Personal Finance

I'm 35 with a 790 credit score — here's exactly what I do to keep it so high

Rich Duprey

Published: December 13, 2024 2:41 pm

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Debt is a dangerous tool. While it is possible to leverage it to your advantage, debt can rapidly grow out of hand. The Federal Reserve says credit card debt climbed to a record $1.17 trillion in the third quarter. Worse, 8.8% of all accounts are in delinquent status. There is a good reason consumers are warned to avoid credit cards, as the temptation to overspend is great.

Yet one Redditor on the r/personalfinance subreddit exercises admirable self-control by meticulously paying down his balance every week so he never incurs any interest charges. He currently has two cards and would like to apply for another to obtain the best combination of points, rewards, and benefits.

With annual percentage rates (APR) running as high as 30% in many instances, paying off your balance every month to avoid such fees is the best strategy for using a credit card. Although you can amass a storehouse of valuable rewards, it requires discipline.

24/7 Wall St.Key Points:

• Credit cards are a dual-edged sword that can help you leverage the power of debt, but also ruin you financially if you misuse it.
• If diligently paid off every month, a credit card can reward you with valuable benefits and help build a strong credit history.
• The key to choosing a credit card is finding one that aligns with your spending habits and lifestyle.
• See our top picks for the best credit cards today. You won’t want to miss some of these offers. ^(Sponsored)

Navigating the Plastic Jungle

Credit cards offer a number of ways to earn points or rewards, including simple cash back options based on your spending; travel points that can be redeemed for flights, hotels, and other travel expenses; and points earned that can be redeemed for merchandise, gift cards, or even charitable donations.

While points and rewards are enticing, don’t ignore other benefits such as purchase protection against damage or theft, extended warranties, insurance for travel or car rentals, and concierge services that offer personalized assistance with travel arrangements, event tickets, and other needs.

Make sure to read the fine print, though. I’m not a financial planner, so these are just my opinions, but the devil is in the details when it comes to credit cards and that’s where many can trip you up. 

Look out for annual fees that can run into the hundreds of dollars or late payment fees if you miss a payment. Find cards that offer a grace period. Similarly, be careful not to exceed your credit limit because over-limit fees can be expensive. If you’re an international traveler, guard against foreign transaction fees on purchases made outside your home country. Some companies might waive them, but others can charge you a percentage of the total transaction.

Choose a card right for your lifestyle

While those are some basic guide rails to avoid some of the biggest tripwires, if you’re going to leverage the various benefits cards offer, find one that best meets your lifestyle. 

Frequent travelers, for example, would be smart to look for a travel rewards card offering bonus points on airfare, hotel stays, and miles traveled. Also consider travel insurance and airport VIP lounge access.

If you are a big spender or even a budget-conscious consumer, there is likely a card right for you. The former might look for a card with a cash-back option with a high earning rate while the latter should seek out one with no annual fees that still offers a mix of decent rewards.

More often than not, you will find cards offering an array of benefits, rewards, or points that you can align with your spending habits.

Keep an eye on the basics

Your credit score will play a significant role in determining eligibility for a credit card and the interest rate received. Credit scores typically range between 300 and 850, and though higher is better, even someone with a lower score can find a card to meet their needs.

Also keep in mind the credit limit and select one that suits your habits. Since you are paying off the card in full every month, a card’s APR is less important for you.

Key takeaway

Credit cards have the ability to wreck your finances if you misuse them, but can also be an important tool in managing them. Carefully consider the points, rewards, benefits, and fees that align with your lifestyle and spending habits, but be diligent in using a credit card responsibly. You can earn valuable rewards even as you construct a strong credit history.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.