Unlocking the World: Travel Hacking Tips with Credit Card Points for Canadians

Hey there, fellow Wanderlusters! 🌍✈️

Ready to unlock the world and turn your travel dreams into reality without breaking the bank? As a fellow adventure lover, I’m here to share some travel hacking tips to help you maximize those credit card points while keeping your credit score in check. Let’s dive in and get those suitcases packed!

A Big Caveat: Pay Off Your Cards in Full

Before we get into the nitty-gritty, here’s a crucial piece of advice: This strategy only works if you pay off your credit cards in full every month. If you’re carrying a balance and paying interest, the value of the points you earn will be negated by the interest charges. Always aim to clear your balance to truly benefit from travel hacking.

1. The Power of Plastic: Choosing the Right Travel Credit Card

First things first, you need the right tools in your travel hacking kit. Look for cards that offer great rewards on categories like groceries, dining, and travel expenses. Make sure the card aligns with your spending habits to maximize your points.

2. Sign-Up Bonuses: The Quickest Way to a Free Flight

Many travel credit cards offer juicy sign-up bonuses. These bonuses can often be enough for a round-trip flight within North America. When signing up for a new card, meet the minimum spending requirements by using it for regular expenses like groceries and bills.

When I know that I have some big expenses coming up, I always look to sign up for new cards so I can put those big expenses towards the minimum spend requirements to make the most of the bonuses. This is the key to travel hacking to ensure you get a boost of points rather than waiting to collect points on regular spends.

3. Spending Smart: Only Spend What You Were Going to Spend Anyway

Here’s the golden rule of travel hacking: Don’t spend more than you usually would just to earn points. Use your card for regular expenses like groceries, gas, and dining out. This way, you’ll rack up points without straining your budget.

4. Automate Payments: Keep Your Credit Score in Check

To keep your credit score sparkling, always pay your credit card bills on time. Automate your payments to ensure you never miss a due date. Set reminders and use online banking tools to keep track of your spending. A strong credit score means better pre-approval rates for new cards & sign-up bonuses. Keep your credit utilization below 30% to make sure you have a higher chance to get approved for new credit cards for their offers.

5. Category Spending: Know Where to Swipe

Maximize your points by knowing which categories earn the most. Use your travel credit card for purchases that offer the highest rewards. For example, some cards offer extra points on groceries, dining, and entertainment. Swipe smartly to get the most out of your spending.

6. Double-Dipping: Stack Rewards for Extra Points

Double-dipping is all about stacking rewards. Use your travel credit card for purchases through airline or hotel portals to earn extra points. For example, shop through airline eStores or hotel portals to earn points twice – once from the card and once from the loyalty program. At one time, try to maximize similar rewards programs that allow you to pool in your points - for example: If you have a CIBC Aeroplan card and collect Aeroplan points already, maybe consider getting another Aeroplan credit card (maybe the TD Aeroplan or the Amex Aeroplan) for the bonus sign-up offer to boost your points.

7. Points Transfer: Converting Your Points Towards Loyalty Partners

Transfer your points to maximize their value. Some cards allow you to transfer points to airline and hotel partners. This flexibility can help you get the best value for your points. Here are some tips for transferring points:

• Airline Partners: Research which airlines accept point transfers from your card and find the ones that offer the best value. For example, transferring points to an airline with lower redemption rates for international flights can save you a lot.
• Hotel Partners: Look for hotel chains that offer generous point redemption rates. Transferring points to these partners can get you luxury stays at a fraction of the cost.

8. Use Points Strategically: Get the Best Bang for Your Buck

Not all redemptions are created equal. Use your points for high-value rewards, like business class flights or luxury hotel stays. For instance, long-haul flights in business class or stays at high-end hotels can offer better value per point compared to short domestic flights or budget hotels. Always look at your points to see what the dollar value you are getting for the points to ensure you are maximizing value.

9. Cancel Unused Cards: Avoid Annual Fees

If you’re not using a card with an annual fee, consider canceling it. However, be mindful of the impact on your credit score. Closing old accounts can reduce your available credit and increase your credit utilization ratio, which can lower your score. Use this strategy wisely and only when necessary. Canceling old cards also allows you to reapply for those cards in the future for the sign-up bonuses. Banks usually have a waiting period of 2-3 years before you can apply for the same card and get the sign-up bonus points. But you can run a full circle of other cards in the meantime. Some cards maybe worth while to leave open if you are maximizing out on the rewards to fee ratio.

10. Keep an Eye on Promotions: Boost Your Points Balance

Stay alert for special promotions and offers. Banks and airlines often run limited-time deals that can help you earn more points. Sign up for newsletters and follow your favourite travel blogs to stay in the loop. Always take advantage of pre-approvals and limit increases - keeping your spending low with higher credit limits boosts your credit score and allows you to take advantage of newer offers.

Final Takeoff: Your Adventure Awaits

Travel hacking is all about being smart and strategic and requires prior planning. With the right credit cards and a bit of savvy spending, you can turn everyday purchases into unforgettable adventures. So, start swiping, stacking, and exploring. The world is waiting for you!

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Wrapping Up

‍Travel hacking can unlock amazing adventures, but it requires smart spending and careful planning. From choosing the right credit cards to maximizing rewards and sign-up bonuses, staying informed and strategic will make all the difference.

At TruCents Financial, we're here to help you make the most of your finances, whether you're saving for your next big trip or planning for long-term financial goals. Contact us today for personalized advice and expert guidance tailored to your needs. Let’s turn your everyday spending into unforgettable experiences!

Happy travels! 🌎✈️

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