Do’s & Don’ts: Before You Open Your Next Credit Card
Editorial Disclosure – Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post..
You know I love opening credit cards to earn welcome bonuses to book travel with points and miles.
However, opening a credit card without a clear plan and strategy can lead to missed opportunities and wasted points. Here are some do’s and don’ts to consider before opening your next credit card.
Do:
- Have a short and long-term points and miles strategy.
Before you open a credit card, it’s important to have a plan in place for how you will use the points and miles you earn. This should include short-term and long-term goals, such as a specific trip you want to take soon and a general strategy for accumulating points and miles over time.
- Start a small side hustle to allow you to open business cards instead of personal cards.
Many credit card issuers offer business credit cards that come with higher sign-up bonuses and better rewards than personal credit cards. However, to qualify for a business credit card, you typically need to have a business. Starting a small side hustle, such as freelancing or selling items online, can help you qualify for a business credit card and earn more rewards.
- Think about what points can serve all types of travel. These are called flexible point currencies.
Some credit card rewards programs allow you to earn points that can be redeemed for a variety of travel options, including flights, hotels, rental cars, and more. These are flexible point currencies and can provide more flexibility and value than rewards programs tied to a specific airline or hotel brand.
- Use a referral or affiliate link when applying for a credit card.
Be sure to use a partner’s referral link if possible. If not, any credit card bloggers and educators offer referral or affiliate links that can provide extra points or miles when you apply for a credit card. Using these links can help you maximize your rewards and support the bloggers and educators who provide valuable information and advice.
- Have a plan on how you will meet larger minimum spending amounts.
Many credit cards come with minimum spending requirements that you must meet in order to earn the sign-up bonus. Before applying for a credit card, make sure you have a plan in place for meeting the minimum spending requirement without overspending or going into debt.
- Only add yourself to the credit card application.
When you apply for a credit card, it’s important to only add yourself to the application. Adding a partner or family member as an authorized user can be tempting, but it can also lead to confusion down the line. Consider adding your partner’s card to Apple Wallet or Google Pay.
Don’t:
- Impulsively open credit cards. Sometimes, you must think long-term.
Opening a credit card without a clear plan and strategy can lead to missed opportunities and wasted points. It’s important to take the time to research and consider your options before applying for a credit card.
- Hear business cards and think you won’t qualify.
Many people assume that they don’t qualify for a business credit card because they don’t have a traditional business. However, starting a small side hustle can help you qualify for a business credit card and earn more rewards.
- Don’t just earn points for one specific airline or hotel brand. These lock you in and give you much less choice and flexibility.
Earning points or miles for a specific airline or hotel brand can be tempting, but it can also limit your options and reduce your flexibility. Consider earning flexible points that can be redeemed for a variety of travel options.
- Just google a card and apply through the bank’s website.
Applying for a credit card through the bank’s website can be convenient, but it may not provide you with the best deal or sign-up bonus. Take the time to research and compare credit cards before applying.
- Impulsively sign up and figure out a large minimum spend later.
Before applying for a credit card, make sure you have a plan in place for meeting the minimum spending requirement without overspending or going into debt.
- Add a partner as an authorized user unless there are VERY specific reasons you would benefit from.
Adding a partner or family member as an authorized user can be tempting, but it can also lead to confusion and complications down the line. Only add an authorized user if there are specific reasons why it would benefit you.
Final thought: Before opening your next credit card, ensure a clear plan and strategy. Consider both short-term and long-term goals, earn flexible points, and take advantage of referral and affiliate links. Following these do’s and don’ts can maximize your rewards and avoid common pitfalls.
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
I found out about points and miles accidentally.
I was researching index funds and happened upon the points and miles community through creators who also post about budgets, financial independence, and investing.
Points and miles allowed those people to travel and work toward financial independence simultaneously.
Thank goodness I got started when I did. The past almost two years of travel have been something we will never forget.
Earning points and miles through credit cards is only a good choice if you have the financial discipline to use them, like cash/debit cards.
Since we started traveling with points and miles, we have had more money going into our investment and savings accounts than ever.
Now I'm excited to teach you!
Welcome
I am excited you are here
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