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Seasoned travelers know to pack light. And, arguably, one of the most important things you can bring weighs only about five grams: a travel rewards credit card.Choosing one can seem confusing at first — the miles, the points, the cash back — but as cardholders know, you don't have to be a math whiz or hyper organized to make the most of travel rewards. If you can create a trip itinerary, you can successfully navigate using a travel rewards credit card.Still, while the earned miles for airline travel, points for hotel stays and other benefits unlocked by travel credit cards can be substantial, "too many people aren't tapping into their rewards," says Andrea Woroch, a consumer and money-saving consultant in Bakersfield, CA. In fact, nearly 70% of rewards credit cardholders have unused cash back, points or miles, according to a survey conducted by LendingTree. That adds up to missed opportunities for saving money and taking advantage of other perks. "Some rewards cards come with great travel-specific benefits like credits on hotel travel or access to priority pass airport lounges," says Pete D'Aleo, senior vice president of fee rewards growth strategy at Citi. "So whether you like to plan a big trip once a year or you're a frequent business or leisure traveler, rewards credit cards can help you get more from your journeys."In other words, if you're somebody who travels without one of these cards, you may be missing out on valuable benefits for your travel. To remedy that, try these tips for choosing the right card — no poring over points charts or complex algorithms required.<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/dont-lose-rewards_body-1_953243884.jpg" alt="view of pacific ocean at sunset from bluff" class="right_image" /><h2 style="margin-bottom: 11px;">Explore all your options</h2>Rewards credit cards vary in their offerings, and depending on your spending and travel habits, there may be more than just one card that's worthwhile. "I believe it's a good idea to have a couple of travel reward cards," says Woroch.Card benefits can shift, too, so "another thing people overlook is opening a new card to get more rewards," Woroch adds. "If you've been using the same card for years, you could be missing out on a better reward program and opportunity to earn even more rewards on your everyday purchases," she says.To narrow down the cards that are best for you, think about the way you travel and your organizational habits. For each one you research, ask yourself if you'll truly take advantage of the perks — regularly enough that they'll outweigh any of the costs. These are four common factors to consider:1. Annual fee Many travel rewards credit cards come with an annual fee. If you're going to use the perks, their collective value may be more than that fee. If you don't travel all that often, though, you may be better off with a different credit card.2. Foreign transaction fee While many general credit cards charge foreign transaction fees, some travel rewards credit cards don't. "That's not a commonly discussed perk but it's so valuable," D'Aleo says. "When traveling internationally, those foreign exchange fees can really rack up."3. Welcome bonus After applying, new cardmembers typically receive a welcome bonus of some sort — say, a generous amount of bonus miles — but this also entails having to spend a certain amount of money on the card within a set time. To take advantage of this, you need to be the type of person who will keep track of what you'll need to spend to earn the bonus.4. Rewards points or miles This is where a credit card can really help you, and because each travel rewards credit card offers something a little different, it's worth taking the time to compare them carefully, taking your personal travel and spending habits into account. Some cards focus on airline miles that can be put toward future trips, for example, and some offer additional points or cash back earn on travel purchases. Others give you points on travel-related purchases like dining, gas, flights, hotel bookings and rental cars, which you can redeem for online shopping, travel purchases, gift cards or other items. Some credit cards may even have relationships with ride share services that you frequently use. That's why it pays to strategize here."It's important to select a product that earns points in the categories that you spend," D'Aleo says. "Think about how and where you spend, and how you can get the most points from your annual spend."<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/dont-lose-rewards_body-2_627380346.jpg" alt="A couple ride bikes in Cartagena, Colombia" class="right_image" /><h2 style="margin-bottom: 11px;">Make the most of rewards</h2>The key is to organize your spending so that you're using the right card at the right time. One way is to set up calendar reminders for monthly or quarterly spending with a certain rewards card, or you can keep a digital cheat sheet of cards and categories. Another idea is to mark your rewards cards with color-coded stickers to identify which one you may want to use for travel versus groceries or dining, for example.One challenge travel-rewards cardholders commonly encounter is blackout dates, but there are strategies to help navigate these. (And of course, there are some travel rewards credit cards that have no blackout dates at all.) If you see blackout dates when researching a flight and you don't need to buy the tickets right away, it's a good idea to check back before purchasing because blackout dates can often shift. Another option is to refocus your flight search on a different airline that's a partner of your credit card company. "Being flexible is key to stretching your dollars," Woroch says. If you can take a super early flight or depart in the middle of the week instead of on a weekend, for example, you may find that you can book with points and have more left over for future trips too.And because credit card terms aren't always top of mind, the weeks before you leave for a trip can be a good time to take stock of your travel card's perks. You're not likely to forget the exciting ones, like a big welcome bonus, Woroch notes, but it's easy to forget something like trip-cancellation insurance or complimentary baggage checking. You also wouldn't want to pay for car rental insurance at the checkout counter only to later learn that your card offers this for free.Maximizing your points and perks is what travel rewards credit cards are all about, after all. Because it isn't enough to pack light — you also want to lighten the load on your budget. — With additional reporting from Geoff Williams and Life and Money by Citi editors.

