Below are the credit cards that I personally use. Before I get to that however, understand the power of credit cards. They can easily get you into financial trouble. I know, because it happened to me.
At first it might seem great to buy things and not have to pay for them for a few weeks. But it can quickly spiral out of control. So, I urge you to take the necessary steps to ensure you don’t get into credit card debt. Here are some ideas to help you out:
- If you have an online bank account, open up a separate savings account. When you buy something on your credit card, take the money out of your checking account and transfer it to your new savings account. This solves two problems. First, you don’t have more money than you think in your checking account and second, you have the money to pay the bill in full.
- If that is too much work, then another option is to pay your credit card bill weekly. Just log onto your account every Friday and pay the bill. The money leaves your checking account and you ensure you pay the bill in full.
- A third option is to only use your credit card for certain spending categories. For me, I get the most cash back on gas and groceries. So, I only use my card for those purchases. It helps me to not overspend.
So if you can so easily get into credit card debt, why even use them? For the cash back and rewards is the main reason. With my American Express card I earned over $400 cash back last year. I took that money and invest it. While it might not seem like much, $400 a year growing at 8% is worth close to $20,000 in 20 years. Not too shabby.
American Express Blue Preferred: This is the main card I use for gas and groceries. I earn 6% cash back on groceries and 3% on gas. I also buy some gift cards at the grocery store to get the 6% cash back too. To get these high cash back amounts I do pay $75 a year. But this is worth it as I earned close to $400 after the fee last year.
Discover It: This is my other credit card. I like getting the 5% rotating categories (and use this card for gas when it comes up). I also do a lot of online shopping with this card because I shop through the Discover website and earn 5% or more for doing so. I wrote a detailed review about this card found here. For new card members, Discover will double your cash back for the first year….talk about a bonus!