What are the best credit building / credit card management hacks you apply today?
I've been working on my financial literacy and behaviour and would appreciate your advice and experience!
Thanks!
JC10X
Credit Card ADVICE!
43
Max out your credit cards as fast as possible, bet your entire savings account in a game of roulette, and once you win (the odds are always with you), you double your wealth and pay off your cards so you can get instant rewards and then have more money to spend on fun things, like liquor and strippers.
that's how you make crystal meth ♫
hahaha!
Wait what lol!
best ring tone ever
I endorse this message.
2nd - max out the cards and take the money and invest it in whatever Elon mentions is the next big crypto. Then enjoy the spoils.
Hahaha! Facts!
There's no better motivator than copious amounts of debt haha
Hahahaha
Sounds reasonable!
I followed your advice and lost everything, now I must hit 700% quota. Thanks for the incentive!
Sounds like the Sandler method!
Did you bet on black or red in roulette...?
On green (zero)
Get a card that rewards you most for your spending habits. If you mostly spend money on food at grocery stores and restaurants get the amex gold card. If you spend in general categories get a card that gives you 1.5-2% cash back on spend like a citi double cash or Amex Everyday. If you travel and spend a lot on airfare and hotels check out the Chase reserve or Amex platinum.
Ive been pretty conscious of aligning my spending habits with credit cards that reward that type of spend and have been fortunate enough to travel many places on points in first class and stay in incredible hotels all on my credit card points, instead of cash out of pocket.
Beyond all of the above, if you cant pay off your montly statement balance, dont even think about credit card rewards because the interest you pay outweighs any benefits its not even close to worth it.
https://onemileatatime.com/ is my favorite resource for the credit card and travel industry. Some great credit how tos in their getting started guides.
Ive been pretty conscious of aligning my spending habits with credit cards that reward that type of spend and have been fortunate enough to travel many places on points in first class and stay in incredible hotels all on my credit card points, instead of cash out of pocket.
Beyond all of the above, if you cant pay off your montly statement balance, dont even think about credit card rewards because the interest you pay outweighs any benefits its not even close to worth it.
https://onemileatatime.com/ is my favorite resource for the credit card and travel industry. Some great credit how tos in their getting started guides.
100% here. Use it like a debit card. Only put on it what you can pay off at the statement time. Or cap the amount you put on it to ensure you don’t go overboard.
if you do it right, the rewards are great.
if you do it right, the rewards are great.
Fantastic, thanks "use it like debit" - taking that with me.
You rock! Thanks a ton for the advice!
Yeah - thanks!! I didn’t know about that website - I’ll check it out.
1. DO NOT SPEND MORE THAN WHAT YOU MAKE, regardless of how big your credit is.
2. What @paddy said.
2. What @paddy said.
Brilliant thanks!
I fucked up there a couple of times!
some cards give back the money or help you get points to redeem end of the year. So... yeah
Scotiabank ftw!
there you go
Check this out partner:
https://www.debt.com/credit-card-debt/hacks/
https://www.debt.com/credit-card-debt/hacks/
Oh yes!! Thanks a ton brother!
Bookmarked!
Never spend more than 50% of your income on credit, I when
I used to have a credit card I kept that value at 33% a credit card is helpful
but if used incorrectly it can't bankrupt you.
100% I'll keep this in mind Kinonez!
Get a card that offers cash back - put all your bills on that card - enjoy rewards :)
Wow, I'm stupid. I never thought of paying my bills with a credit card that offers cashback... Thanks for the tip!
Right!! Thanks!
I'm also trying to build my credit, and so far, keeping my utilization lower than 30% has been the trick for me.
Wonderful, thank you!
- If you can't get a regular card get a pre-paid one.
- stay below 30% usage of your total credit.
- Pay it off every month BEFORE the due date.
- if you have a cash or rewards card, put that balance back on the card.
Those steps will build your credit. Other things to consider:
- Build a rainy day/emergency fund - aim for 6 months expenses.
- Read the books "The Richest Man in Babylon" and "The Millionaire Next Door" - they changed my outlook on spending/saving.
- stay below 30% usage of your total credit.
- Pay it off every month BEFORE the due date.
- if you have a cash or rewards card, put that balance back on the card.
Those steps will build your credit. Other things to consider:
- Build a rainy day/emergency fund - aim for 6 months expenses.
- Read the books "The Richest Man in Babylon" and "The Millionaire Next Door" - they changed my outlook on spending/saving.
Millionaire Next Door for me too! I stopped buying Brooks Brothers - bought Jos A Bank for work clothes, JC Penney for casual, Amazon Basics for underwear and workout.