How to Maximize Your Travel Rewards Credit Card 

Most people know what credit is &mdash; at its core, it's borrowed money &mdash; but understanding your credit history, and managing it, can be tricky. It helps to break down the concept.
Here's how credit works, in a nutshell: A lender, card issuer, bank or grantor gives you a set amount of money to use with the expectation you'll repay it according to agreed-upon terms. Those terms can include repayment dates, required minimum payments, interest rates, fees and more.
Credit comes in many forms. Your own personal use of credit may include mortgages, car loans, student loans, credit cards, personal loans, home equity loans, or lines of credit and consolidation loans.
Your creditworthiness, meanwhile, is determined by your reported credit history. A credit report typically includes:
<ul type="disc">
<li>The name(s) under which you&rsquo;ve obtained credit</li>
<li>Your current and prior addresses</li>
<li>Information on your credit cards and revolving lines of credit: the age of the account, the balance, your credit limit&nbsp;and the timeliness of your payments</li>
<li>Details about the loans that are in your name</li>
<li>Specifics of accounts that you may have closed within the last several years</li>
<li>Notes on any outstanding debts that have gone to collections</li>
<li>Notes on any bankruptcies, foreclosures&nbsp;and repossessions that have happened within the last several years</li>
<li>A listing of any businesses and individuals who have requested your credit report within the last two years</li>
</ul>
Keep in mind that your credit report won&rsquo;t include information on your banking or investment accounts, debit or prepaid cards, bankruptcies that are more than a decade old, debts sent to collections that are more than seven years old, or personal information like gender, race&nbsp;and religion.
It also won&rsquo;t include your credit score, the number that represents a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports, though you can often find this on your bank, credit card or loan statement.&nbsp;
Credit scores generally range from 300 to 850. According to one major credit bureau, credit scores 670 to 739 are considered good. 740 to 799 are considered very good, and 800 and up are considered excellent.&nbsp;
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/how-credit-works_body-1_1359420138.jpg" alt="A man sits on his couch and reviews a bill">
<h2>Why a credit report matters</h2>
A number of businesses may request permission to view your credit report, and before extending you a loan or line of credit, a potential lender will want to assess your creditworthiness. Combined with the other details of your credit application, the report determines whether the loan or line of credit is approved and what the terms are.
Existing creditors may also want to review your credit history on a regular basis or whenever you're looking to make a change (say, renegotiating loan terms or increasing your credit card spending limits).
When you conduct business with people or companies, they have an interest in your financial health, too, and may require credit information. Here are a few examples.
