How I Earn 1 Million Frequent Flier Miles Each Year

Updated: 12/28/2018 | December 28th, 2018

The best way to travel when you don’t have any money is to take money out of the equation. OK, not completely. While you can travel really, really cheaply, some money is required (unless you want to go hobo-style like this guy, in which case, this article isn’t for you).

But, assuming you don’t want to do that, you are going to need some money for travel. But you don’t need as much as you think you do, especially if you work to make your two biggest expenses — accommodation and flights — virtually free.

How?

By travel hacking.

I’ve written about it before, but I’ve never really broken down how I earn all those points and miles and redeem them for the business-class flights you always see me enjoying on Instagram. In this post, I’ll go into detail and provide the step-by-step breakdown of exactly what I do to earn around one million points a year — all without traveling! (When you add in the miles and points I get from traveling, it’s well over a million per year!)

This is going to be a long post, so get your coffee ready.

First, a refresher: travel hacking is the art of collecting frequent flier, hotel, and credit card points and airline miles and redeeming them for free travel. But it’s not about spending lots of money — the idea is to “hack the system” and use rewards programs against themselves to get lots of points and miles without spending a lot of money or traveling a lot. You leverage these systems to your benefit.

And it’s not just for Americans — Canadians, UK residents, Australians, Kiwis, and Spaniards can work these systems in their favor. (In reality, anyone can, but it’s just easier if you’re in these countries. So, while I will use the American market as an example, as that is the one I have access to, the principles and strategies I use can apply to you. Just substitute your local cards and programs for mine!)

One quick note before we begin (especially to the travel hackers reading this): in the travel hacking world, my mileage earning is pretty small. I know people who earn multiple millions of miles a year doing what I do (and a few other things), but I value my time, so why spend time earning miles I don’t need? My mileage needs are taken care of. I don’t waste time getting miles I don’t need.

Miles also lose value over time as airlines change their earning and burning rules, so I would rather have what I need and not waste time getting something with a decreasing value. Miles aren’t money.

Some people do this for the love of the game; I do this because I’m cheap and want to pay for as few flights and hotels as possible.

Here’s how I get those points and miles:

Step 1 – Sign up for credit cards

Credit cards are the tool through which you run your money in order to accumulate your points and miles. Think of them as the points-and-miles printing press. You can earn points and miles without them, but the process takes a lot longer and is a lot harder. To make this work, you will need a credit card.

When used properly, credit cards are smart financial instruments. You can earn hundreds of thousands of miles per year that enable you to travel for free (and they offer better purchasing protection than your debit card). Simply having them won’t send you into debt or cost you high-interest rates. Just make sure not to spend more than you have and to pay off your bill each month.

So the first thing I do is apply for a bunch of these credit cards. But I don’t do it willy-nilly. I have a goal in mind.

As a crazy travel hacker, I have more cards than the average person needs, but I always apply for new cards to reach a specific goal. Be sure to do this: think about the trip you want to take, where you want to stay, and how you want to get there, and then get the cards that help you get there.

If I’m low on American Express points, I’ll look for a new American Express card. If I want to go to Iceland, I’ll sign up for an Alaska Airlines card because I can use those miles to book a rewards ticket to Iceland thanks to their partnership with Icelandair. Moreover, I always look for what card offers the highest bonuses, even if I don’t need those points right away.

What have I signed up for this year? In the last six months, I applied for the following cards:

• IHG – I don’t stay in hotels often, but I use hotel points for any last-minute stays I need or for conferences when I don’t want to stay in hostels. Since I’d never held this card before, I got the 65,000-point bonus.
• American Airlines Platinum Business Card – Though I fly AA often and earn their miles easily, it had been a while since I had this card, so I applied again for a 50,000-mile sign-up bonus.
• American Airlines personal card – Same as above.
• Alaska Airlines personal card – Since Bank of America lets you cancel and sign up for this card again and still be eligible for the bonus, I sign up for this card every 2–3 months. This got me 25,000 miles.
• American Express Everyday card – They ran a 25,000-point promotion so I finally got this card, as the normal bonus is 15,000 points.
• Chase Ink Bold – When they offered a recent 60,000-point sign-up bonus, I applied for this business card as my charity FLYTE’s card.

Total points earned: 275,000

One thing to note about credit cards is that you can’t just sign up, cancel, and sign up again. Many card companies make you wait 18–24 months before you become eligible for a sign-up bonus again. (American Express only lets you earn the bonus once per card per lifetime!) I cycle through cards on a multiyear basis.

Therefore, I try to space out my sign-ups. I do two or three big credit card sign-up frenzies per year. This allows me to meet any minimum spending requirements (see below), allows the temporary dip the application causes in my credit score to go away, and gets me around any red flags the credit card companies have. For example, if issuers see you have applied for a ton of credit cards lately, they are less likely to approve you. Chase has something called the 5/24 rule, which states people who’ve applied for more than five cards within a 24-month period can’t get a new card from them. I’ve heard mixed reports on this, though — sometimes it catches people, sometimes it doesn’t.

Moreover, despite popular belief, having a lot of credit cards won’t hurt you. In fact, it can help you. Outside of your payment history, your utilization is the next most important factor in your credit score. Don’t worry about anything else. If you have $100,000 in available credit but only are using $5,000, that’s better than only having $5,000 in credit and using it all every month. Having more cards can actually help your credit score because of the better utilization ratio they create.

Here’s a list of credit cards you can sign up for!

Step 2 – Meet the minimum spending requirements

Each of these cards comes with a minimum spending requirement before you can earn that bonus. You just don’t get it for nothing. That meant I had to spend $11,000 in three months in order to meet the requirements and earn my bonuses! (The Alaska Airlines card comes with a fee of only $75 and no spending requirement so I essentially just bought 25,000 miles for 75 bucks.)

Here’s how the cards broke down:

• IHG: $1,000 minimum spend
• AA business card: $3,000 minimum spend
• AA personal card: $3,000 minimum spend
• Alaska Airline: none
• American Express: $1,000 minimum spend
• Chase Ink business card: $3,000 minimum spend

But my everyday spending isn’t anywhere close to that.

Since the purpose of travel hacking is to not spend extra money (you should absolutely not go into debt for this), I had to figure out ways to meet those spending requirements without incurring extra debt. Here’s how I did it:

• In the US, you can pay your federal tax bill on a credit card for a fee of 1.87%. I don’t pay all my taxes during the year so that at the end of the year, I have to pay them in one large chunk. I then time that tax payment with a credit card sign-up so I can get the bonus. Yes, there is a fee, but if you work out the math, it’s worth it. That took care of a big chunk.
• I time my purchases and sign-ups. If I have to move, buy furniture, need a computer, or join a gym, I sign up for a card and then charge my big purchases to the card.
• I go out to dinner with my friends, pay, and ask them to reimburse me. I used this technique in Las Vegas, and that took care of the entire minimum spending for the Amex Everyday card.  This is especially easy with apps like Venmo nowadays, where they can reimburse you easily at the exact moment of payment.
• I ask friends and family if I they have a big purchase they wouldn’t mind letting me put on my card. This doesn’t always work, and it isn’t always needed, but often friends and family will let me put it on my card as a favor, and then they’ll pay me instead of the store.
• I manufacture spending for the remainder. This is when you move money around so that you artificially create spending through gift cards and money orders. You can buy pre-paid debit cards, turn them into money orders, put those money orders in your bank account, and then pay off your credit card. You have to pay a fee for the cards and money orders, but when doing this for sign-up bonuses, it’s worth the cost. I purchase pre-paid debit cards in $500 increments.

Note: As I incur a lot of business expenses, it’s easy for me to meet the minimum spending requirements for business cards (for the Chase Ink business card, we met the spending requirements by paying expenses for the charity). The steps outlined above were used for the personal cards.

