Why I Have 9 Credit Cards at 21 Years Old

When I opened my first credit card at 18 years old, my only intention was to use it to build up my credit score. Well, in just 3 years I now have over 9 credit cards. Why you may ask? Because I have a problem…Haha, just kidding! And no, my credit score isn’t terrible, it’s actually in the high 700s and I’m hoping to join the 800 credit score club in the near future.

The actual reason I have so many credit cards is that after opening my first credit card, which was the Discover IT Secured, I soon found out that I could use credit cards for a lot more and that’s earning points! By the way, if you don’t know what a secured credit card is, check out my blog that I wrote about them: 

https://www.georgenickelsrealestate.com/blog/how-to-build-credit-using-a-secured-card

After going down the YouTube rabbit hole, I learned that I could earn points from things that I purchase with my credit card. I already knew that credit cards should NEVER be used to purchase things that I couldn’t afford to pay right away. But I figured, why not use credit cards to pay for things that I already spend money on so that I can earn points from it?

Now you may be wondering, what exactly can you do with points? Well, I’m glad you asked! There are a TON of things you can use your points for, but I primarily use them to travel for FREE. Yes, you read that right! Let me explain how you can use the points you earn from your credit card to book flights and hotel rooms for the low price of free!

99% of credit cards out there will give you points when you purchase things with them. But some of the best credit cards out there will have spending categories where you can earn more points if what you purchase falls within that category. For example, one of my favorite credit cards, which is the Chase Freedom Unlimited offers 3 points for every dollar spent at restaurants and 1.5 points on all other purchases. Now, I don’t really eat out a lot, but being able to earn 1.5 points on anything that I purchase is not too shabby! One other thing that I love about the Chase Freedom Unlimited is the sign-up bonus. I received $200 after spending $500, which equates to 20,000 points. 

Ok! Now that you know how to earn points from credit cards, let’s talk about how you can redeem those points for travel. If you have a travel credit card such as the Citi Premier, the Chase Sapphire Preferred, or the American Express Platinum you’re given access to their travel portal, which allows you to redeem your points for hotel rooms and flights. As a general rule, 1 point can be redeemed for 1 cent towards booking a hotel room or a flight. However, sometimes you’re able to get more value out of your points. Let me share with you a few examples of how I was able to use my points to travel for free.

The first time I used my points was when I went to New York City with my cousins. We stayed at a hotel called Thompson, which had a breathtaking view of Central Park. It would’ve cost us $450 a night to stay at that hotel, but since I used my points it was completely free for us to stay there. It cost about 30,000 points a night, which was a steal for how spectacular that hotel was.

A few months after that, I took my family out to the Gaylord Hotel at the National Harbor, which would’ve cost me $300 a night, but it only cost me around 25,000 points a night. I booked two hotel rooms for one night, so I spent around 50,000 points in total for that. It felt so great to treat my family to this trip for all of the love and support they have given me. However, I do regret spending $400 at this “fancy” restaurant, which had terrible food. But hey, at least I earned points from it lol.

Lastly, I booked a flight to the Philippines on Qatar Airways. I haven’t traveled outside of the country in years and I was 5 years old the last time I visited the Philippines, which is where a lot of my family lives. This flight would’ve cost me around $1,000 if I paid for it out of pocket, but it only cost me 85,000 points. To say that I’m excited to go back to the Philippines would be an understatement!

So at this point, you probably understand why I’m hooked on credit cards. But I can’t stress this enough, if you’re not going to be able to pay off the balance on your credit cards every month, then do yourself a favor and don’t open up any credit cards. A lot of people get caught in the trap of purchasing things with their credit cards that they don’t have the money to pay for, leading them into a cycle of accumulating high-interest debt and financial stress. You should never be using a credit card as a way to live beyond your means. However, if you use credit cards the right way, then you will never have to pay for a hotel or flight ever again.