How can I use my credit cards to earn rewards, build credits, and pay for expenses? Part 1

Before starting this article series, I want to acknowledge that some people oppose using credit cards and advocate that people use their debit cards or cash instead to pay for their purchases.

Depending on the setting, purchase, and financial need, I use all three, in addition to digital payment options such as Paypal, CashApp, Venmo, etc. However, my preference is using a credit card.

This section includes the introduction and part 1.

Part 1: My First Credit Cards

I got my first credit card freshman year in college, starting with a $500 limit. I used that card to purchase items I needed while in school, and the limit amount was just enough for my usage unless I needed to make a big purchase, which was not often.

I applied for another card with a $1200 credit limit the following year. I remember feeling so excited. I could now purchase a plane ticket to most places in the world, and I had the credit to pay for it. Those two cards are still my primary card to this day.

As the year went by and my purchases increased, my credit limit also increased. The credit card I started with the least credit now provides me with 70% of the current credit at my disposal. Although the second card provided me with the highest credit limit at the onset, it has the highest interest rate with little flexibility for reducing or providing time-limited 0% interest rewards. My first card has the highest credit limit and lowest interest rate. Customers can participate in reward programs, such as a 0% interest rate for 12 months and cash advances that they deposit directly into your bank account. 

Having the flexibility to access capital using cash advances has been helpful in my financial journey. The next session discusses using your credit cards to leverage expenses.