Why I'm getting my "Big Girl" Credit Card at 33 Years Old?
So. I’m getting my first credit card since I turned 18. Why?
Get free stuff.
Because I’m generally good with finances, have the cash and positive cash flow with my business (Grit HQ) , and could benefit from some of the free perks credit cards build in to create incentives to trick people into racking up debt on credit cards.
Before you think, oh, that makes sense! I should get a credit card, too, so I can get free things…
Personally, I’m pretty excited to benefit from the lifestyle creep nature of americans that keeps them in debt.
And, since I set an aggressive goal to retire by 45 years old, but I still want to travel the world, I’m getting my first big girl credit card and venturing into Travel Hacking! This means I’ll be using the incentive sign-on bonuses from my big girl credit card to book flights and hotels for free using the 6 Steps to start travel hacking successfully. Rinse and repeat as I take quarterly trips around the world!
But, before you get too excited about all of the FREE STUFF
…because if it sounds too good to be true it probably is…
I am in a position where i have enough cash in hand to use a credit card as a tool.
For example, if you get a credit card with a $7,000 limit on it and you plan on only ever putting $1,500 on it at a time (so it doesn’t effect your credit utilization rate significantly), make sure you already have the $1,500 you are putting on the credit card set aside to pay it off. Immediately.
For me, I’m only ever going to have $3,000 on my credit card at any given week.
I already have more than $3,000 in my pay off credit card bank account.
i pay off the credit card in full each week.
…and give me 10,000 bonus points if you sign up via the link above!
If I felt like I needed the credit card to have more cash or cashflow for my lifestyle or my business, I WOULDN’T GET A CREDIT CARD! For me, I’d be more focused on getting my business and life expenses in order. In fact, that’s one of the first things I did as I committed to working toward FIRE. I reduced my annual business expenses by around $10,000 each year.
Some of the young FI people I follow…
Like the FI Brothers Podcast that focuses on House Hacking (check them out, they’re pretty adorable). And practical and charming and forward-thinking for two 20-somethings working $30,000-$50,000 a year paying jobs.
They focus on credit cards and opening up lines of credit to establish credit history.
This doesn’t really apply to me at this stage of my life. Under no intentional doing of my own… I accidentally have a credit score that fluctuates between 789-819. No real credit cards open (other than that one I opened when I was 18).
Some non-Dave Ramsey Financial Independence experts talking to younger, less financially established individuals (Like the FI Brothers) talk about opening lines of credit purely to establish credit for larger real estate investments. So, if you don’t have a high credit score 700s+ or you don’t have any lines of credit open, travel hacking might be a way to kill two birds with one stone.