Let me begin by expressing my enthusiasm for commencing this series. Travel hacking, particularly credit card churning, is a genuine passion of mine, and I relish any opportunity to engage in discussions about it. Perhaps you recall me sharing the numerous points I have accumulated in the past, all thanks to my credit cards. Spoiler alert: I will be posting my Q4 2017 points recap in January, so stay tuned for that exciting update.
Travel hacking has granted me the privilege of enjoying multiple trips per year, either for free or at an incredibly low cost, over the course of several years. It is an undervalued hobby that could benefit many individuals, provided they possess the necessary knowledge and skills to manage it effectively. That is precisely the purpose of this series.
To lay a solid groundwork for future travel hacking strategies, I would like to commence this series by explaining the fundamentals. I will assume that you have no prior knowledge of travel hacking and gradually build upon that. It is crucial to establish a strong foundation upon which we can develop our future travel hacking techniques.
What is Travel Hacking?
Travel hacking entails mastering the art of navigating the realm of free or highly discounted travel. It encompasses various methods, such as exploiting glitch fares, optimizing loyalty rewards programs, engaging in credit card churning (my personal favorite), and attaining elite status, among others. However, all these approaches share a common objective: securing free or significantly reduced-cost travel.
What is Credit Card Churning?
Credit card churning refers to a travel hacking strategy that involves repetitively opening and, when appropriate, closing credit card accounts to take advantage of the generous sign-on bonuses offered. This method holds a special place in my heart because it enables you to accumulate substantially more reward points compared to relying solely on paid travel. Moreover, you can combine multiple strategies to further enhance your rewards, but I will delve into that in a future post.
Who is Credit Card Churning For?
At its core, credit card churning caters to individuals who aspire to travel without bearing the full financial burden. An additional benefit of this hobby is its positive impact on building or maintaining a commendable credit history, all while accomplishing the primary goal of discounted travel. So, does this mean that possessing a desire to travel on a budget makes credit card churning suitable for everyone? Not quite…
Who is Credit Card Churning NOT For?
While the desire to travel is certainly a prerequisite, it alone is insufficient to determine whether credit card churning is suitable for a person. Although credit card churning can be an excellent hobby for a diverse range of individuals, it is important to conduct an honest self-assessment before diving in. One should NOT engage in churning if they fall into any of the following categories:
- Individuals with a current credit score below the “good” range (i.e., 699 or lower).
- Individuals burdened with existing credit card debt that they cannot repay.
- Individuals planning to finance a major purchase, such as a home, in the near future.
- Individuals who struggle to manage their credit card spending responsibly.
- Individuals currently living beyond their means.
- Individuals who do not spend enough to meet the minimum spending requirement.
- Individuals who have never possessed a credit card.
Fortunately, being in any of the above categories at present does not preclude you from attempting credit card churning in the future. Personally, I knew I wanted to embark on this hobby years before I finally did. Recognizing the need to improve my personal financial situation before venturing into the realm of credit card churning, I diligently worked on it, addressed what needed improvement, and eventually took the plunge without regrets.
Debunking Common Credit Card Churning Myths
Isn’t it intriguing how our society has become inclined to express strong opinions on subjects about which they possess little to no knowledge? This hobby is no exception. When conversing with family and friends, you may notice that they readily share their opinions on this hobby, despite lacking firsthand experience. However, a bit of research is all it takes to reveal that the following “concerns” are, in fact, misconceptions as long as you approach this hobby responsibly:
- Opening new cards will harm my credit score: This couldn’t be further from the truth! As long as you manage this hobby responsibly (as discussed above), the impact on your credit score is negligible. You might observe a slight dip in your score, but in my experience, it quickly recovers the following month.
- It’s too complicated and time-consuming: I intend to delve into this matter extensively in future posts, but I assure you that this hobby does not demand a significant time commitment. While you do need to invest some time in researching the right credit card and monitoring your spending to meet the minimum requirement within the stipulated timeframe, that is the extent of it.
- Credit cards are inherently bad: Credit cards have earned a negative reputation because numerous individuals, particularly in the United States, find themselves drowning in credit card debt by living beyond their means. However, if you can manage them responsibly, credit cards become a fantastic financial tool.
- Travel hacking is “breaking the rules”: This is absolutely false. Credit card companies designed the system, and credit card churners operate within the framework of that system. Credit card companies generate revenue through transaction fees on every purchase, while we get to enjoy rewards points in return. It is a mutually beneficial system that unfortunately many people fail to take advantage of.
- The best way to earn miles is through paid travel: As someone who frequently travels on paid flights for work, I can unequivocally assert that this is false. While using both methods can bolster your rewards, I accumulate FAR MORE points (and at a faster rate!) through travel hacking than I do through my paid travel.
Thus, we have established a sturdy foundation in the realm of credit card churning. In the next installment of this series, we will delve into topics such as understanding your credit score, initiating credit card churning, effective strategies for managing this hobby, and methods for tracking multiple cards, among others.
In the meantime, I am eager to hear from you! Are you currently involved in credit card churning, or do you aspire to explore it in the future? Feel free to share your thoughts in the comments section below!
Greetings, fellow travellers! I’m Kristopher, the creator behind DenverTravelGuide, your ultimate companion for all things Denver, Colorado. As a passionate explorer and a true fan of the mile-high city, I’m here to help you plan the perfect trip and make the most of your time in this captivating destination.
Originally hailing from Wyoming, I couldn’t resist the allure of Denver and made it my home back in 2003. Since then, I’ve been smitten by the city’s unique blend of urban energy and breathtaking natural beauty. And let’s not forget the thriving arts scene, the incredible food and drink establishments, and the warm and welcoming locals who make Denver an extraordinary place.