Mar 10, 2021
Travel Rewards was a topic that
seemed so elusive and complicated to me for so many years.
Now I can’t imagine what our trips would look like without it. I
was anti-credit card before I learned the rules to travel
rewards. Today I have 6 different credit cards in my wallet
at any given time, and because my husband and I are in 2-player
mode, he also has 3-4 in his wallet. We do this all with a
lens toward tax optimization, maintaining our budget (actually
decreasing our travel budget) and strong financial position and
credit score.
There are literally hundreds of
resources that can guide you through travel rewards, however when
you many of the tips and strategies are suited for solo/couples
travel. Things get a little more complicated when you add a
family to the mix, which is why I invited Melissa Lagerquist to
Ordinary Sherpa today.
Melissa is a freelance writer,
travel hacker, cruise expert, military spouse, and mom of two boys.
She has been playing the travel hacking game for over a decade and
has substantial knowledge in the nuances to travel rewards,
significant experience and insights for families wherever you are
in your travel rewards journey.
To
Connect with Melissa Lagerquist:
Website:
Cruisefrugal.com
Email:
melissa@cruisefrugal.com
Facebook:
https://www.facebook.com/Cruise-Frugal-104926720896669
Instagram:
cruise_frugal
Twitter:
@cruisefrugal
Key
Takeaways
First can I just say the movie
Pearl Harbor, sigh, who remembers that movie. I am imagining
the premier on the Navy carrier.
- Travel rewards through credits cards actually
make your credit score go up. A large factor in your credit score
is credit utilization. If you open credit cards but pay the
cards in full each month you will have a low credit utilization
rate and improve your credit score. Travel Rewards should
only be considered if you are able to pay the balance in full every
month.
- Have a plan to meet the minimum spend
requirements before you apply for the card. Also, make sure
to know the date that the minimum spend needs to be met
by.
- Credit Card companies have their own lingo and
unwritten rules, such as Chase, which is known as the 5/24 rule
which implies you can only open 5 credit cards in a 24 month
period. Any credit card or authorized user counts towards the
5.
- If you have a specific trip in mind, you will
want to create a strategy to account for all the aspects of your
trip including airfare, accommodations and ground
transportation.
- The best redemption rate is the one that works
best for your family!
- Start with a little research to frame your
questions, then join FB groups or take free online courses
(like Choose FI travel rewards
course). There are
a lot of resources available and generally speaking, people want to
help.
- A strategy for family travel rewards is to keep
a combination of flexible travel rewards points (Chase Ultimate
Rewards, Amex Membership Points, or Citi Thankyou points) and a
co-branded airline or hotel rewards. This will allow you to
mix, match, and transfer points if needed.
- Cards with annual fees can offer high value and
be worth maintaining. For example many of these cards offer a
$200-$300 travel credit, free airport lounge access, travel
insurance, and TSA PreCheck and Global Entry to name a few.
These are all important perks to consider when traveling as a
family.
- Travel eraser cards allow you to erase charges
codes as travel. These are common for non-branded travel
experiences such as UnderCover tourist tickets to Disney, RV
rentals, or AirBNB stays.
- Cruises allow for local adventures at the ports
of call while reducing the overall planning while allowing
accommodations for every member of your family. This allows
kids a sense of independence allowing kids to choose what they want
to do, but not spending all the time together as a
family.
Resources:
- Choose FI Free Travel Rewards course:
Your shortcut to traveling better
using less money with travel rewards. https://travel.choosefi.com
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