[Kelsey]

I am very responsible with my money and do not foresee falling into the trap of credit card debt, but I am wondering what has resulted in the best rewards and opportunities for building wealth or other perks you all would suggest.

*okay wording of building wealth is a misspoken point. My goal is to build wealth overall and I’m working on that in other avenues, so wondering what cards may help along the way.

[Zachary]

I just now received my first rewards credit card and it has some benefits but I find myself forgetting to use it.

But I do have 4 credit cards now totaling 70k available credit with a 1% usage on them. Starting a line of credit early on has helped my credit score reach 830 as of right now at 24.

If you are good with money and able to stay out of credit card debt and potentially would ever wanna leverage it with investments such as real estate it could be helpful. Or just wanting to see how high they would let you obtain.

It would not be so fun as the first two years but I would research and get a few credit cards and open a overdraft account so you will start building a strong line of credit with a great credit age early on. After a few years it will help you maintain a high credit score in case you needed to use it.

[Marty]

No one has ever got rich on credit card rewards. You can do everything with a debit card and it will stop you from spending money you don’t have and getting into debt.

Don’t fall into the narrative, build your savings and you will be wealthy. The risk of having a credit card isn’t worth the rewards.

Don’t miss: I’ve been hammering away at one of my credit cards for what seems like forever

[Josh]

You can build wealth with a CC under the right circumstances.

I use my 2% cash back credit card to buy all my inventory and supplies for my business, and I use that 2% cash back reward to easily max out my Roth IRA contributions for the year.

I understand your question more pertains to using a CC for ordinary expenses and the rewards are much smaller, but every little bit can help.

[Marcia]

You don’t build wealth with a credit card.

[Amy]

I just look up a list of benefits. I usually go with the ones that have $500 back after spending 4K if I’m about to do a house project. Then I’ll close it. And take advantage of the next card bonus. Always make sure you can pay it off right away.

Get the card that has the best benefit for YOU. Everyone’s situation is different.

Explore these too: What credit card is best for racking up points with everyday purchases?

[David]

I mean credit card rewards aren’t meant for “building” wealth. But if you want to start do the fidelity card where you get 2% back and the rewards go into an investment account of your choosing. Ideally, a roth ira at your age.

[Darrell]

No one starts off using a credit card planning to or assuming they’re going to end up in credit card debt. I assure you every person out there thought they could handle it. And maybe you can. The problem is, if you can’t you won’t know it till it’s too late and you have credit card debt. Make living below your means your number one goal, and make being debt free your number two goal. If you truly follow your first goal the second goal will simply happen.

Also very very few people will ever have enough charges on a credit card with their 2% cash back or whatever to make a significant difference. Does it hurt to get a few bucks back by using one? No. Unless you end up with debt in the process.

Be careful learn as you go and keep asking these questions. You’re at an exciting point in life where the decisions you make now will affect you for a long time so you have a great opportunity.

Good luck to you..

Also, check out: Question for someone more math/credit card point savvy

[Alex]

I second the chase family of cards.

I have chase, my wife has Cap One. Both are great but the chase app and travel benefits section are easier to navigate. The chase card had a better intro bonus than capital one. The good thing about capital one is it reports to all 3 credit bureaus if you’re trying to build credit (not wealth). If you are into traveling and wish to spend some free time once fire’d doing that then it is a great way to travel hack.

I haven’t paid interest since I opened the card, and used the points to book 3 different hotels on an elk hunting trip, also flew us to NYC round trip for $11 per person, etc. Just be careful and be diligent in not buying things you don’t already have the cash for.

[Erin]

Ramit Sethi has a great book out there that I recommend. He actually recommends the Chase Sapphire Reserve as well (#1 card in the 10X travel post someone linked to) but he also walks you through how to check and fix your score if needed and pitfalls.

His book is the best $10 I’ve spent in a long time.

[Tamara]

Your first credit card may have to be a secured card with no benefits until you build a credit file. After that, look at the Fidelity card. It gives generous cash back, which can be automatically deposited into a brokerage account. Then transfer that amount into a Roth and invest in ETFs, like VTI using dollar cost averaging.

Don’t try to beat the system.

Good luck.

[Author]

Posts