Consider This Credit Cards Are Not Just for Big Spenders

Credit cards are often associated with lavish spending and debt, but they can be a valuable tool for everyday expenses too. Many people use credit cards for recurring bills like rent, utilities, and groceries, which can help build credit and earn rewards.

Some credit cards offer cashback rewards on common expenses like gas, dining, and travel, which can add up to significant savings over time. For example, if you spend $500 per month on gas and have a credit card that offers 3% cashback on gas purchases, you could earn $15 per month in rewards.

Using a credit card for everyday expenses can also provide a layer of protection against fraud and identity theft, as many credit card companies offer zero-liability policies for unauthorized charges. This can give you peace of mind when making purchases online or in person.

The U.S. Bank Altitude Connect Visa Signature Card offers a range of benefits that make it a great choice for frequent travelers.

You'll earn 5X points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center, and 4X points on travel, including gas stations and EV charging stations.

The card also offers a 20,000 bonus points reward when you spend $1,000 in eligible purchases within the first 90 days of account opening, redeemable towards travel and more.

One of the standout benefits is the 0% intro APR for balance transfers for 12 billing cycles, which can help you save money on interest charges.

Additionally, you'll receive a 3% of the amount of each transfer or $5 minimum, whichever is greater, as a balance transfer fee.

You can also enjoy four complimentary visits per year to Priority Pass airport lounges, including partner restaurants and non-lounge benefits, which can be a huge perk for frequent flyers.

The Credit One Bank Wander American Express with Dining, Gas & Travel Rewards card offers 10X points on eligible hotel and car rentals booked using the Credit One Bank travel partner.

You can earn 5X points on eligible dining, gas, and travel purchases, which is a great perk for frequent travelers or foodies.

The card charges a $95 annual fee, which is a significant expense.

Here's a breakdown of the benefits offered by this card:

The Discover It Secured credit card is a great option for those looking to start building credit. It requires a low minimum deposit starting at $200.

If you're planning to use the card for purchases, keep in mind that it's not very rewarding, but it's a good starting point for building credit.

The Wells Fargo Attune World Elite Mastercard is a unique cash-back credit card that offers rewards in various niche categories. It earns 4% cash back on fitness and wellness, select sports, recreation, and entertainment, gardening and floral stores, pet supplies, boarding and grooming, and public transit, EV charging stations, and select thrift stores.

One of the standout benefits of this card is that it earns cash rewards in wellness categories not typically seen in rewards cards. Plus, you'll earn 1% cash rewards on other purchases.

Here are some of the key benefits of the Wells Fargo Attune World Elite Mastercard:

You can also earn a welcome bonus of $100 in cash rewards when you spend $500 in qualifying purchases during the first 3 months after account opening.

The Affinity Cash Visa is a great option for those looking to maximize their cash back rewards. It offers 5% cash back at Amazon on up to $1,000 in purchases per month.

One of the standout benefits of this card is its excellent cash-back categories, including 5% cash back at Amazon, 2% cash back at U.S. gas stations, and 2% cash back at U.S. grocery stores and supermarkets.

New cardholders can also earn a one-time bonus of $150 cash back when they spend $3,000 within the first 90 days of opening an account.

The card has no annual fee, making it a great option for those who want to earn cash back rewards without paying extra.

Here are the cash back categories and their corresponding rates:

If you're a wholesale club member, consider opening a store card like the Costco Anywhere Visa Card by Citi, Sam's Club Mastercard, or BJ's One+ Mastercard to earn bonus rewards.

These cards often exclude purchases made at superstores or wholesale clubs, but they can be a great option if you shop frequently at these stores.

The TSC Visa Card stands out for its 3% rewards rate on veterinary bills, which is one of the best rates available for pet owners.

You'll also earn 5% in rewards at Tractor Supply, including pet supplies, and get up to two free trailer rentals per quarter at participating locations.

The State Farm Premier Cash Rewards Visa Signature Card is another unique option, offering 3% cash back on up to $4,000 in insurance premium payments annually.

You'll also earn 2% cash back at gas stations, electric vehicle charging stations, drugstores, grocery stores, and dining.

Here are some examples of underrated credit cards with unique perks:

If you're considering a new credit card, there are several factors to think about. The AAdvantage Aviator Red World Elite Mastercard offers a welcome bonus that's unusually easy to earn, requiring only a single purchase and paying the annual fee in full within the first 90 days.

To qualify for this card's welcome bonus, you only need to make a single purchase and pay the annual fee in full within the first 90 days. This is exceptionally easy compared to the best travel credit cards, which typically require thousands of dollars in spending over the first few months to earn a welcome bonus.

