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How to Maximize Credit Card Miles Without Ruining Your Credit Score

How to Maximize Credit Card Miles Without Ruining Your Credit Score

Credit card perks can be very lucrative. Apply for one or two good cards and you could be enjoying free flights, free hotels stays, and more.

In fact, the perks can be so good that some people apply for a handful of new cards at one time, just to maximize the points and rack up hundreds of thousands of frequent flyer miles.

If you’re like me, your first response is probably, “Uhh, that’s great, but won’t that ruin my credit score?”

As it turns out, there are two simple things that, if you do them, will allow you to maximize your credit card perks without ruining your credit score.

What are those two things? Keep reading and I’ll tell you…

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Step One: The Secret of Credit Card “Churners”

There is a small group of travelers that call themselves, “credit card churners” because they apply for card after card and churn through as many applications as possible.

Then, they spend the minimum amount needed on the credit card to get the frequent flyer mile bonus (for example, $1,000 in 3 months) and move on to the next card. Some people are routinely cycling through 10 cards at once!

This strategy allows them to rack up over 1 million frequent flyer miles per year, but here’s the most surprising part: most of these people have excellent credit scores of 760 or higher.

How do they keep their credit score high?

It’s pretty simple actually: they pay their balance in full each month. It sounds simple, but if you’re a responsible spender and don’t carry debt on your credit cards, then it’s unlikely that a new card (or even 5) will hurt your credit score in the long run.

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Let’s talk about why this is true…

How Your Credit Score Actually Works

Here’s why your credit score is rarely hurt if you get a new card and pay your balance in full each month.

Let’s say you want to try this strategy out and you apply for a new credit card to get some frequent flyer miles. When you apply for a new credit card there is an inquiry on your account. New credit inquiries usually drop your score by a few points, but new inquiries only make up about 10% of your overall credit score, which means the drop is small. This dip is also short term.

As a general rule, if your credit score is above 720, then you’re in good position and have nothing to worry about when it comes to this initial drop.

At the same time, however, your new card will probably help your credit utilization ratio, which is also part of your credit score.

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Here’s an example of how credit utilization ratio works. Let’s say that right now you are spending $3,000 and your total credit limit is $10,000. In this case, your credit utilization ratio is 30% ($3,000/$10,000).

When you apply for a new card, let’s say your overall credit limit increases to $15,000. Your credit utilization ratio drops to 20% ($3,000/$15,000). A lower credit utilization ratio helps your credit score because it shows that you are responsible and that you are more likely to stay within your spending limits.

Remember, your spending habits should stay about the same because you’re only getting the new card so that you can reach the minimum spending limit to get the frequent flyer miles and then you’re filing it away or cancelling it a few months later.

For this reason, many credit card churners actually see their score increase over time. Some of them have more than a dozen cards and still maintain credit scores above 780.

Step Two: Where to Find the Best Deals

If you want to maximize your credit card perks, then staying up to date on the latest deals is critical. Credit card companies change their bonuses, launch new cards, and remove old ones on a continual basis.

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If you’re looking for a simple way to keep track of the best deals going on right now, then The Credit Card Fly is a great place to start. It’s a free email newsletter that sends you a short weekly update of the best credit card deals for earning frequent flyer miles, free hotel stays, and rewards points.

You can also find deals and information on frequent flyer mile credit cards online at a wide range of personal blogs, forums, and websites.

Get Started Now

Now it’s just a matter of applying for a few good cards and watching the points roll in.

Remember, make sure to pay your balance in full each month and stay up to date on the best deals, and you’ll be well positioned to maximize your credit card perks.

You’ll be flying for free in no time.

(Photo credit: Business Figure and Credit Card via Shutterstock)

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Last Updated on August 15, 2018

30 Fun Things You Can Do This Summer Without Spending Much

30 Fun Things You Can Do This Summer Without Spending Much

Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

Video Summary

1. Visit a strawberry festival

Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

2. Have a picnic

Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

3. Camp in your back yard

    The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

    4. Take long walks

    Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

    5. Break a world record

    Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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    6. Go on a bike ride

    The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

    7. Join a gym class

      The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

      8. Find a new hobby

      The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

      9. Join a sports team

      Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

      10. Make a slip ‘n slide

        Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

        11. Make a treasure hunt for your kids

        Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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        12. Visit a free festival

        Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

        13. Visit the zoo

          Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

          14. Take a road trip

          Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

          15. Play ultimate frisbee in the park

            Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

            16. Make your own ice cream

            Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

            17. Invite your neighbors over for a BBQ

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              When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

              18. Get a summer job

              For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

              19. Attend a charity event

              Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

              20. Visit a national park

              National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

              21. Visit your local comedy club

                Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                22. Make your own hammock

                  Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                  23. Read in your new hammock

                  Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                  24. Watch a movie outside

                  Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                  25. Take a hike

                    Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                    26. Learn how to fly a kite

                    As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                    27. Work out at the park

                    American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                    28. Take your dog to the beach

                      One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                      29. Make a summer smoothie

                      Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                      30. Attend a free yoga session at the beach

                      No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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