Pick the Right Credit Card

Financial Freedom in 2021! Take Action: Day 24

Many personal finance gurus recommend not having any credit cards at all, but I subscribe to the newer recommendations… get the right card and make the most of those rewards!

Disclaimer: The credit card suggestions linked below will ONLY be beneficial if you are in a financial position to pay off your balance each month on time.

When it comes to choosing the right credit card for you, it’s best to decide what you’d want to use card rewards for. Travel (airfare, hotels)? Cash back? Restaurant gift cards?

Once that’s been identified, check out these websites for a full comparison of the best cards out there this year.

  • The Points Guy will break down the best cards per category, based on what benefits you’re hoping to get from your card.
  • Nerd Wallet shares their top 8 choices for 2021.

If you’re ready to take the card rewards game to the next level, you can try travel hacking. Many travel/credit card hackers claim to have traveled the world for free. Early last year, we earned tens of thousands of bonus miles through the Capital One Venture card by enrolling when there were multiple offers overlapping. The points we quickly collected covered airfare and part of our hotel stay for a family trip to Disney Land and Universal Studios (before the pandemic hit)!

Today’s action step is to audit your wallet. Get out all of your credit cards and determine whether they’re carrying their weight by providing you the rewards you’re seeking. Put the ones you rarely use or that don’t fit the bill in a drawer. It’s ok to keep the account open if you’ve had the card for a long time because that can help with maintaining a high credit score; just don’t use it anymore.

Also, if any of your current cards carry a balance or if you have a card with an annual fee, call the number on the back and prepare to negotiate. Ask if you can get your interest rate lowered or your annual fee waived. (You may have to request to be sent to the retention department.) Many companies will offer some sort of discount or assistance if you just ask.

If you have kids, there’s one more action step today. Read about whether you should add your children to your credit card to build their credit scores?

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