If one thing holds people back, I find it to be the question and uncertainty of their credit score. This is a responsible question and reason to be hesitant.
Can you believe that after I started traveling with credit card points my credit score rose? It was the first time ever that it was above 800.
Your credit score’s two highest impacts are your payment history (this is why I keep saying to pay your credit cards on time and in full every single time!) and your credit card utilization (how much of your available credit you use, the less you use the better).
The next impact I want to talk about is the age of your credit. I will always recommend keeping your oldest credit card open and never closing it as this shows your credit history. If you have a card with a fee and it’s your oldest one and you want to eliminate this annual fee see if you can downgrade the card and keep your history.
Lesser impacts to your credit card score are your credit mix (the number of lines of credit you have) and hard inquiries/new credit. Every time that you apply for a credit card there will be a hard pull to your credit. Your credit score will probably drop a bit after this, but then bounce back up in a few months. This is why we recommend spacing out your credit card applications by at least 90 days.
Annual fees of credit cards always used to scare me away from the cards that had me, but they don’t anymore.
For me, the annual fee for a good sign up bonus and new reward credit card is almost always worth it for the first year.
For example if I get $1,000 in travel for $95 annual fee it’s a win in my book!
When it’s time for the second year’s fee I always examine if it’s worth it to keep the card and pay the fee. ALWAYS keep the card for at least 12 months as it does not look good to close it before then or downgrade. In fact, the credit card company can claw back your sign up bonus if you cancel before a year.
Usually if you cancel before the 13 month period they will refund your annual fee. The after 12 month before 13 month timeline is the sweet spot to cancel a card with an annual fee.
Once again download Travel Freely to monitor this, they will send you alerts when your annual fee is going to renew!
I highly recommend downloading the Travel Freely app to assist you with keeping everything straight. Make sure to add all of your credit cards, open dates etc. This app will alert you when annual fees are coming due so you can make sure you want to keep that card open etc. It’s a total game changer!
When using Credit Card points “Player 2″ or “P2” often refers to a strategy where a second person, typically a spouse, partner, or close family member, also participates in earning credit card rewards, bonuses, or points. This collaborative effort can significantly enhance the ability to accumulate points or miles faster, allowing for more substantial rewards, such as free or discounted travel.
The main benefit of having a P2 is using referrals to accumulate extra credit card points. Player 1 refers Player 2 to a card and Player 1 will receive bonus credit card points for the referral.
If you don’t have a P2 you can still do this!