Credit cards: What is travel hacking and how can you use credit cards to maximise rewards?

If you want to make the most of travel deals offered by credit cards, what you need – among other things -- is ‘travel hacking’. For the unversed, travel hacking is an art of using credit card points, loyalty programs, and travel deals to earn free or discounted travel experiences.

The goal of travel hacking is to maximise rewards points and leverage benefits to minimise the cost of flights, hotels, and other travel expenses. Here we list out a number of ways to use credit cards for travel hacking.

How to ace travel hacking

I. Opting for the right travel card

Several travel credit cards offer good sign-up bonuses so long as you meet a minimum spending threshold within the first few months. These bonuses often give enough points for a free flight or several hotel nights.

Make sure you opt for the cards which offer higher rewards rates for spending in categories you use most, like dining, groceries, and travel.

II. Leverage spending categories

Some cards have bonus categories for specific spending (e.g., 3 times points on travel or 4 times points on dining). Use these cards strategically to get the highest rate of points per rupee spent.

If your goal is to maximise points, use your card for as many purchases as possible, from gas to groceries to utility bills (just be sure to pay off your balance each month to avoid interest fees).

III. Transfer to airline & hotel partners

By transferring points to specific airline or hotel partners, you may get better value than booking directly through the card's portal. 

At times, credit cards give bonuses when you transfer points to certain airlines or hotels. These bonuses can add extra points to your account at the time of transferring.

IV. Make the most of travel benefits

A number of travel credit cards come with perks such as airport lounge access, free checked bags, and priority boarding. These benefits add convenience and save money on fees.

Additionally, a few premium cards offer valuable travel insurance, purchase protection, and other travel-related safeguards, which can save you money if something goes wrong.

V. Annual fees

Some cards with high annual fees provide benefits that outweigh the cost (like complimentary hotel nights or travel credits), but it’s important to make sure you’ll actually use them.

For international travel, make sure to use a card without foreign transaction fees, as they can add up quickly.

These tips, along with some research on the best credit cards for your spending habits and travel goals, can surely help you earn points swiftly and redeem them for high-value travel experiences.