Hi Money Minder,
Hey there! I’m in my early 20s and thinking about getting a credit card (probably going with the Discover student card). I need to buy a plane ticket next month for $1,500, and I already have the cash saved up. But I want to get some rewards or points for making such a big purchase, and the issue is that all the cards I’m looking at have really low limits. Can you help me figure out the smartest way to buy this ticket so I can get something back for spending $1,500 upfront? I’d appreciate any advice you have! Also, I’m open to card recommendations – looking for either Cashback rewards or a bonus for spending $1,500 in the first 30 days of opening the account. But I’m not sure if that’s even possible with no credit history ://
Thanks a bunch for your help!
Adventurous Spender
Response from THE MONEY MINDER:
Hello There,
Hello there,
It’s great to hear that you’re being proactive about managing your finances, especially at such a young age. Considering your current situation as a college student, applying for a student credit card like the Discover student card seems like a sensible choice.
In terms of purchasing your plane ticket for $1,500, it’s commendable that you have the funds saved up already. Since you’re looking to maximize rewards on this big purchase, one practical approach could be to apply for a credit card that offers a sign-up bonus for spending a certain amount within the initial months. While you rightfully point out that you may face limitations due to lacking credit history, it’s still worth exploring options like secured credit cards or student cards with attractive cashback rewards for new cardholders.
To ensure you are staying within your means and building a positive credit history, it’s advisable to pay off the credit card balance in full and on time. This way, you can enjoy the benefits of rewards without incurring high-interest charges. Remember, responsible credit card usage can help establish a strong credit profile for your future financial endeavors.
Do research and compare different credit card options that align with your spending habits and financial goals. And most importantly, be mindful of not overspending just to chase rewards. It’s a balancing act between earning rewards and maintaining responsible financial habits.
Best of luck with your credit card journey and future purchases!
Farewell from THE MONEY MINDER.