Last year I made a little under $200,000 but still buy cheap seats for Yankee games and buy store/Amazon brand. As a result if I get fired tomorrow, I don't have to get a job for 19 months now.
Last year I made a little under $200,000 but still buy cheap seats for Yankee games and buy store/Amazon brand. As a result if I get fired tomorrow, I don't have to get a job for 19 months now.
Fuck yea!
Love it, thanks so much for the insights. Fully devoured Richest man in babylon will go to millionaire next door. Just curious, why before the due date?
Easier closing for the provider, you'll pay less interest.
I think any unpaid balance is carried forward to the next month and accumulates more interest.
Another thing is you pay off what you put on in that order. So if you use a balance transfer or have a big purchase, then go for lunch, that $20 you throw in payments goes to the large purchase first, not the lunch.
This matters as some card issuers charge interest on the WHOLE amount until it is paid off in full, not partial carries.
Also, if you can get a card with free purchase protection it is worth it. Most gold cards from banks have it. They double the manufacturer's warranty on items for a whole year.
Another thing is you pay off what you put on in that order. So if you use a balance transfer or have a big purchase, then go for lunch, that $20 you throw in payments goes to the large purchase first, not the lunch.
This matters as some card issuers charge interest on the WHOLE amount until it is paid off in full, not partial carries.
Also, if you can get a card with free purchase protection it is worth it. Most gold cards from banks have it. They double the manufacturer's warranty on items for a whole year.
Thank you for the advice! Will look into purchase protection for sure!
When I started, I got a security card from the bank - the limit was whatever I decided to put on it, so I wasn't actually borrowing the money. Banks offer this to people with crappy or no credit.
Nowadays I just use my credit card for big ticket items that I can pay within a few payments, and I try to schedule those around times when I'll get a bonus or something. The faster it's paid off, the better.
Nowadays I just use my credit card for big ticket items that I can pay within a few payments, and I try to schedule those around times when I'll get a bonus or something. The faster it's paid off, the better.
Great hack! Thanks a lot! The faster the better!
I have a Citi cash back card (1% cash back when you use it, 1% when you pay it) for my monthly bills, so I only pay once a month really and I effectively only pay 98%.
Awesome!! Super smart to pay your bills with it!
My rent alone generates $48.6 cashback. So Citi effectively pays me $583.20 a year to pay my rent with them. While it has a $10,000 limit I pay it off monthly and I do have an Amazon Prime card (5% cash back on Prime purchases, I buy almost everything through them since I don't pay Manhattan prices ever) for fun expenses like travel and baseball games where I get marginal cash back options outside of Amazon.
Genius and it absolutely rocks to get 500+ off a year, that's a ps5!
One thing that I don't think anyone has said yet is to keep your open balances less than 20% of your available credit (that is, when it comes to consumer debt). Obviously, paying your card off monthly is ideal (because fuck paying interest). But, as long as you carry a low balance comparative to your max credit amount, this is a solid way to build your credit line.
Also, get Credit Karma. No, the scores it gives you aren't exactly correct comparative to your FICO, but it is directionally correct. Keeping a close eye on the movements in your score based on your behavior will teach you the ways of building a great credit score.
Also, get Credit Karma. No, the scores it gives you aren't exactly correct comparative to your FICO, but it is directionally correct. Keeping a close eye on the movements in your score based on your behavior will teach you the ways of building a great credit score.
Solid advice! Rotating balance, payment history and utilization % are big factors to your credit score. My wife has a card of her own (both her parents had been divorced twice) in case she needs a credit history of her own and she pays for our Netflix and Hulu - keep it small, pay it off. Her score is in the mid 700s. Mine is in the upper 700s despite my student loans using the bill paying practice I mentioned earlier.
Interesting that your score is higher than your wife's - I've worked in financial services in my past and, in my not-so-scientific experience, the wife usually has a higher score.
There are a couple of factors here:
1) My annual income is 4X higher than hers
2) My credit is 8 years older than hers
3) She had a "delinquent" payment she never bothered to clear up, she just paid it and let the delinquency remain on her reports.
1) My annual income is 4X higher than hers
2) My credit is 8 years older than hers
3) She had a "delinquent" payment she never bothered to clear up, she just paid it and let the delinquency remain on her reports.
Ah, yep. That makes sense! Regardless, cheers to you both for figuring out how to make the system work for you.
Thank you! I'll do better on the masturbation as well :-p
Lmao Matthew McConaughey would be proud.
*In definitely a normal voice* I don't want to do it because I want to, I do it because I neeeeeeed to.
