Originally Posted by JDiver
At the risk of being redundant here, do be aware of any effects you might have on your credit ratings and especially FICO scores when you consider credit card cancellations or "shake and bakes" to cancel some cards and get new ones (depending on your finanical profile, it can have an effect on what you pay in interest rates for big-ticket items like homes or automobiles, for instance.)
Roger your concerns JDiver. Like I said, I'm willing to take the risk because:
(a) I already have a fixed 30-year loan on my home,
(b) I own both cars outright, and
(c) I have a HELOC through my credit union available in case I need repairs or need to spend beyond my emergency fund.
If it were 6 years ago when I was grooming my FICO score to get my first home loan, I would certainly not be as brazen as I am today with these airline credit card free mileage offers. I would certainly not recommend my consumer credit tactics to anybody who:
(a) has serious FICO credit score concerns or
(b) is looking to make a major purchase with borrowed money or
(c) carries a balance (!) on their credit cards.
As a side note, I primarily use an non-airline-affiliated travel card from my credit union which I have had for over 5 years. This card earns me free travel (up to $300 in value) starting at 15,000 miles/points (1 point per dollar). The next reward level is a $500 voucher for 20,000 miles/points. The annual fee is $49. I even earn mileage on the airline I fly on each 'reward' ticket!
All the legacy carriers have downgraded their service over the past few years via cramped seat pitch (AA and UA), fee-for-meals (most all), and ditching blanket/pillow freebies (AA and UA). Northwest won't even let you ask for the exit row for free anymore...
So if the legacy carriers offer me a free mileage offer if I am disciplined enough to use a new credit card once and cancel it within 11 months, then I am more than willing to 'stick it to the man'!