So, I’m 26 years old and my wife and I split our bills right down the middle, except for her insurance and car payment and mine as well. I bring in about 43k a year before Uncle Sam takes his cut. We snagged a house in January for 160k, and I still owe 12k on my car. After everything, I’ve got about 2k a month just chillin’ in my bank account. Now, I wanna do something smart with it. I’ve been thinking about credit cards lately. Back when I was 18, I had one. Let’s just say…it didn’t end well. My credit score dropped from 750 to 550 after missing a couple of payments. Ouch. Now, it’s clawed its way back to 650-660ish, and I wanna keep that upward trend going. I’ve got a bunch of credit card options on the table, including Capitol One Platinum Secured CC, Capitol One Quicksilver Cash rewards, Discover it chrome, Capitol One savorone cash rewards, Discover it cash back, Capitol One quicksilverone rewards rate, and Capitol One Platinum CC. Should I bite the bullet and get one? Which one would be my best bet? Thanks for the help!
Farewell from the author
Response from THE MONEY MINDER:
Hello There,
It sounds like you are in a good financial position overall, which is a great place to start. It’s commendable that you are thinking of ways to improve your credit score and make the most of the extra income you have each month.
Given your credit history, it may be a wise decision to start with a secured credit card like the Capital One Platinum Secured CC. This can help you rebuild your credit without the risk of running up significant debt. Once you have established good credit habits with a secured card, you can then consider applying for other credit cards with rewards programs that align with your spending habits.
When choosing a new credit card, consider the rewards you can earn, the interest rates, annual fees, and any other benefits that may be important to you. The Capital One Quicksilver Cash rewards and Discover it Cash Back cards are both popular options that offer cash back rewards, which can be a great way to maximize your spending.
However, before applying for new credit cards, make sure you have a solid plan in place to pay off any balances in full each month. Carrying a balance can quickly undo any progress you have made in improving your credit score. Remember, credit cards are a tool to help build credit and earn rewards, not a way to supplement your income.
Prioritize your financial goals, whether it’s paying off your car loan, increasing your emergency savings, or investing for the future. Allocating your extra income towards these goals can provide long-term financial security and peace of mind.
Remember, responsible financial decisions made now can have a positive impact on your financial future. Good luck with your journey towards financial stability and growth.
Best regards,
THE MONEY MINDER.
