How Does Travel Hacking Affect Your Credit?

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    How Does Travel Hacking Affect Your Credit?

    1. Petrish @ Debt Free Martini

      January 7th, 2015 at 7:30 am

      I have never tried this method, but with the upcoming decisions that I have for the future I am realizing that I may have to take a page out of your book. I am so impressed with how cheap you are flying overseas….its great.

    2. Brian @ Debt Discipline

      January 7th, 2015 at 8:40 am

      A great overview Stefanie. Sounds like if you are really organized and pay close attention you can travel hack yourself to some great low cost trips.

    3. Tonya@Budget and the Beach

      January 7th, 2015 at 9:18 am

      I was worried about that too when I started hacking, but I’ve barely noticed a difference in points, and with some card you can downgrade to the no fee version without having to close you account.

    4. Kassandra

      January 7th, 2015 at 9:46 am

      Between using our credit card rewards, signing up for special offer cards and earning air miles due to frequent work travel, we really don’t pay much to travel at this point. Sometimes, on the rare occasion like our less than 24 hour last minute trip to Toronto during the holidays, we will pay for flights but still find them on the cheap and collect the air miles. Our credit score hasn’t been adversely affected but as you said, being organized, PIF each statement and not missing a due date is absolutely key.

    5. Joe @StackingBenjamins

      January 7th, 2015 at 9:55 am

      Excellent write up on travel hacking (and the best explanation on the web I’ve seen of the effect of travel hacking on credit). Thanks!

    6. Michelle

      January 7th, 2015 at 11:41 am

      Great post! I was a little nervous that all of our travel hacking in the past few months would decrease our credit scores, but our credit scores actually increased! I was surprised.

    7. Elroy

      January 7th, 2015 at 1:22 pm

      It most certainly doesn’t […] I’ve bought a house and refi’d twice and never seen any negative effects.

    8. Andrew@LivingRichCheaply

      January 7th, 2015 at 1:40 pm

      Thank you for the explanation. I have signed up for some travel hacking bonuses and it really hasn’t had much of an effect on my score. I know many people refuse to sign up for these amazing bonuses because of the fear that it would trash their credit score. it’s just not true. Though I did refrain from signing up when I knew I’d be looking for a mortgage…those banks can be picky. Also, you often don’t have to cancel a card…just downgrade it to one with no annual fee.

    9. Shannon @ Financially Blonde

      January 7th, 2015 at 1:57 pm

      I have a few clients who do this and as long as you monitor everything and responsibly use the cards, in the long run it actually helps your credit. I have a married couple as clients and the husband hacks and the wife doesn’t and despite all of his cards out there, his score is 30 points higher than hers.

    10. Ben Luthi

      January 7th, 2015 at 2:24 pm

      Anyone who wants to try travel hacking should definitely read this!

    11. Syed

      January 7th, 2015 at 4:57 pm

      Great comprehensive post to get people started with travel hacking. To minimize the length of credit issue, there are some great no annual fee cards (Chase Freedom, Discover It, Capital One Venture) that you can start with and keep around to keep your credit history length strong. Plus they have decent sign up bonuses as well.

    12. Mrs. Maroon

      January 7th, 2015 at 9:04 pm

      What a thorough overview. Though I generally consider myself to be an organized person, I fear churning cards for points would require more time and attention than I have to give at this point. In my life Though with two young children, we aren’t really looking to travel much anyway. Some great advice for if and when we want to add travel hacking to our skill set in the future. Thanks!!

    13. Melanie @ Dear Debt

      January 7th, 2015 at 9:25 pm

      Thank you for your thorough explanation about how travel hacking affects credit. I have three cards open now and my credit has gone up too! 40 points! I will have to close one of them in the next year. Thinking of keeping the Chase Sapphire Preferred.

    14. LeisureFreak Tommy

      January 8th, 2015 at 12:02 am

      Awesome writeup. I am intrigued by the whole concept and part of me thinks this seems like a lot of work. Funny that I always say the same too good to be true comments whenever I read travel hack articles but I can see by the way you do it that once you have your system down it shouldn’t be too tough to pull off.

    15. Michelle

      January 8th, 2015 at 4:45 am

      I really appreciated this explanation! This is super helpful.

    16. Mrs. Frugalwoods

      January 8th, 2015 at 7:24 am

      This is great to know. We haven’t really gotten into churning or travel hacking, but it sounds like it can be a phenomenal deal. I just need to figure out which card to start with–we already have tons of Starwood hotel points, so I want to explore airline points. Time for me to start researching 🙂

    17. John @ Frugal Rules

      January 8th, 2015 at 11:39 am

      Great explanation Stefanie! I was a bit nervous about the record keeping aspect of it at first, though I’m pretty organized and just have a spreadsheet I use to keep track of everything and that helps out a lot. My wife and I got around 10-12 total cards last year and both of our scores went up and we were already pretty high anyway. One thing we do is whenever we cancel a card we just ask to move the credit limit over to another card we have with the bank. That works nearly every time and leaves your utilization ratio intact. If you can do it right, hacking can be a great way to get in some traveling for pennies on the dollar.

