There are people who believe credit cards are bad or evil and there are people who use credit cards to get free money.
Which are you?
Used wisely, you can use the rewards from purchases made with credit cards to buy things in the future for free.
Sound good?
Some of you have heard this story before, but I am repeating it for those who have not:
When we went to France and Monaco in 2019 (the good old days when we could travel freely!), our hotels were free- including the suite on the top floor of the Marriott in La Port de Monaco with the no surcharge minibar, overlooking the mega yachts- because I have a Marriott rewards credit card. And, for most of our nights, we had to have two rooms. Our nonstop, round trip airfare from JFK to CDG was free thanks to my sister’s United rewards credit card. And, our rental car was paid for by my Mom using her cash back. I believe Morgan used her cash back for souvenirs. We only had to pay for food, gas and tolls. And we earned more points while doing that.
If you have good to excellent credit, you could qualify for a rewards credit card. There are so many to choose from it could be overwhelming. There are cards for hotel chains, airlines, cruise lines, automotive companies, stores, cash back, and non-specific cards that accumulate points you cash in for whatever you want.
And, if that were not enough, many hotel cards partner with airlines and rental cars so you can use your hotel points to pay for airfare and car rental.
You could use a cash back card to help pay the balance of the card or move the cash back to a savings account to use for whatever you are saving for.
Creditcards.com is an excellent resource for determining what would be best for your situation.
A few things to keep in mind while deciding:
1. Focus on what you really want and will really use. If you go with a company-specific card, make sure it is because you tend to use them anyway.
2. Promotions are nice, but look at the overall picture. Many cards will lure you in with a 0% APR period or extra points. Factor in the annual fees and how many points you will earn on a regular basis before deciding.
3. If you go with a non-specific card, make sure it can be used for the items you want to purchase. Read the fine print. Call the credit card company if you are unsure. Not all non-specific cards are equal, even if the points earning system seems to be.
4. If you are going to use your card to travel, make sure it includes rental car coverage in the areas you are looking to travel and no foreign transaction fees on purchases.
5. Annual fees are not always a bad thing. If what you get in return for the fee is worth more than the fee, it can be worthwhile. The only card I pay an annual fee on is my Marriott card. However, the free one-night room worth up to 35,000 points is worth more than $95. The Mastercard Black Card is $495 per year, but offers travel perks worth thousands. I wanted this card for years, but when it came down to it I realized my Marriott and Citi Diamond Preferred offer all of the perks I would use the Black Card for, but at a fraction of the annual fee.
6. Make sure you pay off your card every month, preferably before the statement closing date and definitely before any promotional periods end. This way you ensure you do not pay any interest. Because interest quickly makes your free money expensive.
7. If you are unsure about a card or if it is one you have not heard of, google “[the name of the credit card] credit card reviews” and see what people have to say about it.
With any luck, Putin will pull out (or be pushed out) of Ukraine soon and the travel restrictions will continue to lift so we can start to use some of those points we have been accumulating.
Money Moms know how to maximize every dollar. Following the advice of Ben Franklin: “a penny saved is a penny earned” is second nature to them. They take those pennies and turn them into magical memories for their loved ones.
Sometimes the best way to save a penny is to spend a penny. When a Money Mom wants to learn how to be even more penny wise, she makes the investment in herself so she can make her family’s lives even better- and pass that knowledge on to family and friends. The fastest way to learn is with my Money Mom Academy, a program with lots of access to me, a supportive community, and the option to focus on what is important to you. DM me to see if it is what you have been looking for.