Lecture Notes: Choosing Credit Cards by Age

Introduction

• Presenter: John from John's Finance Tips
• Topic: How many credit cards to have and which ones to choose based on age
• Experience: Over 50 credit cards and millions of miles and points
• Main Advice: Pay credit cards on time and in full
• Credit Score Factors:
  • On-time payments (35%)
  • Credit utilization (30%)

Lecture Outline

1. Age Brackets and Card Recommendations
2. Annual Fees
3. Number of Cards
4. Goals for Each Age Bracket

Under 18

• Credit Card Access: Through being an authorized user on an adult's card
• Parental Strategy: Add children as authorized users to build credit
• Risks: Authorized users are not responsible for debt
• Bank Age Requirements: Vary by bank (e.g., Amex allows at 13, Discover at 15)
• Annual Fee: None for authorized user; adding costs vary
• Number of Cards: One is sufficient
• Goal: Learn how credit cards work

Ages 18 to 21

• Financial Situation: Likely low income, possibly in college
• Types of Cards:
  • Student credit cards
  • Secured credit cards
• Secured Credit Card: Requires a deposit equal to credit limit
• Example: Discover it Secured (cash back on spend categories)
• Student Credit Card Example: Chase Freedom Student (cashback, annual bonuses)
• Annual Fees: None
• Number of Cards: One or two
• Goal: Understand credit card mechanics

Ages 22 to 26

• Financial Situation: Starting career, more income
• Types of Cards:
  • Beginner credit cards
  • Mid-tier travel cards
• Beginner Card Example: Capital One Quicksilver (signup bonus, cashback)
• Mid-Tier Travel Card Example:
  • Built MasterCard (earn points on rent)
  • AmEx Gold (high reward points on dining and groceries)
• Annual Fees: $0 to $100
• Number of Cards: Two to three
• Goals: Optimize spend categories, start redeeming points for travel

Ages 27 and Over

• Financial Situation: Established career, more income and responsibilities
• Types of Cards:
  • Premium travel cards
  • Airline and hotel-specific cards
• Premium Card Example: Capital One Venture X (travel benefits, lounge access)
• Travel Specific Card Example:
  • Citi American Airlines card (valuable for international travel)
  • Chase Hyatt card (good for hotel stays)
• Annual Fees: $300+
• Number of Cards: As many as needed, mindful of mortgage impacts
• Goals:
  • Enjoy travel and card benefits
  • Redeem points efficiently

Conclusion

• Emphasize learning, optimizing, and enjoying points
• Engage with community feedback and experiences
• Future plans and travel examples from John's own experience