How to get the most out of your credit cards

Above all, this article is only for those who are financially responsible. Credit cards shouldn’t be part of a financial strategy conversation unless it’s proven that bills can be paid without incurring overdraft fees. That being said, credit cards can be a powerful tool if you know about them and know how to use them correctly.

Originally, I was in the camp of pulling out a scissor and cutting up my credit cards and those around me who were willing to do so. Since digging into the subject a bit more, I have discovered that there are many benefits to using them effectively. Accumulating travel miles and reward points is extremely valuable. Who wouldn’t love a free ride for a weekend getaway or whatever?

Summit Tips

Even after all these years of following personal finance trends, reading books, and doing trial and error, it took a passing comment from a mentor to focus on the aforementioned benefits. At a business lunch, he was bragging about his free trip to Mexico. This, of course, piqued my ears as I conjured up a sense of curiosity.

When I asked him to elaborate, he mentioned that he puts every penny of his monthly expenses on a credit card to store credit card points. It had gone against everything I had ever learned! How could he be so reckless!

It took me a bit of a step back to realize, wait…am I wrong? He’s rich and successful, he must be doing something right.

That’s when I came to the conclusion that it’s perfectly fine to use credit cards if you’re disciplined enough to pay them off every month. Essentially, as long as you’re not paying interest on your principle, it would be a smart move to get your money back or get the miles you deserve. In many ways, I felt stupid for not coming to that conclusion myself, but hey, live and learn. This casual conversation led to research into which cards are best for me and my clientele.


Bank of America Credit card with travel rewards: I’ll be honest, while researching the best travel cards, I personally found myself applying for this one. I guess that’s a good sign! See the rewards below:

  • 1.5 points for every dollar spent on purchases
  • 20,000 bonus points online after making at least $1,000 in purchases in the first 90 days, which can be redeemed for a $200 account statement credit for travel purchases
  • No annual fee
  • The zero percent introductory rate for the first 12 billing cycles
  • 20,000 bonus points if you spend $1,000 in the first 90 days

If there was a credit card Tinder, I’d swipe right!

Cash back

American Express Preferred credit card: If you are a heavy online shopper, the current offer proposed for this card will entice you. Ten percent of your Amazon purchases up to $200 are what they advertise. Besides that, see the additional benefits they offer:

  • 3% Cash Back at US Supermarkets up to $6,000 (1% thereafter)
  • 2% back at US gas stations and department stores
  • 1% from other purchases (subject to conditions and limitations)

Final Thoughts

Honestly, as long as you pay your bills every month, there’s no wrong answer here. In the end, it all comes down to personal preference. Only now, you won’t be able to plead ignorance to leave money on the table when it comes to getting the most out of your credit cards.

Despite the stigma attached to credit cards, these types of incentives reward those who are financially responsible and disciplined. It’s no surprise that these types of people keep pushing forward.

Finally, there are a few more reasons to employ the strategy of pouring all your monthly expenses onto your credit card(s).

Whether you are a small business owner finance your business with credit cards or just a personal finance geek, record keeping is extremely important. Business owners can simply print out their annual summaries and deliver them to their accountant. At this point, they can focus on other parts of their business, like payment solutions Where billing efficiency. It relieves the stress of having to crunch numbers as much as they normally do.

Benefits of personal finance

When it comes to personal finance benefits, knowing exactly what percentage you spend on certain types of expenses will be an asset. This will give you an “overview” of your money.

The only thing that will bother you is if you make a lot of ATM withdrawals because the money is hard to follow.

Pay yourself first is the conventional wisdom of all personal finance junkies. Many people transfer their money directly to their salary and put it in savings, which is a good practice. Just make sure you give yourself some leeway because you don’t want to pay unnecessary overdraft fees. Big banks charged ATM and overdraft fees exceeding $6 billion in recent times.

Don’t become a statistic!

By Eric Estevez

The Epoch Times Copyright © 2022 The views and opinions expressed are solely those of the authors. They are intended for general informational purposes only and should not be construed or construed as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or other personal finance advice. Epoch Times assumes no responsibility for the accuracy or timeliness of the information provided.