Page 2

Author Introduction 5

Overview 7
My Approach 7
Other Services 8
The Free Flight Guarantee 8
Important Disclaimers 9

SECTION ONE - Getting Started 10

Why Travel Hack? 11
Extreme vs. Casual Travelers 12
Where to? 13

SECTION TWO - Intro to Travel Hacking 14

Travel Hacking 101 15

SECTION THREE - The Basics of Frequent Flyer Miles 17

Frequent Flyer Miles Overview 18
The Value of a Mile 22

SECTION FOUR - Earning Frequent Flyer Miles 25

Earning Miles Overview 26
Credit Card Sign-Ups 28
Meeting the Minimum Spending Requirement 35
Shopping Portals 42
Dining Programs 43
Flying 44
Buying or Transferring Miles 45
Other Promotions 46

SECTION FIVE - Redeeming Frequent Flyer Miles 47

How to Redeem Miles 48
How Many Miles Will Your Flight Cost? 49
Zone Based vs. Distance Based 52
Airline Alliances 54
Off-Peak Awards 56
Picking Which Class to Fly 57

Page 3
SECTION SIX - Hotel Points 58
Earning and Redeeming Hotel Points 59
Other Hotel Promotions 62

SECTION SEVEN - Bringing it All Together 64

App-o-Rama 65
Continuous Churning 68
Common Mistakes 71

SECTION EIGHT Advanced Strategies 75

Hidden Sign-Up Bonuses 76
Earning Sign-Up Bonuses Multiple Times 78
Open-Jaws and Stopovers 79
Hidden City Ticketing 81
The Southwest Companion Pass 83

SECTION NINE - Takeoff! 86

The First Step 87

SECTION TEN - Resources 88

Resources 89
Thank You 90

Appendix 93
Insiders Guide to Credit 90
Business Credit Cards Overview 101
Other Benefits of Credit Cards 102
Insiders Guide to Improving Your Credit Score 103

Page 4
 AUTHOR INTRODUCTION

Hello and thank you for picking up my book, Takeoff: How to Travel the
World for Next to Nothing. Let me be the first to congratulate you on
taking the first step to exploring the world and making tons of memories
along the way.

I began my own travel hacking journey during my senior year of college in

Ohio. Graduation was fast approaching and my friends and I were
scrambling to make plans for our last spring break. While going to school
in the Midwest is great, it certainly makes it difficult to take a beach
vacation on a college budget.

Most people decide to road trip it, but the idea of driving 14 hours each way with five people in a
compact car did not sound too appealing to me. With airfare prices way out of our budget, it was
beginning to look like we would spend spring break sitting on a couch at home. Motivated by the allure
of white sand and warm ocean water, I set out to find a solution.

While researching methods of booking cheap travel I noticed a flurry of advertisements for airline credit
cards on every website that I visited. The words free flight and sign-up bonus commanded my attention
and I decided to go for it. After doing some quick research on which card had the best promotion, I
signed up for my first travel credit card.

I jumped on the airlines website the day my sign-up bonus points hit my account, eager to see if they
would be enough to get me a flight to spring break. Much to my surprise, I had enough points to fly
there and back twice! Unbelievable!

Feeling ambitious, I explored other destinations to see how far my points could take me. I ended up
booking multiple flights so that I could spend the first half of spring break in Florida before flying to Las
Vegas for the rest of the week. And I was able to do all of it for less than the price of a tank of gas.

After returning from my trip I did some research on credit and credit card promotions to try to
understand why everyone didnt follow this process in order to hack the system. This led me to
discover the world of travel hacking and accumulate over 1,000,000 frequent flier miles in my first year.
I have since taken dozens of trips to a variety of different destinations and spent next to nothing doing
it.

Now its your turn. Anyone can follow the same path to free travel that I have if they are given the right
directions. This book is a great place to start.

So sit back, relax, and enjoy your flight to a better life.

Page 5
Page 6
 OVERVIEW

In this book I will show you how you can use frequent flyer miles to travel the world for next to nothing.
I will combine my own experiences with my research to show you how the process works and how you
can get started.

It is important to note that the biggest obstacle most people face on their journey to traveling the
world with reward points is their skepticism. Some of the components of travel hacking will go against
pieces of conventional wisdom that you have likely been told.

To overcome this obstacle, I will use personal examples from my own travel hacking as well as of a few
fans that have followed my advice. I will also attempt to explain the why of travel hacking in addition
to the how. While it may at times seem tedious, understanding how and why the system works is half
the battle of becoming a travel hacker.

My Approach

Its no secret that there are a lot of books out there about travel hacking (thanks for choosing mine!).
Many of them are great resources that have helped me to develop the knowledge that I have today.
With that in mind, I am taking an approach that is somewhat different than most of them. Heres how:

1. I approach travel hacking with the mindset of an investor. The advice that you will read in this
book will help you save a ton of money on travel without compromising any of your personal
financial goals. Having spent my entire career in financial services, I use my education and
experience to ensure that everything that I recommend is in your economic best interests.

2. I keep things simple. Many other books and websites skip over the basics and rush straight in to
some of the more advanced topics in travel hacking. I take the time to explain how everything
works before showing you how to take your cheap travel to the next level.

3. I focus all of my efforts on the big hits. There are a number of opportunities to earn small
amounts of travel points by taking surveys, signing up for email lists, posting on social media,
etc. While these opportunities can provide some value, they generally are not worth the
amount of time that you put in to them. For that reason, I have chosen to limit the scope of this
book to opportunities that I believe to be worthwhile to you.

Page 7
Other Services

In addition to the knowledge found in this book, I offer a few other services to help you get the most out
of your travel hacking experiences.

1. Periodic Updates: You can follow me on Twitter (@GetFreeFlights) and visit my website
(www.getfreeflights.com) to get information on the best deals, promotional offers, and trends
occurring in the world of travel hacking.

2. Q&A. Have a quick question about anything discussed in my book? Feel free to email it to me at
Bryce@getfreeflights.com. I always love to hear the stories that others have to share and am
happy to answer any questions that you may have.

3. Consulting Love traveling but dont want to take the time to become a travel hacking expert? I
can do all of the work for you. From building a customized hacking plan to booking your trips for
you, I can help you through the entire process. I am also available to guide you through
complicated hacking methods discussed in this book to accumulate hundreds of thousands of
airline miles. To learn more about my consulting services you can email me at
bryce@getfreeflights.com

Page 8
Important Disclaimers

Many travel hacking resources neglect to spell out the risks associated with travel hacking before
jumping into how it works. As I mentioned earlier, I believe it is important that you understand the
how and why of travel hacking before getting too deep into it. While travel hacking is pretty easy to
do (especially with a guide like this book), straying from the established principles can have serious
consequences.

The most common and possibly the most dangerous mistake that I see people make in the world of
travel hacking is letting their spending get out of control. Travel hacking relies heavily on credit card
promotions to amass travel points and therefore requires you to build up sizeable credit limits.

If you are the type of person who struggles to keep your spending levels in check, I would highly advise
you to stop right now and take advantage of The Free Flight Guarantee. Your credit is one of the most
valuable assets that you own and no amount of travel points will ever make up for the damage that can
be done by a low credit score.

Another risk associated with travel hacking is credit score risk. If you consistently do not pay your
credit card bills on time your credit score could drop significantly in a short period of time. As I
mentioned, your credit is one of the most valuable assets that you own and ruining it will have lasting
effects on your financial well-being. Because of this I have built a number of failsafe measures into my
program to make sure that your score stays safe.

I also have to tell you that I am not a licensed financial advisor, lawyer, or accountant. None of the
advice contained in this book should be substituted for the advice offered by any of these professionals.

And finally, it is important to note that none of these risks will be significant if you generally follow the
advice presented in this guide. These risks are only applicable to individuals who purposely stray from
established travel hacking principles.

Now that we have all of that out of the way, lets get started.

Page 9
SECTION ONE
Getting Started

Page 10
 CHAPTER ONE
Why Travel Hack?

Before we get into the meat of this book, lets start with the most important question on your mind:
Why should I care about travel hacking? After all, there are millions of other things that you could spend
your time and money on.

Travel hacking offers three major benefits.

1. It Allows You to Explore the World

Travel hacking gives you the opportunity to explore parts of the world that you would never see
otherwise. Destinations that you thought were previously unreachable are now available for you to visit
when you please. There is a lot to see and do in this world and travel hacking can take you there.

2. It Can Help You Save Money

Travel hacking can help you save a lot of money by allowing you to book flights, hotels, and other types
of travel for next to nothing. The amount of money that you save will depend on how involved you want
to be, ranging from a few hundred to multiple thousands of dollars.

3. It Offers You Freedom

Lastly, travel hacking gives you the opportunity to enjoy a new lifestyle of freedom that comes with the
ability to travel frequently. You can say goodbye to the days saving diligently for one vacation a year and
hello to a world of new cultures, exotic foods, and spontaneous trips to the other side of the world. Your
travels will allow you to make lifelong memories while learning to see the world in a whole new way.

The amount of time you put in determines the degree to which you will benefit from travel hacking, and
it is completely up to you.

Page 11
 CHAPTER TWO
Extreme vs. Casual Travelers
When it comes to the time commitment of travel hacking, I have found that people generally fall into
one of two groups.

Extreme Travelers are people who take advantage of every frequent flyer mile opportunity
available to them. They utilize sign-up bonuses, one-off promotions, and optimize their credit
spending to earn every frequent flyer mile possible. They typically earn more miles than they
know what to do with and take multiple exotic vacations each year.

Casual Travelers are individuals who take advantage of the larger frequent flyer mile
opportunities and dont bother with the smaller ones. They enjoy the discounted traveling but
are not interested in pursuing some of the more complex or tedious opportunities to earn
frequent flyer miles. Simply earning enough frequent flyer miles to take a couple free trips each
year is more than enough for casual hackers.

As I mentioned, one of the best things about travel hacking is that the time
commitment is completely up to you. Even a very minimal effort could help Dont forget that I can do
all the leg-work for you
you book three or four free flights every year.
as part of my consulting
Whether you want to dive in head first and travel to as many places as services
possible, or take the more casual route and book free flight here and there,
you will find the material to help you in this book. I have done my best to explain everything simply
while also including enough advanced material for even the most hard-core travelers.

Its important that you do what works best for you, so dont feel like you have to pick your level of
involvement right now. You may even find yourself jumping back and forth between the two as your
other commitments in life come and go.

With that in mind, lets move on to the most exciting chapter of the book. Choosing the destination you
want to visit.

Page 12
 CHAPTER THREE
Where To?

If you could leave tomorrow for any destination in the world, where would you go?

I have always found this to be a great icebreaker question because it is something that most people
have thought about. After all, who doesnt dream of dropping everything and flying off into the sunset?

Maybe you have always wanted to swim in the Mediterranean Ocean, or reconnect with that old friend
who you havent seen in years. Or maybe you just want to escape from the day to day grind for a while (I
hear that Bali is beautiful in the spring).

Regardless of where you want to go, I want you to keep that destination in the back of your mind as we
journey through this book. Write it down, print out a picture, or even tweet it if you have to. Do
anything that will help you remain focused on that goal.

I will even give you a space to write it down just in case you printed this book out.

My dream destination is .

Take a minute and think about it if you need to. There are a lot of great places to see in the world and I
would hate to rush you.

Did you pick a destination? And did you write it down, print a picture, or tweet where you want to go?

If so, then congratulations! You have taken the first step to reaching that goal.

Unfortunately, picking a dream destination is as far as most people go in their journey to become travel
hackers. Many give up because they think that travel hacking is confusing or time consuming, and
are left with only a well thought out answer to the question above.

But with a goal in your mind (one that you hopefully wrote down) and the guidance provided by this
book, I am confident you will be heading to your dream destination in no time!

Oh, and dont forget to pack your swimsuit!

Page 13
 SECTION 2
Intro to Travel Hacking

Page 14
 CHAPTER FOUR
Travel Hacking 101

What is Travel Hacking?

Now that you understand what travel hacking can do for you, lets start from the beginning. What
exactly is travel hacking?

Here is a technical definition.

Travel Hacking: Strategic use of promotions and discounts to amass frequent flyer
miles and redeem them to book travel at significantly reduced rates.

I came up with that

Or put more simply, travel hacking is a continuous process of obtaining frequent flyer miles and
redeeming them for travel. Here is a visual of how it works.

Travel Hacking

Earn Frequent Flyer Redeem Frequent Flyer

Miles Miles for Travel

Looking at this, we can determine that travel hackers have two main goals.

Goals of a travel hacker:

1. Earn as many frequent flyer miles as possible

2. Redeem those frequent flyer miles to book as much travel as possible

Page 15
Thats it! The entire world of travel hacking revolves around the desire to accomplish these two simple
goals.

Where travel hacking becomes more advanced is in actually accomplishing these goals. There are
dozens of strategies ranging from simple promotions to complex financial transactions that are used to
earn and redeem frequent flyer miles. We will talk about a few of these strategies as we move further in
to the book.

In the meantime, just remember to always refer back to this model when you dont quite understand
something. No matter how advanced a travel hacking strategy is it will always be some sort of method
of earning frequent flyer miles or redeeming them for travel.

Is This Legal?
This all sounds great, but is it legal?

In one word, yes!

Travel hacking is 100% legal and is done by thousands of people all over the world. There are hundreds
of blogs, online communities, and even meet-ups for people who are interested in the subject. And
dont worry, there are no secret passwords, knocks, or handshakes required. These resources are open
to anyone and everyone who is interested in participating.

The main reason that travel hacking gets a bad reputation is its name. The word hacking is commonly
associated with criminal activity related to computers or phones. For this reason, it is important to make
the distinction that travel hacking is in no way related to computer hacking, phone hacking, or any
other sort of criminal activity.

Travel Hacking Computer Hacking

So why do they call it travel hacking?

