The Real Reason I Collect Miles and Points

My sister and daughter at Herald Sqaure in NYC
My daughter and sister at Herald Sqaure in NYC

My sister lives in Helena, Montana (HLN) the capital of the Big Sky State.  The population of Helena is less than 30,000 people.

The airport there is really tiny.  Long-term parking is $15 per week; you leave your payment in the drop box when you exit.

There are only about six flights per day out of HLN.  The flights are not only scarce, they are also expensive.

My sister wanted to come east for our Mom’s 90th birthday and our Uncle’s 95th, so I offered to buy her a ticket.

Well there was no way she was going to let me buy a ticket.

But she would allow me to pay for her ticket with frequent flyer miles — miles that I had accrued largely through credit card sign-up bonuses.

That’s the reason I collect miles and points!

Extreme Travel Hacking for the Sandwich Generation

When I attended my first frequent flyer meet-up a few years ago, one of the old timers informed me that frequent flier miles should not be used for domestic flights.  Excuse me?

I was told that I could get a much higher value if I redeemed points for international first class travel.

Over the past several years, I have redeemed hundreds of thousands of miles for flights — and all of these flights were economy class domestic travel.

Most people think of family travel as traveling with children.  Our family travel is traveling to see family, or flying family members in for a visit.  To me, that is maximizing the value of frequent flyer miles!

I don’t care whether I have to spend 25,000 miles or 50,000 miles for a roundtrip ticket.  The “point” is that we use the miles to get where we need to go.  

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eStandby Upgrade Options at the Radisson Martinique on Broadway

Original Mosaic Floor in Lobby of the Radisson Martinique
Original Mosaic Floor in Lobby of the Radisson Martinique

We recently spent a delightful weekend at the Radisson Martinique on Broadway in New York City.

This hotel is part of the Club Carlson chain, and I was lucky enough to secure a two-night stay for 50,000 points with their “second night free” option for Club Carlson credit card holders.

I earned the points as a bonus when I opened the Club Carlson credit card, and paid the annual fee of $60 for the business card.  Thus technically speaking, two free nights cost me $60.

Are the eStandby Upgrades Worth It?

When I booked my stay online, I was offered the option of several eStandby upgrades.

  1. High Floor:  Enjoy your stay about the streets of NYC, $30 extra per night ($40 value);
  2. Martinque Club Level – 1 King bed, includes a complimentary breakfast and access to the Executive lounge, $0 extra per night ($75 value); or
  3. Executive Suite – 1 King bed, separate living room area with sofa bed, complementary buffet breakfast and access to the Executive lounge, $69 Extra per night ($100 value.)

The deal is that you find out at check-in if you are awarded any of the add-on offers, and if so, you are obligated to pay the up charge.

I chose option 2, which had no added cost.  I didn’t particularly care about being on the Club Level, because I had heard they didn’t serve refreshments there like at many other hotels, but the notion of free breakfast seemed worth a try.

Free Breakfast Vouchers at the Hotel Martinque in NYC

Ad things turned out, I was not offered the upgrade when checking-in.  But I had a back-up option:  the Radisson Martinque App!  The iPhone app contains a coupon that you can redeem for a free breakfast buffet.

I was surprised when the front desk clerk provided vouchers for the full breakfast buffet for two mornings.  I was traveling with my sister and my daughter, so we received 6 free breakfast vouchers in total.  The regular price of the breakfast buffet is $29.95 per person.

Because I had Gold status (a perk of holding the Club Carlson credit card) I received a welcome gift of a small box of Belgian chocolates.

The breakfast buffet offered lots of choices, including fresh fruit, tomatoes and cucumbers, cheese, bacon, omelets, home fries, french toast, pastries, cereals, juice and coffee.  It wasn’t the best breakfast buffet I’ve ever seen — I certainly wouldn’t pay $30 for it — but it offered a nice selection, and it enabled us to get an early start on our day.

