I am 35 and make a little more than the median salary in my area. I have a mortgage and some student loans but an excellent credit score of around 790. I have never missed a payment.
I put almost everything on my credit card and pay it off at least weekly, so I never pay interest but earn points and build credit.
I have two credit cards:
A card I got when I was 18, but it is pretty useless. No rewards, no perks, and a high interest rate (which does not matter to me). I keep it active by paying my Spotify subscription with it since it is my oldest account.
A card from my bank. It is decent—3% on dining, 2% on travel, and 1% on everything else. Not a bad card, but nothing special.
I feel like I should get a better card, especially one with better cash back or perks. I do not want to pay an annual fee unless it is absolutely worth it.
How do I even start figuring this out? Is there a way to compare cards easily? I am not necessarily looking for recommendations, but I would take them if anyone has a good suggestion.
Most importantly, I need a card with no foreign transaction fees. I travel a lot, and I am sick of paying extra when I use my card abroad. Many of my friends have cards without these fees, so I know they exist.
If you are paying your balance in full every month, the interest rate does not matter at all. You are already doing things right by never carrying a balance.
The main question is how many cards you want to juggle. Some people go all in and have separate cards for different spending categories—gas, groceries, dining, travel, etc. It takes a little effort but can maximize your rewards.
If you want to keep things simple, look for a flat 2% cash back card that applies to everything. Your current 3% on dining is solid, but you could add a 2% everywhere card for better rewards overall.
@Leander
Keeping track of payments is easy if you set up autopay for the full statement balance each month. The real challenge is making sure you do not overspend so that you can always cover the balance.
You can check websites that compare credit cards. They break down the best rewards cards for different categories like travel, dining, or cash back. A lot of people also discuss this on forums where they list the best options for maximizing rewards.
If you always pay off your card, the interest rate does not matter. I do not even know what my cards’ interest rates are.
Your current 3-2-1 cash back card is already pretty good. The only other thing worth looking at is a travel rewards card if you fly a lot. You could switch between using a travel card for flights and a cash back card for everything else.
It sounds like you might be paying your card too often thinking interest starts the moment you make a charge. That is not how it works. You only get charged interest if you carry a balance past the statement due date. As long as you pay the full statement balance once a month, you will never owe interest.
You do not need to pay multiple times per month unless that helps you manage spending better.
MysticMonarch said:
The Fidelity Visa Signature is a solid option—2% cash back on everything and no foreign transaction fees.
Citi Custom Cash might be a better option. No annual fee and 5% cash back on your top spending category. I use it for groceries and save a lot that way. If you spend more on gas, you could use it for that instead.
There is no reason to pay your card every week. Leave your money in a high-yield savings account as long as possible and pay the full statement balance right before the due date to keep earning interest.
I do not even know my card’s interest rate because I never carry a balance. Cash back and rewards are what matter. There are cards that give 2% on everything, and others that offer 5% in certain categories. If you travel a lot, an airline card with a big signup bonus could be worth it.
If you want no annual fees and no foreign transaction fees, Capital One is a good option.
If you want premium perks, you usually have to pay an annual fee. Some airline and hotel cards are worth it if you travel a lot and take advantage of perks like free checked bags.
If you shop at Amazon or Target, their store cards offer decent cash back too.
If you always pay your full statement balance, the interest rate does not matter.
For travel, look into airline or hotel cards with perks like free checked bags or priority boarding. If you prefer cash back, search for the highest rate available.