The word hacking is commonly used to refer to anything that is done in a clever and non-obvious
way, which is a great description for how travel hacking is done. By using clever and non-obvious ways
to amass frequent flyer miles and redeem them for travel, travel hackers are able to travel the world for
pennies on the dollar.

With that in mind, lets start looking at how travel hacking works. The first step is learning what frequent
flyer miles are.

Page 16
 SECTION 3
The Basics of Frequent Flyer
Miles

Page 17
 CHAPTER FIVE
Frequent Flyer Miles Overview

What Are Frequent Flyer Miles?

Frequent flyer miles are the currency that pays for your free travel. They can be earned in a variety of
different ways (which we will cover a little later) and redeemed for free travel. Just like we did with
travel hacking, lets start with a technical definition.

Frequent Flyer Miles: A form of currency used by airline companies to reward

customers for their loyalty.
- (Commonly referred to as miles, points, or rewards)

The more frequent flyer miles you have, the more free travel you can book. Pretty easy so far!

Most companies have their own frequent flyer program, so frequent flyer miles cant always be used
interchangeably between different airlines. For example, if you have 50,000 United Airlines miles and
50,000 Delta miles you cannot combine them to have 100,000 miles. We will cover this in more detail a
little later when we talk about redeeming frequent flyer miles.

And although they are called frequent flyer miles, airline companies are not the only ones who use
them. You can also earn and redeem miles with hotels, banks, credit card companies, and even rental
car companies. (This is where they are typically referred to as points or rewards)

Frequent flyer miles are used by hundreds of businesses today, but that wasnt always the case. To help
you understand how and why travel hacking works we need to take a look at how frequent flyer miles
came to be.

A Brief History on Frequent Flyer Miles

The first airline rewards program was created by Western Airlines in 1979 and was called the Travel
Pass Program. It rewarded the companys best customers by giving them a $50 travel certificate after
they completed five one way flights. How the times have changed!

In May of 1981 American Airlines launched their own rewards program, called AAdvantage (which is
what it is still called today). AAdvantage introduced the concept of earning miles instead of travel
certificates, making it the first modern frequent flyer program in the world. Other airlines and hotels
followed suit shortly after and the frequent flyer miles industry was born.

Page 18
As more and more frequent flyer programs were created, companies started exploring new ways of
using frequent flyer miles to attract customers. They began to offer frequent flyer miles for things like
credit card sign-ups, online shopping, and other special promotions. These practices opened the door
for savvy individuals to game the system and thus created the concept of travel hacking.

Today over 180 million people are enrolled in some sort of frequent flyer program and have earned
more than 14 trillion miles. The value of those points is greater than $700 billion and continues to grow
by about 11% annually.

Here are a few more statistics on frequent flyer programs.

54% of frequent flyer miles are earned from non-flying activities

15-20% of frequent flyer miles are never redeemed
Credit card promotions are the leading source of frequent flyer miles
The average person earns just over 11,000 miles per year
Over 300,000 people have earned 1 million points or more in their lifetimes
Source: Frequent Flyer Services

Hopefully you will fall into this category soon!

Why Do Companies Use Frequent Flyer Programs?

Companies use frequent flyer programs to encourage you to do business with them instead of their
competitors. When you receive frequent flyer miles from a company you feel
loyal to them and are much more likely to continue buying their products.
Brand Loyalty: the
tendency of some
This is called brand loyalty, and it is very valuable to companies such as airlines consumers to
and banks because of how competitive their industries have become. continue buying the
same brand of goods
The more brand loyalty that these programs can create, the more profit they will rather than
make. competing brands.

Put simply, companies use frequent flyer programs to make more money.

So if these loyalty programs are so important, why do airlines and banks create systems that can be so
easily manipulated to get free flights?

That question can be answered by taking another look at the statistics above.

Page 19
The average person only earns about 11,000 frequent flyer miles per year, which is less than half of the
roughly 25,000 miles needed to book a free flight. On top of that, only about 80% of those miles will
ever be redeemed.

This means that many people will never cash in on the miles they earn because they are unaware of
how to make good use of them. The profits that airlines make off of individuals like that far outweigh
the costs of the free flights that are obtained by travel hackers.

But isnt travel hacking essentially a way of ripping off the airline companies?

It is important to remember that frequent flyer programs are a source of profit for airline companies
due to the large number of people who dont utilize them efficiently. They are essentially counting on
you to not pay attention to how their frequent flyer programs work!

If they werent making money by offering large amounts of frequent flyer miles for promotions then
they wouldnt continue to do it. Travel hacking is simply a way of beating the airline companies at their
own game.

As long as there are frequent flyer programs, there will be opportunities to travel around the world for
free.

So how do you get started?

How to Sign Up For Frequent Flyer Programs

Before you can earn miles with an airline company you have to become a member of their frequent flyer
program. Signing up is incredibly easy and it is always free. Simply go to the website of the airline that you
would like to join and look for the frequent flyer miles area. Click on join now and enter your
information.

After completing the sign up process you will be given a frequent flyer number and will likely receive a
frequent flyer card in the mail. Be sure to save your frequent flyer numbers on your Frequent Flyer Miles
Spreadsheet so that you dont lose them. It is also a good idea to save this spreadsheet somewhere where
you can find it.

If you have a smart phone it is easiest to keep your spreadsheet in some sort of cloud account such as
Dropbox so that you can access it on the go. This will certainly come in handy as you rush through an
airport to catch your flight.

Page 20
Always make sure that you have your frequent flyer information squared away before taking any flight.
Whether you have to join as a new member or verify that you are receiving frequent flyer credit for your
flight, it is important to do it before you check in. While some airlines will let you go back and claim points
for flights you have already taken, most of them will not.

Now that you know how frequent flyer miles work, lets take a look at what a mile really means.

Page 21
 CHAPTER SIX
The Value of a Mile
Determining the value of a mile is where frequent flyer miles can get tricky. Lets start with the most
basic concept.

A frequent flyer mile does not always equate to the physical distance of a mile.

As we discussed earlier, frequent flyer miles are a currency and are earned and spent just like any
other form of money.

Then why do we call them miles?

Heres why:

When earning miles you typically earn one mile for each mile
that you fly. (i.e. a trip from New York to Los Angeles, a
distance of about 2,400 miles , will earn you roughly 2,400
frequent flyer miles).

But when redeeming miles the redemption amount does not Round Trip Flight from New York to Los
reflect the distance traveled. Standard round-trip domestic Angeles
flights cost about 25,000 miles, which is roughly the distance
Earns: ~4,800 frequent flyer miles
around the equator of the earth. So having 25,000 frequent
flyer miles does not mean that you can actually travel 25,000 Costs: ~25,000 frequent flyer miles

geographical miles.

Miles vs. Miles

Another important thing to remember is that not all frequent flyer miles have the same economic
value. As I mentioned, frequent flyer miles are a currency. And like any currency, the only way to
determine their value is to see what you can buy with them.

Page 22
Lets look at an example to see how this works.
(Example reflects two actual card offers I have received)

Lets say that you have just received two credit card offers in the mail. The first offer is for a travel
rewards credit card and the second is for a local bank credit card. Both cards offer a sign-up bonus of
25,000 points.

Travel Card Local Bank

Bonus: 25,000 Frequent Flyer Miles Bonus: 25,000 Reward Points

Which one do you choose? 25,000 points is 25,000 points right?

Not exactly.

In order to make an accurate decision we have to calculate the Value per Mile, which is done by dividing
the cash value of the reward by the number of miles redeemed.

$ Value of Award
Value per mile =
Total Miles Redeemed

The first step to solving this equation is to see what you can get when you redeem your 25,000
miles/points. I took a look at the rewards website for each credit card and here is what I found.

Travel Card Local Bank

25,000 Frequent Flyer Miles = 25,000 Rewards Points =

1 Round-Trip Domestic Flight 1 Box of Golf Balls

Page 23
Knowing this, we can now calculate the value per mile of each award:

Travel Card Local Bank

~$300 (cost of flight) ~$35 (cost of golf balls)

Value per mile= Value per mile=
25,000 miles 25,000 points

=1.2 cents per mile =0.14 cents per mile

So the travel credit card offers you almost 9 times more value than the local bank card!

The travel card is clearly the better choice in this situation. From an economic standpoint the sign-up
bonus is worth roughly $265 more than the card offered by the local bank.

This method can be used to determine the value of any frequent flyer miles offer and is commonly used
by the experts. I highly recommend that you use this simple calculation when deciding which credit
cards or promotions to sign up for.

Now that you know the ins and outs of frequent flyer miles, lets take a look at some of the best ways to
earn them.

Page 24
 SECTION 4
Earning Frequent Flyer Miles

Page 25
 CHAPTER SEVEN
Earning Miles Overview

As I mentioned in Travel Hacking 101, the first goal of any travel hacker is to earn as many frequent flyer
miles as possible. After all, more frequent flyer miles means more free travel and more dream
destinations.

Travel Hacking

Earn Frequent Flyer Redeem Frequent

Miles Flyer Miles for Travel

And as you are about to discover, earning frequent flyer miles is not rocket science. There are dozens of
ways to earn miles that can be taught to just about anyone. With just a little bit of time and effort you
could earn hundreds of thousands of frequent flyer miles each year.

The tricky part about earning frequent flyer miles, however, is doing it in a way that does not require
you to increase the amount of money that you are spending. An increase in spending would eliminate
any savings that you may earn from travel hacking and would be no different than paying for travel
with cash.

So before we go any farther, we need to add a third goal to our list.

Goals of a travel hacker:

1. Earn as many frequent flyer miles as possible

2. Redeem those frequent flyer miles to book as much travel as possible
3. Accomplish goals 1 and 2 with as little spending as possible

Keep this concept in the forefront of your mind as you finish this book and embark on your own travel
hacking journey. We will talk about how to apply it to each situation as we continue to move through
the book.

Page 26
Now that we have that covered, lets get started on earning those miles.

In this section we are going to look at the 6 best ways to earn frequent flyer miles.

1. Credit Card Sign-ups

2. Shopping Portals
3. Dining Programs
4. Flying
5. Buying or Transferring Miles
6. Other Promotions

Page 27
 CHAPTER EIGHT
Credit Card Sign-Ups

Credit card sign-up bonuses are by far the fastest and most effective way of earning frequent flyer miles.
Over 80% of the points I have earned in my lifetime have come from credit card sign-ups and that is
unlikely to change anytime soon.

In order to earn the more than 1,000,000 frequent flyer miles I earned from credit card sign-ups in my
first year, you would have to book enough airline tickets to fly around the world about 40 times. While
that may sound like fun to some people, I prefer to earn my miles from the comfort of my couch.

Arent Credit Cards Dangerous?

Using credit cards to earn frequent flyer miles is a difficult concept for many
people to grasp because it goes against conventional credit card wisdom. You
have probably been told numerous times that credit cards are dangerous and
should be avoided when possible.

While it is well intentioned, this advice is completely false. To earn the same number of miles
(50,000) that you can earn from one
Applying for and using credit cards responsibly will actually help to improve credit card sign-up bonus, you
your credit profile over time. This will result in a higher credit score, a better would have to fly around the world
chance of being approved for credit cards or loans, and lower interest rates on twice!

any existing and future debt.

The key is to use the credit cards responsibly!

If you do not pay off your balance each month this strategy can backfire very quickly. Your credit score
could plummet, making it difficult for you to qualify for any sort of credit card or loan. As I mentioned in
the disclaimer, your credit is one of the most valuable assets that you own and ruining it can have lasting
effects on your financial well-being.

So be careful!

Because this is such an important topic, I have put together an Insiders Guide to Credit to give you an
idea of how it all works. You can find it in the appendix of the book. The Insiders Guide to Credit will
give you a better understanding of how credit cards and credit scores work as well as provide a few tips
for how to build and maintain a solid score.

We will also revisit this topic a little later when we talk about bringing it all together.

Page 28
Did you get a chance to read the Insiders Guide to Credit? It only takes 5 minutes and it is an important
step to getting you to your dream destination.

If so, you are ready to learn how to use credit card sign-ups to earn frequent flyer miles.

Lets take a look at how the process works.

Checking Your Credit Score

The first step to earning miles with credit card sign-ups is to check your credit score. While that might
not sound like the most fun thing to do, it is crucial to know where you stand before you get started.

If your credit score is not high enough to qualify for travel credit cards, its best to not even apply for
one. Even just applying could damage your credit score. This would make it even harder for you to
travel the world for free and would delay your plans to reach your dream destination!

So in the interest of getting you to the beach, mountains, or wherever your

dream destination may be, please be sure not to skip this step. Be careful when checking your
credit score online! Many
There are two credit checking websites that have become the gold standard free websites will require
in the travel hacking world: Credit Karma and Credit Sesame. Unlike most you to purchase other extras
other credit score sites, they are completely free. You will never be asked before providing your free
for your credit card information in order to see your score. credit score.

Simply click on the links above and sign up for an account. You will be asked
for some personal info, which may seem like a red flag, but it is necessary in order to obtain your credit
score. Rest assured these sites are reputable and safe. I have been using them for years and have never
encountered any problems.

In the interest of full-disclosure I need to tell you that Credit Karma and Credit Sesame dont provide
your actual credit score. They are only approximations. They are however incredibly precise and good
enough for our purposes. To ensure their precision, I recommend using both and comparing the results.

If you are interested in seeing your actual credit score you can get it from MyFico.com. They offer a 1
week trial for free but will charge a monthly fee if you forget to cancel within the first 7 days. Just to be
safe, call and cancel as soon as you receive your score.

Ok, hopefully now you know what your credit score is (or how you can check it in the future). Before we
go any further I need to introduce you to an important travel hacking rule.

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 In order to use this strategy you will need to have a FICO
credit score that is a 700 or higher.

If your score is lower than a 700 you will likely not be approved for many travel cards. While this will
delay your plans for getting to your dream destination, it doesnt mean you have to quit! Take a look at
the Improving Your Credit Score section in the appendix and start working on raising that score. You will
be amazed how fast it can improve. Youll be on a plane in no time!

