Money is fun

Today’s Does of Wisdom

“Don't cut up your credit cards, the problem is not the cards, it's the lack of financial literacy of the person holding the cards and always make the best out of a bad situation”

Robert Kiyosaki

So This Happened

1- Bybit says $1.5 billion worth of crypto stolen in ether wallet hack

Cryptocurrency exchange Bybit said on Friday an attacker gained control of an ether wallet and transferred around $1.5 billion worth of holdings to an unidentified address. Reuters

2- Germany's conservatives celebrate, but far right enjoy record result

Friedrich Merz's conservatives have won Germany's election, well ahead of rival parties but short of the 30% vote-share they had expected. BBC

Credit Cards Done Right: 10 Smart Strategies to Maximize Benefits & Avoid Debt Traps

Credit cards can either be a wealth-building tool or a financial trap—it all depends on how you use them. While the dangers of high-interest debt are real, credit cards also offer rewards, cashback, discounts, and exclusive offers that can save you money when used strategically.

The key? Leverage credit cards to your advantage without paying a cent in interest. Here’s how you can do it:

1. Pay Your Balance in Full – Always

The golden rule of smart credit card use: Never carry a balance. Credit card companies make their money from interest, which can soar as high as 25% APR (or more). Paying your balance in full every month lets you enjoy all the benefits—rewards, cashback, discounts—without getting hit with interest charges.

✅ Action Step: Set up automatic payments to pay off your statement balance every month.

🔗 Source: NerdWallet explains how paying in full eliminates interest entirely. (nerdwallet.com)

2. Use Credit Card Offers & Discounts to Save on Everyday Purchases

Many credit cards offer cashback, discounts, and exclusive deals with popular retailers. Instead of spending cash or using a debit card, use your credit card for purchases you were going to make anyway and take advantage of these perks.

For example:

• Some cards offer 5% cashback on groceries, gas, or dining.

• Others provide discounts on travel bookings, streaming services, or electronics.

• Some cards have partnerships with brands, offering special discounts when you pay with their card.

✅ Action Step: Check your card’s app or website for current promotions before making any big purchases.

🔗 Source: Experian highlights how strategic spending can boost savings. (experian.com)

3. Leverage Sign-Up Bonuses for Free Cash & Rewards

Many credit cards offer introductory bonuses where you can earn hundreds of dollars in cashback, points, or travel rewards for spending a set amount within the first few months.

For example:

• A credit card might offer $200 cashback after spending $1,000 in the first 3 months.

• Travel cards often provide 50,000+ bonus points, enough for free flights or hotel stays.

The key: Only go for these bonuses if the spending aligns with your normal budget. Never spend extra just to meet a bonus threshold.

✅ Action Step: Plan large purchases around new card bonuses for extra value.

4. Utilize 0% Interest Balance Transfers to Pay Off Debt Faster

If you’re carrying high-interest credit card debt, transferring the balance to a 0% APR balance transfer card can help you pay it off faster. These offers let you pause interest for 12–18 months, giving you a window to pay down your balance interest-free.

✅ Action Step: Choose a balance transfer card with no annual fee and a 0% intro APR period of at least 12 months.

🔗 Source: CS Bank explains how balance transfers can help manage debt. (cs.bank)

5. Use Credit Cards for Big Purchases – But Only If You Can Pay in Full

Certain purchases—like electronics, travel, or home appliances—can earn you big rewards, extended warranties, and purchase protection when paid for with a credit card.

Example: Many premium cards offer:

• Extended warranties (beyond what the manufacturer provides).

• Price protection, where they refund the difference if the price drops.

• Purchase protection, covering accidental damage or theft.

✅ Action Step: Use your credit card for big-ticket items only when you have the funds to pay in full before the due date.

6. Automate Your Payments to Avoid Late Fees

Late payments not only result in fees but can hurt your credit score and even increase your APR. Set up autopay for at least the minimum due amount to avoid these penalties.

✅ Action Step: Set a calendar reminder to review your statement before the due date, ensuring you’re not overspending.

7. Keep Your Credit Utilization Below 30%

Credit utilization—the percentage of your available credit that you’re using—affects your credit score. A high utilization rate can lower your score and make lenders see you as risky.

✅ Action Step: Keep your utilization below 30% (ideally below 10%) for the best credit score impact.

🔗 Source: The Federal Reserve highlights credit utilization as a major credit score factor. (federalreserve.gov)

8. Take Advantage of Free Travel Perks

Many travel credit cards offer free airport lounge access, travel insurance, and no foreign transaction fees—saving you hundreds of dollars annually.

Example:

• Chase Sapphire Reserve: Provides free Priority Pass lounge access and trip cancellation insurance.

• American Express Platinum: Includes free Global Entry, airport lounges, and hotel upgrades.

✅ Action Step: If you travel often, choose a credit card that maximizes your travel benefits.

🔗 Source: Forbes details how travel credit cards can save money. (forbes.com)

9. Never Use Credit Cards for Cash Advances

Cash advances have immediate interest charges, high APRs, and extra fees—making them one of the worst ways to use a credit card.

Alternative: If you need quick cash, a personal loan or even borrowing from savings is usually a better option.

✅ Action Step: Avoid using credit cards at ATMs unless you’re withdrawing rewards cashback.

10. Monitor Your Credit Card Statements & Credit Score

Regularly checking your credit card statements helps you spot fraudulent charges before they become bigger problems.

Additionally, many credit card issuers offer free credit score monitoring, allowing you to keep track of your financial health.

✅ Action Step: Set up fraud alerts and check your statement every week for any suspicious activity.

🔗 Source: The Consumer Financial Protection Bureau (CFPB) explains why credit monitoring is essential. (consumerfinance.gov)

Final Thoughts: Use Credit Cards as a Tool, Not a Crutch

When used wisely, credit cards can work for you, not against you. By maximizing cashback, discounts, and rewards while avoiding interest, you can make your everyday spending work in your favor.

The secret? Use credit cards for things you already planned to buy, pay the balance in full, and take advantage of all the perks without ever paying a cent in interest.

Smart Credit = Free Money. Play the game right, and your credit cards will become an asset, not a liability. 🚀