Mastering the Credit Card Game

What is the primary goal of the earning hierarchy in the credit card game?

• To avoid all credit card fees

• To minimize credit card usage

• To earn the maximum number of points for every dollar spent

• To maximize the number of credit cards owned

Which type of credit card is considered a 'catch all' card?

• A card with high annual fees

• A card that only earns points on travel

• A card that offers 1.5 to 2x points on miscellaneous spend

• A card with no signup bonus

What is the 80/20 Redemption Rule based on?

• The principle that 80% of credit cards should be canceled

• The concept that 80% of results come from 20% of efforts

• The strategy of earning 80% more points each year

• The idea that 80% of points should be redeemed for cash

Why is it important to focus on the redemption side of the credit card game?

• Because it helps in avoiding annual fees

• Because earning points is not beneficial

• Because it increases the number of credit cards you own

• Because it determines the majority of your success

What should you calculate to ensure a credit card is worth keeping long-term?

• The number of credit cards owned

• The total amount spent on the card

• The effective annual fee

• The total number of points earned

What is a potential Plan B if a credit card no longer provides value?

• Apply for more credit cards

• Ignore the annual fee

• Cancel the card or downgrade it

• Increase spending on the card

What is the spending trap in the context of credit card usage?

• Paying off the full balance each month

• Using only one credit card for all purchases

• Avoiding all credit card usage

• Spending more to earn more points

How can debit card users sometimes outperform credit card users?

• By paying higher annual fees

• By having more credit cards

• By avoiding the spending trap

• By earning more points

What are the two main factors to focus on for optimizing your credit score?

• Credit card type and spending categories

• Total points earned and redemption rate

• Payment history and amounts owed

• Number of credit cards and annual fees

What is the ideal credit utilization percentage to maintain?

• Above 50%

• Exactly 20%

• Between 30% and 50%

• Below 10%