March 27, 2014

7 things that will help you understand using travel rewards cards to your advantage

creditcardstack

From the very beginning of our travel together, my husband and I have done all of our international flying with frequent-flier-miles. With Asia and Easter Island both on our itinerary for our first gap-year of travel, crossing the distances we had in mind would have seemed financially impossible for us without frequent flier miles.

Perhaps there’s a misconception out there that you must first pay for a significant amount of flying before you can accumulate enough frequent-flier-miles for a free international flight. That may be true when using the traditional approach to earning miles. But there is another strategy that has become quite popular for earning miles that requires no flying at all.

Credit cards.

There are dozens of them. And of course, it can get quite confusing. So I’ve put together a list of 10 things to help you understand travel rewards cards, and therefore, use them to help you with your own travel goals.

 

1.) Not all cards advertised as “travel rewards cards” will earn you frequent flier miles.

There are basically four types of currencies you can earn with travel rewards cards: 1) frequent flier miles with a mileage program, 2) hotel points with a hotel rewards program, 3) points that can be transferred into frequent flier miles or hotel points, and 4) points that can be used to reimburse money you spend on travel.

The latter can be good for covering what frequent flier miles cannot, but won’t be as significant in earning you a free international flight.

 

2.) Just because a card is offering a bonus, it doesn’t mean it’s a good bonus.

All the major travel credit cards advertise mile or point bonuses. This is the main appeal in many cases however, it’s worthwhile to do some research when you see a card offering a bonus. For instance as mentioned above, there are various currencies in the travel rewards card world. Find out what an advertised bonus could realistically translate to in terms of travel.

Even once you have acquainted yourself with the bonus’ currency, it’s also good to know the difference between a good bonus and a weak bonus. At least when it comes to miles, hotel points, or points that can be transferred into miles, we generally tell people that 50,000 points is a good bonus.

 

3.) There are often requirements you must reach before you earn the bonus.

Occasionally a card will offer a bonus that you can receive as soon as you sign up or make your first purchase. But more often there is a spend-requirement you must reach first. Generally it’s set anywhere from $1,000-$10,000 spent within the first 3-6 months depending on the card.

Many cards offer bill-pay set-ups online to help you work towards that spend-requirement with your ordinary spending.

In the travel-hacking community however, it has become quite popular to use your credit card to purchase something that can easily be turned back into useable cash. Gift cards for example have paved the way for a cheap though admittedly complicated strategy for reaching spend requirements.

 

4.) Many cards also have an annual fee, though sometimes it’s waived for the first year.

It’s up to you how to handle this annual fee. Sometimes the card’s regular earnings from ordinary spending, annual gifts, or other card perks are enough for the annual fee to be worth it. That is up to you but you should understand that canceling a card after just a year can have an effect (albeit a fairly small one) on your credit score.

Your credit score takes your average length of history into account and having multiple 1-year accounts will lower that average. Because of this, we recommend having a few no annual fee cards that you will keep, even if you never use them. We also recommend that, if a person doesn’t feel they can keep up with the annual fee (or doesn’t wish to), they try having the card downgraded to a no-annual fee card after the first year.

 

5.) Collecting miles with credit-cards has a lot to do with credit score.

Most of the good travel cards require you to have at least a fair credit-score for approval. You can get a free credit score estimate with sites like Credit Sesame or Credit Karma. Technically they are just estimates, but they tend to be pretty close to accurate.

 

6.) Having multiple credit cards can actually improve your credit score.

Credit score works a little differently than many people may assume. It is less a measure of your financial status, and more a measure of your ability to be responsible with debt. It’s all about debt management really.

Therefore, the more cards you are responsible with, the higher your score will be. We have tested this and seen it to be true, as have many others.

Of course, the most important point here is that being responsible with multiple cards has a good effect. Being irresponsible with multiple cards could be very dangerous.

You can read more about what responsible credit card use is in our post about how credit score and travel-hacking work.

 

7.) Applying for cards too closely together will prevent you from getting approved.

Applying for one card today and another one tomorrow will make you look desperate and will prevent you from getting approved for a card, even if your credit score is great. If there are multiple rewards cards you’re interested in, wait at least 3 months between each application. Some suggest you don’t need to wait that long, but this is the safer strategy.

 

Credit cards are a huge part of the travel-hacking budget strategy and these 7 things will give you a place to start your research.  Ultimately, the idea here is that rewards cards are helping you and that you’re in control of them, not the other way around.  While trial and error is certainly a part of everything in life, especially when it comes to credit and credit cards, it’s good to be as informed as possible from the beginning.

