Hacking 101: best credit cards to get started

I’ve been travel hacking for almost a decade now. I use the points and miles that I earn on my everyday spending (things like groceries, gas, and dining) and intentionally maximize my earnings to score free hotel rooms and flights every year. It sounds too good to be true, doesn’t it? Not when you’re using travel hacking best credit cards!

But I promise you with the right knowledge, a little dedication, the right card foundation, and some organization anyone can be a travel hacker. And, to help you get started I’ve created a guide to the best travel credit cards:

But first! There is no perfect credit card, just one that works best for you

When I spend time with my coaching clients they tend to ask me what the perfect travel rewards card is. And the answer is… there isn’t one single best card. But, there are cards that are best for you: your lifestyle, your travel goals.

Keep these three things in mind when deciding on a travel rewards card strategy:

• What spending categories do I spend the most money in (gas, groceries, dining)?
• What transferable rewards programs (Chase, Capital One, etc.) have the best benefits and transfer partners for my travel goals?
• What cards have the right sign-up bonus to help me reach my travel goals?

Once you can answer those questions you’ll be ready to start your card foundational strategy. 

These are the cards that I like to call, “wallet keepers.” They are the cards that will help you maximize your rewards earnings when you’re not working on a sign-up bonus. 

They are transferable points that will help you have the flexibility to find the best rewards for you, and ensure you’re earning the most on all your everyday purchases.

What I value in a travel rewards card

When you’re just starting out it’s hard to know what’s important in your travel rewards card strategy. Oftentimes, before you get your first card you don’t even know what a transfer partner even is. 

But there are a few things to keep in mind when it comes to what you should look for in the best travel credit cards.

I value 3 main categories: cost, earnings, and savings. 

Cost

You should be getting way more value back in your card annually than you pay in your annual fee. Though you should always get a travel rewards card for the first year since the sign-up bonus outweighs the annual fee, it’s important to check your benefits and ensure you’re earning more than you’re paying.

For example, the Venture X has a hefty $395 annual fee but you receive a $300 travel credit and 10,000 points (valued at $100) that already pay the $395 annual fee.

Earnings

Your travel rewards cards should be earning you more than 1x points on every purchase you make with your most common spending categories earning you at least 1.5x (if not 2x+ points). 

This is largely achieved by utilizing 2-3 credit cards for your daily expenses that ensure you’re maximizing your earning potential. 

Savings

Your day-to-day travel cards should be offering you savings you can actually use. This means getting cards with transfer partners, like the Citi Premier, Sapphire Preferred, Venture X, American Express Gold, etc. 

But you need to choose a card with transfer partners that are most helpful for you. Oftentimes when you’re starting out Chase is the best option.

Why you should have more than one travel rewards card

Consider the best travel credit cards as more of a set than a singular unit. 

If you have just one you’re maximizing your earning potential with that singular card but if you have 2-3 in a duo or trifecta you’re able to earn 50 to a whopping 500% more on specific spending categories. 

For example, the Chase Trifecta utilizes the Chase Freedom Flex, Chase Freedom Unlimited, and Chase Sapphire Preferred. With three cards all in a singular program, you’ll earn more free hotel nights and airfare because you’re earning (at times) 5 times what you would have just with the Chase Sapphire Preferred. 

If you’re buying groceries anyway, this is as simple as reaching for the card that has a 5x points promo this month to pay rather than the card with 1x cashback.

What about my credit score?

When you start travel hacking your first concern (and rightly so) is your credit score. Keep in mind your credit score has a lot of factors:

30% Accounts Owned
35% Payment History
15% Length of Credit
10% New Credit
10% Credit Mix

As long as you pay your balance in full on time every time, you’ll likely see your credit score increase over time. This is due to having more accounts to lower your credit utilization. 

However, also keep in mind that you need at least a score of 700 to get most of the travel rewards cards we’re talking about below.

Travel Hacking Best Credit Cards (My Top Picks)

Chase Sapphire Preferred

The Chase Sapphire Preferred is the go-to starter card for so many reasons. First, it has a low annual fee but still earns you 3x on many of your everyday spending categories.

But more importantly, the points are very valuable with some incredible and beginner-friendly transfer partners. You can transfer to World of Hyatt for easy free nights or some of the best airline partners that offer free flights with low taxes, too.

Check out how I used the Chase Sapphire during my Europe for Free trip!

Pros: A lot of easy spending categories that earn 3x the points, great transfer partners for free hotel nights and flights, and $50 hotel credit annually.
Cons: You want to be sure you can make up for the $45 annual fee after $50 credit through point earnings.

Capital One Venture X

The Venture X has a higher annual fee ($395) but more than makes up for it in travel perks. The card earns a simple 2x on all purchases, which makes it super easy to keep track of. This is a great piece to a long-term strategy when combined with the Chase Sapphire Preferred and Chase Freedom Flex but also a perfect stand-alone card.

Pros: $300 travel credit and 10,000 points annually more than pay the annual fee, lounge access.
Cons: Must use $300 travel credit in the portal which can sometimes have higher prices on rental cars and hotels.

American Express Gold

If you like to fly business class, American Express points are one of the best ways to find a variety of award availability, which makes it a fan-favorite of travel hackers. The American Express Gold is also a great earning card with 4x on dining and groceries.

Pros: Fantastic earnings on dining and groceries, transfer partners that are great for business class travelers, $120 annual Uber Cash credit
Cons: Only offers good earnings on dining and grocery categories.

Citi Premier

Don’t sleep on the Citi Premier, when combined with the Citi Custom Cash you can easily earn yourself amazing trips with the combo. With 3x earnings on dining, groceries, and gas many travelers find this card maximizes most of their everyday expenses. 

Pros: 3x earnings on the top spending categories of most households.
Cons: Not as many transfer partners that are useful.

Some other things to keep in mind…

Use all your credits and perks

It’s important to familiarize yourself with your credit card perks, as they offset your annual fee. 

Things like free Uber Eats with your American Express Gold or your $50 Chase Sapphire Preferred hotel credit are perks you want to use. In addition, many cards offer things like TSA/Global Entry credits and lounge access that help offset your annual fee, too.

Don’t cancel your card in the first year

If you decide that a travel rewards card just isn’t for you, (or perhaps you got the card only for the sign-up bonus), keep the card at least a year before you cancel it. If you cancel before a year you’ll hurt your credit score and the chances of being approved for another card within the bank’s program.

But don’t worry, Travel Freely’s app will help you keep track with automatic emails!

Not all points and miles are created equal

Points and miles all have different values depending on the programs. Think about it this way: each of the programs is like comparing different countries’ currencies. It’s general practice that most of the time transferring your points to partners will reward you with a better return on your investment. You can use sites like Point.Me to help you determine how (and if) you should transfer your points.

Utilize flexible points for your primary earning methods

Programs, like the cards discussed earlier, help you earn points that can be transferred. Which means you have options. 

If you just earn Delta Skymiles you’re trapped into what Delta is charging you for that flight. 

However, flexible points mean that you have options to book that same flight cheaper with the help of transfer partners. You can use Point.Me to help you better understand how and what is the best redemption for your points and miles for flights.

Explore on. -K