Financial Freedom 101

I have been building my credit since I was 18 and think it is a steppingstone to get you on the right financial path. I own a few credit cards and I feel that there’s no point in using a debit card unless you are using it at an ATM; please keep it simple and get a credit card for travel and a cash-back credit card, so while you spend money, you at least get rewards and cash-back.

I’m 21 and currently hold three credit cards with a score of 775; my goal is to be at 800 by the time I purchase my first property. (Click the link to read our post on building credit!)

Building credit has always been super important to me, and in my opinion, the three best credit cards to have is The AMEX Gold Card, Discovery Card for Students, and the Apple card; I have 2/3 of these cards, and my all-time favorite is the gold card even though it has an annual fee, but the rewards I have gained from it outweigh the annual fee.

Amex Gold

Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.

Annual Fee-$250

Earning Rewards

• 4X Membership Rewards points per dollar spent at restaurants worldwide, including those made through third-party processors like Square and Toast.
• 4X points per dollar spent at U.S. supermarkets on up to $25,000 in purchases per year.
• 3X points per dollar spent for flights booked directly with airlines or on amextravel.com.
• 1X point per dollar spent on other eligible purchases.

Membership Rewards points are worth about 0.5 cents to 1 cent each, depending on how you redeem them. Travel and gift card redemptions are generally the most valuable. Points are also transferable and can be worth even more if redeemed strategically after being transferred to other loyalty programs.

Other Benefits

• $120 annual dining credit. You’ll get this $120 in monthly $10 credits on your account that can be applied toward purchases made with select partners. Some potential saving can happen with Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations. (Shake Shack locations in ballparks, stadiums, airports, and racetracks are excluded.) Credits will be applied within two to four weeks of your purchase posting to your account. These monthly credits don’t roll over from month to month; if you don’t use them, you’ll lose them. Terms apply.
• Up to $120 a year in Uber Cash. Add your card to your Uber account, and each month you’ll automatically get $10 in Uber Cash for U.S. Uber Eats orders, or Uber rides in the U.S. These monthly allotments of Uber Cash don’t roll over from month to month; if you don’t use them, you’ll lose them. Terms apply.

Some Thoughts

The Gold Card comes with up to $240 worth of benefits that can effectively cancel out most of the card’s $250 annual fee. If you use Uber and visits The Cheesecake Factory at least once a month, maximizing these credits is more manageable than rolling off a log. But if you wouldn’t normally spend money this way, the credits might not be as valuable as they seem. The gold card is my favorite credit card, and I already have over a thousand dollars worth of points. I have only had it for eight months. It has opened my eyes to the importance of having a sound credit card. The benefits are a tad complicated but unbeatable for having this card at a young age.

If your interested in having this card please apply here: Apply for an American Express Card with this link. We can both get rewarded if you’re approved! http://refer.amex.us/BODHIG8iMg?xl=cp19

Discover It Student Cash Back

I recommend this credit card to anybody that is getting their first card no matter what age. The benefits this card has are great. It is the perfect card for a student learning to handle credit. On top of the rewards, you get a free FICO score, low fees and forgiveness for your first late payment.

Earning Rewards

Intro Offer: Discover will automatically match all the cash back you have earned at the end of your firsrt year. So if you were to have $200 cashback after your first year you would be matched and it would make it $400, Theres no minimum spending or maximum rewards, its just a dollar for dollar match.

Earn 5% Cash Back: You will earn cash back on everyday purchases at different places. Each quarter discovery will offer you a deals on different places, like Amazon.com, grocery stores, restaurants and gas stations. The card incentivizes you to spend at these specific places to earn 5% cash back. This is my favorite part about this card. You will get 5% back on gas!

Good Grade Rewards: You can earn a $20 statement credit each school year if your GPA is a 3.0 or higher for up to the next 5 years. I highly suggest you take full advantage of this, $20 isn’t a lot but its still a great little perk for this card.

No annual fee: No late fee on first late payment. No APR change for paying late, compared to most other cards will make you pay for this, which gives discovery card a huge advantage.

