The 5 BIGGEST Credit Card Myths (that you may believe)

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Obviously we talk a lot about credit cards here at Daily Drop and believe that if used correctly they are powerful financial tools that can allow you to have incredible travel experiences. But there's also a lot of misconceptions and myths out there about credit cards so today we're going to put your worries to rest and show you how you can properly use credit cards to travel for free without sacrificing your financial wellness by going over the top 5 credit card myths.
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0:00-Intro
1:01-Credit Cards are Dangerous
3:16-Credit Cards = BAD Credit
4:29-Miles & Points are Unethical
6:36-You NEED Tons of Cards
8:18-Travel Hacking is too Complicated

Опубликовано:

30 июл 2024

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Комментарии : 31

@DailyDrop 5 месяцев назад

💳 Our Top Travel Cards: www.dailydrop.com/credit-cards

@antoniowood8119 11 месяцев назад

4:50 don’t hate the player, hate the game

@LK_EBM 11 месяцев назад

Will you make a video on how you redeemed 60k points for two round trip tickets to Ireland?

@emilyrogan 5 месяцев назад

23?! I wish I knew as much as this guy at 23…good for you!

@DailyDrop 4 месяца назад

Haha thank you!

@Matt_Hatt3r 8 месяцев назад

I know I'm a few months late commenting on this, but one of the ones I've heard (and that Mike has also mentioned) is that while still paying off your card every month, keeping a small balance on your billing cycle will increase your credit score. I've found this to be false multiple times. There are times when I make a last minute purchase and can't pay it (because the bank won't accept payment before the end of the cycle since the transaction is still pending) and that balance rolls into my monthly statement. That makes my credit score dip a few points, and then it comes back up once I don't have a balance the next month.

@MattNav 11 месяцев назад

Good video though of course the main caveat of this is that most of the offers folks see online are only available to those with access to the US credit card market and that the points and miles game is quite different in other regions and not nearly as easily lucrative. I say this from experience, as someone who has been collecting and redeeming points and miles for years based in France

@JackieBaisa 11 месяцев назад

That's a really good point. Is someone from France allowed to open a U.S. credit card? Or are you limited to French cards? (And how different are they?) I'd be very curious to see a video on the differences between U.S. and EU cards and their benefits.

@MattNav 11 месяцев назад

@@JackieBaisa So I cannot open US credit cards because I don't have a US SSN/ITIN nor a US bank account or credit score. The only flexible points currency available to us here in France is American Express but our points aren't created equally to their US counterparts. For instance, NONE of the airline transfer partners convert from AMEX FR at 1 to 1 ratio. Instead it's a mix of either 5 to 4, 3 to 2 or 6 to 5 ratios. The only 1 to 1 transfer options we have are Marriott and Hilton. We also don't have any category bonuses for card spend so for AMEX the most you'll earn is 1 point per Euro and that's it. No 3x on travel, no 4x on gas or groceries or anything like that. Other co-branded Visa and MasterCard cards are even worse, earning just 0.25 to 0.5 miles per Euro spent on average.

@DallasRSnider 10 месяцев назад

I have so many questions for your Ireland trip! What would it take for us to have a quick conversation?

@glenncamp733 11 месяцев назад

I have many cards, and I actually use a few of these for travel hacking. What is the best way to get rid of cards that earned me some bonuses, but no longer provide me with significant benefits?

@Cliffdog01 11 месяцев назад

I'd assume you just cancel them before the next annual fee comes up?

@dyhppyx 11 месяцев назад

You did a good job with this. Number 4 is pretty wrong but I know you're trying to get newbies started

@LK_EBM 11 месяцев назад

Why do you say #4 is wrong?

@dyhppyx 11 месяцев назад

@@LK_EBM it's just math. How many redemptions do you think you're gonna be able to make without lots and lots of welcome bonuses. 1-2 if ur lucky.

@john.g6886 9 месяцев назад

@@dyhppyx I've had a AMEX BCE for two months and am already $40 in cash back deep, with a Gold card on the way with major purchases for Xmas and other things planned to hit the 90k bonus + points from meeting minimum spend. Your math is off. You don't need tons of cards, you just need to maximize your points/cash earnings to your biggest categories.

@tawnidbrot2554 11 месяцев назад

So, once you meet your spending amount to get the sign up bonus, you pay it off, of course, then do you just stop using that card and sign up for another card to start getting points, and so on, and so forth? Until you have 12-14 card that have been maximized for free benefits from making sign up bonus'..? Then what do you do to continue this fabulous game? I already bought my sapphire card and have 90,000 points. Should I stop using that and then get another and keep doing that until I've run through all my possible cards. Do you ever close some of these cards or leave them open and pay the annual fees? I appreciate all I've learned from these videos. Thank you

@AAbshier 11 месяцев назад

I keep tabs on monthly offers. Don't just delete emails from your card carrier. I opened up my Southwest Rapid Rewards (WNRR) email and found that I could get 5x points on groceries, dining out, and gasoline purchases after activation. By using the WNRR card in conjunction with the Alaska Airlines dining program, I'm getting 10x in dining out! If you met SUB and your card isn't serving you after a year, you can always cancel, or downgrade to a no-fee card.

@JackieBaisa 11 месяцев назад

Was wondering the same. I have the Amex Platinum have a ton of points. Should I open a new card to get new sign-up points? I am guessing it depends on how often one travels. I, personally, travel about once every 1-2 months on average (not constantly). So, that probably factors into the equation as well. Also, different cards can have different benefits, so I will look for a second card that has different benefits from the Amex Platinum. But I don't imagine a dozen cards would work for me (or just anyone).

@LK_EBM 11 месяцев назад

You will never run out of cards to apply for. There's so many out there. You need to expand beyond the Amex and Chase cards. If the card doesn't benefit you after year 1, close them. Then reapply once your eligible again usually 2-4 years after.

@SkulShurtugalTCG 11 месяцев назад

I'd like to hear them talk about this. I was fully prepared to apply for two of their recommended cards, but I realized that aside from the signup bonus, I'd never actually USE more than one card. So I'm wondering, aside from the signup bonus, what reason is there to actually get so many cards?

@LK_EBM 11 месяцев назад

@@SkulShurtugalTCG The sign up bonus is THE reason to get these cards. There's no commitment to keeping them for more than a year. Also, they want you to apply for more credit cards so they can earn $ from referrals

@geevee9582 11 месяцев назад

are the flight portal prices equivalent to for example expedia and website like that?

@deannacrawford2922 11 месяцев назад

No but some portals have a price match protection and you book first with the portal then call them within 24 hours and inform them you want to make a price match claim. You have to tell them the website you found the flight/hotel/car rental at that was cheaper and the booking info has to be exactly the same reservation (same flight on the same day and time with the same seat class) with no member discounts. If it’s approved you will get a credit towards your next booking and if it’s not you can cancel and get a refund. I’ve only ever had one not work and it was because I couldn’t get the booking online to show up in USD.

@geevee9582 11 месяцев назад

@@deannacrawford2922 this is good to know, thank you for taking the time to explain that.

@MikeDodge20 11 месяцев назад

With #3 there is more to the story, and it’s not exactly a “myth”… yes, banks make money on interchange fees, but those interchange fees are higher for credit cards (especially premium ones and American Express cards). As a result, merchants need to raise prices to account for these fees. So people without credit cards and rewards ARE indeed paying the higher prices to support our free trips in addition to those who get slapped with interest. Definitely causes some inner conflict for me haha