That makes a ton of sense! Credit life seems to be one of the main variables.
Super, thanks so much for the insights!
Of course!
I like my apple card because it's a thicc boi. Rewards are pretty average tho. 1 % cash back for using the thicc boi card 2% if you use apple pay and 3 % on Apple products. Also have an AMEX propel card from Wells Fargo that's decent (No annual fee) and an amazon credit card I got and cut up immediately and have never used because I wanted the 60 dollar amazon gift card it came with. I used that 60 dollar gift card to buy all my Christmas present (Mass order of candles and photo frames) so I thought it was a pretty effective move by me😎😤
Careful with that Chep. The credit card company will close your account for inactivity. I'd put something small on it a month and then pay it off.
Honestly happy for Chase to close that account. No need for the additional card and besides that card I have never and don't plan on using JP Morgan Chase to bank. Would've closed the line myself but for whatever reason, the credit bureaus will ding you when you close a line of credit so I just cut it up and planned to never use it. Curious tho if they close the account if that will count as canceling a line of credit
That's why I was saying careful. If it has a high limit and they close it, then it could have an effect on your utilization. If not then I wouldn't be worried about it either. 🤷♀️
Smart!
Always pay your card off each month!!
Of course, thanks!
I like cashback cards right now since travel was put on the back burner. I put all cashback rewards toward my statement.
My current favorite is the Amex Blue Cash Preferred. 6% back on groceries and streaming, 3% gas and travel, then 1% on everything else. It also had a $300 sign up bonus at the time as well as 0% APR for a year.
Basically go through your spending and see what spend categories would best benefit you. There's a card out there for almost anything.
My current favorite is the Amex Blue Cash Preferred. 6% back on groceries and streaming, 3% gas and travel, then 1% on everything else. It also had a $300 sign up bonus at the time as well as 0% APR for a year.
Basically go through your spending and see what spend categories would best benefit you. There's a card out there for almost anything.
I don't use credit cards at all anymore.
Back when I was at a company that made me pay for my own travel then reimbursed me, I used a card for my preferred airline and a card for my preferred hotel brand to capture mad points.
Current company has a corporate card so I just use that now for expenses and don't use credit cards at all in my personal life anymore.
I was once young, dumb, and deep in CC debt. Took 3 years to dig out having basically no fun at all and making 6 figures. I will never go back to that way of thinking.
Back when I was at a company that made me pay for my own travel then reimbursed me, I used a card for my preferred airline and a card for my preferred hotel brand to capture mad points.
Current company has a corporate card so I just use that now for expenses and don't use credit cards at all in my personal life anymore.
I was once young, dumb, and deep in CC debt. Took 3 years to dig out having basically no fun at all and making 6 figures. I will never go back to that way of thinking.
It def is a mindset!
Get the Discover Card (pays you % on every purchase) and use it as cash and pay the entire balance off every month. You NEVER charge more than you can pay off in a month. If you must, use the ledger from a check book and write every charge as a check so you know your balance exactly. Go on Discover's site and set up autopay to pay full balance every month and you never have to worry about it.
Thank you!
Run every transaction you make daily through the credit card and pay off daily.
If you have multiple banks or have an open line of credit. Remove the credit card debt ASAP and pay off the line as quickly as possible. But lines have lower rates therefore moving this around will help.
Using an open line even if was not intended for the card will help. No bank would advise that but I was able to get back on track and increase my credit score 200+ points in only a couple years with that strategy.
If you have multiple banks or have an open line of credit. Remove the credit card debt ASAP and pay off the line as quickly as possible. But lines have lower rates therefore moving this around will help.
Using an open line even if was not intended for the card will help. No bank would advise that but I was able to get back on track and increase my credit score 200+ points in only a couple years with that strategy.
That's very interesting, haven't heard it thought of this before! Thanks!
Get one, just repay it each month. I'm literally giving you advice that I don't follow. Take that as you wish.
It happens! Thank you!
I've been in the credit card game for a while now. Currently have 9 credit cards and have saved over $8,000 on vacations and trips booked solely with points. Some rules to live by:
- No matter what, pay the full balance off every month before the due date.
- Treat your credit cards like a debit card. Don't spend more than you can afford.
- Credit utilization has the most influence on your credit score. Keep it under 30%, but the lower the better
- Figure out what purpose you want your credit card to serve (Cashback, travel, hotels, etc)
- Maximize the sign-up bonuses(some cards like the Chase Reserve and AMEX Platinum have sign-up bonuses worth over $1,000)
- if the card doesn't have an annual fee, NEVER close it. This affects your credit utilization and length of credit. Buy something every 6 months with it to keep the bank from closing it.