Refer a Friend: Once you become a discover it student card member you can earn a statement credit each time you refer a friend and their approved. Over half a million students got discover cards from their friends recommendations.

Final Thoughts

The rewards program on the Discover it® Student Cash Back is the same as on Discover’s regular cash-back credit cards — and far superior to what’s available on just about every other card for college students. For an annual fee of $0, you get 5% cash back in categories that change every three months, on up to $1,500 in spending per quarter and 1% back on everything else. The 5% categories, which you must opt in to every quarter, tend to be everyday expenses and require activation. This Discover student credit card could help most students save money and build credit, and I think it is the best credit card for any young student to get started on his journey of financial success.

If your interested in having this card please apply here: https://refer.discover.com/s/BODHI57

Apple Card

I feel this card is in third place compared to the AMEX gold and discovery college card, but it is still a great card with awesome perks. The Apple Card is a rewarding option for people with good credit or better who regularly buy Apple products and services, as well as for iPhone, Mac and iWatch users who are comfortable making purchases using Apple Pay. Having the new Apple Credit Card from Goldman Sachs in your wallet doesn’t have to cost you a thing, considering the card’s $0 annual fee (and lack of other major fees). But it can help you save money with elite rewards rates of up to 2% – 3% on select purchases, as long as you pay the bill in full every month.

The Apple Card is not the best everyday credit card for the average person, As popular as the Apple brand is, having rewards so dependent on Apple-centric spending, could be a disadvantage.

Earning Rewards

3% Cash Back With Apple & Apple Partners : Using the Apple Card to make purchases directly through Apple gets you 3% back on those purchases. That’s $60 on a $2,000 MacBook Pro, for example. The Apple Card’s 3% rewards rate also extends to purchases made with a select group of brands that have partnered with Apple. They include Uber, UberEATS, T-Mobile, Nike, Duane Reade and Walgreens. What gives this card an advantage over other is the average cash rewards credit card gives a bit more than 1% back on all purchases. However, some cards offer 5% back or even more in certain spending categories.

2% Cash Back Using Apple Pay: If you already use Apple pay without an apple card you are doing it all wrong.  The 2% cash back that you will earn using the Apple Card through Apple Pay is nearly double the market average, and a growing number of retailers accept Apple Pay. That makes the card worth using for more than just Apple-related spending.

No Annual Fees: The Apple Card has a $0 annual fee, a 0% foreign transaction fee, and zero other fees to worry about. Part of the reason for that is the Apple Card simply does not allow you to make certain transactions that would ordinarily come with a fee, such as balance transfers and cash advances. But still, not having to pay an annual fee itself will save you nearly $20 per year, compared to the average credit card offer.

Summary

The Apple Card makes mobile account management easy with functionality built right into the wallet app on Apple phones, computers and wearables. There’s color-coding to help you keep track of purchases by category, for example, along with estimated interest charges to encourage paying off more of your balance each month. Plus, cardholders won’t always have to hold onto their card, or at least bring it everywhere, considering that a lot of Apple Card purchases can be made directly from a mobile device. In addition, the Apple Card allows iPhone users to ask customer service questions via text message. It automatically provides users with a virtual card number to use when making online purchases from retailers that don’t accept Apple Pay through Safari browser. And having the card gives you the opportunity to take advantage of an interest-free installment plan if you decide to purchase a new iPhone.

Conclusion

For those who think owning a credit card is all about getting the best offers, then you aren’t playing the game right. Sometimes the offers will come and sometimes they won’t. Formulating a strategy for which cards to keep and which ones to cancel is essential. Also, never underestimate the power of a conversion! I always go into a card knowing what all of my options are so I can make the best financial decision for myself. The Amex Gold Card is easily the best card for young consumers, being able to gain amex points at a young age will be a stepping stone for your financial success and you will have some awesome rewards if you just keep stacking up the points. I am already 9 months in on my AMEX card and have $800 worth of points, it is crucial for your financial success to own this card.