What I Loved About the Martinque on Broadway

  • 1.5 block walk from Penn Station
  • Clean, comfortable rooms, and fairly large for NYC
  • Free wifi
  • Literally on top of the Subway station and an easy walk to midtown or SoHo
  • A park across the street
  • Belgian chocolates on your pillow at night
  • In Korea town, across the street from Macy’s, and near many cheap jewelry stores
  • Beautifully preserved historic hotel with gorgeous mosaics in the lobby and a 15-story marble spiral staircase
  • International clientele including many airline personnel
  • Genuinely friendly staff and good service
  • Free bottled water in your room and a Keurig coffeemaker

What I Didn’t Like

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15 is My Limit on Schnitzengruben, ahem, Rewards Credit Cards

Fifteen is my Limit
Fifteen is my limit . . .

I love to read those silly What’s in My Wallet blog posts.  I guess it’s because before I got into points and miles, I would not have believed that you could open an insane number of rewards credit cards without ruining your credit.

It does raise some questions, though:

  • How could the banks keep extending you credit?
  • How many times can you earn big bonuses?
  • How do you remember which card to use for which purchases?
  • How could you possibly keep track of all those credit cards without missing a payment?

15 is My Limit on Schnitzengruben, I mean Credit Cards

I recently counted 14 credit cards in my wallet from five different banks.  That is crazy!  I don’t recommend that for anyone.

Miss a single payment and you will be socked with a $35 fee and a major ding to your credit score.

With fourteen active credit card accounts, it is taking too much of my time to track expenses and pay the bills.  Let’s face it; my office is cluttered and my wallet barely closes.

I am looking to thin out my collection.

Rewards Credit Cards Aren’t for Everyone

Travel rewards credit cards aren’t for everybody.

First off, you need to have a stellar credit score to be eligible for the best offers.

Most people prefer to carry only one or two cards, to simplify things and minimize the hassle.  There is merit to this approach, particularly if you are disorganized and don’t keep current with paying your bills.

A perfectly reasonable strategy is to earn free travel is to focus on one airline or one type of flexible rewards such as Chase Ultimate Rewards points or cash back travel cards like the Capitol One Venture Card, or the Barclaycard Arrival Plus™ World Elite MasterCard®.

But if you have a credit score in the excellent range, and you pay your bills on time and in full every month, rewards credit cards can be incredibly lucrative.

Once you have experienced the large bonus offers for opening a new credit card, which can be worth $500 or more, it is easy to get sucked into to opening more and more accounts to earn free travel.

Know Your Credit Score

FICO credit score
Barclay’s Offers Free Access to Your Transunion Credit Score

From personal experience, I have watched my credit score progressively improve the further along I got in this game.  Barclay’s bank offers its credit card customers free access to their official FICO credit score once every three months.

My most recent FICO score is 837, with 14 open accounts, and five additional credit card accounts that I have closed in the past year or so.

That is because my credit line has increased dramatically with all these cards, and my monthly spending is just a small fraction of the available credit.

The banks appear willing to extend me credit well beyond my annual income.  Be careful.  Like with the mortgage crisis, a lot of people get in debt over their heads from credit cards and can’t make the payments, or end up paying exorbitant amounts of interest, at rate as high as 28 percent annually.

This much is clear:  the banks are making plenty of money, but probably not from people like me.

Starting Out with Rewards Credit Cards:  The Chase Freedom Card

When I started my environmental consulting business 15 years ago, I opened the Chase Freedom credit card in order to keep my business expenses separate from my personal expenses.  Chase Freedom is a personal, not a business credit card but I was using it for business purposes.  It carries no annual fee, and earns 5x rewards on select categories of spending.  This is a card that I would highly recommend for someone just starting out.  The points can be taken as cash back on your next statement, or used as Ultimate Rewards Points.  Ultimate Rewards Points are quite flexible and can be transferred to many airline and hotel loyalty programs but you need to have one of the premium credit cards from Chase to enable transfers.