<ul>
<li>Utility companies offer you a form of credit, since they provide a service and trust you'll pay every month. So they may want to see how well you've kept up with your utility payments in the past.</li>
<li>An insurance company can, in most U.S. states, use a version of your credit score in calculating the premium you'll pay for auto, home or renter's insurance.</li>
<li>A landlord may require that you meet specific credit criteria in order to rent a home or apartment.</li>
<li>A potential employer may run a check to project your ability to handle customer money or even assess whether financial troubles might tempt you to defraud the company.</li>
</ul>
If you're seeking financing for a big purchase, such as a house, car, motorcycle, home renovation or furniture, you should anticipate a credit check as well. People with a credit score of 800 or more are typically offered easy loan approval, some of the best interest rates, higher card limits, access to exclusive perks or rewards and the most options for structuring a loan.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/how-credit-works_header_1132926273_0.jpg" alt="A woman enters her credit card information on a laptop">
<h2>Top tips for building credit</h2>
Credit advice can vary depending on where you are in your financial journey. If you've never used credit before, for instance, you may wonder how you can apply for a credit card when you don't actually have any credit history for a lender to review. Here are three main options.
<ul>
<li>Apply for a traditional credit card. A bank with which you already do business may be able to offer an unsecured credit card.</li>
<li>Consider a secured credit card. With no credit history, it's possible you'll be turned down for a traditional, unsecured credit card. A secured credit card requires you to make a cash deposit as collateral before opening an account. Your best bet is to go with a credit card issuer that reports to credit bureaus so that, with timely payments, you'll have the opportunity to build a stronger credit history.</li>
<li>Become an authorized card user. If your parent or spouse is willing, they could add you to their credit card account. If their card issuer reports on authorized users to the credit bureaus, you may be able to start building a financial history for yourself. But keep in mind: Some credit scoring models don't give authorized users' activity as much weight as that of primary cardholders.</li>
</ul>
Already a credit user? It pays to assess your existing credit cards regularly. Ask yourself: Does your current credit score qualify you for better terms or even more exclusive cards? Have your spending habits or life circumstances changed since you first got your cards? Are there new cards on the market that are a better fit for you? Your answers might prompt you to make some strategic changes.
Keep in mind that, regardless of whether you&rsquo;re already a credit user or just starting out, it&rsquo;s important to always read the fine print before you get a new card or open a line of credit. You&rsquo;ll want to understand your credit limit, the annual percentage rate (APR),&nbsp;annual fee amounts, maintenance fees, surcharges, grace periods&nbsp;and more.
Once you have some credit available to you, it&rsquo;s up to you to build and maintain a clean history of borrowing and repayment. In general, the value of your credit score will depend upon these factors:
<ul type="disc">
<li>Timeliness of your bill payments</li>
<li>Amount of credit you use</li>
<li>Amount of credit available to you</li>
<li>Length of time&nbsp;you&rsquo;ve been using credit</li>
<li>Types of credit and loans&nbsp;you utilize</li>
<li>Frequency with which you request additional credit</li>
</ul>
Additionally, you&rsquo;ll have better success in building your credit if you follow a few guidelines:
<ul type="disc">
<li>Do pay your bills on time every time. Late payments on your mortgage, your student loans, your credit cards, your utilities and medical bills and more can all appear as flaws&nbsp;on your credit report.</li>
<li>Do limit the amount you charge on your cards relative to their credit limits. This percentage is known as your credit utilization ratio. Very high utilization may negatively impact credit health.&nbsp;</li>
<li>Do keep your older credit cards active.&nbsp;They can add to the length of your credit history and may contribute valuable points to your credit score.</li>
<li>Don&rsquo;t use credit to fill a gap. You&rsquo;ll dig yourself into debt by splurging on lifestyle perks you can&rsquo;t afford.</li>
<li>Don&rsquo;t believe the myth that carrying a credit card balance builds your credit. If you can pay off your cards every month, do it. You&rsquo;ll avoid costly interest payments.</li>
</ul>
<h2>Smart ways to monitor your credit</h2>
Regularly tracking your progress is a good way to see how your efforts are helping your credit score and to identify any factors that may be slowing you down.
Start by reviewing your credit report. You&rsquo;re legally entitled to receive a free credit report from each of the three major credit bureaus every year. Pull them all at once or separately in three stages over the course of the year.
