In episode #3 of this soon-to-be award-winning podcast, I talk about how churning and burning credit cards can impact your credit score.
More detailed notes can be found on a post I did earlier on this very topic: How a Churn and Burn Credit Card Strategy Impacts Your Credit
Some key points:
- Establish your own value structure when looking to implement any credit strategy
- Churning and burning can be an effective way to establish loyalty and reap significant points
- We just can’t let spending get out of control
- Always know that your normal spending covers the required, initial spend
Here’s a quick breakdown of how your score is calculated (FICO):
35% – payment history
30% – amounts owed (credit limit utilization ratio)
15% – length of history
10% – credit mix
10% – new credit
In future episodes, I’ll discuss some of my favorite cards and my credit strategy. Thanks, as always, for listening. Let me know what you think!