If you are just starting out with travel hacking, the Chase Freedom card is a great place to begin because you can earn cash back or travel rewards, depending on your needs.  Because the card has no annual fee, you can keep it forever, thus increasing the length of your credit history over time.   This card earns 1x points on all purchases, and 5x points on select categories, that vary each quarter on up to $1500 of purchases per quarter.  Generally, the 5x points is good for gas purchases for six months of the year.  This spring, the card offered 5x points on restaurants, and sometimes you can get 5x points on Amazon.com, Lowes, or Kohls.

Right now, Chase is offering a $100 bonus for new applications, but I have seen this bonus go as high as $200 after spending $500 on initial purchases within three months.  From time to time there is an extra $25 incentive for adding an authorized user to your account.  There are cards with bigger bonuses but they usually entail annual fees and larger initial spending requirements.

Pick a Card, Any Card!

Whenever I show anyone what credit cards are in my real wallet, they look at me like I am crazy.  I often get looks as I fumble through my wallet looking for the card that earns bonus points at this store or that.

Because I run a small business, I am eligible to apply for business credit cards.  This allow me to “double dip” on account bonuses.  I travel for both business and personal reasons and must keep my expenses separate for tax purposes.  I caution you that business cards can only be used for genuine business expenses and they lack some of the consumer protections of personal credit cards.

What’s in My Wallet?

Here’s a quick rundown of what is in my wallet and why, and which cards are candidates for culling.

Chase Rewards Credit Cards

Quicken Rewards, personal  (authorized user):  The credit card I’ve had the longest is the Quicken Card issued by Chase Bank.  We opened this card over 15 years ago because at the time, it was the one of the few cards that allowed you to download your statements into the Quicken personal accounting software.  The Quicken Rewards card pays cash back rewards and carries no annual fee.  This cash back card pays 2x drugstores, restaurants, and office supply stores, and 1x points on other purchases.  Redemptions for airline tickets can be worth up to 1.25 cents per point, but only if you redeem at the top of a price bracket, e.g. a $500 ticket for 40,000 points.  This is a keeper.

Freedom, personal:  I love the Chase Freedom card because I can earn 5x points on practical things like gas and restaurants and there is no annual fee.  It is a keeper because it pads my Ultimate Rewards point balance, and contributes to the length of my credit history, which is a factor that improves my credit score.

Ink Plus, business:  The Chase Ink Plus is my primary business credit card.  When I opened the card, I earned 50K Ultimate Rewards points after spending $5,000 in 3 months.  This card pays 5x points at office supply stores and on telecommunications and 2 points on gas stations and hotels.  The points easily transfer to Amtrak, Southwest Airlines, and United — three of my preferred carriers.  Chase offered me a fabulous retention offer which I declined, but I plan to keep the card open.

Ink Bold, business:  This is a charge card, not a credit card.  The differences is that balances must be paid off every month.  I opened this card for my blog business in June 2014 when there was a special bonus offer of 60,000 Ultimate Rewards points after spending $5,000 in three months.  This card has a $95 annual fee which is waived the first year.  This card has the same bonus categories as the Ink Plus.  The usual bonus is 50K points.

Southwest Rapid Rewards, business:  I opened the Southwest Rapid Rewards card for the 50,000 mile bonus.  That is an offer that rolls around every couple of months. Southwest claims that you can get two roundtrip flights for 50K miles, and that has been my experience.  The Southwest Rapid Rewards card has a $69 annual fee that is not waived the first year.  You get 3,000 bonus miles every subsequent year.  Last year, I was offered an additional 3,000 points as a retention bonus, and this year I received this offer again!  I highly recommend the Southwest Rapid Rewards card for budget domestic travelers because of the excellent availability of award tickets on Southwest Airlines.

United Mileage Plus Explorer, personal (authorized user):  This is my husband’s card.  He opened it because there was a targeted offer for 50,000 miles.  The card carries an annual fee of $95 which is waived the first year.  When the fee came due, he was offered a retention bonus of 15,000 miles which offset the annual fee, and then some.

