Travel Hacking: Fly First Class for Economy Prices

Key Takeaways

• The System: Banks pay for your travel. You just need to be organized.
• Rule #1: Never carry a credit card balance. If you pay interest, you lose.
• Sign-Up Bonuses: This is where 90% of the points come from.
• Transfer Efficiency: Transfer points to airlines, don't use them for cash back.

Introduction

Imagine flying Singapore Suites ($15,000 ticket) for $50 in taxes. Travel hacking is not magic. It is simple math. Banks have massive marketing budgets to acquire customers. They pay you in "Points" to sign up for their cards. If you play the game correctly, you can travel like a millionaire on a middle-class income.

Deep Dive: The Points Game

The Golden Rules

1. Credit Score Matters: You need 720+ to qualify for the best cards.
2. Organization: If you miss a payment, the game is over. Auto-pay is mandatory.
3. 5/24 Rule: Chase won't approve you if you've opened 5 cards in the last 24 months. Start with Chase cards first.

How to Earn

• Sign-Up Bonuses (SUBs): "Spend $4,000 in 3 months, get 80,000 points."
  • This 80,000 points is worth ~$1,600 or more in travel.
  • That is a 40% return on spend.

How to Burn (Redeem)

Bad Way: Redeem for "Cash Back" or on Amazon. (Value: 0.6 cents - 1 cent per point). Good Way: Use the Bank Travel Portal. (Value: 1.25 - 1.5 cents per point). Best Way: Transfer Partners.

• Move Chase points to Hyatt or United.
• Move Amex points to Virgin Atlantic or Delta.
• Book business class flights directly with the airline.
• Value: 2 cents - 8 cents per point.

Summary

Start with one good travel card (like Chase Sapphire Preferred). Put all your normal expenses on it. Hit the bonus. Take a free vacation.