If your score is above a 700 then great, you can move on to the next step.

Picking Which Credit Cards to Sign Up For

There are a ton of credit cards to choose from and picking the right one is important. As we saw in Miles
vs. Miles, many offers can appear to be the same at first but can have very different values. So how do
you choose the right one?

That choice can be made by looking at the 6 characteristics of a credit card:

1. Sign-Up Bonus
2. Spending Rewards
3. Annual Fee
4. Minimum Spend
5. Card Affiliation
6. Other Benefits

Lets take a look at them one at a time.

1. Sign-Up Bonus

The sign-up bonus is the number of frequent flyer miles that the card offers as an incentive to sign up.
Most credit cards will offer between 25,000 and 50,000 miles with occasional offers up to 100,000 miles.
In general, the more miles offered the better the deal. Dont forget to calculate the Value per Mile just
to be sure.

Just like sales at your favorite store, most credit card sign-up bonuses To put things in perspective,
50,000 frequent flyer miles
will come and go throughout the year. Because you can only sign up for
would likely allow you to book
most credit cards once, be sure to only sign up when you can get the
2 round trip flights within the
highest bonus. After all, you wouldnt want to spend a fortune on a new
US or 1 round trip flight to
TV when it is about to go on sale. Europe or South America

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In general, you should avoid signing up for cards that are offering less than 35,000 miles as a sign-up
bonus. Chances are good that a higher offer will come along at some point.

Before signing up for any credit cards I recommend that you check out the Best Current Deals page on
my website. There you can see all of the most up to date information on the credit card offers I
recommend.

2. Spending Rewards

In addition to the points you receive as a sign-up bonus, many credit cards will give you points for every
dollar you spend on them. Most cards offer 1 point per dollar spent but some will offer higher amounts
for certain spending categories, stores, or promotional periods.

For example, Chase Sapphire Preferred, one of my personal favorites, offers 2x points on all dining and
travel spending and 3x points on any dining spending on the first Friday of each month.

While spending rewards are valuable, it is important that their value is kept in perspective when
compared to sign-up bonuses. You would have to spend $20,000 on dining and travel with the Chase
Sapphire Preferred to earn the amount of points (40,000) that you get with the sign-up bonus. So while
spending rewards should be considered before signing up for a credit card, they are still secondary to
the sign-up bonus that is offered by the card.

3. Annual Fee

The third thing you need to look for before selecting a credit card is the annual fee. Most travel cards
have an annual fee between $40 and $400, but many of them waive the fee for the first year. This
means that you can earn the sign-up promotion miles then cancel the card 11 months later to avoid the
annual fee. Once you earn the miles they are yours so you dont have to worry about losing them when
you cancel the card.

This is another concept that goes against traditional credit card logic. Like me, I am sure you have
probably heard that opening and closing credit cards just for the sign-up promotion is a bad idea. While
that is generally true, there are a number of ways to eliminate that risk. You can read about them in my
Insiders Guide to Credit if you have not already.

While you always have the option to cancel a credit card if you would like, there are some occasions
where you may want to keep it and pay the annual fee. There are three main reasons why you might
want to do this:

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 1. The card offers you an anniversary bonus, such as 5,000 - 10,000 frequent flyer miles
2. The card has great spending rewards
3. The card has no annual fee

Another thing to keep in mind is liquidity. Liquidity is a concept that is usually applied to finance but it is
also relevant in the world of frequent flyer miles. We will talk more about liquidity in the Common
Mistakes section.

4. Minimum Spend

Many credit cards will require you to meet a minimum spending amount before you are given the miles
offered by the sign-up bonus. These amounts typically range between $500 and $5,000 and you usually
have 2-6 months to meet them.

The most important thing to remember about this characteristic is that you should never sign up for a
credit card if you cannot meet the minimum spending requirement. If you dont meet the minimum
spend you wont be able to receive the sign-up bonus miles. You also will also be unable to apply for the
card again in the future.

This is a good time to remind you of the third rule of travel hacking that we covered at the beginning of
this section. It can be very easy to justify spending money simply to meet your minimum spending limits.
This is incredibly dangerous and can lead to some serious consequences if you are not careful. Luckily, I
have a number of tricks to help you meet the minimum spend that we will cover in the next chapter.

Although most cards have some sort of minimum spending requirement, some cards will give you your
sign-up bonus after first purchase. Your first purchase can be absolutely anything, even something as
small as a cup of coffee. These cards are easy to add to your portfolio so always keep an eye out for
them.

5. Card Affiliation

Every credit card is affiliated with an airline, hotel, or some sort of financial company such as a bank.
This affiliation determines what type of points you will earn with each specific card.

Affiliations are easy to determine because they are usually stated in the name of the credit card. The
Delta Skymiles card will earn you frequent flyer miles with Delta, the Hilton HHonors Credit Card will
earn you hotel points with Hilton, etc.

Credit cards that are affiliated with financial companies (banks, credit card companies, etc.) are
generally the best because the points can be transferred to that companys partners, which include
multiple airlines, hotels, and other travel companies. This gives you more ways to redeem your miles,
making them more valuable than miles that are tied to a specific airline.

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When choosing a card, try to pick one that is affiliated with an airline that you typically fly with or that
flies to the location that you would like to visit. The same concept applies to hotel points. Frequent flyer
miles are only valuable if you are able to use them in a way that is beneficial to you.

6. Other Benefits

The last thing to consider before signing up for a credit card is the other benefits that it offers.

The most common benefit to look for is no foreign transaction fees. Foreign transaction fees are
additional fees (typically 3%) on all purchases made outside of the United States. While most cards have
foreign transaction fees, there are a few major travel cards that do not.

I always try to keep at least one card with no foreign transaction fees in my wallet at all times just in
case I want to book a spontaneous trip to a foreign country. You never know when the urge to plan an
international trip will sneak up on you.

Some other benefits to look for are extended warranties on purchases, rotating category bonuses, and
specific store discounts. You can find a more detailed overview of these features in the appendix.
Although these benefits are not as vital as the other characteristics of a credit card they are still
important to note before applying for a new card.

We will talk about credit card strategy a little later in the book so please hold off on applying for cards
for now.

Business Credit Cards

Another way to take advantage of credit card sign ups is to apply for business credit cards. Business
credit cards are very similar to personal credit cards with the exception that they are intended to be
used by small businesses. They have the same six characteristics of a credit card that we just discussed
and can be a great source of frequent flyer miles when used correctly.

Applying for and using business credit cards is a bit more complicated than doing so with personal credit
cards. I dont recommend trying this as a beginner. If it is something that you are interested in however,
I have included an overview in the appendix. This is another area within the realm of my consulting
services.

Final Thoughts on Credit Cards

For those of you who wish to take a casual approach to travel hacking, credit card sign-ups might be the
only method that you use to earn frequent flyer miles. Simply completing a card sign up every few
months will allow you to take three to four free flights each year.

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And for those of you who are not comfortable with this strategy, please dont feel like you have to use
it! You can still earn tons of frequent flyer miles with the other methods discussed in this book.

And finally, I want to remind you one more time to please be careful! If you are in any way
uncomfortable with how this process works then please contact me before getting started.

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 CHAPTER NINE
Meeting the Minimum Spending Requirement

As we discussed in the previous chapter, the minimum spending requirement is one of the six
characteristics of a credit card that you need to consider before applying for a card. Failing to meet the
minimum spend means that you wont receive the sign-up bonus. Without the bonus, you cant book
that trip to your dream destination.

Minimum spending amounts typically range from $500 to $5,000 and usually have to be reached
within 2 to 6 months of opening the card.

While I cant speak for everyones spending habits, I know that my typical monthly spend is not enough
to reach some of those higher minimum requirements. This is especially true when I am trying to meet 2
or 3 minimum spends at the same time.

Like me, I am sure you could find things to buy that would help you meet the minimum spend if you had
to. After all, who wouldnt want a new 60 flat screen and a giant leather couch to go with it?

But as we discussed earlier, travel hacking is only effective when youre able to earn frequent flyer miles
without increasing the amount of money you spend.
Spending money
Lucky for you, there are a number ways for you to spend money on your
without actually spending
credit card without actually spending it.
it is commonly referred to
Lets take a look at a few ways of doing this. as manufactured
spending

Manufactured Spending
Manufactured Spending (MS) is the process of using a rewards credit card to purchase something that
can easily be converted back to cash. The goal of this process is to increase the amount of money that
you spend on your rewards credit card without actually having to spend money out of pocket.

This is a tough concept to grasp at first but trust me, its a vital part of learning how to become a travel
hacker. So please do not skip over this section.

Let me make a quick analogy to explain how this works.

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 The Grocery Store Analogy
Imagine that your local grocery store started selling cash.

Yup, stacks of cash. Neatly bundled in to blocks of $100, shrink wrapped, and stacked right next to the
canned goods.

And lets say that on your next trip to the grocery store you decide to buy one of these bundles of cash.
You load it in your cart, take it up front, and pay for it with your rewards credit card.

What would be the result?

Well, your credit card would show a charge of $100 (the amount of cash in each bundle), you would
earn 100 rewards points on your credit card (assuming you get 1 point per $1 spent), and you would
have $100 of cash in your hands.

$100 credit card balance $100 in cash

Earn 100 credit card

points/miles

Now lets say that you take that $100 of and use it to pay off your credit card bill.

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Your credit card balance would be reduced by $100, you would no longer have the $100 of cash
(obviously), but you would still have the 100 credit card rewards points that you earned for the
purchase.

$0 credit card balance $0 in cash

Earn 100 credit card

points/miles

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Meaning that you would have effectively earned 100 credit card rewards points without spending any
of your own money.

I know, 100 credit card points probably arent worth a whole lot. But what if you could do this with
$1,000, $10,000, or even $100,000?

That would allow you to earn some SERIOUS

This is the basic idea behind Manufactured Spending.

While it is not quite as simple as buying stacks of cash from the grocery store, there are a variety of
methods to accomplish the same goal.

Why is Manufactured Spending Important?

There are 2 main reasons to use Manufactured Spending.

1. To earn more rewards points (obviously)

2. To meet minimum spending requirements faster, allowing you to apply for more credit cards

Methods of Manufactured Spending come and go very frequently, with new methods being discovered

Lets take a look at a 2 of the most popular methods of Manufactured Spending. Both of these have
since become obsolete but they are a valuable learning tool.

US Mint Coins
In late 2005 Congress enacted the Presidential $1 Coin Program in an effort to encourage Americans to
use dollar coins instead of bills. The idea was that coins had a longer circulation life than paper currency
and would ultimately save the government money.

To promote the use of these new coins the United States Mint launched a direct ship program to sell
the coins to the public. Shipping was free and you could use a credit card to pay for the coins.

Hopefully you can see where this is going.

People quickly realized that they could buy tons of these coins with a credit card, deposit the coins in
the bank, and then use the balance to pay their credit card bill.

Like with our grocery store analogy, this allowed them to earn a boatload of credit card rewards without
actually spending any money out of pocket.

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The US Mint eventually caught on and shut down the program in 2011.

Amazon Payments
Amazon Payments is a service that allows you to send money to other individuals online with a credit
card. It is very similar to PayPal and other online payment services with the exception that there were
no fees if you used a credit card to transfer $1,000 or less per month.

People used this service to transfer $1,000 back and forth with their friends every month.

The $1,000 would show up as a credit card purchase and could be paid off with the $1,000 received
from your partner.

This method became obsolete in 2014 when Amazon started charging a fee for all credit card transfers.

Now I know what youre thinking.

Bryce, why are you telling me about Manufactured Spending methods that no longer work? I want to
know which methods I can start using right now!

I wish it was that simple.

The truth is that methods of Manufactured Spending come and go all the time and it can be very difficult
to keep up with them. Any methods that I would include in this book would be obsolete in a matter of
months.

So how do you keep up with the best methods available?

Here are a couple additional options to help meet minimum spending requirements.

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Gift Cards
Buying gift cards can be another great way to add spend to your card and get the money back over a
period of time. You can use your credit card to buy gift cards to your favorite retail stores, restaurants,
and gas stations and it will count toward your spend. Most of these gift cards dont have any additional
costs so a $50 gift card to Starbucks will get you $50 worth of coffee, lattes, or whatever your drink of
choice might be.

Buying gift cards also gives you a good opportunity to take advantage of any category bonuses offered
by your credit card. For example, if your credit card offers 2x points on all grocery purchases then you
should buy your gift cards from your grocery store to maximize your frequent flyer earnings. That would
allow you to earn double points while chipping away at that minimum spend!

Be Careful!

While they can provide a great opportunity to reach your minimum spending requirement, gift cards can
be dangerous if they are not used carefully. There are two common ways in which this occurs.

1. Carrying around gift cards will likely cause you to spend more money. This is because people
tend to view gift cards as free money and therefore spend it more quickly. After all, it is
much harder to continue bringing your coffee from home when you know that you have a
$50 Starbucks gift card in your wallet.

2. Gift cards can be lost or stolen. So be careful not to carry around hundreds of dollars of gift
cards at all times.

Monthly Bills
As annoying as they might be, monthly bills such as your cable, cell phone, internet, or even rent can be
paid with your credit card. Switching these bills to your new credit card would allow you to accumulate
spend without adding to the amount that you would normally spend. This is a great strategy to use if all
of the other ones are still coming up short of that minimum spending requirement.

Other Less Conventional Options

In the process of hacking over 1,000,000 points in less than a year I was forced to come up with some
pretty creative ways of meeting 3 to 4 minimum spends at once. Here are a few less conventional

Page 40
methods that I have successfully used. These should only be used as last ditch options after you have
already used all of the previous possibilities.

Buying and Selling Concert Tickets

Believe it or not, buying and selling concert tickets can be an effective way to meet minimum spending
requirements. This works because tickets have relatively stable prices in the short run and popular
concerts almost always have more demand than supply.