Barclays Reward Credit Cards

Barclaycard Arrival™ World MasterCard®, personal:  I have the no annual fee version of the Barclaycard Arrival.  I opened it because of a targeted offer for 40,000 bonus miles and the ongoing benefits including 2x points on restaurant and travel spending.  You get a ten percent rebate on your travel redemptions, so this card effectively pays 2.2 percent cash back.  I love the access to my free credit score and the free TripIt Pro subscription.  The card now pays a bonus of 20,000 miles for new applicants.  This is another keeper.

The US Airways® Premier World MasterCard®, personal:  I opened this card because it offered me 35,000 miles after making a single purchase.  There is an $89 annual fee which is waived the first year.  My version of the card awarded 10,000 bonus miles on your anniversary.  It has a number of additional benefits such as one free checked bag for up to four family members, a free lounge pass, and 5,000 fewer miles needed for reward tickets.  With this card, you can get 2 companion passes for $99 each, but there are  lots of strings attached.  I just received the 10,000 mile annual bonus.  I called to cancel the card because I did not want to pay the annual fee.  This card currently pays a 40,000 mile bonus after the first purchase, but does not offer the annual 10,000 bonus points.  It has an $89 annual fee which is waived the first year.

US Airways Dividend Miles, business:  I opened this card by “accident.”  I had applied for a different version of the US Airways card, but was informed that that it was not possible to have two different personal cards.  I was able to switch my application to this business card, and earn 25,000 Dividend Miles upon the first purchase.  The annual fee of $89 is waived the first year.

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Ann Arbor, Michigan on Miles and Points

Ann Arbor Street Art Fair 2014
Ann Arbor Street Art Fair 2014 Poster

I graduated from the University of Michigan, and haven’t been back to Ann Arbor in years.  The winters there could be pretty harsh, but the summers were beautiful.

When I heard about the Ann Arbor Art Fair Do, I thought it would be a good opportunity to check out my old stomping grounds, see some good friends, take in the art fair, and hang with miles and points enthusiasts.

What is a Do?

When frequent flyers get together for an informal gathering, they call it a “do.”   The Ann Arbor do is a relatively small gathering that features several guest speakers.

Who is Drew?

The guest speakers at the 2014 Ann Arbor Art Fair Do will be Drew who blogs at Travel is Free and his wife Carrie whose blog is Freakin Flyers.  Drew and Carrie have been traveling long-term for practically nothing, and should have a lot of stories to share.  Tahsir Ahsan, aka the Bengali Miles Guru, writes for Hack My Trip and will be speaking on rental cars and how to manufacture points and miles.

The “do” is an annual event organized by a guy who calls himself “Bikeguy” on the Flyertalk forum.  As a relative newcomer to this hobby, I hope to pick up some tips and tricks from the veterans coming from around the Midwest and elsewhere.

What to Do in Ann Arbor

The big event of the week will be the Ann Arbor Art Fair, which is a street fair of juried artists and craftspeople near the campus of the University of Michigan.  The event has grown in recent years to encompass four concurrent art fairs all over town.  There will be entertainment as well as fine arts and crafts.

Robert Own Coop
Robert Owen Coop
Photo by Inter-Cooperative Council

Since this trip is a “reunion” of sorts, I want to visit some of my favorite places on and off campus like the Dana building and the Inter-cooperative Council houses where I lived.  I hear Lenny Bruce coop is long gone, but Robert Owen coop is still going strong.  I also want to stop by Dominick’s Italian cafe, where I waitressed one summer.

I’ll be on the lookout for urban fairy doors in the downtown area, something that I find very intriguing.  I’m looking forward to spending a day with my friends at Pickerel Lake, a small undeveloped lake about 20 miles from Ann Arbor.

Where to Stay in Ann Arbor

This is a miles and points conference and I am using points to get to Michigan.  I have reservations on Southwest, where my nonstop flights price out at 6,500 Rapid Rewards points each way.  Curiously, the nonstop flights on this route require fewer points than tickets involving plane changes.

I earned these points through a combination of flying Southwest, and making purchases on my Chase Southwest credit card.  There is currently a promotion for the card which offers a 50,000 point bonus after spending $2,000 in the first three months, with an annual fee of $69.  The Southwest credit card is an outstanding deal for budget domestic travelers, and award seat availability on Southwest is very good.

