When I was 18, I worked as a teller at a bank. I was paid $5 for every credit card application that was filled out, and considering I was making around $10/hour, I found that highly motivating.
I know what it feels like when it seems like there are so many things in front of us that we can’t do anything about because they’re just too big. It’s not true though!
The credit card had no annual fee, was 0% interest for maybe 6 months, and then went to 9.9% interest, which was pretty low for a credit card. I could see people’s accounts and many of them already had credit cards at 21% interest. It seemed easy to see if they wanted to take 3 minutes, fill out the new form and secure the better rate in case they ever needed it. Plus they got a little plastic piggy bank which everyone seemed to like. And I liked my $5.
I was surprised how many people told me credit cards were “Evil.” What? “I don’t use those! Those are Evil.” I also heard they were tricky a lot.
While I do not think credit cards are evil, (or tricky), their point was not lost on me.
If you cannot pay off your credit card every month, don’t use it. The tricky/evil comments stem from when the interest rates start kicking in, and those rates are no joke. Over 20% interest rate is standard and if you are only paying the minimum payment, you will be paying off that interest for a very long time. It’s a hard cycle to break once you start.
Nobody MAKES you charge with credit cards. The credit card isn’t secretly whispering in your ear, and if you don’t have the money to pay off the balance every month, do not use it.
The more credit cards you have, the harder it is to track. I use one main credit card for almost all of my purchases. 2 exceptions to this are my Amazon card, which gets me 5% back, and I only use on Amazon purchases, and my TJ Maxx/Homegoods card which does the same.
My Very Favorite Credit Cards (which I pay off every month)
*Amazon! Amazon has a credit card that has no fees, and you get a 5% return on all your purchases. If you shop a lot at Amazon, like I do, this is a great option. I have my Amazon account set up so their credit card is the default. It is the ONLY thing I use the credit card for, because the 5% doesn’t apply to other purchases, only Amazon.
*TJ Maxx/Homegoods! I love love love Homegoods and TJ Maxx (and conveniently mine are connected). They give you 5% back for all your purchases-so essentially a $10 gift card for every $200 you spend. If you go there often, it is definitely worth it. They also have special days you can earn extra points, but in general, I don’t like to play that game-it’s just hard chasing after points and promotions. I’d rather just choose a couple that are good overall, and if I land on a promotion day-bonus for me.
*Bank of America Card (Main credit card for me) I have a Bank of America Card that is linked to Merryl Lynch (who I invest some money with). Because of the accounts being linked, I get a way higher return on my points than I would normally. At one point, I was getting back over 3% across ALL spending groups. I think they have changed it some, but overall, I still get a ton of points (which I use for gift cards) then I would otherwise. There are a lot of cards out there, that reward you for multiple things with them (in my case a credit card, and Merryl Lynch account) but you have to do the research and find out what would be best based on what you already have.
AND IF THEY DON’T SERVE YOU, DON’T USE THEM
If you find credit cards too hard to manage, use a debit card, and the amount is immediately taken from your bank account. There is no remembering how big of bill is coming your way in 30 days.
And if that feels difficult/overwhelming, or you’ve just had problems charging things in the past, go old school and back to cash. You don’t get the points obviously, but you also don’t get surprise interest charges or bills you forgot you had.
Do you have a credit card you love or hate? Share it below!