Beginners Guide To Miles and Points: Credit Cards and Credit Scores

Now that you have some experience, we will talk about how you can leverage the relationships between banks and airlines to fantastic travel opportunities.

The secret, which probably seems obvious now, is to make the most credit card rewards. I earn about a million miles and points per year by taking advantage of the best credit card offers, and awarding my intake accordingly.

This is something that everyone can do it.

But before going further, we must have a serious talk about credit. If used wisely, credit cards can provide wonderful opportunities, but the calculation only works if used strategically.

If you do not want or can not, pay your entire credit card each month, stop.

You should not be looking to fund travel with your credit score.

To be clear, I do not judge the financial situation of all - it just does not make sense to pay a rate of 15.4% for 1% -5% back on travel.

If you are a student or does not have a strong credit profile, it is okay. You just want to start small, with a card less rewarding to help you rebuild your credit.

We'll talk more about specific cards for all later, but for now I want to talk about credit scores.

There are many misconceptions about how credit scores work, as most people believe that the application of a credit card will negatively affect their credit score.

In reality, credit score consists of the following:

distribution of credit score

35% of your score is made up of your payment history
30% of your score is credit utilization
15% of your score is your credit history
10% of your score is made up of the types of credit you use
10% of your score is your new credit application

When you apply for credit cards you get hit with a claim, which falls in the category of new credit applications. You will be temporarily Teeth 2.3 points on your credit score, even if it is within two years.

Meanwhile almost all other components of your credit score may increase due to the application for a credit card, which means that your credit score can actually go after the use of multiple cards.

As long as you keep your use of low credit and make payments on time, you should not see a negative impact on your credit score to apply for short.

If you have not recently done, you'll want to look at a copy of your free annual credit report and check for inaccuracies.

To determine your credit score, my best suggestion is to use a free service like Sesame credit. There are many others as well, and it does not matter which one you use. You can also opt for a professional credit monitoring service, but I've never really found if necessary - free service should work perfectly.

You must provide your social security and will receive a report with credit scores, credit use and debt to income ratio.

If your credit score is above 720 or more, you should not have trouble getting approved for a credit card that we will discuss.

My credit is much better now than it was before I started applying many credit cards, and I ask for a dozen years.

A dozen a year?!? You can not expect everyone to do!

No, I do not do it.

And I do not think anyone stealing hundreds of thousands of miles a year in international business and first class, wonderful though it may be.

For most, a credit card handle is sufficient to have a significant impact on how they travel, or how often they can afford to travel.

But I want to show you what is possible, and when it comes to miles and points are possible with almost everything.