Recently, we have been asked multiple times about which credit card is best to use?
Before we begin. we want to remind everyone that credit card debt is a no-no, it is one of the most expensive … it is not tax-deductible, and if you’re not careful can really create problems. So, if you have ever been behind or had high credit card debt please continue doing what you are doing right now and certainly do not open a credit card to try and use some of the techniques that follow.
Now if you have made it through our scathing lecture above and are trying to maximize the benefits of credit card use here are a few helpful hints.
Ways to Maximize Company offers through VERY CAREFUL use of Credit Cards
Determine what type of credit card would give you the most benefit. You may be in a situation where you frequently use a certain airline, hotel, or other type of service – usually travel or leisure related. Determine what bank or credit card company has the best benefits for you with regards to your frequented usage and only use that card in order maximize your status within that organization. i.e. American Airlines, Marriott Rewards.
Again please do not open a credit card if you’ve had trouble in the past or currently have credit card debt-do not change anything you are doing we do not like credit card debt.
If you are in a situation where none of these apply and still want to try and maximize your benefit, look to a company that may give you a rebate … usually in the neighborhood of .5% to 1.5% on all of your purchases, as this may be a better option especially if you have a high volume of transactions.
In closing this is not a green light to use your credit card recklessly, but if you were wondering what may be the way to maximize your benefits … stack it up all in one with one carrier and you would likely get the best status and benefits.
As a side note we do not like having tons of credit cards and a debit card is fine to use as well (but may be harder to get refunded $ if stolen). We find maximizing status by using a focused strategy the best!
Have a Great “Careful Maximizing those Benefits” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth