The Basics of Credit Cards

“Ight so boom,” if you're new to the world of credit cards, it can be overwhelming to navigate all the different options and terms. But don't worry, it's not as complicated as it seems. In this article, we'll go over the basics of credit cards, so you can make informed decisions about which card is right for you.

First, let's talk about credit scores. Your credit score is a three-digit number that represents your creditworthiness. It's based on your credit history and is used by lenders to determine your interest rate and credit limit. A higher credit score means you're more likely to be approved for a credit card and get a better interest rate.

Next, let's talk about credit limits. This is the maximum amount of money you can borrow on a credit card. Your credit limit is determined by your credit score and income. It's important to not to spend more than 30% of your credit limit, as this can negatively impact your credit score.

Now, let's talk about interest rates. This is the percentage of the amount borrowed that you'll have to pay back in addition to the principal. The interest rate on a credit card can vary depending on the type of card and your credit score. It's important to pay off your balance in full every month to avoid paying interest.

Another important aspect of credit cards is the rewards program. Many credit cards offer rewards such as cash back, points or miles for making purchases. These rewards can be redeemed for merchandise, travel or statement credit. It's important to choose a card with a rewards program that aligns with your spending habits, in order to maximize your rewards.

Another thing to consider is the fees associated with credit cards. Some cards have annual fees, balance transfer fees, and foreign transaction fees. It's important to read the fine print and understand the fees associated with a card before you apply.

Finally, it's important to use credit cards responsibly. Always make payments on time, don't spend more than you can afford to pay back, and be sure to fully understand the terms and conditions of any card you apply for. By following these basic guidelines, you'll be on your way to building a positive credit history and achieving your financial goals.

In conclusion, credit cards can be a powerful tool for achieving your financial goals, but it's important to fully understand the basics before you apply for one. By following the guidelines mentioned in this article, you'll be well on your way to making informed decisions about which card is right for you.

Bilt Rewards Mastercard Review: How to Get Free Trips From Paying Rent

Renting is the largest bill for many of us, but what if you could turn that monthly expense into a tool to help you travel and improve your credit score? That's exactly what the Bilt World Elite Mastercard offers. 

Here are six reasons why getting the Bilt card should be your top priority as a renter:

Earning Points on Rent Payments

Normally, paying rent doesn't earn you any rewards, but with the Bilt card, you'll earn 1x Bilt points on your rent payments. This is especially valuable since rent is likely one of your largest expenses.

Impressive Reward Earnings

In addition to earning points on rent, the Bilt card also offers 3x points on dining purchases, 2x points on travel expenses, and 1x on all other purchases. These rewards are comparable to what you would earn with the popular Chase Sapphire Preferred card.

Building Credit History

Bilt is partnered with over 2 million apartment communities known as the Bilt Rewards Alliance. When you rent at a Bilt Alliance property, Bilt will automatically report your rent payments to the three major credit bureaus each month. This can help build a credit history, increase the types of credit on your report, and boost your credit score.

Referral Program

You can earn even more points with Bilt's generous referral program. For every person you refer who successfully signs up using your unique link, you'll earn 2,500 points. And every fifth successful referral earns you an additional 10,000 points, up to a maximum of 2 million bonus points.

Transferring Points 

One of the best ways to maximize the points that you’ll earn is to transfer them. Bilt is partnered with 14 hotel and airline award programs that allow you to transfer your points at a 1:1 ratio. These include World of Hyatt, Air Canada Aeroplan, and American Airlines Aadvantage (which has no other credit card transfer partners). 

You can then redeem these points for FREE hotel rooms and plane tickets!

No Fees

No other credit card on the market allows you to pay rent without fees. While the Bilt card doesn't offer a sign-up bonus like many other credit cards, that's more than offset by the impressive benefits it offers.

Our Take

Basically, if you're a renter, you can't afford to miss out on the Bilt card. With its $0 annual fee, ability to earn points on rent payments, and impressive reward earnings, it's a must-have for anyone who wants to turn their monthly rent payments into a tool for travel and improved credit. And with the Bilt card's referral program, you can easily accumulate thousands of points and start experiencing all the benefits the card has to offer. 

Are you still here? Go apply right now and start earning something back for these WILD rent prices!

5 Reasons You Should Prioritize Chase Travel Rewards Credit Cards

When starting your rewards credit card journey, you should always start by getting into the Chase travel rewards system.

I don’t say this out of any particular loyalty to the bank. You should do this for five very specific reasons.

1. Chase travel rewards are locked behind 5/24

This is the most important reason why you want to go after Chase cards first. When you first delve into the world of travel credit cards, you’ll inevitably hear whispers about the dreaded Chase 5/24 softban.

What is the Chase 5/24 rule?

In most cases, if you’ve signed up for five or more personal credit cards in the past 24 months, Chase won’t let you sign up for ANY new credit cards. This is regardless of your income, credit score, or relationship with Chase. There are occasional exceptions to this rule, but they change at the whims of Chase’s shadowy cabal of credit card overlords (Illuminati?).

NOTE: 5/24 is not an “official” rule–it’s just something that the credit card community has noticed–so don’t bother calling Chase to ask about your 5/24 status. The person on the other line will likely act as if they have no idea what you’re talking about. 

What counts towards the Chase 5/24 rule?

• New personal credit cards (this includes store credit cards)

• Being added as an authorized user on someone else’s credit card account

• Signing up for business credit cards from Discover or Capital One (there are others, but these are the two biggest ones)

Is there a way around the Chase 5/24 rule?

There are two reliable ways to duck 5/24 status:

1. Get business credit cards

Most business credit cards (including, strangely enough, business credit cards from Chase) don’t count towards your 5/24 status.