The Ann Arbor Art Fair draws several hundred thousand visitors so hotel rooms are at a premium.  I used Starwood Preferred Guest (SPG) points to book a room at the Sheraton Ann Arbor for the points and cash rate of 3,500 points and $55 per night.  This hotel is located several miles from campus in hotel row near the Briarwood mall.  There is an indoor/outdoor swimming pool, and they offer a shuttle for local transportation.

The Palmer House Designed by Frank Lloyd Wright
The Palmer House Designed by Frank Lloyd Wright

By using the points, I am saving about $100 per night.  I earned these points by opening the Amex SPG credit card and making purchases on the card.  Through the end of June, this card has a sign-up bonus of 30,000 points, after spending $5,000 in a six month period.  The annual fee of $65 is waived the first year.  If a friend refers you for the card, they will earn a 5,000 point bounty.  (Let me know if you would like a referral.)  

Frank Lloyd Wright House on VRBO

In looking for a place to stay for the weekend, I came across the Palmer House, a beautifully preserved house designed by Frank Lloyd Wright, complete with all the original Wright furniture.  The house sits on two acres overlooking the University of Michigan Arboretum.

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Frontier Airlines to Link Washington Dulles with 14 Cities; $39 Intro Fares on Tap

Frontier Airlines Credit Card
Jim, Joe, Jay and Gary the Penguins

As a Reston, Virginia local, I was pretty psyched about the news this week that Frontier Airlines will be flying a regular schedule of flights to 14 popular destinations out of Dulles International Airport (IAD) near Washington, DC.

Grab Introductory Fares on Frontier Airlines Now!

Frontier is a low-cost airline and they capped their announcement with a 12 hour sale with fares as low as $15 one way!  I didn’t get in on the sale — I heard the website was pretty overwhelmed — but there is still a chance for introductory fares as low as $39 if you buy your tickets by May 17, 2014. 

Beginning August 19, 2014, Frontier will offer nonstop service to:

Frontier Airlines Credit Card
Foxy the Fox
  • Atlanta
  • Charlotte, NC
  • Orlando, FL
  • Minneapolis/St. Paul
  • Tampa, FL

Beginning September 8, 2014, Frontier will begin nonstop service to:

  • Chicago-O’Hare
  • Cincinnati
  • Detroit
  • Fort Lauderdale, FL
  • Las Vegas
  • Memphis, TN
  • Fort Myers, FL
  • St. Louis
  • St. Augustine/Jacksonville, FL
Frontier Airlines Credit Card
Buddy the Badger

Frontier’s  service from Washington-Dulles will operate on 168-seat Airbus A320 aircraft.

Cranky Flyer has a great analysis today about the tortured history of low cost airlines at Dulles Airport and it’s not a pretty story.  Hopefully, Frontier’s entry into this market will create some price competition.

Frontier Credit Card Sign Up Good for Two Free Round Trips

Frontier Airlines has a pretty generous standard award chart, with 20,000 miles required for a roundtrip for travel within the U.S., including Alaska.  The Frontier Airlines World MasterCard® offers a sign-up bonus of 40,000 miles after spending $500 in the first 90 days.

So the current credit card offer is good for two round trips, and then some.  That’s because you can travel with a companion for just 15,000 per round trip.

That’s a pretty generous bonus for a very low spend requirement!

There is a $69 annual fee which is not waived in the first year.  Note that Barclay’s advertises this offer as a 50,000 mile bonus, but that includes the balance transfer provision, which is never a good deal because of the fees charged.

What’s more, look at all the cute animals that you can get on your credit card!

Frontier Airlines Credit Card Offer
Frontier Airlines Credit Card Offer

Here are the specifics:

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The Amazing Spiderman 2 NYC Sweepstakes

Belkin's Spiderman 2 Sweepstakes
Belkin’s Spiderman 2 Sweepstakes

Here’s another chance to win a trip to New York City, this time courtesy of Belkin, the electronics manufacturer.

