How a Good Credit Score Boosts Your Travel Hacking Game

Soar to New Heights: How a Good Credit Score Boosts Your Travel Hacking Game

Have you ever worried your credit score could stop you from getting a travel rewards card to save on a family vacation?

Travel points and miles are the golden tickets to dream vacations. But to unlock their full potential, you need a boarding pass with a strong credit score. Here, we’re all about maximizing travel rewards, including ensuring your credit is ready for takeoff.

This guide explores the connection between credit scores and travel hacking, showing you how a good score can…

Open Doors to Lucrative Cards

Many travel rewards cards require a high credit score. A stellar score increases your chances of card approval with the biggest bonuses and best perks. Check out our post, The Best Travel Reward Credit Cards, for the cards we use.

It’s ok if your score is less than steller. We can help you increase your credit score while working towards that dream vacation. We have a few simple tips listed in the next section below.

Unlock Lower Interest Rates

Carrying a balance can eat into your travel fund. Lower interest rates, associated with good credit, mean you pay less for carrying a balance – freeing up more points for adventures!

Please set up your card for auto pay and never keep a balance.

Signal Responsible Financial Behavior

A good credit score tells issuers you’re a reliable borrower, potentially leading to higher credit limits. This translates to earning more points without maxing out your cards.

Believe it or not, Our credit scores went up after we started applying for and using travel rewards credit cards.

Credit Score Skyrocket Strategies

Now, let’s explore how to get your credit score in tip-top travel-hacking shape.

Pay Bills on Time: This is the biggest factor affecting your credit score. Set up automatic payments to avoid missed due dates.

Maintain Low Credit Utilization: Keep your credit card balances well below your limits. Aim for a utilization ratio (total credit used divided by total credit limit) below 30%.

Don’t Apply for Too Much Credit at Once: Multiple credit card inquiries can ding your score. Apply strategically and space out applications. We keep ours at roughly 90 days.

Monitor Your Credit Report Regularly: Check your credit report for errors and dispute them promptly. Most of the higher-end travel cards, such as the Venture X, Citi Premier, and Chase Sapphire Preferred, include credit monitors in their apps.

Travel Hacking with a Credit Score Conscious Approach

Knowing the pitfalls and how to avoid them will raise your credit score, increasing the opportunity for you to travel using rewards points and miles issued by travel cards.

Call To Action

Choose Cards that Align with Your Spending

Don’t just go for the card with the biggest bonus. Select cards with bonus categories matching your spending habits, maximizing points earned without unnecessary spending.

Ask yourself, what do I spend the most on every month? Groceries, Gas, etc., start with a card that earns the most points in that category.

Pay Your Balance in Full Each Month

Reap the rewards without the interest charges by paying your statement balance in full each month.

Pro Tip: Pay the card in full before the statement posting date. This reduces your credit utilization significantly.

Consider a Secured Card

If you’re new to credit or rebuilding your score, a secured card can be a stepping stone. You provide a deposit that becomes your credit limit, allowing you to build good credit habits.

Read our post, Top 5 No Annual Fee Credit Cards, for a more entry-level guide to earning points and miles.

Bonus Tip

Many travel rewards cards offer perks beyond points and miles, like airport lounge access and travel insurance. Consider these benefits when choosing a card to enhance your travel experience further.

You may find the information in The Best Travel Rewards Programs useful for learning about different types of programs.

Credit Score Conclusion

A good credit score is the jet fuel that propels your travel hacking game to new heights. By prioritizing on-time payments, keeping credit utilization low, and using credit responsibly, you unlock a world of lucrative travel rewards cards, lower interest rates, and potentially higher credit limits. If you are still looking for more info, check out this Bankrate article, What you need to know about your credit score. Remember, travel hacking is a marathon, not a sprint. Implement these strategies, manage your credit wisely, and soon you’ll be boarding flights to dream destinations using a stack of points and miles! So buckle up, take control of your credit score, and get ready to soar.