Read the report thoroughly to confirm that all the information provided is current. Is your address correct? Is the data reported for each of your accounts accurate? Is there activity or an account that&rsquo;s unfamiliar to you?&nbsp;Your credit history is an invaluable tool in helping you catch small problems before they grow into bigger ones. For instance, you may find that a bill you thought you paid is listed as past due or that a loan you co-signed isn&rsquo;t being paid off on schedule.
If you find incomplete or inaccurate information, immediately contact the credit agency from which you received the report. Faulty information can mar your financial history and lower your credit score.
At the same time, credit report errors can also indicate identity theft. If you suspect you&rsquo;re a victim, place a fraud alert on your credit report to prevent someone from opening new lines of credit in your name. If your credit card has been misused, you can contact your card issuer to cancel the card and initiate a dispute, and file a police report&nbsp;with your local precinct. You might also consider signing up for a credit monitoring service.
One thing to remember is that your credit history report does not include your numeric credit score, so you&rsquo;ll want to review that as well. Pay attention to the &ldquo;risk factors&rdquo; or &ldquo;potentially negative items&rdquo; that are included with your score. These elements indicate what&rsquo;s keeping your score from being even higher, such as high balances or frequent late payments, and the section may also offer insight into how you can improve your score. Putting all of this information together makes it easier to not only build (or rebuild) your credit but also set yourself up to reap the benefits of a healthy score.
&nbsp;
&mdash; With additional reporting from Life and Money by Citi editors.
&nbsp;

How Does Your Credit Score Work? Here's a Quick Guide.

Ever look at one of your monthly bank statements and wondered: Who made all these purchases &mdash; only to realize it was you? You're not alone. One recent study indicated Americans make three impulse purchases per week.
An unexpected spike in spending from time to time is only one of the reasons many of us have trouble saving our hard-earned money. A 2017 GOBanking Rates survey found that 57% of Americans had fewer than $1,000 in total savings and 39% had no savings at all.
It's not for lack of hard work, but perhaps more a matter of spending and saving smarter. Small splurges seem harmless, but over time, they can impact your overall financial wellness. Here are seven easy steps to put you on the right track to avoiding that spending statement-sticker shock.
<h2>1. Track your spending</h2>
The first critical step to pulling yourself out of the spending cycle is figuring out how much money you need to pay for essentials &mdash;&nbsp;and how much you have left over. &ldquo;I suggest dividing expenses into types: absolutely necessary, necessary but discretionary and totally unnecessary,&rdquo; says Sharon Marchisello, author of&nbsp;Live Cheaply, Be Happy, Grow Wealthy.
Keeping track of where each and every dollar goes will help you separate the essentials from the frills. You&rsquo;ll find it easier to align your spending habits with your monthly budget and savings goals. Digital tools and apps like Clarity Money and You Need to Budget can make tracking your money easier. You&rsquo;ll put less towards your shoe addiction and more towards your first home. &nbsp;
Goal:&nbsp;Discover where your hard-earned cash is going.
<h2>2. Pay yourself first</h2>
Transfer a percentage of your income automatically into a savings account every month. That way, it will be in there before you get the urge to splurge, and you&rsquo;ll be one step closer to your goal with every paycheck. Your savings will build quickly and you&rsquo;ll be saying &ldquo;Aloha&rdquo; to Hawaii sooner than you thought. You can also set milestones, such as saving a certain amount by a certain date. Small changes in behavior can lead to longer lasting habits.
Goal:&nbsp;Save with minimal effort.
<h2>3. Nip impulse purchases early</h2>
With 24-hour access to alluring online deals, it&rsquo;s harder than ever to resist a sale. But there are some easy tips to avoid going overboard with mindless online spending: Don&rsquo;t elect to save your debit or credit card information on your computer or with online retailers. While you take time to dig out your card, pause and ask yourself, &ldquo;Do I really need this?&rdquo; This quick mental check-in will give you the opportunity to reevaluate the spend.