The Grand Prize Winner will receive a trip for two to New York City, including:

  • Round-trip flights for two and airport transfers
  • A private The Amazing Spider-Man 2 photo lesson and tour of New York City
  • VIP club access at the top of Times Square with $150 credit for refreshments
  • 3 nights in a 4 star hotel
  • $200 towards meals and incidentals

Runners-up will receive Belkin and/or The Amazing Spider-Man 2 products.

The sweepstakes ends May 20, 2014.

Enter here.

What Hotel Chain Has the Most Properties in Japan?

Choice Hotel Locations in Japan
Choice Hotel Locations in Japan

I know what you’re thinking.  Why would you go to Japan to stay in an American chain hotel?

Japan has capsule hotels, love hotels, and traditional Ryokan inns.

So why in the world would you want to stay in an American chain hotel?

Two words:  free nights.

I’ve read so many reviews from points and miles bloggers who have stayed at the Park Hyatt Hotel in Tokyo with “two free nights” they got from their Chase Hyatt credit card.  That place seems a bit over-blogged.

What about the Imperial Hotel designed by Frank Lloyd Wright?  Now that’s a place I would like to stay (though I never would, because I am too cheap.)

One reason you might choose a franchised hotel might be to economize.  If you could earn free nights by accumulating points, that could cut the costs of your vacation.  I’ve written before about how we are planning a rail-based trip, and that hotels near train stations would be ideal.

My guidebook, Japan by Rail, mentions a number of Choice Hotels that are directly across from railroad stations, and many others that are a ten minute walk away.  

With all the hype about the Park Hyatt Tokyo, I thought I would take a look at other chain hotels that you can stay at for points, and how many properties they each have in Japan.  The search tool at AwardMapper.com was tremendously helpful in this regard.

Here’s what I found:

Club Carlson:         1

Japanese Breakfast at Choice Hotel
Japanese Breakfast at Choice Hotel

Hilton:                    8

Accor Hotels:       10

Hyatt                     10

IHG:                      11

Marriott:              14

Best Western:     15

Starwood:            15

Choice:                47

Choice Hotels Has More Hotels in Japan Than Any Other U.S. Chain

Are you surprised?  Choice Hotels has four times as many properties in Japan as Hyatt does., and three times as many as the nearest competitors, Starwood and Best Western.  Apparently, Choice has a ton of properties in Scandinavia, too.

To be sure the Comfort Inn is no Park Hyatt.  The Japanese Comfort Inns all look like 2 star hotels that cater to business people.  The rooms are quite small; but hey, this is Japan, you’d expect small rooms.  The prices are reasonable, as are the points redemptions.  For 38 of the 47 hotels, you need 8,000 points for a free night.  What makes these hotels especially convenient is the free breakfast, free wifi, guest laundry, and small business center.

Get 32,000 Bonus Points with the Choice Privileges Visa Card Equal 4 Free Nights

Choice Privileges Credit Card Bonus Points
Choice Privileges Credit Card Bonus Points

How can you get 8,000 points?

The easiest way is by opening The Choice Privileges® Visa® Card.  This is a no annual fee travel rewards credit card that pays 8,000 points after your first purchase, and 24,000 points after a one night stay at a Choice Privileges location.  That’s enough for four free nights at most Comfort Inns in Japan.

Here’s the thing:  you can burn Choice Privileges points at hotels in Japan, but you will not earn points for your paid stays.

This is the points earning structure for The Choice Privileges® Visa® Card:  
  • 15 per eligible $1 spent at over 4,200 Choice Privileges locations
  • 5 points per eligible $1 on additional Choice Privileges points or Choice Hotels gift card purchases
  • 2 points per eligible $1 spent on everyday purchases
Cardmembers will get Automatic Elite Gold Status, which offers:
  • Ability to book free nights 50 days in advance instead of 30 days
  • Every time you earn points for eligible stays, Choice Privileges gives you a 10% point bonus

To be sure there are more generous offers available, but those are usually for cards with a high annual fee.