Total points earned: 25,000 (21,000 in spending, plus category bonuses [see below] on food and office supplies; my tax bill represented half my spending)

Step 3 – Be smart with spending

Get category bonuses
In the movie Up in the Air, George Clooney’s character never wastes an opportunity to earn points. I’m the same way. I never, ever, ever just earn one point per dollar spent if I can get 2, 3, or 6 points per dollar spent.

Certain cards have what are known as category bonuses, where you receive 2–5 points per dollar spent. It varies by card, but generally, you get 2 points on restaurants, 2–3 on airfare, and 5 on office supplies. Here’s a list of the cards I use regularly and their spending bonuses:

• American Express EveryDay Preferred: 3 points per dollar spent on groceries (up to $6,000 annually)
• American Express Premier Rewards Gold: 3 miles per dollar spent on flights
• Citi ThankYou Premier: 3 points per dollar spent on groceries; 2 points per dollar spent on hotels
• Chase Sapphire Preferred: 2 points per dollar spent on food
• Chase Ink Bold: 5 points per dollar spent at office supply stores or business expenses (up to $50,000 annually); 2 points per dollar spent on hotels

For example, if I am buying an airline ticket, I’ll use my American Express Premier Gold and get 3 miles for every dollar I spend. I buy gift cards at Staples on my Chase Ink card to get 5 points per dollar spent. I pay my cellphone on that card too!

Why get one point at a time when you can get five?

But there are also a few other ways to get bonuses, too:

Use airline shopping portals
All airlines, hotels, and travel brands have preferred merchants. These companies — ranging from clothing retailers to sporting good stores to office supply businesses and everything in between — partner with airlines’ (hotels’, etc.) special shopping malls. By ordering online through these malls, you can earn additional points.

You can use Evreward or Cash Back Monitor to discover the current best deals across various programs. Simply type in the merchant or product you want, and it will compile a list of bonuses the various point programs are offering at that moment so can you maximize the programs to purchase from.

Say, for example, you want new clothes from the Gap. Going into the Gap store gets you one point per dollar spent. By using Evreward, you can see that by going the United shopping portal, signing in, clicking the link to Gap, and purchasing online you can earn three points per dollar spent. Suddenly, you get 300 points instead of 100 for your $100 shopping spree!

Shopping portals 2.0
While purchasing online is great and can lead to earning multiple points per dollar spent, you can stack offers to get double and triple the amount of points! For example, if you go to Sears through American Airlines’ portal and buy a $100 gift card, you get three AA points per dollar spent. Go back through the portal to use the gift card for $100 in merchandise and get another three points for total of 6 points for $100 spent. This way you earn 600 AA points instead of the 300 you would have gotten if you had just made your purchase directly through the online portal in the first place. Remember, if you just walk into a Sears store, you’ll only get 100 points for that $100 USD purchase!

So if I used my AA credit card, I would get 700 points total (600 in bonus points plus the 100 from spending) or I could get 600 AA points and 100 Chase points if I used a Chase card.

Dining rewards programs
Just like shopping portals, airlines also have dining rewards programs. You sign up with your frequent flier number, register your credit card, and get extra points when you dine at participating restaurants in the airline’s network (which rotate throughout the year). It’s important to note that while you can sign up for every program, you cannot register a credit card with more than one. That means that if your Chase Sapphire Preferred card is tied to your American Airlines account, you can’t earn miles on your United Airlines account with that same card.

Join one of the programs in the Rewards Network (they run all the dining programs) so you can get five miles per dollar spent once you became a “VIP member,” which happens after 12 dines. So if you get those 12 under your belt (so to speak) early in the year, for the rest of the year you’ll be racking up five points per dollar spent!

A note on keeping track of all this: As I was writing this post, I went to dinner with a few friends. My buddy Noah was like “This is too much to keep track of.” That’s a common feeling among people looking to start travel hacking. However, it appears more complicated than it really is. Once you know what cards give you what bonuses, the next step is to simply use the cards that get those bonuses and meet your goals.

For example, as I mentioned above, all my airfare goes to my American Express Gold card. I get three miles per dollar spent, and this is what provides a bulk of my yearly AMEX points. For restaurants, I use Chase Sapphire since I get 2 points per dollar. For online shopping, I tend to go to AAdvantage shopping portal as a way to “juice” my AA account.

You never want to spread yourself too thin, though: having points all over the place will lead you to having low point balances in multiple accounts. I tend to stick to just a few accounts with my everyday spending: Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou points because they are all transferable to other airlines and hotels. (Note: Since I mostly fly American, I don’t worry about building miles in that account as I get them through flying. Most of my business expenses go to Starwood SPG so I don’t worry about building a balance there through personal spending.)

Total points earned per year: roughly 150,000 (spending and bonus category dependent)
 

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Step 4 – Rinse and repeat on the manufactured spending

There are some people in the travel hacking world who manufacture spending like it’s their job. I have a friend who processes $10-20,000 a month in gift cards. That’s too much work for me. I’m busy and don’t feel like putting that much effort into it. However, I do a small amount of this in order to “juice” my point accounts, especially those with category bonus at Staples via my Chase Ink card that help offset the $4.95 fee per card. Here’s a diagram of how this works:

I don’t do this every month (you can’t do it while traveling) but this helps me offset minimum spending requirements on cards and earn a few extra miles each year.

Total points earned per year: 150,000

(Note: I use my Chase Ink business card a lot at Staples. I buy Amazon, iTunes, and restaurant gift cards to be sure I maximize the 5 points per dollar spent bonus. The number above reflects not only the manufactured spending I do but the gift cards I buy too.)

Step 5 – Sign up for every contest, survey, and deal in the world

Airlines and hotels often offer points and bonuses for signing up for a deal, taking a survey, filling out a form on Facebook, etc. The points here are small (100-1,000 at a time) but over the course a year they can add up. United recently gave 1,000 miles to people who signed up for their dining program. American Airlines gave you 350 miles just for entering a contest to win more miles!

Moreover, I also use the E-Rewards survey program. Every day they send me surveys via email and if I have time, I fill them out. They take 5-20 minutes each. Each completed survey is worth a certain number of “e-dollars” that can be redeemed for points on a number of programs:

Point redemptions vary but $100 in e-rewards money equals 2,000 AAdvantage miles.

Total points earned per year: 25,000

Step 6 – Buy points/miles… sometimes

Airlines and hotels sometimes offer really good deals for points/miles and, if I know I am going to use them soon, I’ll buy them at a discount. This basically lets you buy flights for cheaper than booking them. For example, Lifemiles (Avianca’s membership program) often does a promotion where you can get a 135% bonus on bought miles. If you max the promotion out, you usually get 352,000 miles for around $4,900, but at that rate, you’re buying miles for 1.4 cents per mile, which is an amazing deal. (The closer you get to 1 cent per mile, the better the deal! Follow websites like View from the Wing or One Mile at a Time and they alert you to all these point offers, break it down, and basically tell you if this is a good deal or not.)

It may sound crazy to spend that much money on miles (and you certainly don’t need to do it at all), but let’s put it in perspective. For 90,000 miles, you can book a one-way first-class flight from the US to Asia. Since you spent 1.4 cents per mile, that ticket works out to be $1,260. Not too bad for a first-class ticket, huh?

Buying points and miles is a way to pad your balance and buy tickets at a steep discount. I do this sometimes if I’m traveling soon and know I’m going to paying for the ticket anyways (I don’t always use miles when I travel). It’s not free, but I would rather buy a first-class ticket for $1,260 than an economy ticket for the same price.

Sometimes travel hacking is about finding value and doing a bit of arbitrage to get more for less!

Points earned: 100,000 points

Step 7 – Cancel cards I don’t use

Airline cards have fees, so when the yearly fee comes due, I’ll cancel the cards I don’t use or that don’t have a benefit to me. For example, the British Airways card: I used it for the sign-up miles and was done with it. It was canceled. The Hyatt card? It has a $75 yearly fee but it comes with two nights free each year. That’s two nights in a hotel for $75. I keep that one. The American Airlines personal card? One of the benefits is 10% miles back on redemptions, so if I redeem for 100,000 miles each year, I get 10,000 miles put back into my account — well worth the $95 annual fee.

