Travel Hacking FAQs & Myths

Here are the most common questions and myths I receive whenever I discuss about travel hacking.

Myth: Applying for too many credit cards is bad for your credit.

Initially, once you apply a “hard inquiry” for a credit card your FICO score will temporarily drop by a couple points. However, if you pay your bills on time and do not carry any balance every month. Then your credit score will eventually increase back to where it initially was or possibly higher.  There are a total of 5 factors that calculates your credit score and one of these factors is actually having new credit (worth 10% of your score). By applying for more credit you’re increasing your credit history and reducing your  debt-to-credit ratio.

I currently own over 15 credit cards and have been in this hobby for over a year. I always pay down my balances to $0 and never keep a balance owed on any of these cards when the statement closes. A tip for those that are considering getting into this hobby is that you should never pay any interest. This defeats the purpose of travel hacking because those interest costs will slowly offset your savings. In September 2014 my score was 765 and in August 2015 (12 credit cards later) my score is now 769. It goes to show that i’m still within the “excellent” range of credit score.

Credit Score as of Sept. 2014

Jon Jovi’s Credit Score as of Sept. 2014

FICO Score Sept 2015

Jon Jovi’s Credit Score as of Aug. 2015

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