Rules of Life- Hot chicks are hot. Things can always be worse. Measure twice, cut once. We know the drill. Points Gang members have come up with 5 Rules of Credit that we have used as our North Star during our own financial adventures and feel they are important enough to write an article about it. We keep things simple.
1. Never Pay Interest. Ever
The Golden Rule of personal finance- Avoid interest whenever possible. This is how the sharks stay in business. Interest means that you’re paying more than you originally needed to, acting as the ultimate ball and chain. You can put yourself in a good position to avoid paying interest by using the rest of our rules, specifically Rule #2.
2. Have Your Intro Spend Planned Out
This should be somewhat common sense, but it is still worth mentioning. When you sign up for a card that has a good intro bonus, don’t just shoot for the hip and hope you reach that goal. Have a plan in mind- rent, utilities, phone bills, vacation coming up, etc. Try to predict what your future expenses will be so you have a general idea of how/when you will achieve this intro bonus. It’s also important to compare this spending plan to your future income as well to make sure you are living within your means. This will help keep you in line with Rule #1.
3. Actively Check Your Statements
This rule has saved us a handful of times. Double charges, overcharges, fraud charges, etc. are more common than you may think (dropped your card at the bar, restaurant adding extra tips, gas station double charges, stolen personal information, etc). That’s nothing to freak out about, but it is absolutely worth keeping an eye on. Banks will usually be helpful in these situations considering they want to keep your business. The quicker you notice incorrect charges, the better chance you have of correcting them or getting your money back. We recommend you actively check and read your statements.
4. Use Cards That Match Your Needs
This rule is straight forward. Get the most out of your cards by using cards that have benefits that match your life style. Fly a lot? Check out airline cards. Don’t travel much? Check out cash back cards. Even if an intro bonus or benefit seems tempting, try to stay in your own lane and use something that you know you will use frequently. Your airline points won’t do you any good sitting in your account while you only fly every few years. Match your card benefits to your lifestyle.
5. Use ‘Em Or Lose ‘Em
Some points expire and some disappear when you cancel your card. That would be a shame to let those opportunities go to waste. Use your points! We have used multiple cards’ benefits and then moved on to the next card and opportunity. With that being said, you don’t want to be cancelling cards all the time and it actually does help your credit score to keep credit cards open for the long term- so choose a card or two with decent benefits and no annual fee to be your long term, everyday options. Grab some intro bonuses on the side, use your benefits, live it up, and move on. Use ’em or lose ’em.
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We tried to keep these rules simple and efficient. Every situation is different but we feel that these are good guidelines to help you make the right decision. Keep these in mind when planning your future personal finance and credit card action.
That’s all we got. See you at the lodge.