Originally Posted by
khergan
Ramsey people don't realize or won't admit that if you use credit cards like cash (ie only spend money on them you already have), you can get a lot of benefits from them.
Financially disciplined people can get a lot from CC benefits. I have never paid a cent of interest on a CC and gotten many hotel stays, car rentals and plane flights free.
That being said, the majority of people who aren't financially disciplined and overspend end up making the CC companies a lot of money thru interest payments.
A good resource is the "Points guy" website. It talks different cards, their benefits, and helps you narrow down a choice based on what you want to do with your points.
Correct.
The annual fees are a real cost the question is if you get your money's worth. The Hilton or Marriot AMEXs have primary rental car insurance as an option and either Gold or Diamond/Platinum? status. Status gives a water bottle and some food and beverage credit so it really depends on how often you stay if the fee pays you back but at least when you do you will get more points (from the status plus the credit card bonus). So decide how much each status is worth to you and pick your card accordingly. The highest tier card also has rebates for certain transactions so that's another offset.
The airline card is the same story, use it to buy 20% discount tickets for at least double miles and PQP/loyalty points for status. It also provides a discount for onboard purchases (do pilots do that?) The higher fee card gives lounge access (it's crowded and has a waiting list) and more points for faster status. Decide how much fee is worth it to you and how much you will get as a return on your spending (depends on your spending level).
Just pay off the damn balance every month, only a fool borrows money at 22-29%.