Before You Start Travel Hacking, Make Sure You Do These 7 Things

According to the most recent data from the International Trade Administration, the average American spends $1,783 when traveling internationally. While travel costs have gone up in the last few years, one common way to offset this is to engage in some form of travel hacking to reduce various travel-related expenses.

Travel hacking is a popular strategy that involves taking advantage of credit card points and perks to save money on flights, hotels and other travel costs to improve your overall experience.

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Before you start travel hacking, here are seven things you must do to maximize benefits and avoid pitfalls so you don’t lose money.

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Assess Your Credit Score

You want to start off by reviewing your credit score to ensure that you’re in a strong enough financial position to open up a credit card. Since travel hacking often involves seeking out bonus credit card rewards, you want to do your best to qualify for them so that you can land the best possible deals.

“A solid credit score is crucial for travel hacking, as it opens up the best travel rewards credit cards with lucrative sign-up bonuses,” said Genni Franklin, a travel expert and founder of Traveling Franklins.

“Having a good to excellent credit score (ideally 700-plus) is crucial for qualifying for the best travel credit cards and maximizing rewards. Without this, it may be difficult to get access to the cards that offer the most lucrative sign-up bonuses and benefits,” said Alexa Erickson, a travel expert from Dollar Flight Club.

While travel hacking can be exciting, you should review your finances to determine whether you’re even in a position to get started.

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Don’t Apply For Credit Cards Blindly

You don’t want to get into the habit of applying for credit cards blindly because it could impact your credit score and it could be challenging to manage so many different forms of credit. “Sure, the Amex Platinum is one of the best credit cards for travelers on the market, but does your credit live up to its standards?” Erickson said.

While a credit card reward may seem enticing at first glance, you’ll want to review the fine print and details to avoid ending up with a wallet filled with cards you don’t really need.

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Ensure You Can Earn the Points

“Many of the best travel credit cards require a sizable spending requirement within three to six months of account opening, or else you won’t receive the shiny sign-up bonus that lured you in the first place,” Erickson said. “Ensure you’ll be able to meet that initial spending requirement and that your budget isn’t chasing points-earning while sacrificing your bank account.”

If you don’t have any major expenses coming up, you’ll want to avoid the credit cards that offer bonuses for significant purchases. The goal is to find rewards and points you can earn without changing much about your current situation.

Start With a Simple Strategy

Franklin pointed out that you don’t need a dozen credit cards to get started. Beginners should start with one or two cards that align with their travel goals.

For example, credit cards that offer flexible rewards and bonus categories for everyday spending are the perfect place to start your travel hacking journey.

Create a Budget For Travel Hacking

Many experts advise that the key is to find ways to maximize points without overspending. Overspending just to get points could negate what you end up saving. Therefore, you should maintain a budget for your spending.

It’s almost important to make sure you’re able to pay your credit card balances on time and in full. If you don’t pay off your credit card, any interest you get hit with could instantly offset the benefits you receive from points. Late payments could also hurt your credit score, limiting your future travel hacking abilities.

Determine What Kind of Redemptions You’ll Make

Franklin noted that many beginners get caught up in whether they can make “good redemptions,” but you can’t redeem points you don’t have. “So focusing on earning the right type of points should be their priority. There’s no such thing as a bad redemption, as long as they save money on travel,” she said.

Travel hacking should be viewed as a long-term commitment, so you’ll want to think about what redemptions you’ll make and how much time you have to earn points.

Learn About the Different Reward Programs

To be strategic with your approach, you’ll want to take some time to familiarize yourself with different types of reward programs and the value of points and miles. Experts have pointed out that each program is unique, so it’s essential to understand which one aligns with your travel goals and your daily spending habits.

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This article originally appeared on GOBankingRates.com: Before You Start Travel Hacking, Make Sure You Do These 7 Things