My Thoughts on Picking Your First Points or Miles Credit Card

Keri at Heels First Travel wrote an amazing post about Picking out Your First Points or Miles Earning Credit Card. The post has 6 questions to determine how to pick your first credit card out. I agree with most of the questions, disagree with one of them and have one more important suggestion. 

One of the most important things to consider before getting your first points/miles credit card is your ability to pay your credit card on time. If you do not pay your monthly balance off every month, please do not get a points and miles credit card. The interest on the monthly balances will wipe out any benefit you might earn from the points and miles earned. Please read my post Young People and The Chains of Credit Cards to learn about the effects of credit card debt on your life.

The question that I disagree with is, "How many are you comfortable having?" This question leads you to think applying for more than one credit card at a time is what you need to do. I doubt this was Keri's intention. My belief is one credit card is the correct number to apply for the first time.  Don't feel pressured into needing to apply for more than one credit card. Its ok to apply for one credit card. This month was the end of my 90 day applying period and I only applied for the Chase Ink Bold. The only way to feel comfortable about credit cards is actually to use them. Can you handle the minimum balance in the required time? The points/miles is not a race, but a marathon. Slowly and steady is a great tactic.

My final suggestion in picking your first points/miles credit card is to pick one without an annual fee. Why you might ask? One component that comprises your credit score is the length of time of your credit history. The longer that you have a particular credit card the better your credit score will be. In the points & miles game, you frequently get a credit card and one year later close it before paying the annual fee. This type of opening and closing credit cards won't destroy your credit, but it won't help you obtain the highest potential score.

To help you achieve your highest potential credit score, I would recommend getting a points/miles credit card with no annual fee. By getting a credit card with no annual fee, there is no reason to cancel the credit card ever. As years pass, this one credit card will help grow your credit score higher and higher. This especially true for young people with limited credit. The longer you hold onto a credit card, the more attractive you will be to future credit card issuers. Win-Win situation for all.

Here are three suggestions for no annual fee credit cards:

1) Hilton American Express - 40,000 mile sign-up bonus

2) Barclay's Arrival - 20,000 Point Sign-Up Bonus

3) Chase Freedom - 15,000-25,000 Sign-Up Bonus

Keri's post on the 6 questions to ask yourself before getting a points/miles credit cards was dead on. I wish I had come across a post like this when I first entered the game. All I would add is caution to go slowly with new credit cards and add a no annual fee credit card to your wallet.

Welcome to the Game! It's a fun ride....

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