Fly For Free Using Credit

For just about anything you want to get off your chest about credit cards.
5 posts
bmw1990Z
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Fly For Free Using Credit

Postby bmw1990Z » Thu Jul 05, 2012 12:07 pm

I saw this on MSN this morning.
A little-known way to fly for free - budget travel - MSN Money

How to fly for free using credit. I wanted your thoughts on this article, which says credit card "churning" (using airline cards, canceling after a year and re-opening) can be good for your credit. Wouldn't this negativley affect your credit score because you are opening and closing several accounts?
Cards in my wallet:
-Citi Forward Card for College Students-July 2011
-American Express Platinum Delta Skymiles--July 2013


agp
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Postby agp » Thu Jul 05, 2012 3:10 pm

In the short term it will lower your credit due to new card (low average age) and inquiries, but in the long run it does no harm. However, if you plan on doing this, do your homework before hand. It's not as simple as get credit card, spend money, spend miles.

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

bmw1990Z
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Postby bmw1990Z » Thu Jul 05, 2012 5:06 pm

how so? I know some offers have limits in terms of who can apply, if that is what you mean.
Cards in my wallet:

-Citi Forward Card for College Students-July 2011

-American Express Platinum Delta Skymiles--July 2013

agp
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Postby agp » Thu Jul 05, 2012 8:46 pm

Because in the long run your closed credit cards will get knocked off the credit report if you calculate AAOA as open accounts only. And if you calculate AAOA as open and closed accounts, your AAOA will increase with time even though you close your churn cards. And as long as you have a few cards that you actually keep open and use, your AAOA won't be significantly affected.

This is no way to explain this clearly using English without numbers.

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

bmw1990Z
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Posts: 341
Joined: Sun Mar 18, 2012 10:08 am
Location: USA

Postby bmw1990Z » Thu Jul 05, 2012 9:11 pm

good to know
Cards in my wallet:

-Citi Forward Card for College Students-July 2011

-American Express Platinum Delta Skymiles--July 2013



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