Understanding Your Credit Score and Report
It is never too early or late to understand your credit score and report. As a result, you can fly and lodge for free, eliminating some of travel’s hefty costs.
My dad is a finance guy, and taught me this at age 18.
A kid cannot get a credit card. However, one can reap the benefits of learning about the importance of paying bills on time and in full.
I have a high score, and learning about credit scores early has paid off.
As Jay McKenzie of www.newhomesource.com says, “The best predictor of future behavior (in this case, paying bills on time) is past behavior.”
A Good Credit Score Opens the Door to Successful Travel Hacking
Credit bureaus look at what you owe and your repayment history. Your FICO score, the credit score standard for the industry, ranges from 300 to 850, with a 700 or higher being a good score. The higher score you have, the interest rates for car loans, mortgages and credit cards will be lower for you. Of course, this will help you save money on the Kentucky Derby Racetrack, or nearly anywhere else you are visiting this year.
Your score gives businesses an idea, and subsequently, a prediction, of whether you will pay the money they lent you back.
-Your payment history makes up 35 percent of your score.
-30 percent of the score is the amount of debt you owe.
-The length of your credit history equals 15 percent.
-The amount of new credit requested is 10 percent of the score.
-The types of credit you use make up 10 percent.
Having and maintaining a good credit score opens the door to successful travel hacking. This enables me to fly for free through the total miles and points I accumulate from certain credit cards. I get those by applying for a personal credit card.
I get to experience the best events and destinations in Kentucky without putting a hole in my wallet.
If you have a business, such as I do with Grasshopper Greg, another way to increase your bonus miles is to open a card in your business name. Your personal credit score dictates the result of your business card application.
I wondered if opening up many cards over time would damage my score.
In the long term, having more accounts by more creditors should not hurt my score. In the short term, however, asking for more credit can also appear to be careless in the creditors’ eyes. Would it make them a little suspicious, perhaps? Bottom line, spread out your requests.
Get Creative With Your Spending
If you want to truly take advantage of your travel hacking credit cards, get creative.
Yes, we can all earn money by spending it! Plus, you can use travel credit cards to pay for the things you really need.
Is your car almost out of gas? Fill it up with your credit card. Are you starving, but have no groceries at home? Why not grab some good food with your card? Use it to dine out and get the best food in North Carolina.
Find a credit card that offers rewards when you use it for groceries, dining at restaurants and getting gas. This way, you can get the best travel hacking deals.
Closely Study Your Loyalty Program
Before you sign up for a new travel credit card, you need to study loyalty programs extremely closely. When properly followed, stipulations within your loyalty program can save you significantly on your next vacation, or on your credit card bill entirely. Some loyalty programs have hidden deadlines or rules in order to claim specific rewards. Be sure to remain aware of your loyalty program requirements in order to claim the maximum amount of rewards. Some cards require you to make as few as ten transactions per month in order to claim benefits. Research specific card providers and see where they offer loyalty programs. Some cards may reward you for shopping at your favorite store, or visiting your favorite restaurant. Many cards work directly with the best restaurants in New Orleans, New York City, or Philadelphia.
$0.00 Out of Pocket Cost to Earn Substantial Miles and Points
Another tip for becoming one of the best professional travel hackers is to pay attention to card bonuses. The sign-up bonus for a new credit card can be large. I like to use cards with a bonus of at least 40,000 miles.
Anything less than that is not worth your business. You can also wait for future offers.
With the bonus comes a spending requirement.
From my experience doing this, I have had to spend $1,000 to $3,000 in the first three months after the account is open and approved to receive the bonus, not after the card arrives.
The card company waives the annual fee for the first year in most offers. The card company hopes I will forget to cancel your card membership after one year, which I do not.
It will charge you on day 366, so put the cancellation date in your calendar! Also make sure you pay your monthly bills in full and accrue no finance charges or else you offset the savings of free flights and hotels!
To summarize, since I will pay the card off on time and in full every month, it is free. There is a $0 out-of-pocket cost to earn a substantial bonus of miles/points, since the card company should waive the first annual fee.
I have taken online courses, workshops, and read many articles to familiarize myself with the realm of possibilities out there. I put in the effort to understand what is travel hacking and how is it done with credit cards.
Strive to get your score up above 700 because you will receive the targeted offers from the credit card companies!
You are entitled to a free credit report annually from each of the three major consumer reporting companies (Equifax, Experian and TransUnion). You can request a copy and review your free report through annual credit report.com or call 1-877-322-8228.
Use All Available Credit Card Benefits
Travel credit cards are one of the most popular tools to reduce your vacation expenses. Taking the time to learn about your credit card benefits can help make your next trip more affordable. Most commonly, these cards are used for earning points to convert into airline miles. However, you have many additional credit card benefits at your disposal. A number of travel credit card providers offer rewards when you stay at specific hotels, shop at certain stores, or eat at particular restaurants. Other credit cards even provide you with access to airport lounges, hotel conceirge, or savings on rental cars. Spend a thorough amount of time researching the incentives your particular card provider offers. Chances are, it can help you save significantly on your next trip.
Factors to Consider when Trying to Boost Your Score
Pay your bills on time, avoid declaring bankruptcy, keep an organized track record of the bills you pay and when you pay them, and only depend on loans when you feel you need them. These are great tips to save money on the Las Vegas Strip, at the Kentucky Derby Racetrack, or nearly anywhere else.
Now, once you have your card, I suggest you get into the habit of paying for every purchase you make.
Pay the recurring expenses like cable and utilities on that card until you reach your minimum-spending limit.
Not only that, it will also help to maintain a nice credit score that enables you to live a “travel-hacking life.”
Some credit cards let you transfer the miles to other airline partners. Some cards have higher minimum spending limits in the first 90 days, but offer better bonuses. Find the travel hacking best credit cards to adventure affordably.
There are those that have more generous off-peak award charts. You can get to a destination during the off-season for fewer miles.
Some offers come with a companion pass upon renewing with the annual fee.
Maximize The Reward
Some companies take away your accumulated miles when you cancel.
You must use your miles you have accumulated BEFORE you cancel the card when you receive the annual fee. Very important! Travel to New Orleans, Colorado or any other destinations on your bucket list with your accumulated miles!