If the word “business” terrifies you, never fear. You don’t need an established, or even traditional business to open a business credit card. You can open a business card for any practical reason, whether you’re trying to launch a startup, plan on doing some consulting on the side, or even if you do ridesharing or delivery service.

Outside of stating what your business is and your annual revenue (don’t lie or guess what you think it will be–$0 is fine), the sign up process is the same as a personal one.

NOTE: Double check with the issuer whether or not they report business credit cards on your personal credit report. Most don’t, but there are exceptions, such as Capital One and Discover.

2. Request that an authorized user account be removed from your credit report

You can request that a credit reporting bureau remove an authorized user account from your credit report. This usually isn’t the best tactic if you’re well under 5/24 and have a thin credit file, since the account will contribute to your overall credit health. If you are close to or at 5/24, though, getting them removed can help you get the card you want. I’ve also heard rumors of people convincing Chase to ignore authorized user accounts, but I’ve never seen this done myself, so I can’t say how effective it is.

A few other (usually temporary) exceptions to the 5/24 rule occasionally pop up, but the only guaranteed way to ensure you’re eligible for a new Chase credit card is to stay under the limit.

2. Chase travel rewards connect you to Hyatt

Chase is the only major credit card issuer with a relationship with Hyatt. This is huge.

Why is Chase’s relationship with Hyatt so important?

If you’re all about value, no other hotel chain comes close when it comes to the worth of their rewards points. In most cases, you can book a Hyatt hotel for at least 1.5 cents per point. The points of other chains like Hilton, whose points can dip below 0.4 cents in value. Marriott isn’t much better in this regard. This isn’t commentary on the quality of other hotel chains in any other regard. It’s just that Hyatt can’t be matched in rewards points value.

The value becomes especially notable when you factor in Chase Ultimate Rewards points (Chase’s cashback/travel rewards currency), which can be transferred at a 1:1 value to any hotel chain. This means that your Chase Ultimate Rewards points transferred to Hyatt are worth more than triple what they would have been if you transferred them to another hotel chain.

Are there any other credit card companies that transfer points to Hyatt?

Although no major issuers transfer to Hyatt, there is one other notable transfer partner: Bilt. They have some unique, interesting offerings that are especially great for anyone renting an apartment.

3. Flexible rewards points (for non-cobranded Chase travel rewards credit cards)

Chase Ultimate Rewards is the most flexible major rewards points system. Here’s why:

Chase transfer partners

Chase has a lot of Transfer Partners, including 11 airlines and three hotel chains.

Chase Airline Partners

• Air Canada

• Air France

• British Airways

• Emirates

• Aer Lingus

• Iberia

• Jetblue

• Singapore Airlines

• Southwest Airlines

• United Airlines

• Virgin Atlantic

Chase Hotel Partners

• Hyatt

• IHG

• Mariott

Chase travel rewards cards offer points and cashback flexibility

TLDR: Chase travel rewards points can be converted to cashback, and vise versa.

If, for example, you have been stacking rewards with a cashback card like the Chase Freedom Unlimited, but want to use your shiny new Chase Sapphire Preferred powers to convert your cashback into Hyatt, Southwest Airlines, ect. Points, you can do that.

If, on the other hand, you just got a huge 60,000 point sign up bonus from a Chase Sapphire Reserve card, but you just want that as $600 cash, Chase lets you do that too. Most credit card issuers force you to choose one or the other with each card, and their cashback and rewards points systems aren’t interchangeable.

Chase’s premium credit cards unlock extra value

If you don’t feel like poking around hotel and airline sites to find the best points valuation, you don’t have to. You can book with Chase via their travel portal.

In addition, certain cards offer a boosted value for your points when booking via the travel portal. These cards are the Chase Sapphire Reserve (1.5 cents per point), Chase Sapphire Preferred (1.25 cents per point) and Chase Ink Business Preferred (1.5 cents per point). If you had 60,000 points with the Chase Sapphire Reserve, for example, those points would be worth exactly $1,200 via the Chase travel portal, as opposed to $800 cash back.

4. Lots of travel rewards card options

The Chase travel reward card offerings go well beyond their solo Sapphire, Freedom, and Ink brands. They also offer a wealth of cobranded credit cards with a multitude of hotel and airline brands. 

Why would I want a cobranded credit card?

More sign up bonuses

One of the most powerful tools you should learn to unlock is the all-mighty sign up bonus. With these, you can instantaneously gain a wealth of points that would normally require tens of thousands of dollars worth of spend to acquire. As a part of their partnership with many of their transfer partners, they also offer credit cards that include huge sign up bonuses for a given airline or hotel chain. So once you’ve completed your standard Chase card setup, you can pursue additional massive bonuses with your favorite places to stay or fly.

Unique benefits

Cobranded credit cards always offer unique benefits that can make them worth keeping. The Hyatt and Mariott Bonvoy Boundless credit cards, for example, include elevated status and a free night every year; this more than offsets their $95 annual fees. Airline credit cards often provide perks such as free checked bags. Some cards like their Southwest Credit cards even offer annual points bonuses that offset the annual fee, if there is one.

5. Chase has the best starter credit card

If you’re building your credit, it can be tough to get the hottest Chase travel rewards credit cards. In many cases, you end up stuck with a starter card that offers little to nothing in the way of benefits. 

Enter the Chase Freedom Rise.

What is the Chase Freedom Rise?

This is a new (as of June 2023) credit card that works very much like the Chase Freedom Unlimited, my personal favorite general-use card. 

Chase Freedom Rise sign up bonus

The Chase Freedom Rise offers $25 for enrolling in automatic payments. This may not seem like much, but remember that most credit builder credit cards offer you nothing at all.