Canceling cards doesn’t hurt your credit score. Old credit lines help, which is why I keep my Discover, Capital One, and a few other cards around. They have no fees and high limits so they anchor my credit. As I said before, what is important is your overall debt-to-credit ratio. So canceling a few cards lowers that ratio, but if I have no debt it doesn’t matter.

Moreover, I also transfer the credit lines to other cards with that card company so that I don’t lose the credit (and that doesn’t even make a mark on my credit score, let alone a dent!).

Step 8 — Get a second round of credit cards

Twice a year, I go on a big credit card splurge and start the cycle again. I’ll look at what I canceled and what I need. Since many operators require a waiting period between bonuses, I’ll aim for cards I haven’t had in a long time as well as which have another sign-up bonus.

Then after I get the new cards, I’ll repeat step 2 to meet any minimum spending requirements.

Total points earned: 200,000-300,000

Total points earned: roughly 975,000 per year ± 50,000

(The above tricks don’t count all the miles I earn via business expenses, which add up to an additional couple hundred thousand miles a year, putting me well over one million miles earned.)

A lot of this stuff depends on time and effort. If I got more credit cards, I could earn more. If I spent more money, I could earn more. I just don’t care enough. I have more miles than I need. I fly my team around on miles. I fly myself anywhere miles. I give miles to my mom.

By using the eight steps outlined in this article, the sky is the limit on how many miles you can earn. It just depends on how much you want to ramp up each step. As I said before, my million miles per year is a small number compared to some of the other travel hackers out there.

It is possible to earn more miles than you will need to travel and fly for free. Even if you travel only once a year, just want to visit your parents, or aspire to take your family on one trip, you can do it.

Travel hacking doesn’t have to be complicated. It’s simple and accessible to everyone.

The Ultimate Guide to Travel Hacking
For more information on how to earn points and miles that you can use toward free travel, check out The Ultimate Guide to Travel Hacking. This book shows you exactly how to take money out of the travel equation and use frequent flier programs to get free flights and hotel rooms.  The strategies in this book will get you out of your house faster, cheaper, and in comfort.

Click here to learn more and start reading it today!

Book Your Trip: Logistical Tips and Tricks

Book Your Flight
Find a cheap flight by using Skyscanner or Momondo. They are my two favorite search engines because they search websites and airlines around the globe so you always know no stone is left unturned.

Book Your Accommodation
You can book your hostel with Hostelworld as they have the largest inventory. If you want to stay somewhere other than a hostel, use Booking.com as they consistently return the cheapest rates for guesthouses and cheap hotels. I use them all the time.

Don’t Forget Travel Insurance
Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it as I’ve had to use it many times in the past. I’ve been using World Nomads for ten years. My favorite companies that offer the best service and value are:

• World Nomads (for everyone below 70)
• Insure My Trip (for those over 70)

Looking for the best companies to save money with?
Check out my resource page for the best companies to use when you travel! I list all the ones I use to save money when I travel – and that will save you time and money too!

Photo credit: 1

How to Earn Hilton Honors Points — and the Best Ways to Use Them

Courtesy of Hilton

Mastering a hotel loyalty program can be the key to earning and redeeming points for fabulous trips all over the world. Travelers can rack up hotel points not only for stays, but on many other types of purchases as well, and then use them to book award nights at associated properties. In addition to free nights, hotel points can often be converted into airline miles or redeemed for experiences like concert tickets and sporting events.

Hilton Honors is one of the world’s largest travel rewards programs with over 89 million members, and more than 5,700 properties around the globe where those members can both earn and redeem their hard-earned points. Here’s how to make the most of it.

What is Hilton Honors?

Hilton Honors is the loyalty program of Hilton, obviously. But in these days of acquisitions and consolidations, Hilton now comprises 14 distinct hotel brands. Those include Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts on the luxury side, Hilton Hotels & Resorts and Curio Collection by Hilton for mid-range travelers, and solid budget brands like DoubleTree by Hilton, Embassy Suites by Hilton, and Hampton by Hilton.

There are also some brands you might not have heard of, like the Tapestry Collection and Tru by Hilton, as well as soon-to-launch labels like LXR and Signia.

This might seem like a lot of information to keep track of, but on the positive side, it means more opportunities to earn and redeem Hilton Honors points at hotels in over 100 countries.

How to Earn Hilton Honors Points

Courtesy of Hilton

Hilton Honors members earn 10 points per dollar spent on room rates and other eligible hotel charges (like dining or spa purchases) at most of Hilton’s brands. Stays at Home2 Suites and Tru properties only earn five points per dollar. If you have elite status, you earn more, but we’ll get into that below.

Hilton also fields three personal credit cards through American Express with which members can earn points on everyday spending. The first is the Hilton Honors American Express card. It has no annual fee and earns seven points per dollar at Hilton hotels, five points per dollar at restaurants, supermarkets and gas stations in the U.S., and three points per dollar on everything else. Cardholders enjoy complimentary Silver status, which is Hilton’s lowest elite tier. At time of writing, this card’s sign-up bonus was 75,000 points when you spend $1,000 within the first three months.

The mid-range Hilton Honors American Express Ascend Card has a $95 annual fee. For that, you have a chance at a 125,000-point sign-up bonus when you spend $2,000 in the first three months. It earns 12 points per dollar at Hilton properties, six points per dollar at U.S. restaurants, gas stations and supermarkets, and three per dollar on everything else. It also comes with complimentary Gold elite status, with perks like earning even more bonus points on stays, room upgrades, and free in-room high-speed Wi-Fi.

The high-end Hilton Honors American Express Aspire Card, with an annual fee of $450, was only introduced in 2018. At time of writing, its sign-up bonus was 150,000 points after spending $4,000 in the first three months. That’s nearly enough for two free nights at the luxurious Conrad Bora Bora Nui, which would cost 160,000 points or $1,500.

The Aspire earns 14 points per dollar on Hilton purchases, seven points per dollar on flights booked directly with airlines or through Amex Travel and on car rentals and at U.S. restaurants, and three points per dollar on everyday purchases.

Every year you renew the Hilton Honors Aspire, you also get a free weekend night reward good at nearly any Hilton property around the world, which can be worth hundreds of dollars. Cardholders also receive up to $250 in statement credits on Hilton purchases each year, a $100 on-property credit on each stay of two nights or more at Waldorf Astoria and Conrad properties, an annual $250 airline fee credit, and access to over 1,200 Priority Pass airport lounges around the world. Finally, the card comes with automatic top-tier Diamond status, which includes benefits like 100% bonus points on stays plus complimentary breakfast and club hotel executive lounge access.

If you regularly stay at Hilton properties, the bonuses afforded by its credit cards can really add up, as can the points-earning opportunities on everyday purchases. Just note that Hilton Honors points expire after 12 months of account inactivity, so in order to keep your points active, you’ve got to either earn or redeem some each year.

How to Redeem Hilton Honors Points

Courtesy of Hilton

Speaking of redeeming points, Hilton Honors members can use theirs in a variety of ways. The first is by booking award nights at hotels.

Unlike some other hotel programs, Hilton Honors no longer has an award chart where properties are separated into distinct categories with set redemption rates. Instead, award nights are priced dynamically, meaning that if paid rates are lower on certain dates, you can redeem fewer points for an award night. Likewise, when paid rates are more expensive, you’ll need to redeem more points. In general, though, you can expect award nights to cost between 5,000-95,000 points each. For example, standard award nights at the sophisticated Waldorf Astoria Berlin range from 50,000 points or $230 per night to 70,000 points or $340 per night over the next few months.

Hilton offers Points & Money awards that allow members to use both cash and points on a reservation. Say an award night costs 50,000 points, but you only have 40,000 in your account. You can redeem the 40,000 points you have and then pay cash for the remainder of the bill.