If you're looking for a low intro APR, the AAdvantage Aviator Red World Elite Mastercard offers 0% intro APR for 15 months on balance transfers made within 45 days of account opening. However, the regular APR is significantly higher at 20.74% to 29.99%.

The AAdvantage Aviator Red World Elite Mastercard has an annual fee of $99, which may be a drawback for some users. However, it's worth considering the benefits you'll receive with the card.

Here's a comparison of the AAdvantage Aviator Red World Elite Mastercard with other credit cards:

Keep in mind that the AAdvantage Aviator Red World Elite Mastercard offers 2 AAdvantage miles for every $1 spent on eligible American Airlines purchases, making it a good choice for frequent flyers.

Some credit cards are surprisingly rewarding, even for secured credit cards. A good example is the card with a unique welcome bonus that matches the cash back you earn for the first year.

One of the benefits of lesser-known credit cards is that they often have fewer restrictions. This can be a relief if you're tired of dealing with rules like the Chase 5/24 rule or American Express' welcome bonus limitations.

However, these underrated cards typically earn less valuable rewards, often in the form of cash-back or similar rewards. This means they might not offer as much potential value as the best travel rewards programs.

Here are some key differences between these two types of credit cards:

The Wells Fargo Reflect card is a great option for those who need extra time to pay off large purchases or want to consolidate existing debt. It offers a 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers.

The balance transfer fee is 5% with a $5 minimum, which is a bit steep, but it's worth considering if you can pay off the balance within the intro period. The APR after the intro period is 17.24%, 23.74%, or 28.99% variable.

One of the standout features of this card is its intro APR offer, which is one of the longest in the industry. The card also has no annual fee, which is a nice bonus. However, it's worth noting that there are no rewards or welcome bonus with this card.

Here are some key details about the Wells Fargo Reflect card:

The Credit One Bank Wander Card has some great benefits that make it worth considering.

One of the best things about this card is its great return on travel purchases. This means you'll get a good amount back on your travel expenses, which can be a big help when planning a trip.

The card is also available to those with average credit, which makes it more accessible to a wider range of people.

This card is ideal for people who want extra peace of mind when shopping for an item that may not be refundable.

Some credit cards are more rewarding than others, but even the best ones have their downsides. For instance, a secured credit card may have a credit limit based on your security deposit.

A unique welcome bonus can be a great perk, but it's not always the case. Some credit cards offer a welcome bonus that matches the cash back you earn for the first year, like a secured credit card does.

Here are some key pros and cons to consider:

Lesser-known credit cards can be a good option if you want fewer restrictions, but they often have less valuable rewards. They might earn cash back or similar rewards, which typically offer less potential value than the best travel rewards programs.

One thing that often gets overlooked in the debate about pros and cons is the underrated comparison between two seemingly similar options. This comparison can reveal some surprising differences.

In the article section on "Pros and Cons of Electric Cars", we see that electric cars have a lower operating cost due to reduced fuel expenses, but they also have limited range and charging time.

The "Pros and Cons of Public Transportation" section highlights the convenience of public transportation, but it also mentions the potential for crowded buses and trains during peak hours.

Many people assume that electric cars and public transportation are mutually exclusive options, but the "Comparison of Electric Cars and Public Transportation" section reveals that they can actually complement each other in many ways.

For example, electric cars can be charged at home or at work, and public transportation can be used for longer trips or when the electric car's range is limited.

This underrated comparison can help individuals make more informed decisions about their transportation needs and preferences.

Fees and APRs can add up quickly, so it's essential to understand what you're getting into.

A balance transfer fee, for example, can be either $5 or 3% of the amount of each transfer, whichever is greater. This means you'll need to pay attention to the fine print to avoid surprise charges.

APRs can be confusing, but understanding them is crucial when choosing a credit card. The average credit card interest rate is 20.92%, according to the Federal Reserve.

A good APR to aim for is one that is lower than the average credit card interest rate. To qualify for the lowest interest rates, you'll need excellent credit.

Credit card companies often offer a promotional 0% intro APR rate on purchases and/or balance transfers to entice you to open a new credit card account. This promotional period typically ranges from 12 to 21 months, after which the card's standard rate applies to any remaining balance.

You should be aware that a single credit card can have multiple APRs, including an ongoing APR, introductory 0% APR, penalty APR, and cash advance APR. The ongoing APR is the standard rate you'll pay in interest when you carry a balance.

Here are the different types of APRs you might encounter:

It's essential to understand these different APRs and how they can affect your credit card debt.

