Credit Cards and miles

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Happy New Year!!

After a long hiatus I’m back at it. I still can’t believe it’s 2015 already however I should have expected it. Everyone knows that time flies when you’re having fun and 2014 was no exception. I did a number of trips and got to spend over a month in the beautiful country of Australia. I’ll share my trip and some pictures in an upcoming post.

I don’t have many trips lined up for this year yet but to be honest I never do by January. I’m what you call, a last-minute planner. I’m writing this while waiting to board my flight headed to Las Vegas and this was only booked less than 2 weeks ago, for a grand total of $11.20 + miles.

Obviously the only way to easily get a flight this cheap is to use points, or airline miles. I’ve already shown some ways to do that by doing what you’re already doing, such as going to dinner but registering for dining rewards, or shopping as you normally would but using a shopping portal first.

The biggest and easiest way to earn miles towards a free flight is to use a credit card. Using a credit card that rewards you with points for your everyday purchases is the absolute easiest way towards getting away on your next vacation.

I’ve had a number of airline cards for at least the past 10 years. I’ve switched from one airline to another in search for free flights. I try to do all my every day spending on my credit card. All my friends can tell you that because once I open my wallet I’m usually pulling out a card.

The first post I wrote was to get your credit in check. Check your credit reports and make sure they’re correct. You get one for free from each credit bureau each year so be sure to utilize them. It won’t provide a credit score and instead of paying for one you can get a fairly accurate estimate by using creditkarma.com. You’ll only be able to apply for any card you want if you have good credit, otherwise you’ll be limited to your available offers. Also make sure that you are saving for what really matters for you, a house, that wedding ring, your children’s schooling. Make sure that you prioritize your spending. You may not want to be saving for a trip if your house is falling apart.

Links I use for keeping my credit in check:

You may be worried about opening a new credit card. And without a doubt you should be. I take my credit very seriously and am proud to have A+ credit. I plan on sharing the most credible information but as with anything else, research this yourself or check with your financial advisor.

Credit cards aren’t bad – if you know how to use them. The truth is if you have good credit and a lengthy credit history you will be able to apply for a new credit card with it hardly affecting your credit score. You will be dinged 1-2 points for the new application but it should bounce back with the new line of credit on the card.

The problem for most people is that they don’t know how to manage their money wisely. Many people get out of control with their credit card spending. This is where spending exceeds income and people go into debt.

I will NOT recommend opening a new card if you are looking to apply for a mortgage within the next two years. It will show up on your credit report and may look bad when they review your application.

Not all cards are the same and I only apply for ones that interest me. Don’t think about applying for a store charge card, such as Macy’s or anything else. Personally I feel those are a sham and just try to collect your shopping habits (more so than other credit cards) and try to entice you to keep coming back to the store so you frivolously spend more money than you would while only getting 10% off which you could probably do with a coupon.

I’m talking about a Visa, MasterCard, or American Express card that you can use in any store and any country. Cards that give you points for every dollar you spend yet also reward you extra points for dining out or filling up your gas tank. Instead of paying for things with cash or check, use your card to pay off that meal you ordered, your car insurance, your cell phone bill, groceries, taxi, and anything else. If there’s an option to pay by card and they don’t charge me a surcharge for using it, it’s going on it.

Overseas, paying with credit isn’t as popular as it is in the US. Companies, especially taxi companies try to ding you with a 10% surcharge or fee for using your credit card. In that case it’s not worth it to me and I’ll just pay with cash. Companies get charged for processing credit card payments and usually if it’s up to 3% I’ll go with it. Anything higher and I’m weighing how many points I get out of the deal. 10% no way. Remember, the points/miles game is not for everyone. There is only one thing better than getting extra points for your spending, and that is not spending any money at all.

The key to winning this game is to always remember that you should never buy anything that you wouldn’t have bought in the first place.

There are many credit cards out there and I will be happy to recommend any, especially if I have already had them or plan on soon. Look for ones with huge sign up bonuses or travel perks, like a free checked bag or lounge access if any of that interests you. This year alone I’ve applied for 4 credit cards and that’s considered pretty tame in the travel hacking community. I was able to stay in a beautiful hotel that was $1000/night for free. And my credit score actually increased from January of last year to this year. If you’re unsure of which one to apply for don’t worry, I’ll be sharing what’s in my wallet (and it’s not a Capital One) in my next post. Until then check your credit reports and get everything settled. It’s going to be an exciting year!

Questions, comments, typos? Let me know

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