For every 1,000 points you subtract from the regular award rate, the cash co-pay goes up by about $3-6, depending on the hotel. For example, on a night at the Waldorf Astoria Berlin that costs 70,000 points or $340, you could instead pay 35,000 points plus $175. This feature can be very handy in case you don’t have enough points in your account for an outright redemption, or if you want to save some of your points for the future and would prefer to spend cash instead.

Hilton also offers premium rewards where members can redeem even more points for upgraded rooms and suites, and those can cost hundreds of thousands of points per night. In general, aim to get about half a cent per point in value for any redemption. Hilton Honors Silver, Gold, and Diamond elites get the fifth night free on award reservations of five nights or more, which is a nice discount of up to 20 percent.

Members can use points for non-hotel experiences that range in value, such as Maren Morris concert tickets in St. Louis (30,000 points), or a 24-hour car-racing experience at Le Mans that includes a night of glamping at the Aston Martin campsite (350,000 points).

Finally, Hilton allows members to redeem points for Amazon purchases, but the redemption value tends to be pretty low, so avoid it if possible.

Hilton Honors Partners

In addition to accruing Hilton Honors points through hotel stays and credit-card spending, members can earn bonus points on car rentals with Alamo, Enterprise, and National; by joining the Priority Pass airport lounge network; or by booking a cruise through CruisesOnly. Members can also earn bonus points by eating out at restaurants that participate in Hilton’s dining network.

It is possible to convert miles from Amtrak Guest Rewards, Hawaiian Airlines and Virgin Atlantic into Hilton Honors points at varying ratios, though this is typically not a great option since the transfer ratios are quite low.

A much better deal – if you have an American Express card that earns transferable Membership Rewards points, such as the Platinum Card or the American Express Gold Card, you can initiate transfers at a ratio of 1,000 Amex points to 2,000 Hilton points.

On the flip side, members can convert Hilton points into airline miles with over 40 partners including American Airlines, Delta, United, British Airways, Cathay Pacific, and Singapore Airlines. The conversion ratio for most of these partners is 10,000 Hilton points to 1,000-1,500 airline miles. So this should only be a last resort, as should redeeming points for a car rental with Alamo, Enterprise, or National.

Elite Status Tiers and Benefits

Hilton Honors members who spend a certain number of nights at Hilton properties each year can earn elite status, which confers benefits such as bonus points-earning opportunities, room upgrades, free breakfast, and more.

The program currently has three tiers of elite status starting with Silver, which is earned after four stays or 10 nights per calendar year, or earning 25,000 base points (equivalent to spending $2,500 at hotels). If you hit this level, you will earn 20% bonus points on stays (so 12 points per dollar instead of the regular 10), and receive a few perks like free bottles of water and a fifth night free on award stays.

If you earn Gold status by completing 20 stays or 40 nights in a calendar year, or by earning 75,000 base points (i.e. spending $7,500 at hotels), you get 80% bonus points (so 18 per dollar on stays), the possibility of room upgrades, and complimentary breakfast at most hotels.

Top-tier Diamond status is achieved at 30 stays or 60 nights, or by earning 120,000 base points in a calendar year (equivalent to spending $12,000 on hotel stays). Diamond elites get a 100% point bonus on stays (so 20 points per dollar), free premium internet, a better chance of room upgrades, club lounge access at some hotels, and various welcome amenities.

One interesting facet to the Hilton Honors program is that elite members can roll over any nights above the status level they achieve for the following year. So if you spend 20 nights in Hilton hotels this year, you would qualify for Silver status, which only requires 10 nights. The extra 10 nights will be rolled over into your qualification activity for the following year, giving you a jump on earning status yet again.

Remember, though, that all of Hilton’s American Express credit cards come with automatic elite status of one level or another, so carrying one of them is the fastest and cheapest shortcut to becoming a Hilton Honors elite and enjoying all the attendant perks.

Pros and Cons of Hilton Honors

The advantages of enrolling in Hilton Honors include the opportunity to earn and redeem points at thousands of hotels all over the world. The program’s co-branded credit cards offer some incredible benefits, including great ways to earn bonus points, automatic elite status, and on-property credits for things like dining and spa treatments during stays. One final factor in its favor: the ability for members to pool their points with up to 10 other people for free, putting more award nights within easy reach.

Unfortunately, the program lacks transparency when it comes to award nights since rates at a single hotel can vary by tens of thousands of points depending on demand. Also a drag? Hilton’s airline and shopping partnerships offer poor redemption values for your points.

How to Sign Up

It only takes a moment to sign up for Hilton Honors, and it’s free, so you might as well.

You Can Now Earn Hilton Honors Points Every Time You Ride Lyft

TIMOTHY A. CLARY/Getty Images

Starting Tuesday, May 14, Hilton Honors and Lyft are teaming up to give their customers a chance to earn more rewards points than ever before.

How exactly can you start earning points? First, link your Hilton Honors and Lyft accounts on HiltonHonorsLyft.com. As soon as you finish a ride, you’ll get double the points for every dollar spent on shared Lyfts, and three times the points for every dollar spent on economy, luxury, and extra seats.

The partnership gives Hilton Honors members an opportunity to rack up points — and the resulting rewards — even faster.

Related: Hilton Is Launching the Hotel Brand of Business Travelers' Dreams

Lyft has a similar partnership with Delta Air Lines that allows people to earn one mile per dollar on rides within the U.S., and two miles for any cars booked from the airport.

“Our vision is for Lyft to be the most convenient and rewarding travel option for our riders and having a top tier hospitality partner, in addition to our current airline partnerships, brings us one step closer,” said David Baga, Lyft’s chief business officer. “We are always seeking to provide the best rider experience and often look to leading category partners to help deliver a great hospitality experience.”

Hilton Honors member benefits range from late checkout to free hotel nights to special offers (like tickets to the Grammy's).

The timing of the new partnership couldn’t be better with summer right around the corner, so here's your reminder to get traveling.

How Pat Got a Free Business Class Ticket (and You Can Too!)

Last month, my friend Pat came to me with a problem: he wanted to fly Cathay Pacific business class round-trip from the US to a conference in the Philippines. He had only a few frequent flyer miles and was all like “travel hacking, what?”

He needed help.

In the words of Barney Stinson: “Challenge accepted!”

I had two months to get Pat the 110,000 miles he needed.

I’ve written about traveling business class for free before, but as with everything in travel, methods and tricks that worked in the past might not work now, especially when it comes to airlines. They change their rules all the time.

As you know, I am an avid travel hacker because I hate flying coach. To me, there is nothing worse than being in coach on a 10-hour flight — and if I can avoid it, I will. When you are up in the air as much as I am, you want comfort.

So I collect points in order to upgrade or redeem for business- and first-class tickets, have a lie-flat bed, and enjoy some luxury before staying in my $10 a night dorm room. (Yes, I’m a bundle of contradictions. I’m a Gemini.)

Pat was an easy test subject, since he spends a boatload of money on his business each month and has great credit. I used all this to his advantage:

Since Cathay is part of the Oneworld Alliance, their US partner is American Airlines, and so we worked on getting him American AAdvantage miles.

First, he signed up for an American Airlines Citi card, which offered a 30,000-point sign-up bonus when he spent $1,000 USD in 90 days.

Second, he signed up for the business version of the same card with the same deal. (Note: you don’t need to be a business owner to get a business card. I used to sign up for these cards as a sole proprietor. The credit card companies never seemed to care.)

Third, I made him open a Starwood American Express card, which offers 25,000 Starwood points when you spend $5,000 USD in 90 days. He then transferred those points to American Airlines. Since Starwood gives you a 20% transfer bonus on 20,000 points, in the end 35,000 points (30,000 from the bonus, 5,000 from the spending) were transferred to his AAdvantage account.

Pat met all the minimum spending requirements with his regular spending. It was money he was going to spend anyway. (Never spend extra just to meet one of these spending requirements!)

After it was all said and done, Pat had 97,000 frequent flier miles.