Annual fees can be steep, ranging from $600 or more per year. Some credit cards have no annual fee at all.

It's essential to weigh the pros and cons before committing to a card with a high annual fee. You might be tempted to assume that the benefits will outweigh the cost, but don't assume it's always true.

The Island Federal Credit Mastercard is an example of a card with a low annual fee, specifically no annual fee. It also offers competitive low-rate interest.

Consider your spending habits and the rewards you receive from your current card before applying for a new one. This will help you determine if the benefits justify the annual fee.

If you're unsure, you can always talk to a Member Services Representative at your local credit union branch for guidance. They can help you run the numbers and choose the best option for you.

The credit card company pays interest charges on cash advances, but you pay interest on purchases and balances transferred from other credit cards.

You pay interest on purchases from the date of purchase, and the interest rate is based on your credit card's APR.

The interest rate on cash advances is often higher than the purchase APR, and it's charged from the date of the advance.

You may also pay interest on balance transfers, but the interest rate is usually lower than the purchase APR, and the introductory period can last from 6 to 21 months.

The credit card company may waive interest charges if you pay your balance in full each month, but this is not always the case.

The interest rate on purchases and balance transfers can be as high as 25.99% APR, making it essential to pay your balance in full each month to avoid interest charges.

The Affinity FCU Cash Rewards Visa offers excellent cash-back categories, including 5% cash back at Amazon on up to $1,000 in purchases per month.

This card also comes with no annual fee, making it a great option for those who want to maximize their cash back rewards without paying extra.

One notable limitation of the Affinity FCU Cash Rewards Visa is that it requires you to spend $3,000 within the first 90 days to get a $150 cash back bonus.

Some cards, like the PenFed Platinum Rewards Visa Signature, offer more flexible rewards earning options, such as 5X points on gas purchases and 3X points on purchases at supermarkets and restaurants.

However, the PenFed Platinum Rewards Visa Signature does come with a balance transfer fee of 3% per transaction.

The U.S. Bank Altitude Connect Visa Signature Card offers a generous rewards program, earning 5X points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center.

You can also earn 4X points on travel, 4X at gas stations and EV charging stations on your first $1,000 each quarter, and 2X on dining, streaming services, and at grocery stores.

One notable limitation of this card is that you cannot transfer points to travel programs.

The AAdvantage Aviator Red World Elite Mastercard offers a more straightforward rewards program, earning 2 AAdvantage miles for every $1 spent on eligible American Airlines purchases, and 1 AAdvantage mile for every $1 spent on other purchases.

This card also has a welcome bonus of 60,000 miles after the first purchase and paying the $99 annual fee within the first 90 days.

To put it simply, the U.S. Bank Altitude Connect Visa Signature Card is great for earning rewards on travel-related purchases, while the AAdvantage Aviator Red World Elite Mastercard is ideal for frequent American Airlines flyers.

Here's a comparison of the two cards' rewards structures:

The Alliant Cashback Visa Signature Card offers a solid cash-back rate, but you'll need to meet certain qualifications to get the most out of it.

To earn the top cash-back rate, you'll need to have an Alliant High-Rate Checking account, opt-in to electronic statements, make at least one electronic deposit each calendar month, and maintain an average daily balance of $1,000+. This may seem like a lot, but if you're already banking with Alliant, it's a relatively easy requirement to meet.

If you qualify for Alliant's Tier One rewards, you'll earn 2.5% cash back on your first $10,000 in purchases each billing cycle, then 1.5% cash back. This is a great rate, especially for smaller purchases. However, if you exceed $10,000 in a billing cycle, you'll earn only 1.5% cash back on those additional purchases.

Here's a breakdown of the card's rewards structure:

The Alliant Cashback Visa Signature Card also has a relatively low annual fee of $0, which is a major plus.

Rewards can be a great way to earn something back on your purchases, but it's essential to understand the different types of rewards programs out there.

Rewards credit cards often offer cash back, points, or miles on eligible purchases, and they can use one of three earnings styles: flat rate, tiered rate, or rotating categories.

Flat rate rewards earn the same rate for every eligible purchase, regardless of where you use your card. The best cash back cards can earn unlimited 2% cash rewards on purchases without worrying about bonus categories.

Tiered rate rewards offer bonus rewards on select categories, such as travel, dining, groceries, and gas. This can help you maximize your rewards if you spend heavily in those categories.

Rotating categories involve bonus categories that change periodically, such as every quarter. Some cards require you to opt in to the rotating categories each quarter.