The best method for doing this is to buy tickets the moment that they go on sale and immediately sell
them in a secondary market for the same price that you purchased them for. This allows you to get cash
back almost immediately and eliminates your risk of getting stuck with the tickets.

Buying and Selling Other Goods

If you are really desperate to generate additional spend, you can also try buying and selling other goods
such as office supplies, clothing, and electronics. This practice can be pretty risky and should only be
used as a last resort.

Buying and selling goods in order to generate credit card spend really only works when you have access
to a sale that most other people are not able to take advantage of. For example, you can buy office
supplies from OfficeMax at a 10% discount when you use an American Express Open Business Card. You
can then sell those items online to recoup your investment and pay off your credit card bill.

Congrats! You now know how to take advantage of credit card sign-up bonuses and how to meet the
minimum spending requirements. Now lets take a look at how you can earn frequent flyer miles by
shopping.

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 CHAPTER TEN
Shopping Portals

Shopping portals provide an opportunity to earn bonus frequent flyer miles on purchases that you make
with many popular retailers. This is possible because many retailers will offer point bonuses on any
purchases that you make through a credit card companys online shopping portal. These bonuses
typically offer 2 to 5x bonus points per $1 spent but can go as high as 25x for special promotions.

To access a shopping portal simply log in to your credit card website (Chase, Amex, etc.) and look for the
rewards section. Click on shopping and search for your favorite retailers. You can also check out the
best deals to see which retailers are offering the highest promotions at the time.

To demonstrate how this works we will use the Chase Ultimate Rewards Mall as an example. The
Ultimate Rewards Mall is the most popular shopping portal on the market and is used frequently by
most travel hackers.

Lets use J. Crew as the example retailer.

Lets say that I am in the market for a new pair of jeans. Because Im pretty brand loyal to J. Crew, I
already know where Ill make my purchase.

If I buy the jeans directly from a J. Crew store or on jcrew.com I would only receive the standard
spending rewards that are offered by my credit card. So assuming that I earn a standard 1 point per $1
spent, a $70 pair of jeans would get me 70 points.

But If I access jcrew.com through the Chase Ultimate Rewards Mall I will receive an additional 5 points
for every $1 that I spend (the current J. Crew promo is 5 bonus points per $1 spent). Now my $70 pair of
jeans will net me 420 points instead of just 70.

So by using a shopping portal I can earn an additional 350 frequent flyer miles with my purchase. I dont
know about you, but earning an additional 350 frequent flyer miles is definitely worth the extra two
minutes of time that it takes for me to log in to a shopping portal.

Now before you get too excited about the possibility of earning millions of points with shopping portals,
I want to again remind you of what we talked about in the earning frequent flyer miles overview. Buying
things just to earn points is no different than just paying for travel with cash. So please do not try to
justify a shopping spree by calculating the number of frequent flyer miles that you will earn.

I always decide exactly what I am going to buy before logging in to the shopping portal to make the
purchase. This strategy has helped me avoid excessive spending and I would recommend it to anyone.

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 CHAPTER ELEVEN
Dining Programs

Dining programs are very similar to shopping portals, the only exception being that they involve
restaurants instead of retailers. Like shopping portals, dining programs provide an opportunity to earn
bonus points on any money spent at participating locations. Bonuses are typically 3 to 5 points per $1
spent at any of the hundreds of participating restaurants across the country.

To participate in dining programs you have to register your credit card online with the program that you
would like to join. Every major airline has a dining program so I would recommend that you register with
all of them. You can only register for one dining program on each of your credit cards so it is a good idea
to spread your cards across as many dining programs as you can.

I register every card that I have with a dining program just to be sure that I dont miss out on potential
earnings. While this is not a particularly fast way to rack up frequent flyer miles, the miles can certainly
add up over time.

But like any other method of earning miles, it is important to keep the potential earnings of dining
programs in perspective.

Assuming that you receive a bonus of 3 points per dollar spent, a typical $50 meal would earn you an
additional 150 frequent flyer miles on top of your normal spending rewards. At a value of 1 cent per
mile (which is a good benchmark), that is worth $1.50 in travel. At that rate you would have to spend
about $7,000 at restaurants in that one particular dining program to earn enough points for a free flight.

So while these miles can add up over time, be careful not to justify going out to dinner just because of
the potential earnings offered by dining programs.

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 CHAPTER TWELVE
Flying

While many of the miles earned by travel hacking can be earned from the ground, remember that you
can actually earn frequent flyer points by flying. Unfortunately for most people, this is where their
knowledge of frequent flyer miles starts and stops. (If you happen to know people who think like this,
my book would make a great gift!)

As we discussed in the Frequent Flyer Miles chapter, you should be a member of any airlines frequent
flyer program that you plan on earning miles in. If you dont sign up before your flight then you might
miss the chance to get credit for those miles.

You will also want to verify that your frequent flyer miles number is linked to your itinerary before
takeoff. You can do this by entering it when you purchase the plane ticket or when you check in at the
airport.

Dont forget to keep track of all of your frequent flyer numbers in the Frequent Flyer Spreadsheet so
that you dont have to carry around a bunch of cards. For the tech savvy folks, remember to save it to a
cloud-based server for access on the go.

So how many miles will you earn by flying?

Lets start with an important caveat to that question. You can only earn frequent flyer miles when you
actually purchase your plane ticket. Thats right; you cannot earn frequent flyer miles if you book your
flight with points. For that reason, flying is not a significant source of frequent flyer miles for most travel
hackers.

But just in case you happened to have paid for your flight, lets take a look at what you can earn.

As we discussed in The Value of a Mile, you will earn about 1 mile for every mile that you fly. This
amount will be closer to 1.5 miles per mile flown if you decide to book a Business or First Class ticket but
it will generally not be more than 2 miles per mile flown.

You can also earn frequent flyer miles for a different airline than the one that you are flying on as long as
they are in the same airline alliance. Just make sure to specify which type of miles you would like to earn
before takeoff. We will talk about how airline alliances work in the redeeming frequent flyer miles
section.

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 CHAPTER THIRTEEN
Buying or Transferring Miles

While you can technically earn frequent flyer miles by buying them, this is almost always a bad idea.
The price that you will pay per mile is incredibly high and there are a number of other hidden fees that
you will have to pay. Many times it is actually cheaper to just pay for the flight with cash.

The only time that I would recommend buying miles is if you are just a few miles short of booking a
trip and have no other way of getting them. I have only purchased miles one time in my life and it was
because I was 3,000 points short of booking a weekend stay at a 5 star hotel in Paris. By paying another
$21 to buy the miles I was able to book a $1,400 hotel stay for free.

You can also transfer miles from one persons account to another but this is also subject to a number of
hidden fees and a terrible conversion rate. Like buying miles, this should only be used in situations
where you need a small amount of points and have no other way of getting them.

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 CHAPTER FOURTEEN
Other Promotions

Airlines, hotels, and credit card companies will offer promotions from time to time that provide an easy
opportunity to earn frequent flyer miles. These opportunities will typically arrive via email and fall into
one of two categories.

Free Promotions
Free promotions are usually small and involve some sort of social media activity or survey. These
promotions occur pretty frequently and typically offer between 100 and 1,000 frequent flyer miles.

Like purchasing miles, the only time that I would recommend pursuing these opportunities is when you
find yourself just a few miles short of being able to book a trip. Otherwise they are typically not worth
the time and hassle it takes to pursue them.

Spending Promotions
The other type of promotion that you will encounter is a spending promotion. Spending promotions are
essentially sign-up bonuses that are offered on cards that you already have. They typically offer 5,000 to
10,000 miles when you meet a spending requirement in a certain amount of time.

Spending promotions provide a great opportunity to use your new skills to do a quick Value per Mile
calculation and determine if the promotion is worth your time. If you are able to reach the minimum
spend without increasing your overall spending then I would encourage you to pursue it.

Congrats! You now have the knowledge to start earning boatloads of frequent flyer miles. The next step
is to learn how to redeem them for travel. In the next section we will take a look at a few methods that
will help you to get the most value out of your miles.

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 SECTION FIVE
Redeeming Frequent Flyer
Miles

Page 47
 CHAPTER FIFTEEN
How to Redeem Miles

Before we dive into the ins and outs of how to get the most out of your frequent flyer miles, lets start
with what is likely the most basic question on your mind.

How do I redeem my miles?

Redeeming frequent flyer miles is very similar to booking a flight with cash.
Flights booked with
While the specific steps may vary by airline, it is generally a very simple and
frequent flyer miles are
straightforward process. Lets take a look at a step-by-step guide to see how
called award tickets
it works.

Step 1: Go to the website of the airline you would like to fly with. Look for the frequent flyer area and
sign in to your account with your frequent flyer miles number and password (hopefully you saved these
on the Frequent Flyer Miles Spreadsheet).

Step 2: Navigate to the booking page by clicking Book Travel. This should bring up a page or tab that
asks for the details of your desired itinerary.

Step 3: Input your origin, destination, and the desired date of your travel. Then specify that you want to
pay with frequent flyer miles by selecting Award Travel (also referred to as Book Flight with Miles,
Redeem Miles, Pay with Miles, etc.).

Step 4: You should now see a list of flights and the number of miles required to book them. Take a look
at the options that are displayed and select the flight that you would like to book.

Step 5: After making your selections, click on Book Flight and enter any other information that is
required to book the ticket. Be sure to write down the confirmation number for future reference. You
will also likely receive an email with all of the details of your booking.

Thats it! After a couple times you should be able to complete the entire process in less than 10 minutes.

You can also book flights over the phone by calling the airline reservation hotline. Some airlines charge a
fee for this service (usually $25 to $50) so be sure to check before calling.

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 CHAPTER SIXTEEN
How Many Miles Will Your Flight Cost?

Now that you know how to redeem frequent flyer miles, lets take a look at what you can get with them.
Again, we will start by addressing the most basic question that is probably on your mind.

How many miles does a flight cost?

And more specifically, how many miles will a flight to your dream destination cost?

While I cant answer either of those questions exactly, I can teach you how to find the answer for
yourself. There are two ways of doing this.

The quickest and easiest way is to determine how many miles your flight will cost is to use milez.biz.
Milez.biz is a website that allows you to view the award redemption amounts for every major airline
between any two destinations in the world. This allows you to quickly compare the amounts required by
different airlines and pick which one is best for you. I would highly recommend that you use this site
before booking any flight with frequent flyer miles.

The other method to determine the cost of an award flight is to look at the award chart of the airline
that you wish to fly on. Every major airline has an award chart that will tell you how many miles are
required to book a flight between any two destinations. You can usually find these charts on their
website.

To show you how this works, lets take a look at the American Airlines/OneWorld award chart.

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*All prices reflect one-way fares

Page 50
Looking at this chart, you can see that standard round-trip economy class flights on American Airlines
flights have the following mileage costs.

-Round Trip Domestic: 25,000 miles

-Round Trip to Europe/South America: 60,000miles

-Round Trip to Asia: 65,000 to 70,000 miles

These prices are pretty consistent across all major airlines and serve as good benchmarks for
determining how much your flight will cost. We will refer back to these numbers throughout the rest of
the book so it might be helpful to make a quick note.

And of course if you want to know the actual mileage amount, dont forget to use milez.biz.

Page 51
 CHAPTER SEVENTEEN
Zone Based vs. Distance Based

When it comes to redeeming frequent flyer miles there are two different types of models that airlines
use. They are called Zone-based and Distance-based and each have advantages and disadvantages
when compared to the other. Lets take a look at how they work.

Zone-Based
Zone-based models are the most common and are used by the majority of US airlines including
American, Delta, US Airways, and United.

Pricing for zone-based models is consistent and pretty simple to understand. The world is split up into
zones that generally reflect regions of the world (Europe, Middle East, North America, etc.) and you
pay a certain amount of miles to fly from one zone to another.

Lets look at an example.

As we just saw on the American Airlines/OneWorld reward chart, flights between the North American
zone and the European zone cost 60,000 miles roundtrip. So a flight from New York (North American
Zone) to Paris (European Zone), a distance of about 3,600 miles, would cost 60,000 points. A flight from
Los Angeles (North American Zone) to Moscow (European Zone), a distance of about 6,000 miles, would
also cost 60,000 points.

So regardless of the distance that you fly between zones the amount of points will not change.

Think of zone-based pricing like a public bus fare. You pay a flat rate to get on the bus and can ride it as
far as the line goes. The prices may change by bus line but are in no way related to the amount of
distance you travel.

Distance-Based
Distance-based awards work on a tier system that charges a set amount of points for each distance tier
traveled. Lets take a look at the British Airways award chart to see how this works.

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Using this chart, you can determine the amount of points needed for your flight by adding up the total
distance traveled. Keep in mind that the distance of your flight is the total amount of distance that you
fly, including any connecting flights. So if you are flying from Los Angeles to New York, but connecting
through Atlanta, you need to add the distance of each of those flights.

Distance-based award charts are less common, with British Airways being the only major international
airline to use one. Southwest Airlines uses a similar model but they also factor in the demand for tickets.

Going back to my previous analogy, if zone-based awards are public bus fares then distance-based
awards are taxi fares. The amount that you pay is based on the distance that you travel, regardless of
your destination.

When to Use Each Type of Reward

When deciding which type of rewards system to use, remember this one simple rule:

Use zone-based rewards for long flights and use distance-based rewards for short flights.

Distance-based awards are best used for short hop flights such as Los Angeles to San Francisco,
Columbus to Chicago, etc. These flights can cost as little as 10,000 frequent flyer miles round trip instead
of the flat 25,000 mile price that you would pay with a zone-based airline.

This is also a great reason why it is important to have both types of points in your bank of frequent flyer
miles. We will discuss ways to optimize your frequent flyer mile collection a little later in the book.

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 CHAPTER EIGHTEEN
Airline Alliances

Another way to maximize the value of your frequent flyer miles is to take advantage of airline alliances.
Airline alliances are groups of airlines that have partnered together to allow you to use frequent flyer
miles from one airline on any airline in the alliance. So instead of being restricted to flying on just one
airline, you can now choose from over 20 of them.