But how to get those last 13,000 miles? There were a couple of ways to do this:

Pat could have “faked” his spending (which he also could have done to meet the spending requirements). He could have sent $1,000 every month via Amazon Payments to his wife without any fees and then she could have cashed the money back into their bank account.

Or he could have walked into a CVS and bought Vanilla Reload cards with his credit cards, then loaded the balance onto his American Express Bluebird account (maximum of $5,000 per month), and then used that money to pay off his credit card balance.

He also could have used online shopping portals to earn 3-4 miles per dollar spent (Christmas is coming!), meaning instead of spending $13,000 USD, he would have had to spend only $3,200-4,300 USD.

In the end, Pat used his business expenses as well as online shopping to get those final miles (he told me he found faking the minimum spending too time consuming).

Within a month, Pat had 110,000 miles he needed and I converted someone else to travel hacking (score!!!). He’s already set out to earn miles for a family trip to Hawaii!

“That sounds great, Matt, but I don’t want to open three credit cards nor can I spend that much money! Is there another way?”

Good question! What if you don’t want to open three credit cards? What can you do that doesn’t rely so heavily on credit cards?

I’ll tell you.

But first this point: you should open at least one rewards credit card because credit cards are the best way to jump-start your balance, and if you’re going to put money a card, you might as well get points for it. I mean, I bet you already have at least one card, right? Why not get free trips from it? Use your everyday spending to gain points for travel, even if you aren’t traveling until next year!

Moreover, you get a big sign-up bonus. My American AAdvantage card gave me 40,000 miles just for joining. That’s a free round-trip domestic ticket or miles I can use for an upgrade. United Airlines gives you 30,000 miles for signing up. Lufthansa is offering a 50,000 miles sign-up bonus right now!

I charge everything because of the miles it gets me. I am like Ryan Bingham from Up in the Air — I don’t spend any money without earning miles from it.

Non–Credit Card Ways to Earn Miles

But what else can you do to get miles that doesn’t require a credit card? Here are a couple of ways:

Shop with an airline’s preferred partners — All major airlines have a preferred shopping partner where you can get 3-20 points per dollar spent. If I am going to go shopping anyway, I might as well do it online and get four points per dollar spent than just the one I would have earned if I walked into the store. Do your shopping online, avoid crowds, get more points, fly quicker.

A good site to find which shopping portal is offering the best deals is Evreward.

Use your family — My parents might fly once a year. My sister might fly twice. They don’t really need or use their miles, so they give them to me. My parents use my credit card to purchase all their tickets, and when they fly, they transfer their miles over to my account. There is a small fee for the transfer, but it’s worth the extra miles. After they visited Israel last year, the miles they both earned ended up in my American Airlines account.

Sign up for newsletters — I sign up for all the airline newsletters as well as those for their credit cards so I can stay up-to-date on special fares, deals, and offers. Many of the best deals in the world are only sent via a newsletter, and if you don’t sign up, you’ll never know. Recently, I got triple miles on purchases on my Citi American AAdvantage card through an alert sent via e-mail.

Take surveys — Every little bit counts. And for signing up for surveys, liking Facebook pages, and more, many companies offer 250-1,000 points. I always participate in these stupid online contests because they add up over time. Airlines usually send this via their newsletters, but I also follow companies on Twitter and Facebook just to make sure I don’t miss anything.

Stay up-to-date on bonus offers — Be sure to constantly check for bonus offers on airline websites. Many brands, especially airlines, offer bonus offers on selected flight routes, fare classes, and dates. By flying during these times, you can maximize your miles for future redemptions. You can stay up-to-date via newsletters or following some of the sites listed in the resources section of this blog.

Airlines love when people actually fly to earn their miles, and they treat those who do with extra special care. However, they make it so easy to earn the frequent flier miles that it’s silly to not take advantage of the situation while it lasts. Business class is no longer out of reach for even the most infrequent flier.

Even if you only fly once or twice a year, why not put in a couple of extra hours a month to ensure that when you do fly, you fly in style, like Pat!

Is Travel Hacking Really a Scam?

Last month, I wrote an article on how to travel anywhere for $1,000. I wanted to show people how, by changing how you save and using a few budget techniques, you could make any trip happen for $1,000 (or less) from start to finish. While that is a lot of money to most people, it’s not an insurmountable amount of money to save with a few clever ninja techniques (it works out to only $2.74 per day).

In the article, I picked expensive destinations as examples because I didn’t want to be accused of copping out by picking cheap places. If I had, I imagined the Internet would rise up and say “Oh, sure, Matt! Anyone can travel to Thailand on a budget. That’s easy. What about (insert expensive destination)? This article is fake news!”

In picking expensive destinations, I used points and miles to help mitigate the costs of getting to each destination. Using points and miles for cheap and free flights and accommodation was a must. After all, it’s one thing to pay $700 for a flight if the destination only costs a few dollars a day. It’s another thing to pay that much when you’re going to Australia! You won’t get far with only $300 to spend in Australia!

But a different — and unexpected — backlash erupted. On the blog and social media, people kept commenting that points/miles are money, have a cost, aren’t easy to get, only work in the States, and that, basically, the whole article was BS. For example:

“Matt, like some people have mentioned before me in the comment section: not everyone has miles or bonus points. You know I’m a travel writer…and yet I have never joined a frequent flyer program. I don’t have miles or points to redeem, and likewise, there are also people who might not have saved up enough points to fly entirely free.

“Between cheaper destinations and relying on bonus points, you chose the latter for your article’s premise, and it feels a bit like saying: I could be telling you to go camping, but hey, that would be too easy, so let’s talk cruising — now, redeem 100,000 Airmiles for this two-week cruise and you’ve got $1,000 to play with on board!

“It doesn’t seem entirely fair.”

First, let me say you are all correct. From the outset, I should have factored in taxes and fees into the cost of the trips, and have since changed the expense chart to reflect that. It was silly of me to not include that from the outset. I apologize for the oversight.

But, second, I don’t think using points or miles is in anyway cheating or unfair. (I’d also like to say that while they were a big part of the article, many of the other tips helped lower costs just as much!)

To me, points and miles are free money. They have no cost to me. I don’t give up anything to get them. I think of them as the perk for being smart about my spending. Sure, I have to spend the points/miles in addition to money, and I know some of you view points and miles as having some value with an opportunity cost to them, etc.

But I don’t think of them that way.

They are just a thing I get when I spend money that I would have spent anyway.

Let me explain in more detail. A lot of people think points and miles are hard to get, that you have to do crazy stuff to get them, or you have to spend lots of money to get there:

“To collect miles requires spending money. To say one can travel anywhere for $1,000 and then condition that on free airfare is disingenuous. The advice is aimed at people who might find $1,000 a lot of money. Let’s assume you need 80,000 miles for an award and can find a sign-up offer for 40,000. That means you probably have to spend $40,000 to collect the other 40,000 miles. Then the advice to use hotel points for free rooms. Assume you want a seven-day vacation and rooms are just 15,000 a night. That’s another 105,000 hotel points, and another $105,000 spend. Even if your hotel card gets two-for-one points, that’s still $52,500 in spend. So for me to go on a vacation for $1,000 I need to charge $92,500. I’m surprised you missed telling us to just go for one day and avoid six more days of hotel, meal, and local transportation expenses.”

I hear you and I see the logic but I disagree. You can earn a lot of points and miles per year with much less spending than described because there are pretty easy ways to earn multiple points/miles per dollar spent.

I’m a terrible travel hacker compared to my friends. I don’t do some of the crazy things they do to earn points and miles because I don’t have a lot of time, so I like to make it easy on myself. I don’t buy extra things, overspend, resell furniture or gift cards, or give up my Saturdays to go buy stuff in bulk and then sell it online for a profit.

I simply go about my life and spend wisely. I have chart for which cards I use for which expenses, so I always get the most miles per dollar spent. Here it is:

How I Optimize My Spending with My Travel Credit Cards

(Note: I also have all the co-branded airline cards but I rarely ever use those.)

