Introduction:
Hoping to cut costs on your next big trip? Thinking about traveling on points but feeling completely lost on where to even begin? Maybe the idea excites you, but your budget feels too tight to make it a reality? Or perhaps you’re wondering if that credit card in your wallet can help you achieve your dream vacation?
If any of this sounds familiar, you’re in the right place.
In this post, we will tackle these common hurdles, providing a clear path and practical steps to unlock the world of traveling on points.
TLDR
- Acquiring a branded credit card is the best way to earn loyalty points.
- Leverage sign-up bonuses and category multipliers to ensure every dollar spent earns the most amount of points possible.
- Earn points without a branded credit card by signing up for a brand’s loyalty program, using a branded shopping portal, and answering online surveys.
- Advanced strategies such as churning, stacking, and manufactured spending come with certain risks. Proceed with caution.
Earning Points Without Branded Credit Cards:
While branded credit cards earn points consistently on all purchases, there are also ways to earn points without using those credit cards. Below are a few options:
Signing up for a brand’s loyalty program:
The most straightforward way is to sign up for a brand’s loyalty program and earn points for making purchases directly through the brand or using the brand’s services.
For example, booking a flight with Air Canada and adding your Aeroplan number to the reservation allows you to earn points based on the dollars spent for the ticket, as well as the distance flown.
Using a branded shopping portal for purchases:
Brands such as Air Canada Aeroplan, BMO Air Miles, RBC Avion, have e-stores or dedicated portals that allow you to earn extra points just for making online purchases.
These portals direct you to online stores such as Apple, Amazon, Lululemon, Sephora, etc. and help you earn extra points on purchases you were going to make anyways.
Answering online surveys:
A website called “Asking Canadians” sends frequent survey requests and rewards users with Aeroplan points for each completed survey.
Although earning points without a branded credit card can be a good first step, it is important to remember that points may expire if there is no continual activity in the account. To prevent this, make sure you have at least 1 transaction every 6-12 months, or have a branded credit card linked to your loyalty program account.
Leveraging Branded Credit Cards:
The most consistent way to earn points is by using a loyalty program credit card for all purchases. In addition to ensuring your accumulated points don’t expire, loyalty branded credit cards typically come with sign-up bonuses, better earning rates, and additional perks that justify the annual fee.
Before you choose a credit card, or to figure out if your current one is the right fit, be sure to check out this post on Choosing the Right Credit Card.
Below are some ways to leverage branded credit cards and maximize earning points.
Achieve Sign-up Bonuses:
Many credit cards offer a significant head start with sign-up bonuses ranging from 15,000 to 75,000 points simply for applying and spending a certain amount within a specific timeframe. These bonuses are the quickest way to accumulate a large number of points.
Some tips for achieving sign-up bonuses include:
- Planning new card applications around upcoming large purchases.
- Using the card for all expenses until the minimum spend requirement is reached.
- Adding a buffer of 10% to the required minimum spend to account for chargebacks, refunds, or processing delays.
More details of sign-up bonuses can be found here.
Maximize Category Multipliers:
Some credit cards give you extra points for purchases in common categories like dining out, groceries, gas, and travel. If you spend a lot in these areas, choosing a card that rewards those specific categories is a smart way to earn points much faster.
For a recommendation of cards with category multipliers, check out this post.
Advanced Strategies:
Note: Certain point-earning strategies listed below might be against credit card issuer policies and could lead to serious consequences like point forfeiture and account closure. If you’re considering these methods, exercise extreme caution and be aware of the potential risks.
For those on a tighter monthly budget or who struggle to reach the spending targets for sign-up bonuses, there are still ways to increase your points earnings through specific strategies that don’t require significant extra spending.
Paying in Advance:
One way to earn extra points is to help close friends and family with their purchases and have them transfer you back for the purchase.
Leveraging Buying Groups:
A buying group brings together individual consumers who agree to make purchases collectively, allowing them to leverage their combined buying power.
Businesses operating buying groups gain access to more inventory, and individuals are reimbursed for providing it. The key advantage for the individual is earning the credit card points from the purchase made on their own card.
Stacking:
Stacking refers to the act of applying for multiple credit cards to take advantage of the offers of each card, including sign-up bonuses, points multipliers, insurance, no foreign transaction fees, and more. The goal is to maximize the accumulation of points for each dollar spent.
Churning:
Credit card churning involves repeatedly opening and closing credit cards primarily to earn valuable sign-up bonuses and rewards. The goal is to quickly accumulate points, miles, or cash back by meeting initial spending requirements and canceling the card before an annual fee applies.
Manufactured Spending:
Manufactured spending is a way to create credit card charges without incurring real out-of-pocket expenses. Often involving minimal or no fees, the process involves making a purchase, converting the purchased item into cash, and then using that cash to pay off the resulting credit card balance.
These advanced strategies offer potential for significant points accumulation, but also come with potential risks. Remember to thoroughly research and understand the terms and conditions of your credit cards before attempting any of these methods.
Putting It All Together:
Now that you’re familiar with various point-earning strategies, let’s create a quick roadmap to put everything into action.
By following these steps and strategically leveraging the various earning methods, including advanced techniques with appropriate caution, you’ll accelerate your journey towards earning the points needed for your dream travel. Remember that consistent, responsible credit card use is key to unlocking the world of travel rewards.
Conclusion:
Earning points and miles may feel daunting, but don’t let the initial complexity discourage you. By focusing on the core principles – understanding your travel aspirations, selecting the appropriate credit cards, maximizing your routine spending, and implementing smart earning techniques – you’ll find that accumulating rewards is well within your grasp!
To learn more about advanced techniques and maximize points earning in Canada, be sure to follow @PointsWithVic on social media and subscribe to our newsletter. Happy point earning!
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