The airline industry has consolidated over the past few years, making airline alliances more prominent.
This is great news for travel hackers because it gives you the opportunity to use your frequent flyer
miles on more airlines around the world.

There are currently three major airline alliances; Star Alliance, SkyTeam, and OneWorld. Here is a list of
the airlines in each alliance:

Star Alliance: United Airlines, Turkish Airlines, Thai Airways International, TAP Portugal, TAM Airlines,
TACA, Swiss International, South African Airways, Singapore Airlines, Shenzhen Airlines, Scandinavian
Airlines, Lufthansa, LOT Polish Airlines, EVA Air, Ethiopian Airlines, EgyptAir, Croatia Airlines, Copa
Airlines, Brussels Airlines, Avianaca, Austrian Airlines, All Nippon Airways, Air New Zealand, Air China, Air
Canada, Aegean Airlines, Adria Airways

Sky Team: Delta, KLM, Korea Air, Aeroflot, Aereolineas Argentinas, Aeromexico, Air Europa, Air France,
Alitalia, China Airlines, China Easter Airlines, China Southern Airlines, Czech Airlines, Kenya Airways,
Middle East Airlines, Saudi Airlines, TAROM, Vietnam Airlines

OneWorld: American Airlines, USAirways, British Airways, Air Berlin, Cathay Pacific, Finnair, Iberia
Airlines, Japan Airlines, LAN Airlines, Malaysia Airlines, Qantas, Royal Jordanian, S7Airlines

Here are some of the major advantages that airline alliances can provide:

You can use frequent flyer miles from one airline on any other airline in the alliance.
So if you have United Airlines MileagePlus miles for example, you can use them to book
a flight on Air Canada or any of the other 28 airlines in the Star Alliance.
You can fly on one airline and earn miles for any other airline in the alliance. So if you
are flying on Air Canada, you can choose to earn United Airlines MileagePlus miles
instead of Air Canadas Aeroplan Miles.

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 You can fly on multiple airlines on one ticket. So if you are flying from New York to
Moscow, you could fly from New York to Paris on Delta and then connect to Moscow on
Air France.

While you are able to use your frequent flyer miles to book flights on any airline in the alliance, you
cannot transfer your miles between airlines. So if you have 15,000 United MileagePlus Miles and 20,000
Air Canada miles, you cannot combine them to have 35,000 United MileagePlus Miles.

Airline alliances can be a bit confusing to anyone who is new to the world of frequent flyer miles, so
dont worry if you dont fully grasp their value yet. As you become a more experienced traveler you will
find that they can be incredibly advantageous when you are planning international trips.

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 CHAPTER NINETEEN
Off-Peak Awards

Off-peak awards are essentially the frequent flyer miles version of a matinee movie. By traveling during
an off-peak time of the year you can book a flight with fewer frequent flyer miles.

Like any award travel, off-peak awards have charts to tell you how many miles are required for each
flight.

Lets look at the off-peak awards chart for US Airways as an example.

As you can see, off-peak awards would allow you to fly round trip to Hawaii, South America, or even
Europe for about half the price that it would normally cost. What a deal!

The only major airlines to offer off-peak awards are American Airlines and USAirways. With their merger
coming sometime in 2014 they will likely become the only major airline to offer this option.

Here are a few additional things to remember about off-peak awards.

American Airlines only offers off-peak rates for economy tickets

You cannot book one-way award tickets on USAirways
USAirways does not offer off-peak rates with any of their partner airlines

If your travel dates are flexible then off-peak awards are one of the best ways to stretch the value of
your frequent flyer miles to book exotic trips. I highly recommend that you take advantage of them if
you can.

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 CHAPTER TWENTY
Picking Which Class to Fly

Every airline has two to three different classes of tickets, depending on which route that they are flying
and the length of the flight. Those classes are typically called First Class, Business Class and
Economy/Coach and each has a different price and level of service.

First Class is the highest class and therefore is the most expensive. These passengers get to sit in the
front of the plane and typically have access to the finest amenities available. First class tickets are
usually two to three times more expensive than economy/coach tickets and only represent about 10-
15% of the seats on the plane.

Business Class is the second highest class of ticket, but is considered to be the top class on airlines that
only offer two types of tickets. The amenities of Business Class vary greatly by airline and the type of
plane that you are flying on. Sometimes its just a little more leg room and other times you get a
personal entertainment system, full meals, and a lay flat bed.

Economy/Coach is the lowest class available and is the one that most people are familiar with. About
75% of the plane is economy/coach and the amenities are usually limited to a free non-alcoholic
beverages and light snacks.

So which class should you choose?

The answer to that question depends on your personal preferences. If you want to be pampered while
you travel in style then First Class is your best option. If you would prefer to stretch your miles to travel
to as many places as possible then Economy/Coach is your best bet. I tend to go with economy but Ill
book first or business class tickets on some of the longer flights when I can.

Regardless of your preference I would highly encourage you to do your homework on the amenities
offered for each class before booking your ticket. You would be pretty disappointed if you splurged on a
business class ticket and were only given the opportunity to board the plane before the other
passengers.

And there you have it! You now know how to use your frequent flyer miles to book cheap travel. Next
we are going to take a look at how you can take advantage of hotel points to find a cheap place to stay.

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SECTION 6
Hotel Points

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 CHAPTER TWENTY-ONE
Earning and Redeeming Hotel Points

Hotel points are very similar to frequent flyer miles and the two are often discussed interchangeably in
the world of travel hacking. Hotel points do however have a few minor differences, which is why I
decided to give them their own (albeit brief) section of the book.

Earning Hotel Points

Hotel points are earned in many of the same ways as frequent flyer miles. You earn them mainly from
credit card sign-ups, using your hotel credit card, and staying at the hotel. Like frequent flyer miles, the
best way to earn hotel points is through credit card sign-up promotions. These promotions either offer a
sum of hotel points or a specific number of free nights after you meet all of the requirements.

Redeeming Hotel Points

Like airlines, most hotels have an award chart to show how many points are required to book a free
room. The amount of points required differs by the hotel category, which is based on the quality of the
hotel. Higher categories are assigned to nicer, more expensive hotels.

Lets look at the Hilton Rewards Chart to see how this works.

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As you can see, Hilton has 10 categories of hotels that range from 5,000 to 95,000 points per night. This
gives you a lot of options when choosing the type of hotel that you would like to stay at. If you are just
looking for a place to crash, choose a hotel from one of the lower categories. However, if you want to be
treated like royalty at some of the nicest hotels in the world, those in the higher categories are your best
bet.

When looking at hotel points it is important to remember our earlier discussion on miles vs. miles. Each
hotel chain has a different reward chart and the redemption values tend to be quite different from one
another.

Lets compare the Hilton Awards Chart from above to the Starwood Awards Chart to see what I mean.

According to the chart, it costs 30,000 to 35,000 points to book a free night at a category 7 Starwood
hotel, the highest category they offer. A similar quality hotel would cost 70,000 to 95,000 points per
night when booked with Hilton. So be careful not to get caught up in the number of hotel points that
you are earning or redeeming and remember to calculate the value per mile.

Hotel Status
The best way to get the most value out of your hotel points is to qualify for membership in higher status
levels. Higher status members receive perks such as room upgrades, free internet in the room, and even
free meals at the hotels restaurant.

There are three main ways to earn status with hotel chains.

1. The first and easiest way is to sign up for the hotels credit card. Many hotel cards offer
upgraded statues to cardholders for as long as they keep the card. For example, the Citi Hilton
HHonors Reserve Card offers gold status for as long as you are a card member. This gives you
access to available room upgrades, free breakfast, and free internet in any Hilton hotel that you
stay at.

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2. Another way to earn status is to stay a certain number of nights at one hotel chain in a
calendar year. Low end statuses will typically require 8-12 nights a year while the top statuses
require 40+ nights a year. Like with airlines, you do not receive credit for any hotel stays that are
booked with points. Achieving status with this method is pretty difficult for anyone who is not a
frequent traveler.

3. The final way to earn status with a hotel is to earn a certain number of points with their
rewards program. This can be done by using their credit card, staying at the hotel, and taking
advantage of other promotions that are offered to you.

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 CHAPTER TWENTY-TWO
Other Hotel Promotions

Hotels offer promotions very frequently throughout the year that can be very lucrative if you are able to
take advantage of them. These promotions change relatively frequently but I wanted to highlight some
of the best ones here.

Club Carlson Bonus Award Night

Club Carlson offers card holders a bonus award night on any stay of two or more consecutive nights
booked with points at many of their properties around the world. This means that the last night of your
stay is completely free, regardless of how many points the room costs per night.

I myself am a card holder and took advantage of this promotion while planning a trip to Paris for a long
weekend. I was able to book two nights in the Radisson Blu Le Metropolitan Hotel and two nights in the
Radisson Blu Hotel Champs Elysses for a total of 100,000 Club Carlson points. These are two of the best
Club Carlson hotels in Paris and would have cost me about $2,700 to book without points.

Marriott and Starwood 5th Night Free

Similar to the Club Carlson Bonus Award Night, you will receive a 5th night free when you use points to
book 4 consecutive nights at a Marriott or Starwood property. This comes in particularly handy for those
week long getaways.

Priority Club PointBreaks

Priority Club offers discounted stays at certain PointBreak properties (InterContinental, Crowne Plaza,
Holiday Inn) that change every few months. Each night costs only 5,000 points and you can find an
occasional great hotel on the list.

Cash and Points

Some hotel award programs such as Club Carlson and Starwood allow you to book rooms using a
combination of cash and points. This allows you to stretch your points a little further to book high end

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hotel rooms at discounted rates. Because you are paying cash for the room your stay also counts
towards status, which helps you get closer to receiving upgraded amenities.

Now that we have covered how to earn and redeem frequent flyer miles and hotel points, lets take a
look at a few strategies that will help you bring everything together.

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 SECTION 7
Bringing it All Together

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 CHAPTER TWENTY-THREE
App-O-Rama

The most effective and widely used travel hacking strategy is called app-o-rama (also referred to as
shotgunning, churning, or AOR). App-o-rama is a method of using strategically timed credit card
sign-ups to maximize frequent flyer mile accumulation while minimizing the impact to your credit
score.

As I mentioned earlier, over 80% of the points that I earn are from credit cards, and the majority of
those are earned using this strategy. Heres is how it works.

Set a Goal

Collect Your Check Your

Points Credit Score
App-o-rama

Meet Your Select and

Minimum Apply for
Spend Credit Cards

Step 1: Set a Goal

The first step to completing an app-o-rama is to set a goal. It could be to get a free flight, earn a specific
number of frequent flyer miles, or even to travel to a destination that you have always wanted to visit.
Having a goal will help to keep you on track throughout the rest of the process.

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Step 2: Check Your Credit Score

The next step is to check your credit score. As we discussed earlier, the best way to do this is to use
Credit Karma and/or Credit Sesame. Make sure that your credit score is well within your desired range
and at a minimum, greater than 700.

This is a crucial step in the process because it acts as a failsafe measure to protect your credit score. By
always knowing what your score is you can stay ahead of any issues that may cause it to fall below your
targeted range. Although it can be tempting to skip this step, I would highly recommend that you make
a habit of completing it every time.

Step 3: Select and Apply for Credit Cards

The next step is to pick which cards you want to apply for and submit your applications. This is a good
time to check out my Best Current Deals page to see which cards I recommend. Remember to double
check that the points you will earn can be used toward achieving the goal that you set in the first step.

Pick at most 3 credit cards that you would like to apply for and submit your applications. Its best to
apply for all of the cards on the same day so that the credit card companies do not see the other
inquiries that you have just made. This will increase your chances of being approved and minimize the
impact to your credit score.

Step 4: Meet Your Minimum Spend

Next, you need to meet your minimum spending amounts in order to receive your sign-up bonuses. You
might want to revisit the minimum spend section for ideas on how to accomplish this task. Remember
to never sign up for a card if you cant meet the minimum spend.

Amazon Payments is by far the most effective and safe method to reach this number and if used
correctly, could be the only tool you will need. Be sure to check out the Amazon Payments Overview in
the appendix before attempting to use it.

Step 5: Collect Your Points

The final step is to collect the frequent flyer miles that you have earned. While I call this a step, you
really dont have to do anything to complete it. The points will show up in your account a few weeks
after you meet the minimum spend and are yours to use as you please. You could redeem the points to
take a trip or simply stash them away for future use. If you plan on booking a trip, be sure to revisit the
redeeming frequent flyer miles section of the book for a review of how to get the most out of your
miles.

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Thats it! You now know how to complete an app-o-rama. Doing just one app-o-rama will likely help
you earn more than enough frequent flyer miles to reach your dream destination. And if that was your
only goal from the outset, youve done it!

For those of you who are looking to get a little more involved in travel hacking, lets take a look at a
strategy that will help you multiply the efforts of a single app-o-rama.

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 CHAPTER TWENTY-FOUR
Continuous Churning

Continuous churning is done by completing app-o-ramas one after another. This allows you to multiply
the effects of a single AOR to amass hundreds of thousands of frequent flyer miles each year.

Continuous churning is slightly more complicated than a single AOR because of the effect that it has on
your credit score. Because you are applying for multiple credit cards every few months your score will
likely start to fluctuate up and down during each AOR. The key to this strategy is managing these
fluctuations to maintain control of your credit score at all times.

To show you how this works, lets take a look at how I have managed my credit score over the past year.
Here is a chart of my score from CreditKarma.com:

Source: CreditKarma.com

As you can see, my credit score cycles between a 725 and a 750 every 3 to 5 months. It starts to fall
shortly after I apply for new credit cards and bounces back as my credit score metrics improve. (See The
Insiders Guide to Credit for more details on how this works)

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This fluctuation is common for anyone who uses this strategy and is completely within your control. I
have been able to stay within this credit score range since I began travel hacking and have earned
hundreds of thousands of frequent flyer miles by doing so.