    18. Stefanie

      January 9th, 2015 at 8:46 am

      That’s a great strategy with shifting the credit limit. Gonna have to start using it myself!

    19. I Love You Like A Blogger Roundup - 1/9 : Enemy of Debt

      January 9th, 2015 at 7:54 am

      […] How Does Travel Hacking Affect Your Credit? from The Broke and Beautiful Life […]

    20. The Buzz Around the Web #19 - Budget and the Bees

      January 9th, 2015 at 12:00 pm

      […] about travel hacking, and I liked the way The Broke and Beautiful Life tackled it. “How Does Travel Hacking Affect Your Credit?” is written from a unique perspective and is broken down well. If you want to travel more in […]

    21. C@thesingledollar

      January 10th, 2015 at 11:00 am

      This is SUCH a useful post; I’ve been considering getting more into CC churning but was concerned about this very thing. Thanks for doing the research on this.

    22. Bits & Pieces

      January 10th, 2015 at 11:12 am

      […] How Does Travel Hacking Affect Your Credit? from The Broke and Beautiful Life. Right now I’m very focused on credit and improving my credit score to get a mortgage in the next year or two. This post shows how travel hacking affects your credit score which is also something I’m interested in! […]

    23. Mel

      January 10th, 2015 at 2:31 pm

      I was nervous about the credit dings too, but found my score actually went up after opening 2 cards. We’ll see what happens when I cancel the one this month. I’ve found my Barclaycard though easily pays for the yearly fee, so I’m going to pay it this year and see if that continues to be true.

    24. Gary

      January 11th, 2015 at 3:47 am

      Today, while I was at work, my cousin stole my iphone annd ested to see if it
      can survive a forty flot drop, just so she can be a youtube sensation. My apple ipad is
      now broken andd she has 83views. I know this is
      totally off topic buut I had to share it with someone!

    25. Lisa

      January 16th, 2015 at 3:54 pm

      I love how informative this is and how it really breaks down how travel hacking affects the different aspects of a credit score. I’m banning myself from travel hacking for now since I’m still carrying balances on my credit card debt. Once I’m CC debt free, I think I’ll dip my toes in!

    26. Stefanie

      January 17th, 2015 at 3:29 pm

      I think that’s a good plan Lisa. If you’re carrying balances, it’s just not worth it.

    27. Diamonds in the Rough Roundup 1/23/15 - The Broke Professional

      January 23rd, 2015 at 11:08 am

      […] -How Does Travel Hacking Affect Your Credit? by The Broke and Beautiful Life:  I enjoy taking advantage of a good credit score and credit card sign up bonuses to rack up travel points, aka travel hacking.  This is a very thorough explanation of the affect of credit card churning on one’s credit score.  In short:  if you have a good credit score and pay your bill on time and in full, it’s not going to affect your score in the long run.  It may even help increase it. […]

    28. Can you afford free travel? | Penny Pinched

      January 25th, 2015 at 2:32 am

      […] […]

    29. alwinsam

      January 27th, 2015 at 4:40 am

      I absolutely loved reading this post. Thanks for making the article interesting and informative till the end! Keep inspiring us.

    30. An Adventure In Financial Principles

      June 11th, 2015 at 7:01 am

      […] to an almost all-credit lifestyle, enjoying the added protection of plastic- not to mention the perk of rewards that help fund nearly every trip I take. As such, I only took out $100 in emergency cash before […]

    31. The Not So Obvious Rules of Travel Hacking

      June 27th, 2015 at 1:25 am

      […] Note: For more rules of travel hacking check out my post on how travel hacking affects your credit and my travel hacking interview with the Stacking Benjamins […]

    32. What's My Tax Liability on Rewards and Cash Back?

      July 2nd, 2015 at 5:40 pm

      […] of which was taxable (and that doesn’t even account for all the free checked bags I got with my rewards cards). I’ll consider that a WIN. Let’s see how much I can earn this […]

    33. Extreme Reward Redemption

      August 7th, 2015 at 8:04 am

      […] his blog One Mile At A Time detailing his travels and secrets for extreme reward redemption. Using credit card rewards, frequent flyer miles and loyalty program loopholes, Schlappig flies an average of 6 hours per day, […]

    34. Daryl Jay

      September 24th, 2016 at 1:05 pm

      In the United States, your credit score can also affect your insurance rates. Insurance companies think your credit score reflects the risks involved in insuring you. For me this is very important because insurance is expensive and with a bad credit score could increase my insurance premiums dramatically.
      So i always keep my hacker friend ( close. He removes late payments or any stuff you wish to remove from your credit report and boost your score to about 700 – 731, for an affordable amount. PHONE : (269) 351 5870.

    35. Stefanie

      September 27th, 2016 at 8:51 pm

      Yes. So important to know that your credit score can affect you even when you’re not applying for credit.

    36. Travel Hacking: Round One | The Financial Journeyman

      May 1st, 2018 at 1:08 pm

      […] opened two cards, so I do not have any personal evidence to share with you.  Based on many other blogs, there is minimal change and most credit scores increase over time.  The most important thing is […]

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