Because we are extremely sensitive to the importance of keeping your credit and your financial well-being in good shape, there are a few considerations we’d ask you to make before taking advantage of credit card reward bonuses. We have other great posts from the past that talk about the importance of credit. Browse through them and ask us questions. We are here to help.
We might seem overzealous at times to encourage you to get a new credit card, but our purpose is for you to do it with caution. We understand that your credit is necessary and it could negatively affect you if you don’t manage it properly. For that reason we’ve come up with a few very important items to discuss today.
First, never, never pay interest. You’ll notice that we never talk about the interest rates on the cards we’re discussing. It’s because we pay the statement balance in full each month. We are using the cards as if they were debit cards.
Second, never, never charge something that you wouldn’t otherwise buy. You must refrain from the temptation to make those kinds of purchases. If you don’t have that kind of discipline, then using credit cards to secure free travel might not be the best option for you- Because it wouldn’t be free in that case.
Third, always, always pay on time. Mint.com is a phenomenal resource to ensure that your balances are organized and paid on time. It’s a free service, so don’t hesitate to use it.
Fourth, always, always be sure that you can meet spending requirements before applying. For instance, if a card requires $4500 in spending over three months, and you won’t have $4500 in chargeable expenses, don’t put yourself in the predicament of having to charge things just to meet the obligation to get the bonus.
If you follow these simple rules, you’ll win the game. But remember that the moment you become reckless with your finances, you’re no longer taking advantage of these amazing bonuses, you’re being taken advantage of.
Wanderlust with us.