While it might seem complicated, anyone can use this strategy by sticking to the 4 basic rules of
continuous churning.

1. Do not apply for any new credit cards until you reach your target credit score

If you look back at the chart you will see that my credit score consistently peaks
around a 750. This is because I wait for my score to reach that level (called a target
You can choose
score) before applying for any new credit cards. By doing this I am able minimize the
any target credit
risk of my credit score falling below my desired range.
score that you
like.
Although it may be tempting to pursue credit card opportunities as you find them, it
is important that you wait for your score to return to your target before applying for
any new credit cards.

2. Do not apply for more than 3 credit cards at once

The fluctuations in your credit score will amplify if you apply for too many credit cards at once, making it
more difficult for you to stay within your desired credit score range. Stick to three at most and dont
forget to apply for them on the same day to maximize your chances of being approved.

3. Split your applications between multiple credit card companies

Most credit card companies limit the number of applications that you can submit in a time period
(usually 1 or 2 cards per month). Trying to apply for multiple cards from a single lender on the same day
will likely cause your applications to be denied. So rather than applying for 3 cards from Chase for
example, try to apply for one from Chase, one from American Express, and one from Citi.

4. Stop churning at least 9 months before applying for any sort of loan

Giving your credit score time to stabilize before applying for a loan will ensure that it will reach its
highest possible point. This will allow you to qualify for a better interest rate and lower your monthly
payments significantly. Although it might be tempting to take advantage of a credit card offer here and
there, it is important that you discontinue all credit applications for at least nine months prior to a loan
application.

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By sticking to these 4 rules you will be able to use this strategy to earn upwards of 1,000,000 frequent
flyer miles each year.

Remember that this is a relatively complicated strategy that should only be used by those who are
taking an active approach to travel hacking. If you are not comfortable using it then I would
recommend you start with some of the other opportunities to earn frequent flyer miles discussed in this
book.

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 CHAPTER TWENTY-FIVE
Common Mistakes

Now that you are well on your way to becoming a travel hacking expert, lets take a look at 4 common
mistakes that travel hackers make.

1. Increased Spending

As I mentioned in the disclaimer, the most common mistake that people make with travel hacking is
letting their spending get out of control. Increased credit limits, access to special promotions, and a
desire to amass frequent flyer miles can cause your spending levels to increase rapidly if you are not
careful. A significant increase in spending as a result of travel hacking will cancel out any savings that
you earn on travel and leave you in a worse financial position than when you started.

To prevent this from occurring I would recommend that you keep track of the amount of money that
you spend for the 3 months prior to travel hacking and 3 months after getting started.

Simply write down the total amount of money that you spent on your credit cards and compare it on a
month by month basis. Dont forget to subtract any manufactured spending such as Amazon
Payments transactions or gift card purchases. If you notice that your spending is starting to increase
then you should review your purchase history and take steps to reduce your spending.

Always remember to avoid justifying a purchase by thinking of the frequent flyer miles that you could
earn. This is a dangerous habit that will almost certainly cause you to spend more money than you
would otherwise.

2. Failing to Understand the Value of Liquidity

Throughout the book I made multiple references to the financial principle of liquidity and how it plays a
role in travel hacking. Before we discuss how liquidity applies to travel hacking, lets start with a very
basic overview of what liquidity is. Here is a definition:

Liquidity: The degree to which an asset or security can be bought or sold in the market
without affecting the asset's price (source: investopedia.com)

In English: How easy it is to take something that has value and sell it for cash

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Lets look at a quick example to see how liquidity works.

Imagine that you have won a drawing and are eligible to choose from a group of prizes. The only two
prizes left are $100 cash and a $100 gift card to J. Crew. Which one would you choose?

Hopefully you went with the cash. But why?

If you have $100 in cash you can purchase just about anything you want (provided it costs less than
$100 that is). Maybe you go out to a fancy dinner, pay some bills, or even use it to shop at J.Crew. As
long as you have cash the choice is completely up to you.

If you chose the gift card on the other hand your options would be much more limited. You could either
spend it at J.Crew or try to sell it for a sum of cash, which would almost certainly be less than $100.

So despite the fact that both prizes are theoretically worth $100, the cash is more valuable to you.
This is because the cash is more liquid than the gift card.

Now lets take a look at how this concept applies to travel hacking.

Liquidity in Travel Hacking

When it comes to travel hacking it is important to think of frequent flyer miles in the same way that you
think of gift cards. While you can assign a value to frequent flyer miles by calculating their value per
mile, that value will always be less than the equivalent amount of cash.

So when comparing frequent flyer miles to cash, remember that $1 worth of frequent flyer miles will
always be worth less than $1 of cash.

The most common situation where this comes into play is when you are given an opportunity to buy
frequent flyer miles. Airlines will run promotions from time to time that offer mileage bonuses on top of
any miles that you purchase. This reduces the cost of each mile purchased, essentially creating a sale
on frequent flyer miles.

Many people convince themselves that they are saving money because they are able to purchase
frequent flyer miles for a cheaper price than what they can be redeemed for. While that may be true at
times, it is often not the case.

Going back to our previous example, this would be like purchasing $100 J. Crew gift cards simply
because they are on sale $95. While you are technically saving $5, the $95 in cash is more valuable
than the $100 gift cards because of the liquidity that it offers. This is especially true if you do not
frequently shop at J. Crew, or in the case of frequent flyer miles, you do not often fly with that specific
airline.

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The only time that I would recommend taking advantage of a sale like this is when you have an
immediate use for the frequent flyer miles. Otherwise it would be better to hold on to your cash and
wait for a better opportunity.

3. Not Negotiating with Credit Card Companies

Have you ever tried cancelling your cable TV service, only to be offered a reduced rate and upgraded
features if you decide to keep it? This is a common practice with cable companies that is highly effective
in keeping customers from switching to another provider. It has become so common that many people
now pretend to want to switch providers just to get their monthly bill lowered.

The same practice is used frequently by most credit card companies. While they have a reputation for
being evil, unapproachable institutions the truth is that they are quite the opposite. Most credit card
companies are willing to waive fees, reduce interest rates, and even give you frequent flyer miles in
order to prevent you from cancelling your card.

Here are some common items that you should always try to negotiate.

To have a late fee waived

To qualify for a higher sign-up bonus
To challenge a credit card application decision
To request that an annual fee be deferred or waived

So how do you go about doing this?

I have found that the most effective strategy is to call them and ask politely. Be sure to mention that
you have been a loyal customer for a while and have never missed a payment (if this is true). Many
times your request will be granted instantly with no questions asked.

If asking politely doesnt work then the next step is to mention that you are thinking about switching to
another companys credit card. Be sure to say the actual name of another credit card company (Chase,
Citi, American Express, etc.), as the customer service representatives are often unable to offer you
anything until you say one of these trigger words. This strategy will usually bring out the best offer
that the credit card company is able to provide.

If you are still unable to be granted your request, politely hang up and try again. I cant tell you how
many times I have been told no, only to have another customer service representative grant my
request immediately.

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While this strategy is relatively easy to use, your ability to negotiate with credit card companies is
dependent on your history as a customer. If you frequently miss payments or carry a balance on your
card then you are unlikely to have any of your requests granted. This is just another reason why you
should always try to make your credit card payments on time.

4. Closing Credit Accounts Too Quickly

Many people are in a hurry to cancel their credit card after they receive the sign-up bonus, pay off their
debt or switch to another credit card. After all, if you are not using a credit card any more then why
keep it open?

This is another mistake caused by adhering to conventional credit card wisdom. You have probably been
told that having a bunch of credit card accounts open, especially ones that you do not use, is bad for
your credit score.

Generally speaking, this is not correct. In fact, it is quite the opposite.

Closing any sort of credit account will likely cause your credit score to drop. While it might seem
counterintuitive, it occurs because of how your credit score is calculated. This may be a good time to
refer back to the Insiders Guide to Credit to take another look at how this works.

You should never close a credit card account unless you have a reason to. So please do not close any
credit cards just for your convenience.

Now that you know the basics and some of the common mistakes, lets take a look at a few advanced
strategies used by expert hackers around the world.

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 SECTION 8
Advanced Strategies

Page 75
 CHAPTER TWENTY-SIX
Hidden Sign-Up Bonuses

As we discussed earlier, credit card sign-up bonuses are by far the fastest and easiest way to earn
frequent flyer miles. Most credit cards will offer 25,000 to 50,000 frequent flyer miles with occasional
offers up to 100,000 miles. While these sign-up bonuses are open to anyone, expert travel hackers are
able to find hidden offers that are generally more lucrative than the offers that are available to the
public.

These offers fall in to one of two groups targeted offers or expired offer links.

Targeted Offers
Targeted offers are credit card offers that are only sent to a select group of people. They are used as a
marketing tool by credit card companies and typically offer sign-up bonuses that are 50-100% higher
than the published offers. These offers can be invaluable to travel hackers and should be pursued when
possible.

There are two ways that you can take advantage of targeted offers.

1. The first is to try to be included in the group that is selected to receive the targeted offer. This
often requires more luck than skill, but you can improve your chances by maintaining a solid
credit profile, opting to receive promotional offers from your credit card company, and even
contacting your credit card company and asking to be included in any future targeted offers.

You can also use the Card Match Tool from CreditCards.com to check for any offers that you are
already being targeted for.

2. The second is to negotiate with your credit card company to try to receive the same offer that
was sent to the targeted customers. As I mentioned in the book, the best way to do this is to
simply ask. Be sure to let them know that you are aware of the targeted offer and the specific
bonus that is being offered. Many times they will grant your request and allow you to qualify for
the same offer that was sent to the target group.

Expired Offer Links

The other type of hidden sign-up bonus is called an expired offer link. Expired offer links are links to
credit card applications that offer a sign-up bonus or other perks that have expired and are no longer
available to the public. Credit card companies occasionally forget to close all of these links after the

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expiration period, leaving the door open for anyone to receive the higher sign-up bonus after being
approved for the card.

Expired offer links can be found on travel hacking forums (i.e. Flyertalk or Milepoint), blogs, or even by
searching Google. I would recommend searching for them before applying for any credit card just to
make sure you are getting the best deal possible.

I was recently able to use an expired offer link to get the US Airways Dividend Miles MasterCard with the
fee waived for the first year. The published offer did not waive the fee, so by using the link I was able to
save $89 with less than 5 minutes of work.

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 CHAPTER TWENTY-SEVEN
Earning Sign-Up Bonuses Multiple Times

Single Card Churning

Single card churning is the process of receiving a sign-up bonus for the same credit card multiple times.
This was a very common practice in the early days of travel credit cards. Some even applied for the same
credit card every 2-3 months. Credit card companies eventually caught on to this strategy and put a stop
to it by no longer approving customers who applied for the same card every few months.

While this strategy is not as widely used today, there are still a few credit cards on the market that are
rumored to be churnable. The best place to find a list of these cards is the Flyertalk Forums.

Unlike the good old days, these credit cards typically cannot be churned every 2-3 months. I
recommend waiting at least 18 months between applications. This will maximize your chances of being
approved.

This strategy can also have very different results from one person to the next. Some people are able to
churn the same card multiple times without any issues. Others are denied immediately and unable to
use this strategy at all.

And finally, it is important to note that credit card companies do not openly admit to allowing people to
apply for the same card multiple times. So it might be best not to let them know that youre trying to
use this strategy.

Visa and MasterCard Versions of a Card

The Visa/MasterCard strategy allows travel hackers to receive multiple sign-up bonuses by taking
advantage of the fact that some credit cards have twin versions that are offered by both Visa and
MasterCard. This is another strategy that is not quite as common as it used to be, however, there are
still opportunities that arise from time to time.

Although it is possible to apply for both versions simultaneously, it is best to wait at least 18 months
between closing the first card and applying for the second. This will give you the best chance of being
approved and becoming eligible to receive the second sign-up bonus. Like in single card churning, this
strategy seems to inexplicably work for some people and not for others.

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 CHAPTER TWENTY-EIGHT
Open-Jaws and Stopovers

Open-jaws and stopovers are two booking strategies that help you get more value out of your miles
when you redeem them. When used correctly, these two strategies can help you take multiple vacations
for the price of one. Lets take a look at how they work.

Open-Jaws
An open-jaw ticket is a round-trip ticket where you fly into one city and depart from
another. So you can fly from Point A to Point B, then from Point C back to Point A.
Points B and C are typically airports in the same general area, such as London and
Paris.

An open-jaw is ideal for travelers who are planning on covering a lot of ground
during their trip and dont want to waste time returning to their original The path-lines of your trip
airport. For example, if you want to fly into Rome and make the scenic drive resemble a jaw line, which is
along the Mediterranean Coast to Northern Italy, an open-jaw ticket will where the term open-jaw
allow you to fly home from Milan rather than making your way back down to comes from
Rome.

Most airlines treat open-jaw tickets the same as round-trip tickets and price them accordingly. This
usually results in a considerable savings over the cost of 2 separate one-way flights.

The only general restriction on an open-jaw ticket is that the two open-jaw cities have to be in the same
region. So you cant book an open-jaw ticket from New York to London and then Hong Kong to New
York. This restriction varies by airline so it is best to check before booking your ticket.

To book an open-jaw ticket just look for the multi-city or multiple-destination option and input your
desired itinerary. The search should recognize that you are booking an open-jaw ticket and price the
flights accordingly. If the prices seem high, I would recommend you call the airline and ask if there are
any minor adjustments that you can make to your itinerary that would help you qualify for an open-jaw
rate.

Stopover
A stopover is any stop of more than 24 hours in a city between your origin and final destination. Think of
it like a very long layover, one you have elected to add to your itinerary.

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An example of a stopover itinerary would look like this:

New York Paris (stopover, stay in Paris for 3 days) Rome.