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Category: Air Travel, Travel Bargains

July 19, 2013

When You’re Out of Loot in London

Let’s face it: It’s summer and you’re broke. If you’ve somehow managed to make it to Europe and have some money for food and shelter, you might not have cash for much else. Trust me, I’ve been there. Everyone knows activities in places like London, for example, is pricey. But it’s important to know that there are several fun and interesting things to see and do that are completely free.

London Bridge is always free, and always majestic.

London Bridge is always free, and always majestic.

With that in mind, this is the first in a series focusing on free sights and activities in some of Europe’s best cities.

Taking the London example, here’s just a short list of free activities that give you a good taste of that amazing city:

-The National Gallery is free, although that may surprise many. Yes, one of the world’s great art museums—hosting works by world-renown masters—does not charge for entry.

-Piccadilly Circus, the gateway to the West End, is a colorful sea of people—especially when the sun goes down and the neon lights wash over the surroundings. Great people watching.

-The Changing of the Guard at the palace is always a sight to behold. The military pomp has been tradition for centuries, epitomizing military precision.

-Regent’s Park includes the city zoo and a wildlife garden. An oasis of leafy tranquility in the heart of the metropolis.

-There’s also St. James’s Park, ringed by some of London’s biggest landmarks (Buckingham Palace and Whitehall) featuring gorgeous greens and a soothing lake when the Tube and the crowds drive you mad.

St. James's Park

St. James’s Park

-Speaking of great urban parks, no list would be complete without mention of Hyde Park. Lots of open air festivals and concerts are held here, especially in summer. Amble on over and enjoy.

-The Tate Modern (free except for certain special exhibitions) hosts a dazzling array of modern art, if you’re into that sort of thing.

Tate Modern

Tate Modern

-The rightfully revered British Museum is another world-class treasure trove of history that deserves your time. It’s a jaw-droppingly thorough survey of human civilization.

British Museum

British Museum

Of course, the best parts of travel, meeting the people and sampling the culture, are always free—but having a list of other free stuff to do certainly helps.

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Category: Backpacking, Europe, On The Road, Travel Bargains, Vagabonding Advice, Vagabonding Life

January 29, 2013

Vagabonding South Sulawesi, Indonesia

If you’re vagabonding in SEA and trying to get off the beaten track the Indonesian island of Sulawesi is a great place to do just that, especially during the low season of Dec. – Feb. There is a reasonably reliable network of bus service around the island but the roads are terrible and the rate of bus crashes seems (based on observation) higher than average for Asia. Not surprising, given the state of the roadways. If you can rent your own car, it’s a ticket to freedom on the island, but be prepared for people to be shocked that you’re driving yourself. Apparently everyone hires a driver or takes busses!

If you are looking for an excellent guide or arranger of further guides, Dodo Mursalim, in Makassar is your man. He’ll pick you up at the airport, deliver you at hellish hours, and even put you up in his house. He’s a wealth of information about Sulawesi and has uncanny connections all over the island. His email: donow77@hotmail.com

Rantepao is in the heart of the region of Tana Toraja, which should not be missed. Plan to stay several days  to a week, slow down, explore, and try to see a funeral. Nicholas Pabara is a fantastic guide, he asked me to share his phone number with fellow travelers: 082-192-183-677. Having a local to tell you the stories, explain the history and find the out of the way things that you won’t find on your own is priceless. You’ll definitely want him to help you place a bet at the cock fights!

Bira is at the eastern tip of the northern arm of Sulawesi. It’s got a pleasant tourist slum with cheap accommodation, but if you head out of the tourist district to Bara Beach there are six little bungalows for rent on a deserted beach that are a little slice of heaven. A boat can be arranged to the facing island where the diving is world class. This is the place to kick back and relax for a few days away from the hustle of Indonesian cities.

Samalona island is listed as an afternoon trip from Makassar in some of the guides. A better bet would be to head out for three or four days and stay in the home of one of the seven families (all inter-related) who live on the island. To get there, take a blue bus to Fort Rotterdam, cross the street to the waterfront and the boatmen will find you. There is no electricity (a generator will be turned on in the evening) no running water, no shower, and no hot water, but it’s a welcome respite from the bustle of Indonesian cities and the snorkeling is pretty good. You’ll find the islanders welcoming, generous, and their fresh from the ocean cooking worth staying an extra day for. If you have an instrument, bring it, music is welcome in the evenings. It costs about $20 USD a night for lodging and three square; can’t beat that.

