The credit card industry gives away billions in travel rewards annually to people who understand the system. Travel hackers use sign-up bonuses, category multipliers, and transfer partners to fly business class โ€” which costs $3,000โ€“$10,000 in cash โ€” using points that cost $0.

The Sign-Up Bonus Strategy

Premium travel cards offer 60,000โ€“100,000 point sign-up bonuses for spending $3,000โ€“$5,000 in the first 3 months. On Chase Sapphire Preferred: 60,000 points = $750โ€“$1,500 in travel (1โ€“2.5 cents/point). On Amex Platinum: 80,000 points = $800โ€“$2,400 in travel. The key: spend what you’d normally spend, never carry a balance.

Transfer Partner Magic

Chase Ultimate Rewards, Amex Membership Rewards, and Capital One Miles transfer to airline and hotel programs. A round-trip to Europe in business class costs 75,000โ€“90,000 miles โ€” points that would cost $750โ€“$900 cash if used for cash back but transfer to enough miles for a $5,000+ business class ticket.

โš ๏ธ
Never Pay Interest โ€” Ever
Earn: The only rule that matters
Credit card rewards are only a good deal if you pay your balance in full every month. A $3,000 sign-up bonus is worthless if you’re paying 24% APR on a carried balance. Travel hacking ONLY works for people who never carry a balance.