Timesheet spending is an old &mdash; but valuable &mdash; trick. Before you purchase those trendy headphones, calculate how many hours you&rsquo;d have to work to pay for them. A full week of work might be enough for you to empty that cart.
Goal:&nbsp;Be mindful of your spending urges.
<blockquote>
Before you purchase those trendy headphones, calculate how many hours you&rsquo;d have to work to pay for them.
</blockquote>
<h2>4. Consider personal financial products with incentives</h2>
Are you passionate about traveling? Do you have a home renovation project in mind?
Reach those goals with the help of credit card programs that offer the kinds of rewards (points, miles, access to exclusive member perks) that enrich your life. Whether it&rsquo;s earning a flight with travel rewards or collecting points to get that kitchen appliance you&rsquo;ve had your eye on, leveraging instruments like a rewards card may bring you closer to your dreams without sacrificing your savings.
Goal:&nbsp;Collect on points and rewards.
<h2>5. Schedule regular financial check-ins</h2>
Just like making a regular visit to the dentist, your finances also need that same attention to care. Consulting a financial advisor on a consistent basis will help you set clear financial goals and keep you on a path towards the life you&rsquo;ve always wanted.
Kara Stevens, author and founder of the website Frugal Feminista, recommends that financial check-ins should also include, &ldquo;Digging deep into the 'why&rsquo; of each purchase, so you can adjust your saving, investing, philanthropy and spending percentages throughout various legs of your financial journey.&rdquo;
Also, once you&rsquo;ve defined those goals, share them with select friends and family who can help hold you to &mdash; and better realize &mdash; them. Stevens adds, &ldquo;This includes communicating these shifts with your partner and children so there&rsquo;s transparency and shared goals.&rdquo;
Goal:&nbsp;Check your financial health.
<blockquote>
Just like making a regular visit to the dentist, your finances also need that same attention to care.
</blockquote>
<h2>6. Invest in yourself and your community</h2>
Financial health also means investing in your personal well-being and that of your community, too. &ldquo;Financial health and wellness also includes financial self-awareness and really knowing your values and aligning your spending to those purchases or experiences so they are more meaningful,&rdquo; Stevens says.
Whether it&rsquo;s attending a weekly yoga class to benefit your long-term health, or making a charitable donation to a cause you&rsquo;re passionate about, you&rsquo;ll be reaping rewards long past the swipe of your card.
Goal:&nbsp;Sometimes you have to give to receive.
<blockquote>
Avoid impulse buys by building a reward system into your budget.
</blockquote>
<h2>7. Reward yourself &ndash; if you&rsquo;ve earned it</h2>
&ldquo;People rationalize [their spending] by saying, &lsquo;I work hard, I deserve this,&rsquo; even when they can&rsquo;t afford it,&rdquo; says Mary Beth Storjohann, certified financial planner, founder of Workable Wealth and author of&nbsp;Work Your Wealth: 9 Steps to Making Smarter Choices with Your Money.&nbsp;&ldquo;But that only continues the cycle.&rdquo;
The problem escalates when those &ldquo;rewards&rdquo; extend to bigger-ticket items, such as the latest designer bag or rare vintage sneakers, that can plunge you further into debt. Plan for well-earned rewards and avoid impulse buys by building a reward system into your budget. Create savings milestones and timelines for when you want to reward yourself.
How do you know when to treat yourself? When you&rsquo;ve demonstrated financially responsible behavior. And remember: don&rsquo;t spend more than what you&rsquo;ve set aside. It&rsquo;ll make your &ldquo;treat&rdquo; that much more worth the wait.
Goal:&nbsp;Be flexible, but responsible, with your budget.
You&rsquo;ll quickly see how the small financial moves you make every day can bring you closer to the bigger goals that matter most.

7 Goals to Set for Smarter Saving

Do invitations for a credit line increase keep popping up in your inbox? Well, this is one offer you might not want to turn down.