In addition to the earnings style, consider the kind of rewards you want to earn. Cash back rewards are often the easiest to use, as you can redeem them for statement credits or transfer them to an eligible bank account.

Rewards points and miles can be more flexible and potentially offer more value, especially if you can redeem them for travel. Co-branded cards can be a good option if you frequently purchase from a specific company.

Here are some examples of rewards cards and their benefits:

The Affinity Cash Rewards Visa can help maximize your return on Amazon purchases, even if you're not a Prime member. However, it's essential to consider your spending habits and willingness to put in extra work for rewards before choosing a rewards card.

Your credit card limit is the maximum amount of money you can borrow on your credit card, and it's not always clear until after you apply and get approved. It can vary by card and cardholder, with some cards having different minimums depending on the version of the card you're approved for.

Many card issuers automatically review your account for a credit limit increase, sometimes after as few as six months. This means your initial credit limit might not be your final one.

You can request a credit limit increase through your account dashboard or by contacting the card issuer by phone, but be aware that this could result in a hard inquiry, which may cause a temporary dip in your credit score.

Having multiple credit cards can be beneficial if used wisely.

You can maximize benefits by selecting a mix of cards offering a range of advantages, such as bonus cash back on select purchases, introductory 0% APR cards, travel rewards and more.

It's definitely nice to have multiple cards if they allow you to optimize rewards points, as Priya Malani, the founder and CEO of Stash Wealth, suggests.

Consider your spending habits when choosing credit cards, such as if you drive often or do meal prep, to maximize rewards.

The PenFed Platinum Rewards Visa Signature Card offers 5X points on gas purchases at the pump, and the Blue Cash Preferred Card from American Express offers 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases.

Paying bills on time is crucial for your credit score, and having multiple credit cards can make it harder to keep track of due dates.

Payment history is the most important factor in your credit score.

Call your credit card company to reset your billing cycles so they're identical for all cards, making it easier to remember one day instead of several.

Your credit score plays a huge role in determining whether you'll be approved for a credit card, and it can also impact the terms of your account if you do get approved. The FICO Score, used by 90% of top lenders, ranges from 300 to 850.

There are five ranges of FICO Scores, each with its own characteristics. Exceptional scores range from 800 to 850, while very good scores fall between 740 and 799.

If you're not sure where your FICO Score stands, you can get it for free from Experian and use their card comparison tool to see recommended FICO Score ratings for each card. This can help you apply for cards that align with your score.

Here are the five FICO Score ranges:

Consider improving your score first, and then applying after it increases, as this can increase your chances of a successful application.

Having multiple credit cards can be a double-edged sword when it comes to your credit score. It can both boost and lower your credit score, depending on how you manage them.

Experts recommend keeping a utilization rate below 30% per card, as it can help expand your buying power and give you a lower balance-to-limit ratio, which helps your credit score. However, having access to more credit can be a tempting excuse to overspend, which could result in a lower credit score.

The key is to use your credit cards responsibly, realizing that just because you have lots of credit available to you, that doesn't mean you should use it.

Here's an example of how having multiple credit cards can help you maintain a lower utilization rate: Millie has four credit cards with a total credit limit of $10,000, while Carole has one card with a total credit limit of $2,000. If they both spend $1,000 each a month, their utilization rates would be:

This example shows that it's easier for Millie to maintain a lower utilization rate than Carole when spending the same amount of money across four credit cards.

Paying on time is crucial to maintaining a good credit score. Payment history is the most important factor in determining your credit score.

Having multiple credit cards can make it harder to keep track of payment due dates. You're more likely to miss a payment if you have several due dates to remember.

To simplify things, you can call your credit card company and ask them to reset your billing cycles so they're identical for all your cards. This way, you'll only have to remember one due date.

Many card issuers also allow you to change your payment due date online or through their app. This is a convenient option to consider.

Setting up autopay is another great safety measure to take. It takes the stress out of juggling multiple due dates and ensures you never miss a payment.

Credit card companies make money from interest charges on outstanding balances. This can add up quickly, especially if you're not paying off your balance in full each month.

The average interest rate on credit cards is around 18%. This means that if you have a balance of $1,000, you'll be charged around $180 in interest over a year.

Interest charges can be avoided by paying off your balance in full each month. This is known as a "zero balance" or "0% APR" period.

Some credit cards offer 0% introductory APR periods, but this can change after a certain period of time. For example, a credit card may offer 0% APR for 6 months, but then revert to a higher interest rate.

Paying more than the minimum payment can help reduce the amount of interest you owe over time. However, it's essential to pay more than just the minimum to make a dent in your debt.