Through all this, I earn a million or more miles per year. If it was really only 1 point/mile per dollar spent, then I would have to spend one million a year but that’s not the case. When I need to buy something, I do it online for bonus points through airline shopping portals (I recently got 6x American Airlines miles for my Macy’s shopping on top of my credit card points). Need something on Amazon? I buy a gift card from Office Depot for 5x points and then go through JetBlue for 3x more points. Buying a new computer? I’m off to get a new card to hit the minimum spending for the bonus. Got a few minutes? I answer some surveys for points.

I’m always earning multiple points per dollar spent. It’s rarely one to one. (Note: You can click here to see a more detailed breakdown of where I earn my million points/miles.)

I don’t view collecting points/miles as a cost because I don’t spend extra money to earn them. To me, something has a cost when I give up money to get it.

Sure, there are taxes and fees are included in the ticket that vary wildly among airlines (I’m looking at you, BA and Virgin), but it’s still cheaper than the price of a full ticket. And hotels don’t charge these fees, so the cost of them using points is literally zero. Also, some credit cards allow you to wipe charges off of them, making those expenses literally zero too.

If you want to travel more, points and miles have to be something you do (providing you live in a place where they are an option). Even if it takes you are year to accumulate them, they help you unlock your dreams by drastically reducing the cost of everything.

When I ask most people why they don’t travel hack, they just shrug their shoulders and go, “I don’t know. Seems hard, I guess.” I think people believe because travel hacking seems complicated, therefore it must be so. Actually, it is not.

In addition, travel hacking seems to run counter to everything we have learned about finance. We’re taught to think of money and credit in one way:

“Credit cards a bad. The companies are bad. Never pay a fee. Your score is sacred and doing things like this hurt it, and you’ll never get a loan.”

But that is just bullshit. It’s a myth perpetuated by….well, I don’t know who exactly, but people keep believing it.

You earn points and miles for everyday purchases you would have bought anyways and the perks outweigh the credit card fees. For example, with my $450 per year Chase card, I get:

• $300 in airline credit
• 3x points on travel and restaurants (so I can earn points faster)
• Global Entry ($100 every five years)
• Purchase protection so I can get refunded if things I buy are lost, damaged, or stolen
• A priority pass for lounge access (about $100 a year)
• Trip insurance

My $49-a-year IHG card gives me a free night at a category 1-5 property (around $200 a night) and my American Airlines card comes with free checked bags, saving me hundreds of dollars a year!

Additionally, my credit score has only gone up because of this as now I have more credit and less debt as well as a good payment history. (And, as my friend Gary says, “What good is a credit score if you don’t use it?”)

If you pay your bills off each month and are reasonable with your money, not collecting points and miles is saying no to free money. It’s saying, “I don’t want to be rewarded for my good spending habits.”

Free is the best word in travel.

When you don’t travel hack, the only person you are hurting is yourself. You aren’t hurting the banks or the airlines. They are in on the game.

In my view, travel hacking is something to be embraced. It reduces the cost of travel. You can do this in a lot of countries around the world! Even if takes you a year to earn a free flight, why not take the flight? One free flight is better than no free flights.

Anything that saves money and reduces the cost of travel is something every traveler should do.

Saying no to travel hacking is saying yes to spending more money on travel — and why would you ever want to do that?

P.S. – If you want to learn more and figure out how to collect points and miles, click here to download the book I wrote on travel hacking. It will tell you how program work, what cards to get, give you step-by-step instructions, tips, tricks, and secret ways to collect miles.

How to be a Travel Hacker in the United Kingdom

Updated: 08/17/2018 | August 17th, 2018

I’ve been writing about travel hacking a lot lately, and one question that keeps popping up is “Matt, how can we travel hack in the UK?” Well, while I know a lot about doing this in the UK, I don’t know as much as Robert (aka Raffles) from Head for Points, the premier travel hacking website for the UK. Today, I sit down with him and he explains in great detail how those of you from the UK can get free flights and hotels like the rest of us across the pond!

Nomadic Matt: How did you get into travel hacking?
Robert: The idea of “getting a deal” was ingrained in me literally from childhood, as my family never had much money. This also meant that my parents never traveled, as it was very expensive to fly in the 1970s. My dad never had a passport, and my mum only got one when she was 50.

I think I first flew when I was 18 in 1988 on a charter to Spain with friends. My first “hack” was when I was 20, when I “arranged” to win a flight to Paris in a British Airways competition. This was 1990, and BA gave away every seat on every flight for one day to boost business. You could pick your route, and I was smart enough to realize that 99% of people would pick a long-haul route with a minimal chance of winning. I picked Paris and, despite literally millions of entries, got my free seat — and even in 1990 flights to Paris from London were expensive.

It was only when I discovered FlyerTalk that I realized that I was only scratching the surface. I contributed heavily to FlyerTalk beginning in 2004 — and still do — and in 2012 started Head for Points as the first UK miles-and-points blog.

In January 2016, Head for Points hit one million monthly page views for the first time, almost all from the UK. I also launched Shopper Points to focus on UK supermarket loyalty schemes.

In the United States, it’s easy to be a travel hacker because we have so many ways to get points. Describe travel hacking in the UK.
It’s true that the UK market is not as generous as the US. However, it is still the second-best place in the world for travel hacking!

The advantage of doing it from the UK is that you can see a lot more of the world for a lot less. Whilst the low-level US airline saver reward is 25,000 miles (and even they are hard to find), British Airways will fly you to France, Germany, the Netherlands, etc., from 8,000 Avios return [round-trip]. Even a flight to Spain is only 13,000 Avios on an off-peak date. You can get to over 20 countries and see some of the world’s greatest sights for less than the cost in miles of a US domestic reward flight!

The typical UK “travel hacker” — someone who wants to earn reward flights but doesn’t earn miles traveling for business — will generally focus on credit card churning, primarily with American Express (Amex), and exploiting the promotions run by Tesco. Tesco is the UK’s largest supermarket chain, and its loyalty points can be converted into British Airways Avios points or Virgin Flying Club miles.

Can you explain the Tesco trick a bit more?
Tesco has a loyalty scheme called Clubcard. On the face of it, it is rather dull: spend £1 in their stores and you earn 1 point. One point gets you 1p off your shopping or you can swap it for other things, including 2.4 Avios points or 2.5 Virgin Flying Club miles.

The real value comes from regular bonus point promotions run by Tesco. These can be hugely aggressive. For example, they regularly offer 150 bonus points for buying selected CDs or DVDs, which can be as cheap as £3. That means you’re getting 360 Avios points for £3. They also like to offer bonus points on printer ink, which can be easily resold on eBay, often at cost price — which means the miles are free.

It scales up as well. They often offer 5,000 points (12,000 Avios) for taking out Tesco life insurance — with a minimum commitment of just £5 per month for a year. In late 2015 they offered a computer printer for £39 with 2,000 bonus points — that was 4,800 Avios.

All of these deals can be bought online, so you don’t even need to enter a Tesco store. Tesco also offers a free MasterCard credit card, which earns Avios (it works out to 0.3 Avios per £1 spent) This isn’t a great rate but it is the best Avios MasterCard or Visa deal available.

My new site Shopper Points is 75% devoted to Tesco Clubcard, not just for miles collectors but also for people who use the points for non-travel redemptions.

UK-based flights have hefty fuel surcharges (i.e., big taxes and fees) when you book award tickets. How does this impact travel hacking in the UK?
The key difference between the UK and US frequent flyer scene is that, in the UK, you cannot genuinely “fly for free,” at least not easily. Both British Airways and Virgin Atlantic (and indeed all of the other major European carriers) impose heavy fuel surcharges on redemption tickets.

This is compounded in the UK by Air Passenger Duty, a departure tax levied by the UK government that can add up to £166 to a business-class ticket. If you redeem your British Airways Avios points for a Club World (flat-bed business class) seat to New York, you will be asked to pay over £500 per person in taxes and surcharges for your “free” ticket.

