Understanding The Risks Involved With Travel Hacking

Travel1 year ago
Airplane flying with a sunset outside its window

Have you ever heard of travel hacking? It's a popular way to save money on travel expenses, but it can also be risky. In this post, we'll look at some of the risks involved with travel hacking and how you can avoid them.

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What is travel hacking?

Travel hacking is a strategy that savvy travelers use to save money on travel. It involves earning points or miles through credit cards and other travel programs, redeeming them for free travel or travel-related services, and ultimately saving time and money.

To travel hack with credit cards, the most common practice is to sign up for a rewards card and meet the minimum spending amount to earn bonus points or miles immediately.

Then ongoing spending will generate even more points or miles that can be used toward travel expenses such as discounted hotel stays and plane tickets.

Taking advantage of travel hacking strategies makes it possible to save a significant amount of money on your next trip — think hundreds of dollars or even a free flight!


Risks involved with travel hacking

Travel hacking can affect your credit in several different ways. When you apply for multiple credit cards simultaneously, for example, those applications result in a hard inquiry on your credit report, which slightly lowers your credit score.

Additionally, the average age of your credit is lowered, which also decreases your score modestly. However, the most significant risk of travel hacking involves over-extending yourself by taking on multiple new cards.

This can cause you to have too high a credit utilization ratio and affect your score significantly. Therefore, it's essential to understand the risks involved with travel hacking before deciding if it's right for you and to make sure that you don't overextend yourself with too much debt to reap the rewards.


How to avoid these risks

The risks associated with shopping online are real, but there are practical steps you can take to avoid them. Virtual credit cards let you create a temporary account when making purchases.

This helps protect your actual card information from being exposed to potential risk. Apple Pay is another great option that is just as secure and easy to use. Keeping an eye on the amount of credit utilization you have can also help keep you safe.

Additionally, only apply for one form of credit at a time - doing so ensures that you maintain your average age of credit, which accounts for 15% of your credit score. Taking these precautions can help make sure that online shopping remains a safe and enjoyable experience!



Travel hacking can be a great way to save money on your next trip, but it's essential to be aware of the risks involved.

Credit card fraud and identity theft are the two biggest dangers, but they can be avoided using a secure credit card and monitoring your account activity.

So if you're looking to save some money on your next vacation, give travel hacking a try – just be sure to do so responsibly!

Picture of someone holding multiple credit cards