Will I need to open a ton of credit cards to travel for free?

Unless you happen to have the correct cards already, you will need to open 1-3 new cards to get started. This is because not all cards collect points and, of those that do, you need the specific cards that will allow you to book directly with hotels and airlines. Not all cards are created equal and we want to make sure you have the best credit cards for the job.

Will opening new cards damage my credit?

No. New account inquiries (you’ll have an inquiry each time you open a new card) make up only 10% of your credit score. You may loose a few points on your credit score when you open a new card but it will bounce back within a few weeks.

In fact, most travel hackers will see their credit score increase as they open new credit cards and that was definitely true for me. This is because credit utilization (the amount of credit that you’re using in relation to the amount of credit you’ve been issued) makes up 30% of your credit score.

For example, if you’ve been issued a $5,000 credit line and you’ve charged $2,500 to the card, that means you’re using 50% of your available credit which is quite high. If you open a second card and that card also gives you a $5,000 line of credit you now have $10,000 in total available credit. If you have $2,500 charged to one of your credit cards, you’re now only using 25% of your available credit. Since you’re using a smaller amount of your available credit, you should expect your credit score to increase.

Do I need to spend a lot of money to get a lot of points?

No but it’s very likely that you spend more than you think. We all buy groceries, gas and pay for utilities. Many of us also spend at restaurants, pay for kid activities (summer camp, music lessons, sports, etc.) and maybe buy the occasional new outfit. Top that off with medical costs, car repairs and vet visits and you probably have the opportunity to put quite a bit of spend on a credit card.

On top of regular spending, we’ll cover opening the occasional new credit card to take advantage of a juicy sign-up bonus and making sure you capture referral points when your friends, family or travel partner decides to open a new card. The points will really begin to add up quickly!

How long will it take to be able book a free vacation?

That really depends on where you want to go and what types of offers are available when you begin. A realistic guideline will be about 6-9 months but you can make something happen faster if you’re not set on a specific trip.

Just like saving up money, you’ll need to save up points and if you’re starting from zero that can take some time. Once you’ve been working on this for awhile you’ll begin to accrue a nice stash of points and book frequent trips.

Is travel hacking for me?

If you’re a person that pays off their credit card every month you will gain a ton of value by learning about points and miles but if you’re paying interest every month you’re not traveling for free you’re just getting into debt. It is of critical importance that you’re able to pay off your credit cards every month. If you do, you’ll add thousands of dollars in free travel to your life if you play your cards right.