How to Choose the Right Credit Card (and What’s in My Wallet)

👉🏻 The TL;DR (7 minute read):

Credit cards aren’t bad, but using them incorrectly is. When used responsibly, the right card can build your credit, earn rewards, and save you money on what you’re already spending. We’re digging into how to find the right credit card for you!

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MONEY
How to Choose the Right Credit Card (and What’s in My Wallet)

There’s a lot of financial fear-mongering online about credit cards. But here’s the truth: credit cards can be one of the most powerful tools for building wealth - if you know how to use them.

When you pay off your balance in full every month, track your spending, and treat your credit card like a debit card, you can:
✅ Build and boost your credit score
✅ Earn cash back or travel rewards
✅ Save money on everyday purchases

The key? Never put more on your credit cards than you can afford to pay off immediately. Credit card interest specifically is the enemy - it funds the rewards of those who use their cards responsibly.

But with so many credit cards and information online, it can be hard to find the right one that fits your budget, lifestyle, and spending patterns.

So today let’s debunk how to find the right card + what is in my wallet (and why!!)

Step 1: Start With Your Spending Patterns

Before you apply for any new card, take a look at your budget. Where do you spend the most - travel, dining, groceries, or something else?

The goal is to align your spending categories with the rewards your card offers.

• If you travel often → focus on travel rewards cards

• If you mostly spend on groceries or dining → look for cash back cards

📊 Not sure where your money’s going? You need to start tracking it. (You can use the Personal Finance Dashboard or Basic Budget Template for this.) It’s the only way to be sure that you are choosing a card with rewards that are actually aligned with how you spend.

Step 2: Understand Reward Types

There are two main types of cards:

1. Travel Rewards Cards ✈️
With these, you earn points you can redeem for flights or hotels. Premium cards come with perks like lounge access, airline credits, and insurance coverage - but they also come with big annual fees.

Before choosing one, check the travel partners for that card. If you’re loyal to a specific airline, this detail matters. Each bank has different travel partners that you can easily transfer points to. Some banks overlap, but many don’t.

2. Cash Back Cards 💸
Cash back cards tend to be a bit more simple and flexible. They’re great for everyday spending especially if you don’t travel often. Each cash back card is uniquely different - some offer flat cash back (like 3% on everything) while others reward specific categories (like 6% on dining or 2% on groceries).

You don’t have to choose one or the other. You can pair one cash back card with one travel card so you can optimize across categories without overcomplicating things. It’s totally up to you!

Step 3: Evaluate the Annual Fee

Annual fees can range from $0 to $900+. The strategy for success is to make sure that if you are paying a fee, that the benefits and rewards you are getting outweigh the cost you pay.

Example: The Chase Sapphire Reserve costs $795 but offers over $1,000 in travel credits, memberships, and lounge access. The math checks out if you actually use them.

My rule:

1. The value of your perks > your annual fee

2. You actually use those perks regularly

💸 What’s in My Wallet

1. American Express Platinum
I opened this card before my Japan trip and it helps offset some of the major expenses that came with the trip!

Despite the high fee, I love the Amex Platinum because I get:

• 5x points on travel

• $200 airline credit + $200 Uber Cash + $300 digital entertainment credit

• Access to Delta Sky Clubs & Centurion Lounges

• Tons of other lifestyle credits + perks like money to Lululemon and a discount on the Oura ring! (which I got!)

It’s only worth paying this high fee if you travel frequently and fully take advantage of the rewards. I will likely downgrade to the Amex Gold next year before my renewal hits!

2. Bilt Rewards Card
I LOVE my Bilt card - it’s (currently) a a no-fee travel card that lets you earn points on rent. If you are a renter, this card is amazing because it makes it a lot easier to accumulate a lot of points fast!

Plus, you also get 3x on dining, rent-day bonuses, and tons of neighborhood discounts when you use your Bilt card.

One of their main transfer partners is United (amongst many others), so this card complements my Amex so I have Delta coverage and United coverage, which are two of my most-used airlines.

3. Amex Blue Cash Everyday

This is a no fee cash back card, and I earn 3% cash back on groceries and gas.

Since my travel cards don’t offer grocery rewards, this one fills the gap and keeps my budget optimized. I redeem the cash back I earn directly toward my statement.

It’s a win-win!

The Bottom Line

Credit cards are not inherently dangerous - irresponsible usage is. When you understand your spending, pay off your balances, and optimize for rewards, they become an incredible wealth-building tool.

If you want to explore or compare cards, check out The Points Guy ! This is my go-to site for side-by-side reviews and benefits breakdowns for credit cards.

If you enjoyed this newsletter, I dive deeper on this topic in this weeks youtube video!

💡 Not sure how much you’re spending? Start by tracking your numbers in a tool like the Personal Finance Dashboard!

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Lessons from Self-Made Millionaires: Business Insider interviewed a handful of millionaires who were able to achieve financial independence at a young age. UNFORTUNATELY I was not one of them but literally each of their tips is something I have shared before. Lol. So enjoy!

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• How to Choose the Right Card: If you enjoyed this newsletter, I dive deeper into everything I shared in this weeks youtube video and also provide some more examples.

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