The Choice Privileges® Visa® Card has no annual fee, not in the first year, nor in any subsequent year.  A card with no annual fee is one that you can hold for years and years, which will improve one of the important components of your credit score, the average age of your accounts.

What are the Limitations?

Comfort Hotel Japan
Comfort Inn Japan

There are some limitations. Your first paid stay must be in a U.S. participating hotel.

You will earn only 10 points per dollar at the lower end Choice properties:  MainStay Suites®, Suburban Extended Stay®, Econo Lodge® and Rodeway Inn®.

“Eligible stays”exclude discounted rates or stays booked through third parties.

You do not earn points for stays in these countries:  Brazil, China, Denmark, Estonia, Finland, Iceland, India, Japan, Latvia, Lithuania, Norway and Sweden and including Australia, New Zealand, Singapore, Papua New Guinea and Fiji.

See www.choiceprivileges.com for details.

Comfort Inns (part of Choice Hotels) in Japan

Here’s the list of Choice properties in Japan, all Comfort Inns, where you can stay for 8,000 points a night.

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50K Frequent Flyer Miles x 2

Free FICO Credit Score from Barclaycard Arrival
Free FICO Credit Score from Barclaycard Arrival

My favorite feature of the Barclaycard Arrival™ World MasterCard® is free access to my  credit score every quarter.

If you are opening a lot of credit cards to earn points and miles, you definitely need to stay on top of the impact on your credit score.

Barclay’s offers free access to the real FICO score from Transunion.  You are also eligible for a free FICO credit score from Barclay’s if you have the The US Airways Premier World MasterCard®.  

This benefit has been available for the past six months, so I have been able to watch my score gradually increase over time as I took a break from opening new credit cards.

At first blush, you might think that your credit score would go down from opening a lot of rewards credit cards.  It does.  Your score temporarily drops a few points for each credit inquiry on your credit report.

Components of FICO Credit Score
Components of FICO Credit Score

However, if you pay your bills on time and in full every month (and you should only be in this game if you do) your score could actually increase over time.

That is because an important component of your credit score is credit utilization, or how much of the total credit line is being used.

If your total credit line increases as you open more cards, and the percent of credit utilized decreases, that can have a positive impact on your credit score.

Free FICO Score from Barclaycard Arrival:  My Credit Score Increased Over Time

Free FICO Credit Score from Barclaycard Arrival
Free FICO Credit Score from Barclaycard Arrival

Six months ago, when I first gained access to my official FICO score via Barclaycard, my score was roughly 779.  That is in the excellent range.  (Sorry, I don’t have a screen shot.)

I wanted to give my credit score a rest, so I stopped applying for new credit cards for a while.  As credit inquiries gradually dropped off my report, my score rose to 810 in January 2014.

Three months later, in April 2014, my credit score rose again to 825 out of a maximum score of 850.  This is amazing considering the large number of credit cards I have applied for over the last several years.

Stay Alert for Offers for 50K Frequent Flyer Miles

My “strategy” when I first got into this game was to look for rewards cards that offered 50K bonus miles for new applicants.  First, I applied for the Southwest credit card for 50K, and then the Southwest business card for 50K.  Next I applied for the Delta card for 50K, and then the Delta business card for another 50K.  After that I applied for the United card for 50K, and the United business card for 50K.

I am self-employed so I am eligible for small business credit cards because of my environmental consulting business.

I got a lot of free flights from these airlines!

Actually though, I think a consolidation strategy makes more sense for a lot of people, especially leisure, budget travelers.

Nevertheless, I didn’t follow my own advice, and last summer I applied for the American Airlines AAdvantage credit card for 50K bonus miles.

With my credit score now well above 800, I was now ready to consider applying for additional travel rewards credit cards.  So this weekend, I applied for the American Airlines AAdvantage business credit card for 50K bonus points.  This card has a $3,000 spend requirement in the first three months to get the bonus, and it has a $95 annual fee that is waived the first year.  There are other offers out there for “Executive” versions of the AA card, but they had higher spend requirements than I was comfortable with.

