If you pay your bills on time and you don't carry debt, you will always have excellent credit.
More moments · 6
Ep 37A roofer spending $30,000 a month at Home Depot was leaving $7,200 a year on the tableJason Steele
▶1:14
A roofer spending $30,000 a month at Home Depot was leaving $7,200 a year on the table
Ep 37Paying $200 a month in interest? Here's how a 0% balance transfer stops itJason Steele
▶1:14
Paying $200 a month in interest? Here's how a 0% balance transfer stops it
Ep 37He drives an electric car and still earned 10x points at the gas stationJason Steele
▶0:42
He drives an electric car and still earned 10x points at the gas station
Ep 37His 15-year-old already has several credit cards. Here's whyJason Steele
▶0:50
His 15-year-old already has several credit cards. Here's why
Ep 37He has 20 credit cards and a credit score near 800Jason Steele
▶1:10
He has 20 credit cards and a credit score near 800
Ep 37Before you pay your card's annual fee, make this one callJason Steele
▶0:37
Before you pay your card's annual fee, make this one call
Try this · top 3
Quotes
“The half that carries a balance should not be using reward cards.”
Jason Steele (reward cards carry higher interest rates)
“Tell me what the best pair of shoes is.”
Jason Steele (his answer when people ask for 'the best credit card')
“Make that 18 months your finish line.”
Jason Steele (on a 0% balance transfer: divide the balance by the months and pay it off)
“No one should ever have any more credit cards than they can manage responsibly. And if that number's zero, that number's zero.”
Jason Steele
“Every time I make a charge on a credit card to me it feels just as if I'm pulling cash out of my pocket.”
Jason Steele
“Half the time they'll say okay your your account's been canceled. The other half the time they'll say well what if we just waive that annual fee?”
Jason Steele (on calling to cancel when the annual fee hits)
“This is a discount on a purchase. This is not income.”
Jason Steele (on a roofer earning $7,200 a year in cash back)
“I call it the low-hanging fruit of frugality.”
Jason Steele
Takeaways
1 Jason Steele has written about credit cards since 2008 for outlets like The Points Guy and NerdWallet. He has about 20 open cards and a score just under 800.
2 About half of cardholders pay in full and half carry a balance. The half that carries a balance pays higher interest on reward cards.
3 Issuers earn 2-3% on each swipe and give back points worth a penny or two per dollar, so rewards seekers aren't hurting them. He says a Southwest Airlines executive told him, 'We love you.'
4 After five or six well-managed cards, the number of cards doesn't matter for your score. Paying on time and not carrying debt is what counts.
5 A high score that's never used is like a spotless Jeep. He uses his to apply for strong sign-up bonuses, spacing out applications.
6 Rewards (cash back, points) are different from benefits (lounges, travel insurance, extended warranties, rental car coverage).
7 Earn points three ways: everyday spending, sign-up bonuses and targeted promotions. He and his wife each apply ('two-player mode').
8 Points vary in value (for example, Southwest about 1.5 cents; Marriott about a third to a half of a Hyatt point).
9 Surcharges on card payments are spreading. He avoids merchants that add them, since handling cash costs businesses about as much.
10 Free travel changed his cousin's life: instead of one trip a year, she now visits family whenever she wants.