Credit Card Tips
Since high school didn’t teach us about credit…
because the Pythagorean Theorem was obviously more important.
And yes, that is a real photo of us parasailing.
Why Credit Cards?
Credit cards are one of those things where people either absolutely love them, or wholeheartedly despise them.
Why is that?
It falls into one answer only: knowing how to use it.
With high interest rates, people can easily fall into debt with them, if not used correctly.
If you are unfamiliar with credit, snag my credit cheat sheet for a quick and easy snapshot of learning how to build credit for newbies.
Before you sign up for any credit card (also peep the referral cards below for an additional cash bonus), please actually read the terms and agreements (and more importantly, ask questions if you need clarity). Don’t just scroll and click ‘accept’.
We know you do it.
**Read my Travel Tips page if you’re getting a card for your travels!
List of Credit Cards:
Below is a list of our favorite credit cards for beginners.
One of our favorite cards right now is the Citi Costco Card, which we feel is often overlooked when it comes to a ‘travel’ credit card. This card offers 3% cash back on travel! Including flights, hotels, car rentals, and more.
Ask your local credit union. They may surprise you with their products. More often than not, credit unions offer attractive rates compared to banks. Reason being: credit unions are not for profit, while banks are.
The Discover it card is an attractive one because of the sign up bonus, more so than the travel perks. You get a whopping 14 months of zero interest on purchases! This card also gives you a cash back match after your first year (ie, if you earned $250 cash back, Discover will match it and give you another $250, bringing your total cash back to $500). The card has quarterly categories for 5% cash back as well. Click here if you want an additional $50 when you apply!
A great card to take with you on your travels is the Capital One Savor card. It gives you 3% cash back on anything related to entertainment and food! So whilst traveling if you go to the movies, adventure park, roller skating, snowboarding, and the like… 3% all the way! Not to mention 3% for your food too, + $200 sign up bonus!
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5. If you want to dip your toes into travel hacking, and want to use a really amazing travel credit card that isn’t too expensive, the Chase Sapphire Preferred is my favorite! They just recently updated their card benefits so that you get 3x points to the dollar for restaurants, groceries, and travel. Plus, they offer a $50 hotel credit!
However, I know this blog is meant for beginners, and some of you don’t want to pay an annual fee. Therefore another great option from Chase is their Freedom collection (there are two cards so choose the one you want!). There is also a zero interest for 15 months, and a $200 sign up bonus after spending $500 within the first 3 months if you click here.
6. What is your favorite airlines? If there is a particular airline that you consistently fly with, consider getting their credit card. For example, in Hawai’i, Hawaiian Airlines is the most popular airline and they have a credit card with Bank of Hawai’i + Barclay. Or another travelers favorite airlines is Southwest. Staying loyal to an airlines can reward you in the longrun for upgrades, access to their loungers, and more!
7. If you want a card that gives you points/miles that can be redeemed for various airlines, another popular one is the Venture card with Capital One.
8. American Express is a great credit card company with lots of benefits on all of their cards. There is even a list of travel cards on their site. The only downside to Amex is that it’s not very commonly used outside of the USA. So it may be good for booking some travel accommodations, but not necessarily good for while you are actually traveling.
Credit Cards + Your Future
This was one of the greatest achievements! In our mid-20’s we have been able to buy a home in Hawai’i with our baby corgi.
(We will also reveal how we found a way around putting a down payment! With no PMI either ;) Subscribe if you want to be notified when we release the doc on how we did this!)
If there is anything we want you to take away from this post, it is that if you use credit cards to your advantage, you can use it to set up your future.
Here are some quick tips to always keep in mind:
Always pay your credit card on time! Even if you do not have the full amount to pay by the due date, at the very least pay the minimum balance. Since cards compound interest daily, it is still in your best interest to finish the remaining statement balance as soon as possible (emphasis on statement balance, not current balance).
Avoid paying interest by paying the statement balance every month.
Try to stay below 30% of your card limit (ie., if your limit is $1,000 then stay below $300 on purchases)
For a more in depth detail about credit, check out our credit cheat sheet!