Choosing the Right Credit Card

Romans 13:8 Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.

When it comes to selecting a credit card, it’s important to consider its impact on your long-term financial goals. Speaking from experience, if I were to start over and commit to just one credit card, I would opt for the one that contributes to building my nest egg. Initially, I fell prey to the appeal of travel bonus points offered by hotel and airline credit card brands, which undoubtedly proved useful for our family vacations. However, I soon realized that these perks catered more to our short-term desires rather than fostering long-term financial growth.

Before anything else, it’s important to emphasize that if you’re not able to pay your credit card balance on time, it’s best to avoid getting one altogether. Falling into debt is the last thing you want and Romans 13:8 reminds us to let no debt to remain outstanding. However, if you can responsibly manage your finances, it’s worth taking advantage of brokerage investment firms that offer a 2% cash back credit card with no annual fees. Consider this: for every $100 you spend using your credit card, you receive $2 as a reward. Although it may seem insignificant, every dollar you earn back can be directed towards investments.

Financial institutions will link your 2% rewards bonus to your brokerage, cash management, or even 529 college savings plan with them. Disciplining yourself to not take the bonus rewards now (like a gift card to your favorite coffee shop) and keeping it linked to investments will pay off dividends in the long term. By allowing your money to make more money for you, even if it’s just a few extra bucks, you’re setting yourself on a path towards financial prosperity. So, make the most of every opportunity to increase your savings and watch your nest egg flourish. Those $2 in rewards could potentially grow 8-12% a year if invested in an index fund as an example (do to the math with 30 years of compounded interest). Plus, I know most of you will be spending more than $100 a month anyway…so get those rewards!

-HC