Point Me To First Class 2. 5 Beginner Credit Card Points Mistakes and How to Avoid Them
Mar 20, 2023
A fast run-through of five common beginner mistakes with credit card points and reward travel. Topics include carrying balances and high interest, underusing rewards cards, maximizing category bonus cards, risks of adding authorized users, and why transferring points to airline and hotel partners often beats portal redemptions.
AI Snips
Chapters
Transcript
Episode notes
Never Carry A Balance On Rewards Cards
- Always pay your rewards credit card balance in full every month to avoid high interest charges.
- Devon notes cards like Chase Sapphire Reserve can have APRs in the 21–28% range, which wipes out point value if you carry a balance.
Put All Eligible Spend On Points Cards
- Put as many eligible purchases as possible on points-earning cards instead of cash or non-reward store cards.
- Devon lists groceries, gas, utilities, donations, rent (via new cards) and many business expenses as credit-card-payable categories.
Use Multiple Cards For Category Bonuses
- Hold multiple reward cards that align with your top spending categories to capture bonus rates.
- Devon recommends knowing your top three or four spend categories and getting cards that boost grocery, gas, travel, or dining returns.