Stopover: Spending more than
Stopovers are completely free on any airline that allows them. So adding one 24 hours in an international
to your trip will not cost you any additional frequent flyer miles. city on the way to your final
destination
On most award tickets you are given 1 whole year to make it from your origin
to your final destination. This means that you could stay at your stopover Connection/Layover:
destination for up to 364 days before continuing on to your final destination! Spending less than 24 hours in
an international city
Stopovers are one of the best ways to maximize your frequent flyer miles
because they essentially allow you to visit two destinations for the price of
one.

So whats the catch?

First of all, not every airline allows you to book a stopover. Each airline has its own set of rules so be
sure to check them before attempting to book a stopover ticket.

Stopovers also have to fit logically into your itinerary. So you probably wont be able to book a stopover
in India for a flight that goes from New York to Rome. There is some flexibility in these rules however, so
feel free to get creative.

So how do you book a stopover?

There are 2 ways to add a stopover to your itinerary.

1. The first is to book it online using the multi destination option. This option only works for a
few airlines and usually does not show any partner flight availability. I recommend only using it
when booking flights with United.

2. The second is to book your ticket over the phone. This is definitely the easiest way to book a
stopover ticket, as most airlines do not allow you to book stopovers online. Simply tell the
booking representative your origin, destination, and the city in which you would like to book a
stopover.

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 CHAPTER TWENTY-NINE
Hidden City Ticketing

Airlines often charge less for flights that go through a hub from one city to another than flights that
terminate at that hub. This occurs because the airline is trying to compete with cheaper options
between the two cities that are being offered by other airlines

This presents an opportunity called hidden city ticketing you buy the flight to the cheaper
destination, connecting where you really want to go, and just get off the plane at your true arrival
point.

Lets look at an example to see how this works.

If you wanted to fly from Des Moines to Dallas/Fort Worth (DFW), a typical one-way flight would cost
about $375. The flight is incredibly expensive because the Des Moines airport is primarily serviced by
American Airlines, which has a major hub in Dallas/Fort Worth.

A one-way flight from Des Moines to Los Angeles that routes through DFW on the other hand is only
about $185. So by booking a flight from Des Moines to Los Angeles and getting off the plane in DFW, you
could save about $190 on your ticket.

While hidden city ticketing is not against the law, it does violate most airlines contract of carriage. So
airlines could take action by suspending your frequent flyer account or even banning you from flying
with them. This is something that could happen only through repeated and frequent use of this
technique, so be careful not to abuse it.

Here are a few other things that you need to remember when using this strategy.

Dont check luggage

If you check bags, your bags will go to the final destination on your ticket without you. So this
technique only works when you are able to fit all of your things in to a carry-on.

You also need to be careful with gate checked luggage. If you are unable to find overhead space
for your bag then you may be asked to gate check the bag to your final destination. Again, this
will not work for you so you need to come up with some sort of reason why you need your bag.

As a last resort, simply tell the airline staff that your final destination is where the aircraft is
landing. Chances are good that they are not aware of any future connections that you are
scheduled to make and they will accommodate your request.

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 Do not attach your frequent flyer number to your ticket

Even though I said that you should always have your frequent flyer information squared away
before taking any flight, hidden city tickets are the one exception to that rule. Not attaching
your frequent flyer miles number to your ticket will make it harder for the airlines to track your
history of using hidden city tickets. This reduces the chance of them taking any action against
you for using this strategy.

Be aware of irregular operations

If your flight gets delayed or cancelled the airline might offer to send you to your final
destination via some other connecting city. This obviously will not work for you. I would suggest
that you say that the connecting city is important because you are meeting someone there or
have some sort of other business that requires you to be there. Airline agents are usually pretty
accommodating during irregular operations and will give you an itinerary that works for you.

Only do this on the last segment of your reservation

If you miss a flight, the airline is likely to cancel the rest of your itinerary. So this strategy can
only be used to skip the final leg of your reservation.

How to Book Hidden City Tickets

The best way to book hidden city tickets is to use a service that allows you to search for flights by
connecting city. My personal favorite is Hipmunk but there are a number of other options that you can
use. Simply put in your starting city and let the system search for fares to cities that connect through
your true destination city.

As you become more experienced with this technique you will begin to learn which cities are the
cheapest to fly to through your desired connection city.

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 CHAPTER THIRTY
The Southwest Companion Pass

One of the most lucrative travel hacks on the market is the Southwest Companion Pass. While I typically
refrain from recommending credit cards or strategies that apply to specific airlines, this strategy is too
lucrative to omit.

Lets take a look at how it works.

What is the Southwest Companion Pass?

The Southwest Companion Pass is a pass that allows you to take a companion on any Southwest flight
that you fly for free. There is no limit to how often it can be used and there are no blackout dates. The
only fee that the companion needs to pay is the $2.50 tax per segment.

Once earned, the companion pass is valid for the rest of the calendar year plus the entire next calendar
year. So if you earn the companion pass in September of 2013, it would be valid for the rest of 2013 and
would expire on December 31, 2014. All companion flights would have to be completed by that date, so
you would not be able to book any companion flights for 2015 and beyond.

You have to designate who your companion is so you cannot take a different person every time. You can
however change your companion three times, meaning that you can use it with up to 4 people (start
with person A, then switch to B, C, and D). You can also switch the name back to someone who was
already listed as your companion (start with person A, then switch to B, C, and back to A).

Your companion has to travel on the same itinerary as you do, so they cant fly anywhere without you.
This includes any connecting flights, even if your companion is traveling to the same destination as you.

Getting the Companion Pass

To earn the Southwest Companion pass you must complete 100 qualifying one-way flights or earn
110,000 Qualifying points in one calendar year. Qualifying points can be earned through credit card sign-
ups, credit card spending, Rapid Rewards partners (i.e. Hilton, Avis, Hyatt), and by flying on Southwest.

The easiest way to get the companion pass is to take advantage of the Southwest Credit Card sign-up
promotions. Southwest offers four credit cards through Chase (Personal Premier, Personal Plus,
Business Premier, and Business Plus) and each of them offers a sign-up bonus of up to 50,000 miles. By
signing up for two of the cards and meeting the minimum spend you will be able to earn more than
104,000 Qualifying miles (100,000 sign-up bonuses plus 4,000 for the minimum spends). This would get

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you within 6,000 Qualifying miles of earning the companion pass. The remaining miles can be earned
with credit card spending, Rapid Rewards partners, or even a third Southwest credit card if needed.

Companion Pass Strategy

To get the most value out of a companion pass it is best to try to qualify for it as early in the year as
possible. The earlier you earn it, the more months you will be able to use it. So by earning one in January
instead of September for example, you can get an additional 8 months of use out of it.

To do this it is best to sign up for two of the Southwest cards within the last 3 months of the calendar
year and meet the minimum spending requirements immediately after January 1 of the following year.
The points that you earn from the sign-up bonus would count toward the next years total and you could
earn the companion pass in January.

This strategy would allow you to get a full 24 months of use out of the companion pass before it expires.

Lets take a look at a few frequently asked questions.

Companion Pass FAQs

-How much is the Southwest Companion Pass worth?

While it is difficult to assign a specific value to the Companion Pass, you can come up with a rough
number by looking at the value of Southwest points. 110,000 Southwest points is worth roughly $1,833
in free flights on a Southwest Wanna Getaway Fare. If you bring your companion on all the flights that
you book with those points, you would be getting an additional $1,833 of free airfare for a total of
$3,666.

-Do I have to buy the Companion Pass with the points I earned?

Nope. Once you earn the 110,000 points the pass is yours for free. You still have those points to redeem
for free flights on Southwest.

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-Can I use my points to book flights for people other than my companion?

Yes. Your points can be used to book flights for anyone youd like. Remember, however, that your
companion can only fly with you.

-Can the Companion Pass be used on Southwest flights that are booked with points?

Yes. The companion pass can be used on any type of ticket.

-How quickly does my designated companion go into effect?

When selecting or changing your companion the new name goes into effect immediately. You do not
have to wait for the new companion pass card to arrive by mail. To change the name of your
companion, call Southwest Customer Service and they can change it immediately. Remember that this
can only be done three times.

-Do points transferred from other loyalty programs count toward the Companion Pass?

Some do and some do not. Any points transferred from Chase Ultimate Rewards do not count. Points
transferred from Hyatt, Mariott, Wyndham, Club Carlson, and Choice Hotels do count towards the
companion pass.

Lets jump into the last section and talk about how you can take the first step on your journey to
traveling the world for free!

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SECTION 9
Takeoff!

Page 86
 CHAPTER THIRTY-ONE
The First Step

A journey of a thousand miles begins with a single step

-Lao Tzu

Over the previous 30 chapters we have covered everything from the basics of travel hacking to some of
the more advanced strategies used by the experts. Hopefully by now you have a basic idea of what
travel hacking is, how frequent flyer miles work, and how you can earn and redeem them for free travel.
With this information, you are now ready to begin your journey to travel the world for free.

We covered a lot of material, so dont worry if you dont quite understand everything yet. Unlike some
of my college professors, I dont expect you to know everything after reading this book just once.

To help get you started, I want to give you a simple first step that will begin your journey to traveling the
world for next to nothing. It is the same first step that I took on my own journey and I would
recommend it to anyone who aspires to become a travel hacker.

Step 1: Sign up for your first travel credit card

Thats it! It only takes about 10 minutes and it is completely free.

If youre having trouble deciding which one to start with, you can check out my credit cards page or
email me (bryce@getfreeflights.com) for a free consultation.

Once you get the card and use the points, the rest of the advice in this book seems to spread like
wildfire. You will get to experience firsthand how easy travel hacking can be and you will be well on your
way to booking trips to destinations that you have always wanted to visit.

With the experience of booking your first free flight, the knowledge found in this book, and the desire to
travel the world, you will be left with just one more question to answer.

If you could leave tomorrow for any destination in the world, where would you go?

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SECTION 10

Resources

Page 88
 RESOURCES
There are a ton of resources that are available to help you keep up with what is going on in the travel
hacking world. Here are a few of my favorites.

-Blogs

View from the Wing

Million Mile Secrets

Mommy Points

The Points Guy

One Mile at a Time

Hack My Trip

Deals We Like

-Forums

Flyertalk By far the largest frequent flyer community on the web, Flyertalk is full of information on
everything from the best credit card offers to hotel reviews. I would recommend that you check it
frequently to keep up with what is going on in travel hacking and dont be afraid to ask questions.

Milepoint Very similar to Flyertalk but with fewer users and more basic information. Milepoint tends
to feature topics that are geared toward individuals with less travel hacking experience.

GetFreeFlights.com

And of course, dont forget to take advantage of all of the resources that can be found on my own site.
You can check out the best current deals, read my blog, email me any questions that you have, follow
me on twitter, and explore some of the other services that I offer to travel hackers.

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 THANK YOU!

Congratulations! We covered a ton of information in this book and you should be proud of making it all
the way through. You are now ready to start your journey to a better life by traveling the world for next
to nothing.

Before you go I wanted to share a few final thoughts.

Go Explore the World!

Now that you know how to travel for free you have no excuse not to get out and see the world!
Traveling will afford you some of your lifes richest experiences while opening your eyes to see the world
in ways that you never thought possible. There are few things more exciting in life than meeting new
people, seeing new places, and experiencing new cultures.

Remember to Have Fun

Remember that above all, traveling and travel hacking should be fun. Whether this book is your first
step to becoming an extreme traveler or just a way to earn a free flight, always make sure you enjoy the
ride.

Hang on to this Book

This book will undoubtedly come in handy as you continue to refine your travel hacking skills. Keep it
somewhere you can find it and refer back to it when you have questions. Also, dont be afraid to ask for
help if you need it! Even with a resource like this book, there will be times where you dont understand
something. Dont hesitate to contact me or anyone else who might be able to help you.

Stay in Touch

I always love hearing from people who share my passion for traveling and travel hacking. If you havent
already, please follow me on twitter (@GetFreeFlights) and contact me with any stories or questions
that you might have. Also, dont hesitate to say hello if we happen to cross paths somewhere!

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Thank You

Thank you for your support of this book and the Get Free Flights Project. I hope that you enjoyed
reading it as much as I enjoyed writing it. I am truly grateful that so many people have taken the time to
listen to what I have to say and am humbled by the opportunity to share my knowledge with you.

Please stay in touch and tell your friends about the wonderful opportunities that await in the world of
travel hacking.

Happy Traveling,

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Appendix

Page 92
 APPENDIX
Insiders Guide to Credit

As you have probably noticed by now, credit cards play a major role in the world of travel hacking. When
used responsibly, they can be a very effective way to earn boatloads of frequent flyer miles. When
misused, however, they have the potential to cause a number of problems.

For that reason it is important that you understand how credit cards and credit scores work before using
them to earn tons of cheap travel.

In this guide we are going to take a look at how credit scores are calculated, cover a few tips to build and
maintain a good score, and answer a few FAQs related to credit.

Lets get started.

Credit Reports
A credit report is a detailed record of your credit history that contains information on your credit
accounts, loans, bankruptcies, late payments, credit inquiries, and even some personal information such
as your address and date of birth. It serves as a report card of how responsible you have been when it
comes to managing your finances.

The information on your credit report is collected by three credit reporting agencies (Equifax, Experian,
and TransUnion) and stored for future use. Although each credit reporting agency has their own credit
report, the information that each of them collects is very similar.

Your credit report is used by businesses such as banks, credit card companies, insurance companies, and
even landlords to determine if you are a risky customer. While the report does not explicitly state
whether you are a good or bad credit risk, it does contain enough information for these businesses to
make that decision for themselves.

Credit Scores
Your credit score, on the other hand, is a numerical assessment that quantifies the risk that you present
as a credit. It is used by lenders to answer the question How much risk am I taking by lending money to
this person?

So if your credit report is your report card, your credit score would be your grade point average (GPA).

