In some of my past posts about building credit, some readers have mentioned that credit cards are not the only way to build credit. There are other ways to build credit, for example, student loans, mortgage payments, and auto loans, but credit cards are one of the more accessible routes.
For the alternative ways to build credit, the main issue is that you're likely paying interest. On the other hand, credit cards do have an interest rate, but you're not charged interest if you pay off your bills in full each month.
The goal of this website is to get "free" travel or money with your everyday spend, so I don't recommend paying interest on your credit card, or it defeats the purpose of earning rewards.
If you're starting at a point where you don't have student loans, a car, or own house, then credit cards would be the logical way to begin your credit journey. It wouldn't make sense to take out debt that you can't utilize.
With credit cards, the barrier to entry is lower because you can start with a secured credit card to build your credit history.
One common misconception is that credit cards are a vehicle for debt. This is a myth as long as you are financially responsible and pay your bills in full each month. If you have more credit cards, this does not mean that you incur more debt.
By having more cards, you're demonstrating that you are financially responsible and can handle multiple lines of credit. One typical scenario a lot of subscribers run into is that they don't have enough diverse credit to get a good interest rate on an auto loan or mortgage. I recommend having at least 3 credit cards to diversify your credit.
If you're looking for guidance on which cards to get next, feel free to fill out a free card consultation form.
Cell phone insurance will be added to the Chase IHG cards, and price protection will be removed starting on Nov 17. Southwest Companion Pass is increasing the points requirement to 125,000 points starting in 2020.
The Conrad Koh Samui is one of the best resorts in Koh Samui if you're looking for a secluded getaway. You can use Hilton Honors points, Free Weekend Night Certificates, or cash to book. The resort has a hotel side, along with residences that have spacious bedrooms and pool villas.
The cards in my wallet rotate each month based on if I apply for a new card to meet the minimum spend requirement, or if I’m optimizing for categories. For October, I have a few upcoming tech and travel purchases.
How to get a retention offer for the American Express Gold Card. Cardholders can expect to pay the Amex Gold annual fee on their card anniversary billing statement. Should you keep the card and pay the $250 annual fee or cancel?
How to product change the Citi Prestige. The Citi Prestige used to be my go-to card for travel due to the 4th-night free perk and 6-hour trip delay insurance. However, since the trimming and removal of benefits took place on Sept 22, it’s hard to stomach the $495 annual fee.
Major changes are coming to the co-branded American Express Delta credit cards. Starting on January 30, 2020, cards will earn additional spending multipliers and benefits. Some benefits like MQD waivers are being removed on select cards.
American Express recently shared that it will add travel protection to their premium cards starting on January 1, 2020. Other changes will also go into effect for return protection, roadside assistance, and more.
Before applying to Chase credit cards, it’s important to understand the rules for applications (2/30 Rule), eligibility (5/24 Rule), and bonuses (once every 2 years).
Virgin Atlantic miles are useful since you can transfer them to partners like All Nippon Airways (ANA). The Virgin Atlantic World Elite Mastercard by Bank of America currently has a limited time offer of up to 80,000 miles.
American Express adds new rules to combat point brokers. New Delta Flash Sales, free Delta points for Washington state residents, and Barclays Hawaiian Airlines credit card increased offer ending soon.