IF YOU CAN'T PAY YOUR MONTH-TO-MONTH BILLS OR EVEN CONSIDER CARRYING A BALANCE ON A CREDIT CARD, DON'T GET ONE. PAY FOR EVERYTHING WITH CASH AND GET YOUR LIFE FIXED FIRST.
Simply put, I like cash back credit cards. If you're going to spend the money anyway, get some money back for doing it. Generally, somewhere around 1.5%.
Before you apply for any of the mentioned credit cards, make sure you investigate everything about them - do they have an annual fee, what are the terms for the rewards, etc.
My Favorite Cash Back Credit Cards:
- Fidelity Investment Rewards Visa Signature® Card with WorldPoints® Rewards
- My recommendation
- No annual fee
- Earn 1.50% back on everything you spend
- You need a Fidelity Investments brokerage account to tie it to
- Chase Freedom Mastercard/Visa
- No annual fee
- Earn 3% back on 3 of 15 categories up to $600 in purchases; all other purchases receive 1% cash back
- You can learn more about this card here.
- American Express Blue Cash
- No annual fee
- Under $6500 in spending, 1% on everyday purchases, .50% on other purchases
- Over $6500 in spending, 5% on everyday purchases, 1.50% on other purchases
- You can learn more about this card here.
A fantastic site to learn about the various credit cards is Ask Mr. Credit Card.
My final thoughts are that you should immediately take the cash you get from your credit card and put it into some type of savings account that earns interest; otherwise, you'll just end up spending it.
