If you're like most people I explain travel hacking to, the first fear that comes to mind is the credit score.
Having just booked a spring break trip to apply for yet another credit card, I'm going to tell you that you may be giving your score a little too much...credit. (Disclaimer: I've been doing this for years , but I'm still not your financial adviser and I don't know your personal finances)
Have you even looked at your credit score?
First, I recommend that you do take a look and then I'd like you to forget about it.
When people ask me how many credit accounts I have, their jaw drops.
“But what about your SCORE?!” they scream.
It's “Excellent” and always has been, with slight fluctuations in each direction, like one’s weight, depending on the season.
The truth is, opening and closing lines of credit only takes a hit of a few points, a very minor percentage in the entire outlook of your score.
Let's take a simple overview of the numbers that factor into your only adult grade post graduation:
A deduction of points will occur when a company makes an inquiry to your credit report.
If you're approved, your credit line will increase. This number is important, because they calculate the percentage of how much of your available credit you use at any given time. Your credit-utilization.
If you close your card, once again, your score will briefly decline when you close the card (which I do only about half the time and don’t recommend in all cases).
Being approved for more credit is actually an honor and boon to your score as long as you're not maxing out your cards AND as long as you have some long-standing accounts open, because a bunch of young accounts can negatively impact your score.
With all that said, what really makes or breaks you is making your payments on time. If you can do this, or make payments in full every month, your credit score should remain stable enough to show your proud mother and you won't be paying interest to the card companies (which I frown upon).
I’ve applied for many cards over the years, these factors and the hits I’ve taken are insignificant enough that it doesn't even cross my mind to consider them. I close a credit card now without remorse or trepidation, knowing that my long-standing accounts and on-time payments are the largest contributor to my score; letting me use my wealth of credit cards rewards!
For me, that means travel!
If you’re reading this you’re probably WHICH card to apply for. Apply for this Southwest Rewards card, my favorite for domestic travel, and you’ll get a huge bonus (I’ll get a small bump too) Apply NOW so you’re ready for that vacation later!
Here is the application that will earn you 40,000 miles for Southwest. When you play your cards right, that could get you a roundtrip flight for only $11! Click here to apply