Responsible surfers can use credit cards to fund travel. But caution is advised (see below). Photo: Unsplash
Do you enjoy free flights from San Francisco to Bali? I sure did. I have credit cards to thank for that. If used wisely, credit cards can lead to big rewards for any traveler – free flights, free lounge visits, and free checked bags. But they are particularly valuable for surfers who are traveling frequently with large baggage.
In one of my recent stories, where I mentioned my nomad lifestyle that has led me to many corners of the globe over the past two years, one commenter alluded to how much money I must have to sustain such a lifestyle. But the reality is, I actually traveled quite frugally during my time abroad, certainly spending far less money than I would have in California. And one of my keys to living on a backpacker’s budget was credit cards.
Aside from that free flight to Bali, my credit card points got me free flights from SFO to Rio de Janeiro, Bogotá to SFO, and Beirut to SFO. That’s several thousand dollars of flights. And I still have another flight or two that I can squeak out of my amassed airline points.
So what’s the secret? If you are new to the world of credit cards, most of them include some type of sign-up bonus. For example, open a card and spend X dollars in the first three months to earn X points towards travel. The sign up bonus is where the greatest value is in cards. Once you get the sign up bonus the value drops off significantly, usually giving you a “mile” or two per dollar spent.
So what I did over the course of a few years was open credit cards that had good sign up bonuses – in my case American Airlines (x2), United Airlines, and Capital One cards. With the bonuses and rewards I amassed enough air miles to get all the aforementioned flights.
But those are just the cards that worked best for my situation. There are dozens of cards out there, some directly affiliated with airlines, some not, that can get you free travel.
As I browse the current deals, I quickly see that United Airlines will give you 50,000 miles if you spend $3,000 in the first 90 days of opening the card. That’s enough for a round trip flight from LAX to Costa Rica or Puerto Rico, or a one-way flight to just about anywhere in the world. Hawaiian Airlines’ card will give you 60,000 miles if you spend $2,000 in 90 days. That’s more than enough for a round trip flight from LAX to Honolulu.
And aside from just the miles, being a credit card owner has other perks. For example, with most of the United Airlines cards, you get a second checked bag free – excellent when you are traveling with a large backpack and a board bag.
But before you go gung-ho and start opening credit cards, stop and think if this is for you. If you’re not organized or financially responsible, forget about everything I’ve said. Credit cards have the power to ruin lives. The interest rates are absurd and the card limits are high enough to bury yourself in debt.
Plus, there are a lot of intricacies. You have to do your research. The points and miles systems are nearly impossible to compare apples to apples across airlines. And there are gimmicks and hoops to jump through to reap the benefits of these cards. For example, if you have a spending limit to hit in a certain amount of days, one classic trick the credit card companies love to do is snail mail the card so it eats away at as many days as possible in that reward deadline before it’s in your hands. Annoying, I know.
You also have to be strategic with how you open and close credit cards. Many cards incur fees after the first year. You have to decide if paying that fee is worth the benefits the card can give you at that point. And constantly opening cards and not having any long-lasting lines of credit can have marginal, but negative impacts on your credit score. It’s important to find a balance of cards that fits your lifestyle and goals. In my opinion, the credit card should just be viewed as an extension of your bank account. Only spend money that you already have and immediately pay it off.
Often the biggest hurdle to an exotic, tropical surf vacation is the upfront cost of the flight. For surfers thinking they can’t afford that trip to Fiji or Costa Rica, your flight might actually just be one credit card away.
Again, I urge extreme caution for anyone opening cards for the rewards. But if used cautiously and strategically, you gain rewards that your debit card simply misses out on. Make your expenses work for you and get that money back via travel rewards. I have credit cards to largely thank for how I was able to stretch my money and travel around the world. And can you bet what the first thing I did was when I returned from that trip? Yup, I opened a new credit with a nice sign up bonus, eager to get on my next free flight to somewhere.
