Choosing the Right Credit Card

Why should beginners focus on credit cards with no annual fees?

• They have lower interest rates.

• They offer higher credit limits.

• They provide better travel rewards.

• They are easier to get approved for with limited credit history.

What is a key advantage of travel rewards over cashback?

• Travel rewards offer a higher potential value if redeemed correctly.

• Travel rewards are easier to manage.

• Cashback is better for frequent travelers.

• Cashback offers more flexibility.

What does the Chase 5/24 rule imply?

• Chase cards offer five times the rewards for 24 months.

• You can only apply for Chase cards every 24 months.

• You will be denied for new Chase cards if you've opened five or more personal credit cards in the past 24 months.

• You can only have five Chase cards at a time.

Why are flexible points currencies considered beneficial?

• They offer fixed redemption values.

• They provide higher cashback rates.

• They allow multiple redemption options across various programs.

• They are exclusive to hotel stays.

What should you consider when evaluating a credit card's annual fee?

• The card's popularity among friends.

• The number of cards you already own.

• The net value provided by the card's benefits and rewards.

• The card's color and design.

What is a welcome bonus in the context of credit cards?

• A discount on the annual fee.

• A reward given for spending a certain amount within a specified period.

• A lower interest rate for the first year.

• A free travel voucher.

What is a potential benefit of having multiple credit cards?

• More complex financial management.

• Increased annual fees.

• Ability to optimize rewards across different spending categories.

• Higher interest rates.

What should you do if you no longer want a credit card with an annual fee?

• Close the account immediately.

• Transfer the card to someone else.

• Request a retention offer or downgrade to a no annual fee card.

• Ignore the annual fee.

What is a recommended credit score range to aim for when applying for top credit cards?

• 650-700

• 600-650

• 700 and above

• Below 600

Why might zero percent APR offers be misleading?

• They last indefinitely.

• They encourage carrying a balance, which can lead to debt.

• They apply to all purchases forever.

• They offer no real benefits.