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Your credit score is calculated by taking information from one of your credit reports and running it
through an algorithm created by a company called FICO. The algorithm uses that information to
generate a number between 300 and 850 that represents the risk you present as a credit.

The higher your score, the more likely you are to repay your debt, and therefore the more likely you
are to qualify for any sort of credit card or loan.

While there are a variety of different credit scores that are used by lenders, the FICO credit score is by
far the most common. Next, well take a look at how it is calculated.

How Your Score is Calculated

Your credit score is calculated using the following criteria:

Source: myfico.com

Payment History (35%)

The most important factor in determining your credit score is your payment history. This measure
reflects the number of times that you have paid your credit bills on time. The more on-time payments
you make, the higher your score will be.

It is important to note that bills such as rent and utilities do not contribute to your payment history.
FICO does not consider these types of bills to be credit accounts, so they do not include them when
calculating your score. These items can however have a negative impact on your score if you fail to pay
them and they are turned over to a collections agency.

Not only is your payment history the most heavily weighted metric, but it is also the most volatile. Miss
just a couple payments and you could drop over 100 points off your score (Ouch!). That big of a drop
could eliminate your ability to qualify for any sort of credit card or loan.

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Amounts Owed (30%)

The second biggest factor in determining your credit score is the amount of debt you owe. This metric is
broken down into a few subcategories.

Total Amount Owed: This is the total amount of debt that you owe on all of your
credit cards, loans, etc. Generally speaking, the less debt that you have the better
your score will be.

Total Amount Owed by Account: This is a measure of how much debt you have on
each of your accounts. Creditors commonly refer to this as your credit card
utilization, which is expressed as a percentage of your credit limit that you are
using.

For example, if you have a $1,000 limit on a credit card and have a balance of $500,
then your utilization for that card would be ($500/$1000=) 50%.

Generally speaking, the lower your utilization, the higher your credit score will be.

How Many Accounts Have Balances: Carrying a balance on a large number of your
credit lines indicates that you may be a high risk borrower and can lower your credit
score.

Original Amount of Installment Loans vs. Current Balances: Paying down

installment loans (mortgages, car payments, etc.) is a good sign that you are able to
manage and repay debt. Like credit card payments, you always want to make your
installment debt payments on time and in full.

Length of Credit History (15%)

Length of credit history is a measure of the amount of time that you have had your credit accounts. This
metric takes into account the age of your oldest account, the age of your newest account, and the
average age of all of your accounts. In general, a longer credit history will lead to a higher credit score.

All trade lines, whether opened or closed, will contribute to your average age of accounts until they fall
off of your credit report at the 10 year mark.

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New Credit (10%)

New credit is a measure of your credit seeking activity. By applying for and opening a lot of new
accounts in a short period of time you are indicating that you might be a risky borrower, which will
cause your credit score to fall.

Types of Credit Used (10%)

This factor looks at your mix of credit cards, retail accounts, installment loans, finance company
accounts, and mortgage loans. You ideally want to have a healthy balance of credit card debt and
installment loans to show that you know how to manage both types of debt.

Now that you know how your credit score is calculated, lets take look at how credit scores are
evaluated by creditors.

What is a Good Credit Score?

As we discussed earlier, FICO credit scores range from 300 to 850, with 300 being the absolute lowest
and 850 being an almost unattainable maximum. Chances are good that your score will fall somewhere
between the two, so lets take a look at how your score is viewed by creditors.

Here is a chart that shows how credit scores are typically graded.

As you can see, credit scores are put into ranges when evaluated by creditors. While different creditors
might use slightly different ranges, they are generally all within a few points of the one you see above.

Scores within each range are typically treated equally, so there is no need to obsess over minor
fluctuations in your score. As long as you stay within your desired range you will not see any major
change in your ability to be approved for credit cards or loans.

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It is also important to note that there is a significant diminishing return in having a credit score that is
higher than the mid 700s. Creditors typically treat any potential clients with a score of 750 or above
equally so you do not need to worry about trying to reach the maximum score.

How to Build and Maintain a Good Score

Here are 4 tips that will help you build and maintain a good credit score.

1. Understand How Your Credit Score Works

Your credit is one of the most valuable assets that you own and ruining it will have lasting effects on
your financial well-being. For this reason, it is important that you take the time to learn how it works.
This will help you make informed credit decisions and take the necessary steps to maintain a good credit
score.

By taking the time to read this guide you are already taking the first step. It may help to review it a
couple times to make sure that you didnt miss anything. It might also be helpful to check out a few of
the credit resources at the end of this section.

In addition to understanding how your score works, it is also important to check it regularly to avoid
issues such as account errors or fraud. I recommend using Credit Karma or Credit Sesame to do so.

In the interest of full disclosure I need to tell you that neither Credit Karma nor Credit Sesame provides
your real FICO Score. They are simply estimations (called FAKO scores). They are however incredibly
accurate and sufficient for our purposes.

2. Always Make Your Payments on Time

No amount of credit score strategy will ever be able to make up for the damage that late or missed
payments will do to your credit score. Having just one or two missed payments can drop your score by
over 100 points and make it very difficult for you to qualify for any sort of loan. You absolutely have to
make all of your payments on time and in full if you want to maintain a good credit score.

3. Build a Solid Credit History

The more credit history you have, the more evidence there is that you are a responsible borrower. This
will help to boost your score and insulate it against minor ups and downs that can be caused by things
like new credit inquiries or accounts.

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The best way to build a solid credit history is to continually stick to the first two tips that you just read. If
you continue to monitor your credit score and make your payments on time you will be able to build a
solid credit history of being a responsible borrower.

It is also a good idea to keep your older credit accounts open and in good standing. Although it can be
tempting to close credit accounts that you no longer use, keeping them open helps to build your credit
history and thus boost your credit score.

4. Keep Your Credit Card Balances Low

The last tip for maintaining a good credit score is to keep your credit card balances low. Generally
speaking, the higher your credit card balance is, the lower your credit score will be. To prevent this from
occurring it is best to keep your credit utilization below 30% at all times (Thats $300 on a credit card
with a $1,000 credit limit). Going above 30% will likely cause your score to fall, even if you are paying
your balance every month.

By understanding how your score works, always making your payments on time, building a solid credit
history, and keeping your balances low, you will easily maintain a good credit score.

Now lets take a look at a few frequently asked questions.

Credit FAQs
1. Arent credit cards dangerous?

Nope. Using credit cards responsibly is actually a great way to improve your credit profile over
time. This will result in a higher credit score, a better chance of being approved for credit cards
and loans, and the ability to receive lower interest rates on any existing or future debt.

Credit cards are only dangerous when you overspend and start accruing debt.

2. How many credit cards should I have?

There is no set number of credit cards that is best for any one person. The number of cards that
you should have depends on your credit score and the amount of money that you spend on a
monthly basis (see credit utilization above). As long as you are able to keep your credit score
within your desired range, the amount of cards you have is up to you.

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3. Will avoiding credit help my score?

Avoiding credit altogether will prevent you from building credit history and likely result in a low
credit score. In some cases it can even cause you to have whats called a thin file, which
means you dont have enough information to even calculate a credit score. It is important that
you start building a solid credit history as soon as you can.

4. How much will a credit card application affect my credit score?

While it will vary for each person, a credit card application will generally only have a small
impact on your credit score. For most people, one inquiry will cause their score to fall by less
than 5 points.

5. Which credit cards should I sign up for?

This depends on a variety of different factors. There are pros and cons to every card and most of
them will ultimately get you to your dream destination. You can check out my Best Current
Deals page to see which cards I recommend.

6. Should I cancel a credit card right after I get the sign-up bonus?

No! You should never cancel a credit card unless you have a reason to (such as avoiding an
annual fee). Cancelling a card will cause your credit utilization to rise and likely cause your credit
score to drop.

7. I max out my credit card and pay it off every month. Will this help improve my score?

While making your payments on time will help to establish credit history, carrying a large
balance on your card will likely cause your score to drop until the balance is paid off. This is due
to the effect of credit utilization on your score. It is best to keep your utilization ratio below 30%
at all times to prevent this from happening.

8. What is the ideal credit score?

Technically speaking, an 850 is the ideal credit score because it is the highest score possible. For
most, that is not a realistic goal so I would recommend that you shoot for something in the mid
700s. This will put you well within the excellent credit score range, meaning that you will still
receive the best offers available.

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 9. When buying something, should I pay with a credit card, a debit card, or cash

You should always pay with a credit card when possible (as long as you are not charged a fee to
do so). In addition to earning points, credit cards have other benefits such as fraud protection
and extended warranties that are not offered by debit cards or cash.

10. My credit score is lower than I would like it to be. How can I improve it?

Credit scores are never permanent and can always be improved with a little bit of time and
discipline. You can check my Guide to Improving Your Credit Score for some tips on how to do
this.

11. Do debit cards, utilities, or checks affect my credit score?

No. Items such as debit cards, utility bills, and checks are not considered credit accounts and do
not affect your credit score unless they are turned over to a collections agency.

Credit Resources
Here are a few of my favorite resources for information on credit scores.

www.myfico.com

www.experian.com

www.credit.com

www.scoreinfo.org

www.nerdwallet.com

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Business Credit Card Overview

Business credit cards can be a great source of frequent flyer miles when used correctly. Here are a few
things to keep in mind when using them.

You dont need to have an incorporated business to get one

This seems a bit counterintuitive to most people, but you dont have to own an incorporated business to
qualify for a business credit card. Each credit card company has a different requirement for what
qualifies as a business and most of them are pretty lenient. As long as you are engaging in some sort
of activity with the intent of making a profit then you can be considered a business.

There are a variety of activities that you can do (or are currently doing) that would qualify you as a
business in the eyes of a credit card company. Some common examples include selling items online,
writing a blog, consulting, and even traveling. Just remember that you need to be able to justify your
activity as being done for the purpose of generating a profit.

How to apply
When applying for a business credit card, simply list your social security number as your business tax ID.
This indicates that you are operating as a sole proprietor and do not have a federal tax ID number. You
may have to answer a number of questions about annual revenues, employees, or years in business. Be
sure to answer these questions honestly, even if all of the answers are zero. This will not disqualify you
from being approved for the card.

-Business credit card spending

The most important thing to remember about business credit cards is that you need to use them for
business expenses only. Do not use them for day to day purchases such as groceries, dining, etc. This
will ensure that you comply with all of the terms and conditions in the card member agreement.

Just like personal cards, you need to remember to use business credit cards responsibly. You are still
liable for repaying any debt that you accrue.

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Other Benefits of Credit Cards

In addition to rewarding you for the purchases you make, credit cards provide a number of other
benefits to their users. Here are a few examples.

1. Convenience: Using a credit card means no more running to the ATM to withdraw cash, having
to count and carry change, or writing checks to pay expenses. You can just swipe and go.

2. Security: You are generally not responsible for unauthorized charges on your credit card. This
protects you against theft and fraud. Using cash or a debit card on the other hand offers you
little to no protection.

3. Budgeting: It is easy to track all of your spending on a credit card and use it to create and
manage budgets. Online accounts also offer great tools for creating and monitoring spending
reports.

4. Extended Warranties: Some credit cards provide extended warranties on anything that you
purchase. So if your brand new TV breaks after its warranty has expired, your credit card might
cover the cost of replacing it.

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 APPENDIX
Insiders Guide to Improving Your Credit Score

Dont be discouraged if you happen to find yourself with a credit score that is lower than you would like
it to be. Your credit score is never permanent and it can be improved with a little bit of patience and the
right advice. You will be back on your feet in no time and ready to start travel hacking again!

With that said, lets take a look five steps that you can take to improve your credit score.

1. Check for Errors on Your Report

The first step to improving your credit score is to check for any errors on your credit
report. Errors are relatively common and can have serious effects on your credit
According to the
score if they are not addressed quickly. Common errors to look for are duplicate
Federal Trade
account listings, inaccurate personal information, or identity theft. Commission, roughly 1
out of every 5
To get a copy of your credit report you can go to annualcreditreport.com and
Americans has an error
request that one be mailed to you. You only are allowed one free copy of your
on their credit report
report every 12 months so be sure to hang on to it after you receive it. Look over
the entire report for any inaccuracies and send any disputes to the credit bureau in
writing. The bureau is required to investigate any information that you dispute and will make
corrections where needed.

2. Pay Your Bills on Time

The next step is to do everything you can to start paying your credit bills on time. This is a pretty obvious
step, as your payment history is the biggest factor in calculating your credit score, but it is crucial to
improving your score. Continuing to miss payments will not only prevent you from improving your score,
but it could also cause it to fall even further.

Even if you cant pay the entire amount, try to pay what you can. Making partial payments is better than
missing a payment altogether.

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 3. Reduce Your Total Debt

Reducing your total debt requires you cut back on your spending and pay down your balances as much
as possible. This will improve your credit utilization ratio, which will cause your credit score to rise. This
step can require a lot of patience but it is very important to improving your credit score.

4. Dont Close Old Accounts

While it is tempting to close credit cards after paying them off, it is best to keep them open if you want
to improve your credit score.

When you close a credit account it reduces your total available credit, which causes your credit
utilization to rise and your credit score to fall. Closing old accounts can also reduce your length of credit
history (15% of your score), especially if one of them happens to be your oldest line of credit.

Closing old accounts also does not make them go away. Items such as delinquencies or bankruptcy can
remain on your credit report for years, regardless of whether or not the accounts have been closed.

5. Opening New Accounts

How you approach this step depends on your credit history. If your credit score is low because you have
little to no credit history then you should try to open a new credit card account. This will help to
establish some credit history and start improving your credit score. You should only apply for a card that
you are likely to be accepted for so it might be a good idea to start with some of the more basic credit
cards offered in the market.

If you already have an extensive credit history then you should avoid opening new credit card accounts
if at all possible. Applying for cards will cause your score to fall even farther and you will likely be denied
for them anyway.

Remember to be patient! Improving your credit score wont happen overnight but it can be done with
discipline and persistent effort.

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