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Category: Asia, Travel Bargains

November 19, 2012

Bargaining in Asia: tips and tricks

A fabric vendor and traveler at a market in Luang Prabang, Laos.

A fabric vendor and traveler at a market in Luang Prabang, Laos. Photo: Joaquin Uy / Flickr

It’s a well-worn practice the world over: customers and vendors talking price. CNNGo tackled this issue in a post titled How to bargain: the ultimate guide to scoring a deal in the markets of Asia.

Many of the tips will be familiar to experienced vagabonders: shop around, be polite, and be ready to walk away. What makes the article special is the little details about particular destinations. Some examples:

Have you negotiated over a purchase at a market? Please share your stories in the comments.

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Category: Money Management, Notes from the collective travel mind, Travel Bargains

August 16, 2012

Loco2:europe by train

Loco2 launched not long ago. A site dedicated to train travel throughout Europe. I’ve exchanged emails with its founder, and “the team” has the vision of creating a source of online train booking “as easy as flight booking”—it appears to be well on its way. The site has a video short that explains how to find, book and share itinerary with friends. It also features a blog that covers things like watching the Tour de France by train, photography by Steve McCurry, and interviews with The Man in Seat61.
If you are not privy to that last mention; the man in Seat61 site was created by former railway engineer Mark Smith in 2001, and received many cudos in 2007 (including a blog post on this site.) That site alone is a plethora of information about world-wide train travel.

survey results image credit loco2.com

However, it doesn’t have the unique Engine Room forum which Loco2 has created to offer advice broken down easily by country with the latest information about areas. If you’re considering Europe by train; check into this site. If you’ve travelled the area recently and have suggestions, they are open to building a better, more useful community…

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Category: Destinations, Europe, Travel Bargains

February 28, 2012

Taking travel home with you: buying souvenirs abroad

Sapa, Vietnam

Vagabond travel is about the experience. It’s less focused on the “stuff” you bring and buy, and more about the freedoms as an open minded traveler with a light backpack. Rolf shows us the pros of traveling stuff-less in his Round The World challenge trip, but if you know what you’re looking for and have some extra space, souvenir hunting abroad can lead to some extraordinary experiences.

I’m not talking about toting Portuguese ceramics around Europe or filling your backpack with I Love (insert city name) t-shirts at every stop. I’m talking about small pieces that will always remind you of your time away from home. In many places, you can get a beautiful local print for less than what a mass produced picture would cost at a Linens ‘N Things.

Here are some rules I like to live by on the road:

1.) Even if you don’t buy, interacting with shopkeepers is a great way to glimpse into local life. Window shopping is free, and can lead to some hysterical experiences, seen here as Rolf explores a market in Morocco on his No Baggage Challenge.

2.) Research what kinds of things your destination has to offer. Know the price range for a Nepali cashmere scarf before hitting the streets, and also look into potential scams. Bangkok is known for luring tourists to faux gem stores, charging customers competitive prices for lookalike gems.

3.) Analyze the quality of the item in question. Not only do most local vendors not have return policies, but you’ll likely be onto a new city or even home before you notice it’s cheaply made or broken.

Kathmandu storefront

4.) Look for fair trade shops when purchasing handicrafts, which ensure that the artists earn fair wages and work in good conditions. Friends International shop in Phnom Penh is one of my favorite examples.

5.) Watch out for breakables…If you’re browsing the Czech glass shops of Prague, don’t stand too close…If you break, you buy.

6.) It’s fun to say “I got this in Laos!” But make sure you’re buying for the right reasons. Do you love what you see? Is it unique to the region? Is it something that’s truly worth carrying in a backpack until you return home?

If room in my backpack permits, here are my favorite things to look for abroad:

Postcards and stationary: These are great reminders of world travel, and can also be shared with others! Each postcard or letter sent means less “stuff” in your backpack.

Handcrafted jewelry: I look for something that is unique, wearable and won’t break the bank. One of my favorite things is a small silver bracelet from the Black Hmong woman who walked with me for 5 hours while trekking in Sapa, Vietnam.

Handwoven crafts: Travels in South America and Southeast Asia have brought me to incredible villages where handwoven products often take weeks to make and cost less than 10 dollars.

Artwork: most small prints can lay flat in a suitcase or fit between a book, and can then be framed at home.

What do you think? Have you fallen into the tourist trap of useless “stuff?” Where have you gotten your favorite souvenirs? Do you have any tips for other travelers who are interested in picking up a souvenir or two?

unnecessary purchase...