Eyeing the Barclaycard Arrival

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Why Diversification in Frequent Flyer Programs is a Bad Idea for Budget Travelers

Frequent Flyer ProgramsIt seems obvious to the casual observer.

Diversification is a good idea in the stock market, but it is a bad idea as far as frequent flyer programs go.

In order to maximize award travel, you need to concentrate your earning strategy on one or maybe two frequent flyer programs.

Miles and points have no value if they are not used.  Zilch.  So there is little value in gathering a few miles here and a few miles there unless you will have enough to redeem for an award ticket or hotel room.

Miles and Points Programs Are Loyalty Programs

Frequent flyer and hotel programs are loyalty programs so it stands to reason that they reward loyalty.  If you spread your spending around, the less likely you are to accrue enough points in any one program to redeem an award, or to benefit from elite status.  Now I am not one for elite status, but if you are doing a lot of traveling, and can arrange your travel to concentrate on a particular airline or hotel chain, you may accelerate your points earning as you move up the loyalty program ladder.

35,000 Miles Won’t Get Me Where I Want to Go

Let me give an example.  Last year, I opened a The US Airways Premier World MasterCard® for a bonus of 35K miles.  I thought this was a great deal because the miles were awarded after making my first purchase — there was no minimum spend requirement.  Free miles, I thought.  (The offer now is for $30K miles after your first purchase, with an annual fee of $89.)

US Airways fit into our family’s travel plans, because they had a lot of flights from Washington National (DCA) to Hartford (BDL).  The US Airways card came with two $99 companion passes, so I thought it would be a good way for our family of three to save on travel expenses.  Furthermore, it allowed award redemptions for 5,000 fewer points. (Economy awards on US Airways normally cost 25K miles, but if you have The US Airways Premier World MasterCard®, they cost only 20K miles.)

When it came time to book our travel, there was ready award availability at the “economy” level for flights from DC to Hartford.

So what’s the problem?

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Japan Dreaming: Pretty Good Number One

Pretty Good Number OneFishing 4 Deals focuses on budget, domestic travel.  But anyone can dream, right?

Lately, I have been dreaming about traveling to Japan.

There are a number of things that intrigue me about Japan:

  • the natural beauty
  • J-pop culture
  • traditional arts like pottery and paper making
  • the trains
  • manufacturing industries
  • hot springs
  • old Japan
  • fashion
  • the gardens and temples
  • and, of course, the food

To indulge my fantasy, I picked up a copy of Pretty Good Number One: An American Family Eats Tokyo, by Seattle-based food writer Matthew Amster-Burton.

The book is about an American couple and their adorable eight year old daughter Iris, who rent an apartment in Tokyo for one month.

 Tokyo is the opposite of the DMV.  It is the least annoying place I have ever been to.  –Matthew Amster-Burton

Amster-Burton used Kickstarter to crowd source the publication of the book in ebook form.

Here’s what one reviewer said about  Pretty Good Number One: An American Family Eats Tokyo, published in February 2014:

The layers of the city, its extraordinary food pleasures, its quirkinesses, emerge as the author and his family spend an intense month living in Tokyo and exploring widely . . . Warning:  this book will make you hungry.  You’ll yearn, as I do, to catch the next plane to Tokyo, so you can get eating.  —Naomi Duguid, writer and traveler
Japan by RailAmazon has the kindle version of the book on sale for $3.99.I am not going to Japan any time soon, but in the meantime, I enjoy reading travel books.

I’ve picked up a copy of Japan by Rail, which offers incredibly detailed advice, down to how to find your platform, where to stash your bags, and where to exit the train station.

I am planning my miles and points accrual strategy with this trip in mind, focusing on collecting United miles and Ultimate Rewards points for the airfare, and Barclaycard Arrival points for the Japan Rail Passes.

The goal is to stay at hotels as close to the train stations as possible.  Japan Rail has a network of hotels throughout the country adjacent to rail stations.  These hotels offers discounts to rail pass holders.  The JR hotels would be super convenient but are mostly lux properties on the expensive side.

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