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is SO a myth and I wanted to address this since this question keeps coming up from Leen On Travel viewers. SO thanks for asking and bringing this up!
Since travel hacking, my credit score HAS gotten higher and that is the norm for us travel hackers!
Previously it was 780, now it is 805.
It has to do with the FICO ratios and the increased amount of credit available to me.
What it does affect is the Length of Credit History as opening new accounts regularly keeps that number low.
This part of my credit score does say “Poor”, but I STILL have an 800+ credit score!
This part of your FICO score only makes up 15% of your total score. So regularly opening cards doesn’t affect it much at all in the grand scheme of things.
Credit utilization makes up 30% of your score. When travel hacking, you lower your credit utilization because you have a lot more available credit.
Payment history makes up 35% of your score. And we kill it in this department because we Do Not carry debt. We pay off our credit card balance every month!
If working on a SUB and I utilize more than 10% of my available credit, my score Does temporarily drop, but within 1-2 months it completely rebounds.
I hope this helps you better understand how feasible travel hacking.
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