Asset Planning, Inc Blog
CREDIT CARDS OFFERING MILES AND POINTS
It is very easy to want to sign up for credit cards that offer miles and points for purchases you make, especially with sign-up bonuses offering 50,000 miles or points when you apply and receive the credit card. Yet, you should take into consideration how this might impact your credit score.
You should think twice on getting these kinds of credit cards if:
1. Interest rates on these are especially high.
2. You shouldn't apply for them unless you know you can definitely pay off the entire balance each month
3. You are having trouble budgeting or you can't resist making unnecessary purchases just for the sake of increasing your points or miles.
4. You have a score lower than 700
5. Don't apply for these kinds of credits cards if you seek to increase your credit score, especially if you are thinking of taking out a home loan in the near future.
In the short-term your score could decrease; however if you are strict with yourself, make considerable purchases and pay your balance off in full each month, then the score will increase and also you will be able to redeem points and miles.
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