This is still a good deal, of course, compared to the cost of buying a similar ticket for cash. However, when a couple needs to find £1,000 to cover the additional charges on a pair of long-haul reward seats, you are obviously restricting your market to people on a decent salary. Unlike the US, this is not a hobby for students or the low paid.

The other issue with the heavy taxes and surcharges is that it has made long-haul redemptions in economy fundamentally pointless, except in peak periods. Who would redeem 40,000 Avios points and £350 in taxes for a return economy flight to New York, when the same ticket can be bought for £400 in cash?

You can work around this, but it’s not easy. Air Berlin is an Avios partner and fellow Oneworld member, and has low-tax (£75 return) redemptions from Germany to the US and Abu Dhabi.

Aer Lingus also has low-tax redemptions from Dublin to the US. However, you need to ring British Airways to book these — and the BA website doesn’t tell you this. Only a handful of people know about it as a result.

Similarly, Iberia has low-tax (£150 instead of £500 for business class) redemptions from Madrid to North and Latin America. However, booking these on ba.com incurs a £500+ surcharge. Move your Avios to Iberia Plus (for free, online) and you can book the same seat for just £150 in taxes. BA doesn’t tell you that either!

Does the UK have a lot of good credit card offers like we do here? What are the bonuses typically like?
It has improved massively in the last couple of years. American Express has become very aggressive. It runs (for the UK) very high bonuses on the British Airways Premium Plus card — typically 20,000 to 25,000 points or miles — and is happy for you to churn their cards as long as you wait six months to reapply for the same one.

As long as you know, for example, that the points from the Starwood Amex, American Express Gold, and American Express Platinum cards can be turned into Avios points, then you can do very well. However, I reckon that 90% of Avios collectors are not aware of this.

You get occasional great deals from other issuers. MBNA/Bank of America offered 35,000 American Airlines miles as a sign-up bonus back in 2013, and that card was fee free. That would have gotten you a one-way ticket in business class on Etihad from London to Abu Dhabi!

Are there other cards beyond American Express?
The other big issuer is MBNA/Bank of America. They handle the UK credit cards for American Airlines, Etihad, Virgin Atlantic, Miles & More, and United, amongst others.

The standard MBNA bonus offers are pretty weak: the basic Virgin Atlantic credit card only offers 3,000 miles for signing up. You need to time it right and apply during a good bonus promotion. You also cannot churn MBNA bonuses, as these days they limit you to one bonus per card per lifetime.

That said, MBNA is a well-run business — they post your miles promptly, and their promos always work as promised.

Lloyds and Barclays, the two “mainstream” banks, also have some loyalty card operations. Lloyds runs cards for avios.com (as opposed to British Airways), and Barclays runs cards for Hilton and IHG Rewards Club. In general, though, their operations are shoddy. I receive lots of complaints about Lloyds not honoring sign-up bonuses, and Barclays has a habit of posting your points 3-4 months late.

The writing may be on the wall for non-Amex cards, however. In late 2015, the EU capped “interchange fees” (a proxy for what shops pay to accept credit cards) at 0.3% for Visa, MasterCard, and third-party–issued American Express cards. The previous rates were around 0.75%.

It is simply not possible to run a free credit card that earn miles with an interchange fee of 0.3%. That doesn’t even pay for the cost of funds for the card issuer, let alone the miles, bad debts, statement costs, etc. You don’t make much in interest payments from airline cards because you have a wealthy customer base.

In future, we are likely to see more annual fees and lower earning rates. However, the airline and hotel companies are desperate to keep their logo in your wallet, so compromises will be made. Cards may start to offer elite status, for example, or extra perks such as priority boarding. It will take a couple of years for the market to adjust.

If someone in the UK was looking to get into travel hacking, what advice would you give them?
Focus on something simple, because once you’ve got your first good redemption under your belt, it will encourage you to become more ambitious.

The Hilton Visa, for example, is free and gives you a free night in any global Hilton Family hotel for spending £750. Using that at, say, the Waldorf-Astoria in Rome or the Conrad in New York or Hong Kong would be a great result. If a couple each got this card, the two free nights would cover a long weekend.

For your first flight redemption, there is nothing wrong with a European redemption on British Airways. Perhaps pay the extra miles for Club Europe on the way out, and spend an hour or so before the flight in BA’s lounges at Heathrow. It will whet your appetite to scale up your collecting.

Do you see travel hacking getting easier or harder in the UK?
Ignoring BA’s fuel surcharges — which can be mitigated via Air Berlin, Aer Lingus, and Iberia — this is a golden age. As long as your credit is good, it has never been so easy for a UK resident to rack up a large pile of Avios points via credit card sign-up bonuses.

The expansion of Oneworld — with Qatar, Malaysian, and Sri Lankan joining in recent years — also continues to open up great opportunities for redeeming your miles.

Some of the great deals of the past have gone away — it was once ridiculously easy to get free Star Alliance flights via BMI Diamond Club miles, for example. There is now no UK airline in Star Alliance. All in all, though, these are still good times to be playing the game.

Are there online shopping or dining portals like in the US? Where are some ways to multiply your points per dollar spent so as to rack up points more easily?

Both British Airways and Virgin Atlantic have online shopping portals called Gate 365 and Shops Away, respectively. The problem is that they were late to the game.

The UK has two large cash-back websites, Quidco and TopCashback. The majority of merchants on the airline shopping portals are on those cash-back sites, so you are essentially “buying” Avios at a poor rate when you choose not to use them and instead take miles.

The only reason I would use the airline sites is for shopping at a merchant that refuses to work with cash-back sites. The most popular merchant that does this is the department store chain John Lewis.

There is another tweak, where shopping at TopCashback is far more attractive for earning Avios than using BA’s own Gate 365 portal. As I explained in this article , TopCashback lets you send £50 of cash-back per year to Tesco Clubcard. This can itself be converted into 12,400 Avios points. You have basically paid 0.4p each for those 12,400 Avios (£50.00 / 12,400 Avios), which is an excellent deal.

In the US, we have a lot of ways to manufacture spending to artificially get miles. Can you do that in the UK?

No, not at the moment. The main option — buying pre-paid Visa cards at face value in grocery stores using an American Express card and then redeeming them into your bank account — has gone.

It is a fluid situation, however. There are a lot of innovative products being launched in the UK financial services market at the moment, and new opportunities are bound to emerge. As we know from the US, they are unlikely to last for long when they do.

With US-based cards like Citi, Chase, or AMEX, you have many transfer partners, so you can move points to where the best deal is. Is that possible in the UK? What is the best way to use points on non-UK–based airlines?

If you are based in the UK but collect miles in a non-UK airline program, there are a couple of options.

(However, for a beginner, this is not something I would recommend. British Airways and — to a lesser extent — Virgin Atlantic offer far more options for redeeming if you are UK based. Only expats or people who end up flying other airlines with their jobs should put substantial efforts into building up miles elsewhere.)

Some non-UK airlines have UK credit cards: Lufthansa, Etihad, Emirates, United, and American. Others are American Express transfer partners, so you can send over points from an Amex Gold or Amex Platinum card: Emirates, Etihad, KLM, Air France, Singapore, Delta.

The other option many people forget is Starwood Preferred Guest. Starwood has over 30 airline partners, so you can earn points with the Starwood Amex card and transfer them across. The rate is pretty good, although the card has a £75 annual fee.

You can also transfer from American Express Membership Rewards to Starwood Preferred Guest to your preferred airline. The rate is not great because Amex to Starwood is only 2:1, but I have done this in the past to get Lufthansa miles.

Unless you have substantial credit card spend, it is unlikely that you would ever earn enough miles purely for a decent redemption. There are some amazing redemptions you can get — Emirates A380 business or first class, Etihad A380 business or first class, Lufthansa first class, etc. — but you will need at least 100,000 miles to redeem for any of those.

If you don’t fly these airlines for work and can’t build up your balance that way, credit card spend alone is unlikely to get you enough.

