The Best Credit Cards for Rewards and Cashback

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Here’s the Video Transcript:

Below is the Video Transcript:

the thing I like the most about the Costco anywhere Visa card is its simplicity it offers you 4% on gas purchases 3% on restaurants and travel 2% on I made it that far now let me cheat a little bit hey guys today we’re here to talk about credit cards I have a 25-year love and hate relationship with credit cards I am pretty happy because I went to cash my what do you call this my 2020 credit card we wore certificate amount it’s right here we can go in circles talk about all day that credit card that gives you cash back incentivizes spending and that is true but we’re not here to talk about spending habits or anything we’re here just to focus on what can you do to get the most out of a credit card first let’s talk about the types of credit there’s mainly two types of credit secured credit and unsecured credit and credit cards belong to unsecured credit why it means that they have nothing to hold you against typically the credit card rates tend to run a little higher than let’s say that of a vehicle or a mortgage next there’s different types of credit cards there’s spreader cards that give you points line miles different types of rewards but there’s one type of credit card that is my favorite which is the cash back credit cards because you get the money and you can do whatever you want with it sure those frequent flyer credit cards are good because if you spend enough then you get free flights somewhere or free hotels but at the end of the day you’re restricted to how you spend your money there’s solar cards or credit cards like the GM card and I’m still around but that card basically gave you money towards the purchase of your new card again it subjects you to spend the money on what they want so my favorite that I’ve come to love is the cash back card 90% of what spending this household is spent on this credit card and therefore I expect a big cash back at the end of the year and I just got this so I’m pretty happy yes it’s sad that I spent so much money to get this little back but at the end of the day I did not pay a dime and interest at the end of the year so that’s good to understand why I thought this video could be useful for some of you some of you younger guys is because when I was 29 my credit score was 648 and I remember when a curator of San Diego saw me a car saw me a brand new car and I felt like they did me a favor by letting me walk off with the $34,000 debt I was not a homeowner and that wasn’t my biggest purchase I felt pretty special when accurate trusted me with that car and I financed it through Honda Motor Credit had a whooping four-point-eight it wasn’t horrible but it wasn’t the greatest I really thought that 648 was a good credit score to give you a big into brief intro not a beef intro a brief intro to credit courses from 800 to 900 is exceptional credit from 742 799 is very good from 672 739 is good from 580 to 669 is fair and from 250 to 579 is risky I understand that everybody is at a different stage in life some of you younger guys may not be as established with credit so I cannot expect some of you to have accept your credit which is 800 and above so what I’m gonna tell you is how the credit score is composed it’s 35% is payment history 30% is the amount you owe 50% is the length of credit history 10% is credit open and 10% is type of credit you have I categories there’s there’s a couple that you actually have control over your payment history you can control that by paying on time the amount you owe you can control that by not spending more than you should the length of credit history that’s one that only comes with time so you cannot actually control that if you’re in your 20s then you have less years of established credit but the category of credit open that when you can control you shouldn’t go into stores and get their credit cards just because they offer you a big discount for that one purchase and the last one the types of credit that you all maybe do do not have full control of it because if you’re younger maybe you haven’t had the chance to establish yourself by buying a home which is a really good type of credit there’s a caveat you have to pay him on time you cannot carry any debt for the next month because that’s buying into your cash back reward at the end of the year I haven’t paid any interest in the last 15 15 years maybe so at the end of the year whatever I get is clean now there’s many retailers that offer you cash back cards target gives you 5% on the purchases Amazon same thing it’s 5% of whatever you buy an Amazon but at the end of the day the best rewards come from what you buy with them the thing I like the most about the Costco anywhere Visa card is its simplicity it offers you four percent on gas purchases three percent on restaurants and travel two percent on made it that far now let me cheat a little bit on all purchases on Costco at Costco in Costco calm and then one percent of cash back rewards on our other purchases so it’s very simple now there’s a cap to some of those suspense –is I’m not gonna get that far into it now I’m not gonna tell you how much it is because I think it will be in a horrible taste but what I can tell you is that it’s two percent of my total expenses for the year so yes it gives you four percent in certain things 3 percent 2 percent and 1 percent and other things but everything combined comes to very close to 2 percent so this is what I would like you to take from this video is that credit cards are not bad most of us need credit cards unless you’re Dave Ramsey and if I were you is I will keep it as simple as possible by not having too many credit cards that is all for now if you like my video please smash that button and subscribe to my channel activate the notifications it means a lot to me as more YouTube that you subscribe to my channel my name is Juan Carlos see you next time [Music]

 

Read More: The truth about cash back credit card fees

 

License:Creative Commons

License: Creative Commons