Before Blogger Hubby and I made our last BIG trip – the kind of trip where you go to a different hemisphere AND below the equator – we knew that because of the length of the flight we did not want to travel in coach. I wanted to us to fly in Business Class or First Class. To fly this way, for us, is cost prohibitive. We had decided years ago (yes, it has been on my bucket list this long) to use frequent flier miles and had been religiously saving them since 2006 through our United Airline Visa credit card. This was a trip that probably wouldn’t be repeated and I wanted to do it in comfort and be well rested so I could hit the pavement when we landed in Sydney, Australia.
Below are the Three Main Rules when signing up for credit cards:
2) Always pay your credit card bills in full each month
3) Do not plan on purchasing a home or having a large expense within the next two year if you plan on opening more than a couple of credit cards
When you open a new credit card your credit score will take a dip, generally about 3-5 points per card but it will come up quickly, more quickly than you think. In fact, many hard core credit card churners apply for 3-4 new cards every 91 days and then close these cards within 8-11 months so they won’t have to pay the credit card fee which is generally waived the first year.
Having many credit cards does not hurt your score as long as you pay off your cards in full every month on time. Your new credit is only about 5% of your total credit score. I have opened ten new cards this year and my score is still in the Excellent range. After two years these credit card hard “pulls” on your credit history drop off. Through my credit card sign ups and after using miles to fly Business Class to Australia, New Zealand and Singapore, using points for our hotel stays in Sydney (4 nights), Auckland (1 night) and Singapore (4 nights) as well as using miles to book summer flights for Blogger Hubby I still have over 1.1 million miles. In future posts I’ll show you how to get more than one mile per dollar spent as well as manufactured spending.
Are you interested in how much money we paid for our flights? We flew First Class from Washington Dulles to San Francisco on United, Business Class on Asiana Airline to Seoul, Business Class again on Asiana to Sydney, Auckland to Bribane on Air New Zealand in Business Class, Brisbane to Singapore on Singapore Air in Business Class, Singapore to Beijing in economy on Singapore Air and finally Beijing to Washington Dulles in Business Class on United. When flying Business Class have a separate line going through security, separate boarding, able to use the airline lounges for food, drink, showers and many more perks. We paid a total of $110 each for taxes.
When I sit and think of all the miles and points that I have, I am reminded of this book: