Credit Cards

Credit cards are probably the least understood financial tool that the average person has access to. And by access I mean access. It is easier now than ever before to customize your credit card options and benefits. There are a lot of myths associated with credit cards and I am going to help dispel some of those here.

Let me just get started by saying that you want as many credit cards as is feasible to manage with limits as high as possible. Available credit is a good thing. This does not mean however that you should have high balances. In fact I don’t recommend carrying a balance on a credit card from month to month if avoidable. Another good reason to have numerous credit cards is because the luster wears off pretty quickly with credit cards. Once the 15 months of no interest runs out or the airline bonus is matched, zero interest best describes my feelings toward that card.

One of my favorite reasons to use credit cards is for point bonuses. I especially love cash back. Most cash back bonuses are relatively lack luster but its free money simply to use the convenience of a credit card. For people who travel there are many cards available with pretty amazing travel bonuses and there are even cards to rebate streaming service purchases, provide insurance for phones if the phone bill is paid on the card, and sometimes provide roadside assistance. These companies REALLY want you to use their cards. Transaction fees are worth billions.

If these companies are falling all over themselves to get you to sign on the line, you should make sure that you are getting something out of it. Remember these companies are not your friends. Don’t be complacent when you are fighting for your dollars.