If you want to learn more about travel hacking in the UK, check out Robert’s website, Head for Points, and follow him on Twitter. We have it really good here in the United States with lucrative point deals and credit card bonuses, but there is clearly a lot of opportunity in the UK.

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Breaking Down Credit Card Rewards with Brian Kelly

Long-time readers know I love travel credit cards because of the huge amount of points and perks they bring. (New readers now know this.) In fact, this month alone I signed up for an Amex Platinum (50,000 points) and United Airlines card (60,000 points), with more sign-ups planned next month. Points bring lots of benefits like free flights, elite status, free checked bags, and priority boarding. And, while I know a lot about this subject, there are people who spend their whole day figuring out how to maximize points. People like Brian Kelly.

Brian Kelly runs The Points Guy, a website dedicated to maximizing reward programs and credit card offers to get as much free travel and elite status as one possibly can. He knows the reward booking systems, points programs, and credit cards inside and out. Today, Brian shares his secrets.

Nomadic Matt: How did you become “The Points Guy”?
Brian Kelly: I started young. I’ve been passionate about points since I was 13 years old, when I planned a family trip to the Cayman Islands using my dad’s airline miles. By the time I was a sophomore in college, I was a US Airways elite flyer.

While working for a Wall Street bank after college, I was on the road constantly, earning tons of miles and points as well as elite status with airlines and hotels, and that allowed me to fund a great travel lifestyle in my spare time. I would take trips to Europe for the weekend using miles and points (I sat behind Madonna in British Airways first class once — that was memorable!), went on a blowout luxury trip to the Seychelles with my partner for just a few hundred dollars using points, and hopped all around the country.

I started blogging about news in the points world, as well as my own areas of expertise, and people started reading it. Then a lot of people started reading it, and I decided to start blogging full time. That was just under a year ago, and it’s been phenomenal! Challenging and exciting and motivating all at the same time.

Over the years, how many miles have you accumulated? How many credit cards did you have to open for that to happen?
From credit cards, I’ve pulled in millions of points and miles. Literally. Last year alone, just through credit card sign-up and spending bonuses, I raked in over 600,000 points. That took me about seven cards to do.

A lot of people are concerned that credit card “churning and burning” will hurt their credit score. What do you say to this?
I would never advise anyone with less-than-healthy credit to apply for multiple cards at once, as “churners” often do. For one thing, you probably won’t get accepted. For another, you should first concentrate on fixing your credit so that you can then take full advantage of the lucrative credit card deals that are out there.

That said, only 10% of your credit score is based on new credit — when banks perform a credit inquiry when you apply for a new card. Otherwise, the most important factors are your payment history and the amount of money you owe, which combined amount to 65% of your credit score. So before you even think about applying for new cards, you need to make sure your credit is in order and that you have a decent score.

If your credit is good, then applying for new cards should not hurt it. Your score typically only drops a couple points for opening a new card (out of a total of 850), so the impact is minimal.

Do you cancel a lot of your cards or just keep them going forever?
I cancel some of my cards, mostly to avoid hefty annual fees for cards I am not actively using or deriving some sort of benefit from. However, instead of closing the account completely, I usually try to ask the bank to either waive the annual fee or downgrade to a no-fee card so that the line of credit remains open and keeps my credit score healthy.

What makes for a good credit card offer?
The whole point of points is to find value, so if you find a credit card that will offer something of value to you, that makes it a good offer. The $450 annual fee on the Amex Platinum card seems onerous to some, but others love the $200 airline rebate you get from it, lounge access, and a host of other perks, including earning Membership Rewards points, whereas those looking for a lower annual fee might prefer the Amex Premier Rewards Gold card, with just a $175 annual fee, where you get three points per dollar spent on airfare and two points per dollar spent on gas and groceries, but not those higher-level perks. Still others might prefer the flexibility to use their points at a fixed value, like with Capital One, to buy the airfare they want, when they want, and don’t care about flying in a premium cabin, while those who do want to fly business internationally or stay in a fancy hotel suite might want to rack up points in their airline and/or hotel program of choice by getting a co-branded card. It really depends on what you want to do with those points, and once you have a strategy in mind, go after the cards that will get you there fastest.

With so many offers out there from so many different companies, what would be your top three tips for maximizing those offers for free hotels or flights?
1. Strategize — Don’t just sign up for every card with an OK offer. If you have a particular trip or goal in mind, concentrate your efforts on the cards that will get you the most miles for the airline that’s going to get you where you need to go, and the hotel where you want to stay.

2. Don’t just concentrate on the sign-up bonuses — The best cards out there are the ones that allow for sustainable points earning through your spending habits. And, for that matter, make sure you are putting every expense possible on a points earning card so that you are maximizing your earning potential.

3. Do your homework — See what bonuses the credit cards you’re interested in have historically offered and make sure you get the best one possible.

Do you earn points any other way besides these sign-up bonuses?
Of course. I travel a lot so I earn miles the good old-fashioned way of sitting in an airplane and going somewhere. In terms of credit cards, the best ones aren’t necessarily just the ones with the biggest bonuses. In my opinion, the best points-earning cards are the ones that allow you to sustain your lucrative points earning through category spending bonuses. For instance, while the current Chase Sapphire Preferred bonus offer is down to 40,000 Ultimate Rewards points from its high of 50,000, I still think it’s a great card because you get double points on travel and dining spending (basically all I do), and those categories are fairly broad, so you can earn a ton of points. You could then combine those points with the Ultimate Rewards points you earn with the Chase Freedom card’s quarterly spending bonus categories, where you earn five points per dollar spent on things like groceries, office supplies, gas stations, or specific merchants like Amazon. Suddenly you’re looking at a ton of extra points. Those are the kinds of cards worth holding on to even after you’ve redeemed your sign-up bonus.

How many miles a year do you fly? Is it all on points?
Last year, I flew about 150,000 miles, and though some of those trips were using miles (like one from the US to Mauritius in the Indian Ocean via Paris), and I recently traveled to Asia for three weeks using United and British Airways miles, I do pay for many of my tickets. After all, you’ve got to earn some of those miles and elite status flying.

Explain for a minute why you think these credit card offers are so good? Is it just the points you get, or do you get additional benefits like elite status?
It all depends on what you’re looking for. If you want the flexibility of transferable points that you can use on a variety of airlines or hotels, then American Express Membership Rewards and Chase Ultimate Rewards would be programs for you to look into, whereas if you want to be able to buy any ticket any time and don’t care about flying coach, maybe a fixed-value point system like Capital One Venture Rewards is the way to go. If you are going to be flying a particular airline a lot, maybe the co-branded card is what you should look at, such as Delta’s SkyMiles Amex, which gets you elite-status perks like free checked bags for up to nine people on your reservation (a huge value), discounted SkyClub passes, and 20% off in-flight food and entertainment, as well as other positives such as two miles per dollar spent on Delta; or the newly introduced United Club Card, which confers not only membership into the United Club at airports but also perks like two free checked bags for the cardholder and a companion, priority access, and elite status with both Hyatt and Avis. That’s a lot of value.

What is your favorite travel credit card?
I mentioned it earlier, but I love the Chase Sapphire Preferred card. It’s probably my favorite card at the moment. The Ultimate Rewards points I earn using it can be transferred to a variety of partners, including United, British Airways, Korean Air, and Southwest, hotels including Hyatt, Priority Club (Intercontinental), Marriott, and Ritz-Carlton, as well as Amtrak, so I can use them for pretty much anything. Plus, I get two points per dollar I spend on dining and travel, which includes a lot of categories, like taxis and even parking. I recently transferred the points I got for signing up to United and used them to fly business class from Newark to Singapore on Singapore Airlines for 60,000 miles and $2.50 USD in taxes/fees. That was a great redemption. Also, it’s made of metal, so it feels good and it looks cool in my wallet.

For more great tips on how to use airline credit cards and (legally) milk the points system for free travel, make sure you read Brian’s blog. You can also follow him on Twitter.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program via the links on this page.