Cracking the Code for Credit Cards


Some high-end credit cards give back a percentage of what you spend. They call this “rewards,” “cashback,” or “points.” Credit card companies do this because they want you to spend more on that card.

If you travel a lot, then you should get a 2x rewards card with the lowest possible annual fee. 

See 2x Rewards Cards

If you don’t travel much, then you should get a 2% cashback card with no annual fee. 

See 2x Cashback Cards

In general, you want to get a card with 2% or 2x rewards on all purchases. 1% or 1x rewards is a lame deal. FYI, debit cards almost always give 0% rewards.

Still confused? “Rewards” is like getting 1 or 2% off all of your purchases.

Here are three more things to remember.

  • You need a good credit score to get a good credit card.
  • You shouldn’t run a balance on these cards, because they have super-high interest rates.
  • Finally, don’t be fooled by special rewards rates on different categories, e.g. “5x” on groceries. While it might be possible to get a slightly better deal, having a bunch of different cards is more likely to be confusing.

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