The world of points and miles can seem almost too good to be true. Free flights, luxury hotel stays, airport lounge access, and thousands of dollars in travel perks often come from credit card rewards programs.

But for newcomers, there’s usually one major concern: credit.

After all, earning a boatload of points usually involves opening new credit cards. And if you’ve spent years trying to build a good credit score, it’s understandable to worry about whether travel rewards could undo all that hard work. The good news is that responsible points and miles enthusiasts can keep their excellent credit scores. The key is understanding how credit works so you can earn rewards confidently while protecting your financial health.

Here are answers to ten of the most common credit questions beginners ask before diving into points and miles.

1. Will Opening a New Credit Card Hurt My Credit Score?

The short answer is yes—but normally only a little, and it’s temporary.

When you apply for a new credit card, the issuer performs a hard inquiry on your credit report. This can cause your score to dip by a few points for a short period. Opening a new account can also lower your average age of accounts (history), another factor used in credit-scoring models.

However, many points and miles people find that their scores recover within a few months. In some cases, scores eventually increase because the new card adds available credit, which can improve credit utilization.

For most people with good credit habits, a single new card application (or even a few of them) should not have a significant long-term impact.

2. How Many Credit Cards Is Too Many?

There’s no magic number. Some people prefer keeping just two or three cards in their wallets. Others have dozens of active cards that they manage successfully. Credit scores are influenced more by how you manage credit than by the number of accounts you have.

That said, more cards mean more responsibility. Before opening additional cards, ask yourself whether you can comfortably track payment due dates, annual fees, spending requirements, and account activity.

For beginners, it can makes sense to start slowly and learn how to manage one or two rewards cards before expanding further.

3. Is It Bad To Apply for Multiple Cards in a Short Period?

Not necessarily, but it’s something to approach carefully. That’s because each application will result in a hard inquiry, and opening several new accounts at once can temporarily lower your credit score.

But just as importantly, some banks also have their own application restrictions. For example, certain issuers limit how many cards you can open within specific time frames or may deny applications if you’ve opened too many accounts recently.

Many experienced travelers spread applications over time rather than applying for several cards on the same day. This gives them time to earn welcome offers, manage spending requirements, and monitor the impact on their credit.

4. Should I Close a Credit Card I No Longer Use?

In many cases, no.

Closing a card can reduce your total available credit, which may increase your credit utilization ratio. Depending on the card and your overall credit profile, this could negatively affect your score.

If the card doesn’t charge an annual fee, it may be worth keeping open and using occasionally for a small purchase. However, cards with annual fees require a different calculation. If you’re paying a fee for benefits you no longer use, it may make sense to close the card or downgrade it to a no-annual-fee version if the issuer allows.

The best decision depends on your specific situation, but closing a card solely because you aren’t using it often isn’t always the best move.

Related: It Can Be Worth it To Pay an Annual Fee

5. What Is Credit Utilization and Why Does It Matter?

Credit utilization measures how much of your available credit you’re using. For example, if your cards have a combined credit limit of $20,000 and your reported balances total $2,000, your utilization rate is 10%.

Lower utilization is better for your credit score. Experts recommend keeping utilization below 30%. Those with the highest credit scores often stay well below that threshold.

One reason travel rewards enthusiasts often see their scores improve over time is that opening additional cards can increase total available credit, which may lower overall utilization.

Of course, this only works if balances are paid responsibly.

6. Will Carrying a Balance Help My Credit Score?

No. This is one of the most common credit myths.

You do not need to carry a balance or pay interest to build credit. In fact, paying interest can quickly wipe out the value of any points or miles you earn.

The most effective strategy is to use your credit cards normally and pay your statement balance in full each month.

Rewards credit cards can be incredibly valuable, but only when they’re used without accumulating costly interest charges.

7. What Credit Score Do I Need To Start Earning Travel Rewards?

There’s no universal requirement. Many premium travel rewards cards are designed for applicants with good to excellent credit, often meaning scores in the upper 600s or higher.

However, not every rewards card requires exceptional credit. Some entry-level travel cards and cash-back cards are available to applicants with more modest credit profiles. If you’re still building credit, consider starting with a beginner-friendly card and focusing on developing strong habits. Over time, you may qualify for more lucrative rewards products.

Remember that issuers evaluate more than just your score. Income, existing debt, payment history, and other factors will also influence approval decisions.

8. Do Authorized User Cards Affect Credit?

They can. When someone adds you as an authorized user, the account may appear on your credit report. Depending on the issuer and credit bureau, you may benefit from the account’s payment history, age and available credit. This strategy can help some people establish or strengthen credit.

However, it works both ways. If the primary cardholder misses payments or carries high balances, those factors may also affect your credit profile.

Before becoming an authorized user, make sure the primary account holder manages credit responsibly.

9. How Can I Earn Welcome Bonuses Without Going Into Debt?

The key is to treat credit card spending exactly the same as cash spending. Many rewards cards require you to spend a certain amount within the first few months to earn a welcome bonus. Beginners sometimes make the mistake of buying things they wouldn’t normally purchase simply to hit that requirement.

A better approach is to plan ahead. Consider using a new card for regular expenses such as groceries, gas, utilities, insurance premiums, or other bills you already intended to pay.

If you can’t meet a spending requirement through normal purchases, it may be worth skipping that card and looking for one with a lower threshold. No welcome bonus is worth paying interest or accumulating debt.

10. Which Card Should I Get First?

The best first travel rewards card depends on your goals, spending habits, and existing relationship with card issuers.

For many beginners, a flexible points card is often the best starting point. These cards earn rewards that can be redeemed in multiple ways, including travel, cash back, gift cards, or transfers to airline and hotel loyalty programs.

It’s also important to consider factors beyond the welcome bonus. Annual fees, ongoing earning rates, travel benefits, and redemption options can all affect a card’s long-term value.

Most importantly, choose a card that fits naturally into your budget and spending habits. A smaller welcome offer that you can comfortably earn is far more valuable than a larger bonus that tempts you to overspend.

Related: Credit Card Points and Miles Strategy

Bottom Line

It’s normal to have concerns about credit before getting started with points and miles. Opening new cards, earning welcome bonuses, and managing multiple accounts can seem intimidating at first.

But travel rewards don’t have to come at the expense of your credit score. By understanding how credit works and practicing responsible habits, you can earn valuable points and miles while maintaining strong credit.

The goal isn’t simply to collect rewards—it’s to do so in a way that supports your overall financial well-being.

 

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