Free Travel Genie

The Best Offers are only available to people with good or excellent credit ratings, so start from a wise credit place and work hard to stay there. 

 

• Maintain a number of open accounts. Having a high number of credit cards will not hurt and may actually improve your credit rating. The higher the number of open accounts, the higher your credit rating based on that portion of the score if balances are low, because it shows you have a history of using credit responsibly. Having 21+ open accounts will help you reach your most favorable credit score according to CreditKarma.com.

  • Tip: Keep accounts open if no annual fee applies and bonus rewards are low or for first-time customers only.

 

• Keep balances low. While having a lot of credit improves your score, using a lot of credit will hurt it. Keep account balances paid off or paid down. Using 30% or more of your available credit in total or on a single account will hurt your credit score.

  • Tip: If you need to carry a balance, spread it out between several credit cards that offer promotional 0% APR and pay off or refinance the balance at a low rate before the promotional rate ends.

 

• Always make payments on time. Make every minimum payment on time and pay off balances each month if possible. The percent of your available credit that you are using, your payment history and any derogatory remarks on your credit history have the biggest impact on your credit rating.

  • Tip: When you activate a new credit card, set up online account access and autopayment to avoid late fees and interest and minimize account management time.

 

• Use credit responsibly. Do not charge more than you can afford and do not spend more than you otherwise would just to earn free travel, otherwise "free" becomes another word for "very expensive."

 

• Prioritize new credit. Things like a mortgage will have a greater impact on your life than this year's vacation, and even a fraction of a percent higher mortgage interest rate over 30 years will pay for a free vacation many times over. Diligently manage and monitor your credit score always, and especially in the months leading up to a new mortgage or refinance. Avoid opening new credit card accounts within three months of a new mortgage or refinance because new credit may count against you even if your credit score is high. Mortgage lenders also look beyond your credit score and weight different circumstances differently, so it is helpful to consult with a broker with the lender you are interested in for guidance on how to better manage your credit to get the best mortgage rates when you are ready to apply. With some lenders, opening new accounts may improve your mortgage score for the same reasons it improves your credit score, while other lenders may downgrade your application based on available credit.  

 

• Keep accounts open when possible. The longer your credit history, the higher your score. Credit history is calculated based on the average length of time accounts have been open. Even if an acount is inactive, it will be factored into your credit history if it remains open.

  • Tip: Do not close an account unless there is an annual fee or other cost to maintain the account or you want an opportunity to reopen in 24+ months for additional bonus rewards. Note many offers are for first-time customers only and do not apply to returning customers.

 

• ​Stay focused. Make a habit of using the credit card you are 'working on' for anything and everything that you would othewise pay with cash, check, debit card, or another low- or no-bonus account.

  • Tip: ​Most of us spend 30% or more of our monthly income on goods and services that may be "run through" a credit card first. Always ask if a payee accepts credit card payments; you might be surprised at the response. Even landlords are starting to accept credit cards for rent payments for no additional fee. 

  • Tip: If the payee offers a cash discount or charges a credit card fee, consider the cost: a 2.5% fee ($25) to charge a $1,000 property tax bill and earn enough points for a free airline ticket may make sense, but a 5% fee ($250) to charge a $5,000 medical bill does not add up no matter how many bonus points you may receive. 

 

• Monitor your credit score. Barclaycard and Discover® Card each provide your FICO score monthly as an additional free card benefit. CreditKarma.com also provides helpful credit information and tools at no cost. 

 

• Ask for help. No matter what your credit skills or financial situation, there is always room for improvement. Please contact a credit counseling professional or financial services provider for personal assistance.

 

 

Travel free. Live happy.