Those are just a few I can think of off the top of my head. Feel free to DM me if you want to talk credit cards or have questions.
Trips I've paid for fully in points: (Colombia, Thailand, Mexico, France, Miami)
- No matter what, pay the full balance off every month before the due date.
- Treat your credit cards like a debit card. Don't spend more than you can afford.
- Credit utilization has the most influence on your credit score. Keep it under 30%, but the lower the better
- Figure out what purpose you want your credit card to serve (Cashback, travel, hotels, etc)
- Maximize the sign-up bonuses(some cards like the Chase Reserve and AMEX Platinum have sign-up bonuses worth over $1,000)
- if the card doesn't have an annual fee, NEVER close it. This affects your credit utilization and length of credit. Buy something every 6 months with it to keep the bank from closing it.
Those are just a few I can think of off the top of my head. Feel free to DM me if you want to talk credit cards or have questions.
Trips I've paid for fully in points: (Colombia, Thailand, Mexico, France, Miami)
This is awesome! Thank you so much for your wisdom here!
Always pay with your card but never miss a payment to pay it off fully.
Thank you!
Own no more than three credit cards. Pay each one off every paycheck, stay debt-free :)
Thats the goal for sure!
I like my apple card because it's a thicc boi. Rewards are pretty average tho. 1 % cash back for using the thicc boi card 2% if you use apple pay and 3 % on Apple products.
I have above a 800 score and an Amex platinum. That means nothing but since you asked…how I got here: never buy what I don’t have in cash except for (hopefully) appreciating assets…read: house not car. Make sure my monthly income is MORE than my monthly outcome. Always pay off my credit cards and keep them below 1%. Never pay interest because I always pay it off before it’s due. Never charge something on my card I can’t pay for in cash (make them work for you not the other way around). Credit is judged by your length of account history and consistency in paying. Thank you for coming to my Ted talk.
How long did it take you to get above 800?
Like 15 years conservatively guessing
Oh, also I wish I had opened up more credit cards earlier and not used them. I played way conservative with my first card but the more credit you have and the less you use is a factor as well.
That's interesting that you say that. I have two credit cards right now. But I want to open a 3rd one, should I go for it? I'm very responsible with my two cards. I'm just scared of the hard inquiry to get a new credit card; I already have one this year.
If you can control yourself why not?
The hard inquiry, but I just saw that my last hard inquiry was almost a year ago so that it will be off soon.
Apple card for the win
city double cash
As one of the other posters said, align your spending with credit cards that have those rewards.
Every 6-12 months, ask to increase your credit limit. You may not use all of it, but your credit utility % will go down if you keep spending the same. That will affect your score.
Also, DO NOT close any credit accounts - if there's a certain fee associated with the card, try to see if you can call and get it waived. Try to also downgrade once the reward period is over.
Every 6-12 months, ask to increase your credit limit. You may not use all of it, but your credit utility % will go down if you keep spending the same. That will affect your score.
Also, DO NOT close any credit accounts - if there's a certain fee associated with the card, try to see if you can call and get it waived. Try to also downgrade once the reward period is over.
AAA is great if you enjoy traveling!
Thank you, I do!
One thing that helped me out was not carrying my credit card everywhere and being aware of what I am spending it on. Biggest Danger with them is spending more than you make and never being able to catch up.
When I first got my CC I definitely spent more than I should and it took about 6 months to get back to the green. So not having it on my 100% of the time helps out. I usually keep it in the car and use it for just Gas, amazon purchases and Groceries then I pay off the same week I use it.
When it comes to building up your Credit Score. If you own a car you can usually get a small car loan on it and use the loan to pay it off- I did double the Due amount each month on a two year loan. You usually will have to pay a little bit at the end but having a paid off loan on your credit is a big plus when you are starting the credit building game.
OR do exactly what @Paddy said
When I first got my CC I definitely spent more than I should and it took about 6 months to get back to the green. So not having it on my 100% of the time helps out. I usually keep it in the car and use it for just Gas, amazon purchases and Groceries then I pay off the same week I use it.
When it comes to building up your Credit Score. If you own a car you can usually get a small car loan on it and use the loan to pay it off- I did double the Due amount each month on a two year loan. You usually will have to pay a little bit at the end but having a paid off loan on your credit is a big plus when you are starting the credit building game.
OR do exactly what @Paddy said
This is great, thank you Rachet - literally doing the car loan piece rn :)
1. buy low 2. sell high 3. don't like it, don't love it, don't marry it, don't even date it. If you trade it, just hit it and quit it.
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