How to Travel for (Almost) Free Without Wrecking Your Credit
If you’ve ever thought about getting a travel credit card but stopped yourself because you were worried about your credit score—this post is for you. There’s a lot of misinformation and misbelief floating around about how travel credit cards impact your credit score, and if you’re just starting out with points and miles, it can be a little intimidating. Will opening a new card hurt your score? Does carrying multiple cards make you look irresponsible? Are travel credit cards only for people with perfect credit?
Let’s break it all down and separate fact from fiction. Because I promise you, if you’re financially responsible, your credit card can do a heck of a lot more for you than your debit card can.
Spoiler alert: travel credit cards can actually help your credit score in the long run, but only if you use them the right way.
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Also, please note – The content of this post is for informational and educational purposes only and reflects my personal experiences and opinions. I am not a financial advisor, and this content does not constitute financial, legal, or professional advice. Always do your own research and consult with a certified financial advisor before making any financial decisions.
Myth #1: “Opening a Travel Credit Card Will Wreck Your Credit Score”
Truth: Applying for a new credit card can cause a small, temporary dip in your credit score, but it’s not the catastrophe it’s made out to be.
When you apply for a credit card, the issuer performs a hard inquiry (aka a hard pull) on your credit report. This might lower your score by a few points, typically no more than 5–10, and the effect fades within a few months, sometimes even weeks. For most people with decent credit, it’s barely noticeable.
And if you’re using the card responsibly—paying your bills on time and keeping your balance low—your score will actually go up over time. More on that below.
Myth #2: “Having Multiple Travel Credit Cards Makes You Look Risky”
Truth: This one sounds logical, but it’s not how credit scoring models work.
In fact, having more cards can improve your credit score because it boosts something called your credit utilization ratio—one of the biggest factors in your score. This ratio compares how much credit you’re using to how much credit you have available. The lower the ratio, the better.
For easy math, let’s say you only have one card with a $1,000 limit and you spend $300 on it—that’s 30% utilization. But if you have two cards with $1,000 limits each and still only spend $300 total, your utilization drops to 15%. That can give your score a nice bump.
As long as you’re not maxing out your cards or missing payments, having multiple accounts is not a red flag. In fact, responsible use of several cards can paint a picture of strong credit management.
One caveat here…
The timing of when you’re opening cards is also something to keep in mind. It’s generally not recommended to open new credit cards right before applying for a major loan like a mortgage or auto loan. Lenders will view recent hard inquiries or new accounts as a sign of financial instability, even if that’s not the case. This doesn’t mean you can’t open new cards, it just means you should be strategic. If you have excellent credit and a solid history, one new card likely won’t hurt you. However, it’s still smart to pause new applications in the few months leading up to a big financial move.
We recently purchased a used pickup truck when we traded our motorhome in for a travel trailer. We financed the truck. As I was shopping around for auto loan rates, only one bank questioned why I had recently opened a new credit card. Because my credit score is excellent, I simply responded that it was to leverage the perks and benefits of the card. And that was that, I was still pre-approved for the loan!
Myth #3: “It’s Dangerous to Keep Travel Credit Cards Open Long-Term”
Truth: Your length of credit history also plays a role in your credit score—so keeping older cards open can actually help you.
Even if you’re not using a travel card regularly anymore (maybe the perks don’t align with your current travel goals), it can be a smart move to keep it open with a small monthly charge on autopay. Just make sure there’s no high annual fee you’re not getting value from.
If a card does have a hefty annual fee and you’re not using the benefits, see if the issuer offers a no-fee downgrade option. This lets you preserve your account history—and your credit score—without paying for a card you’re not using. Don’t waste your money on annual fees if they don’t serve you!
Myth #4: “You Have to Carry a Balance to Build Credit”
Truth: This one needs to die already.
You do not need to carry a balance or pay interest to build credit. In fact, you absolutely shouldn’t. Carrying a balance means you’re paying interest—and with travel credit cards, those rates are typically high. Paying any interest negates the potential savings on travel you might get by holding these cards.
So if you’re currently in credit card debt, or struggling to pay your bills, unfortunately the travel hacking game might not be for you (yet)! (Read more on whether the travel hacking game might be right for you.)
All you need to do to build credit is:
- Use the card for regular purchases you can afford or would have made anyways
- Pay your bill in full and on time every month
That’s it. You’ll build payment history (which accounts for 35% of your score!) and demonstrate that you can manage credit responsibly. There’s zero benefit to paying interest unnecessarily.
One strategy that works well for me is having a dedicated 1-2 days per month. I call this ‘Finance Day.’ In reality, it’s just an hour while I have my morning coffee. But I go through all my credit card transactions and pay off the balances. It helps me keep tabs on spending, flag potential fraud, and keep balances at or near zero.
Myth #5: “Travel Credit Cards Are Only for People With Perfect Credit”
Truth: While many of the premium travel credit cards do require a good to excellent credit score, there are still solid options out there if you’re building or rebuilding your score.
Some travel cards are more accessible than others. You can start with a beginner-friendly card (like the Chase Sapphire Preferred or the Capital One Venture), and work your way up to premium cards once your score improves.
If you’re not sure where your credit stands, check your score with a free tool (like Credit Karma) or through your bank before applying. Because if you have good credit, you might be missing out on a ton of benefits from ignoring points and miles.
And if you’re new to all this, check out Everything Beginners Need to Know About Points and Miles for a foundation on points and miles before diving in.
So… Are Travel Credit Cards Bad for Your Credit?
In a word? Nope.
Travel credit cards can be a powerful tool, not just for earning nearly free travel, but also for building long-term financial health.
The key is using them strategically:
- Only apply for cards you actually need or have a plan to use
- Keep your utilization low (below 30%, ideally under 10%)
- Always pay your bill on time and in full
- Don’t open a bunch of cards all at once (or before applying for a major loan)
If you follow those basic principles, travel credit cards won’t hurt your credit score—they’ll likely help it.
Want to Learn More?
If you’re still weighing whether this whole travel hacking thing is worth it, check out:
- Why You Should Use Points and Miles – for how everyday travelers like you can make it work
- The Real-Life Pros and Cons of Travel Hacking – for an honest look at both the rewards and the effort involved
And if you’re ready to take the next step, I’ve got a consultation service to help you pick the right card, understand award searches, and get more out of your PTO, all while keeping your credit score strong.
Final Thoughts
There are a lot of myths out there about travel credit cards and their effect on credit scores, but when you look at the facts, it becomes clear that the risks are manageable, and the rewards are worth it. Like most things in personal finance, it all comes down to using the tools wisely.