Granted, it may not be the coveted bash-of-the-year ask you were holding out for, but it could help lead to a brighter financial outlook.
Of course, you should feel confident about the meaning and implications of a credit line increase. So here's a breakdown on what it is, to help you decide whether or not you should RSVP "Yes for one."
<h2>What's a credit line increase?</h2>
Simply put, a credit line increase is an increase in your credit card spending limit. Most credit cards come with an initial spending limit. This limit is set by the credit card issuer, which takes into account factors such as credit history, credit score and income. Typically, when customers get their first credit card, this limit is relatively low. It may increase over time if the borrower demonstrates timely spending and repayment habits. These good habits may help build the borrower's credit score, too.
At times, issuers may evaluate your account and either increase your credit limit without you asking for an increase, or they may invite to request a higher credit limit.
<h2>How can a credit line increase impact my credit score?</h2>
Here&rsquo;s the deal: Your credit utilization ratio, which is the amount of your total credit card balances in comparison to your total credit card limits, plays a pivotal role in calculating your credit score. By increasing the credit limit on your credit card, you may improve your credit utilization ratio if you do not increase your spending &mdash;&nbsp;and that may have a positive effect on your score, according to credit scoring providers.
For example, say you have a credit card limit of $1,000, and every month you consistently spend $500, your credit utilization ratio is 50%, since you&rsquo;re spending half of what you have access to. However, if you increased your credit line limit to $2,000 and continued to spend $500 a month, your credit utilization ratio automatically decreases to 25%.
If the credit line increase does not effectively lower your credit utilization ratio &mdash;&nbsp;that is, because you increase your spending commensurately &mdash;&nbsp;then having a higher credit limit will not help your score.&nbsp;And if you &ldquo;max out&rdquo; and spend up to your credit line maximum every month, the credit bureaus that record your credit history may associate you with higher-risk borrowing. Consistently spending too much on your credit card may lower your credit score, which can prohibit you from qualifying for the best rates on loans and mortgages, insurance policies and other financial products.
<blockquote>
Your credit utilization ratio...plays a pivotal role in calculating your credit score.
</blockquote>
<h2>Why should I consider a credit line increase?</h2>
Besides offering the prospect of a lower credit utilization ratio &ndash; which in turn helps maintain a positive credit score as long as you do not increase your spend on the card &mdash;&nbsp;a credit line increase can be helpful if you need to make big purchases.
First-time homebuyer Kaitlin Bauer got her credit line increase in place before her big milestone purchase. &ldquo;Like many first-time home buyers, my home required some updates to the kitchen and bathroom, and it was in desperate need of an upgraded furnace,&rdquo; Bauer says. &ldquo;Luckily, before I took possession, my credit card company offered me a credit line increase. Knowing I would be entering a time in my life where my spending would increase, I accepted. With more credit, I was able to perform the upgrades my home needed, while having the comfort of not being in over my head.&rdquo;
<blockquote>
With more credit, I was able to perform the upgrades my home needed, while having the comfort of not being in over my head.
</blockquote>
<h2>How to get a credit line increase</h2>
As mentioned, at times your financial institution or credit card company may issue an invite allowing you to request a credit line increase. According to CreditCards.com, you're more likely to be approved if the bank sends the invite.
You can also request a credit line increase without an invitation. According to CreditCards.com, the best time to seek a credit line increase is when you've demonstrated your best financial behavior: A high credit score, consistent timely repayments and an increase in income are all important factors credit card issuers consider as part of the approval process. Be prepared to have your financial institution request key contact information and proof of income before considering you for an increase. If you have all these factors working in your favor, you've increased the likelihood that your request for a credit line increase will be granted.
Of course, like any application process, there is a chance you could be rejected. But don't get discouraged. Instead, take it as an opportunity to work on improving your credit score. Once you've had time to do this, or you receive a bump in your income, consider reapplying.
A credit line increase could help you leverage opportunities on the path to your financial goals &mdash; which is an invitation worth considering.

Is a Credit Line Increase a Good Idea? 

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