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Category: General, Travel Bargains

April 6, 2011

How to Travel the World on $50 a Day: a new Ebook from Nomadic Matt

Many Vagablogging readers are familiar with Matt Kepnes, or Nomadic Matt. Kepnes’s website is packed full of information on travel deals, travel tips, travel guides, and loads of interesting travel tales suited to any genre. Now Kepnes has taken the next step and has published his own Ebook.

Kepnes’s book is a smooth read. Even over the details of dollars, budgets, and savings options, it never reads like a dry financial manual. Kepnes’s book documents specific dollar amounts for many elements of his travels. He starts with how to save money before you even hit the road by detailing the more advantageous international banking options and airline carriers.

Kapnes’s book isn’t just for the new traveler in the beginning stages of planning out their trip. There is a lot of useful information that, even after years of long-term stints on the road, I still haven’t quite been able to work out, like making air miles work for you, or all of the ropes and rules of upgrading to business class on those long flights. Sure, there are loads of details for beginning travelers, like how to pick the right backpack for the road or how to save for your trip before you depart. Though there is something for everyone in this book. Whether you’re a novice when it comes to air miles, or if you’re trying to decipher the endless web of ESL jobs or volunteer options abroad.

There is also a Destinations section in the book, where Kepnes offers readers a look at likely travel budgets for areas on nearly all continents of the globe. He even includes budgets for activities popular to a particular destination, like scuba diving in Southeast Asia. Kepnes also compiles a list of great hostels and budget guesthouses for various locations, along with discount coupons should you be in the area and decide check out one of the accommodations.

You can download a PDF format of the book from Kepnes’s website for US$14. The book is also available for your Kindle or Ipad.

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Category: Money Management, Travel Bargains, Travel Guidebooks, Vagabonding Advice

March 2, 2011

New budget travel options in Korea

Those vagabonders funding their travels by working abroad in Korea, or those simply traveling through the country, will be happy to hear of Air Asia’s new service to Korea. Korea has rested infuriatingly outside of the budget travel loop for quite some time. However, in November of last year, Air Asia began offering flights from Seoul to Kuala Lumpur for around US$300 round trip. This opens up a lot of options for travelers, as Kuala Lumpur is a major travel hub in Asia and it’s easy to book cheap continuing flights to just about everywhere from there. Over the last few months the Air Asia service has grown to include flights from the Korean capital to Bali and Jakarta in Indonesia. Finally, leaving Korea no longer means dropping an easy $1,000. Get out there and start taking advantage of these deals!

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Category: Air Travel, Asia, Travel Bargains

January 21, 2011

What $1 buys you around the world

One U.S. dollar

A $1 bill. Photo: rychlepozicky.com/Flickr Creative Commons

One of the central tenets of vagabonding is that travel doesn’t have to be expensive. In fact, going abroad can be far cheaper than your monthly housing and car costs at home.

Lonely Planet called on its readers to send in their tips on what $1 buys around the world. Replies poured in from nomads from all points of the globe.  The value of a dollar can really vary across different countries.  In some places, a dollar can buy you a feast; in others, that will barely pay for a cup of coffee.

Thailand, a perennial favorite, made an expected appearance in this comment: “The question is, what can’t you get in Chiang Mai for US$1? – Sheila

In other places, the higher cost of living was reflected: “Paris: about 40% of an espresso at Starbucks. – Michael

An interesting trend is that many of the replies revolved around food.  When you only have $1 to spend, you’re going to buy things that:

A) You can afford
B) You really need

Food fulfills both categories. What’s the best thing you’ve spent $1 or a small amount on? Please share your stories in the comments.

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Category: Money Management, Notes from the collective travel mind, Travel Bargains

September 17, 2010

Five “trouble spots” that are okay to visit

Sitting Buddha in a temple in Chiang Mai. Photo: Christian Haugen / Flickr Creative Commons

Sitting Buddha in a temple in Chiang Mai. Photo: Christian Haugen / Flickr Creative Commons

As usual, the media is full of stories of disasters rocking foreign countries.  For a good status report, check out this CNNMoney article: 5 tourist spots in turmoil.

Savvy travelers are cashing in on the deep discounts being offered by travel providers.  I know an American expat in Thailand who’s been booking Air Asia flights like crazy to take advantage of cheap flights to Chiang Mai and the Thai islands.

South Korea has been in the news due to having a submarine allegedly destroyed by North Korea. Lately, the rumbles are fading and it’s back to normal.

Have you ever traveled to a country that was in crisis?  Did you go during the problems, or just immediately afterwards? Please share your experiences and tips on staying safe.

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Category: Notes from the collective travel mind, Travel Bargains, Travel News
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