Ep 3 | 3 Credit Card Secrets All High Earners Need to Know
In this episode, Priya Malani breaks down everything you need to know about credit cards and how to use them to your advantage. She’ll bust common myths that could be costing you, reveal how to make the most of your credit card benefits, and share foolproof strategies for managing and eliminating debt. Plus, she’ll dive into why your credit history matters and how making smart choices with your cards can level up your financial game. If you want to take control of your credit, this episode is packed with must-know insights!
Tune into this episode to hear:
How using your credit cards the right way can actually work in your favor—and save you money.
The one trick to keep your credit card debt at zero without losing any sleep.
Why your credit history is more powerful than you think, and how your oldest card could be a secret weapon.
The shocking truth about credit card APR—and why it might not matter as much as you think.
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Transcription
If you're feeling triggered by my use of the term "adult" in this way, my podcast is probably not for you. I’m going to shoot it straight, and I’m going to talk to you like you absolutely can handle this. I can’t stand when people say to me, “I just don’t trust myself.”
Who the heck am I to tell you what to do with your money? My name is Priya Malani, and I’m an ex-Merrill Lynch, ex-Wall Street type, extremely Type A—the kind of crazy you want in charge of your cash. Currently, I manage millions of hardworking dollars for hardworking, high-earning 30-somethings like yourself. Whatever phase you're in—financially free, fixing it, or feeling totally stuck—my job is to teach you the stuff that no one else is going to. Enough foreplay. Take off the jeans, put on the sweats, grab a glass, and let’s talk money. Welcome to The F Word—smart money, no toll.
Credit Cards: How to Use Them Like an Adult
Hey guys, today we’re talking about credit cards. It’s by far one of the most important things in the world—one of my all-time favorite topics to discuss. The credit card industry is one of the easiest systems to game, if you know what you’re doing. Let’s get into it.
This is where I really earn my Rebel of Wall Street stripes. Just a quick reminder: I don’t get paid to sell products. I’m here to give you no-BS advice. That means I’m not going to tell you which credit card is the best, because honestly, the industry has turned into a bit of a circus. Benefits and incentives are always changing to lure in new subscribers and one-up the competition. With it being such a moving target, it makes it hard to offer solid, lasting advice. Plus, it really depends on your lifestyle. If you travel more, you might prefer the MX Platinum for the lounges. If you don’t, the Chase Sapphire Reserve could be a better fit. There are plenty of options when it comes to premium cards. These are just two of the most frequently touted by our clients, and they seem to be happy with them.
But what I am saying is that, as a high earner, it likely makes sense to pay for one of the premium credit cards—again, if you know what you're doing, which by the end of this, you absolutely will.
The Right Way to Use Credit Cards
For starters, many people assume credit cards are bad news, and I think it’s because we’ve been taught by the credit card industry to think of them as free money. It’s probably also because we’ve all been in a little over our heads or know someone who has. Many of you know that part of why I started my company, Stash Wealth, was because I grew up around a lot of credit cards. I grew up around a lot of stress when it came to money. Even with a solid six-figure income, money was this dark cloud over my childhood and family. I could never understand it—why is money so hard even when there’s enough of it?
I told you guys in the last episode about the couple in Connecticut earning $650,000 with a mountain of debt. I’ve also seen people making $50,000 with no bad debt. To be honest, I don’t know. The issue isn’t how much money you make—it’s how you manage it.
Not only is it important for you to get control of your finances so you can live your best life, but it’s also imperative that you model great habits for future generations. You don’t want to pass on that financial anxiety. So, it’s important that you know how to use a credit card like an adult.
How to Use Your Credit Card Like a Debit Card
Let me break it down. If you’ve ever listened to a financial podcast, you’ve probably heard of Dave Ramsey. I’m about to throw some shade. Almost everyone who calls into his show is in a ton of credit card debt. But the answer isn’t to abandon credit cards and debt instruments altogether. It’s simply to learn how to use them effectively—like an adult.
If you’re feeling triggered by my use of the term “adult,” my podcast is probably not for you. I’m going to shoot it straight and talk to you like you can handle this.
I can’t stand when people say, “I just don’t trust myself.”
Alright, so let’s talk about how to use your credit card the right way. My first piece of advice is to use your credit card like a debit card. Instead of thinking of your credit card as free money, start thinking of it as a smarter way to spend the money you already have. This means: don’t buy anything with your credit card that you don’t already have the cash for.
I’m going to say that again: don’t buy anything with your credit card that you don’t already have the cash for. That way, you’ll never have to deal with a balance you can’t pay off. And if you’ve listened to my previous episodes, you know that’s a pretty good indication that you’re living a lifestyle you can’t afford.
Upgrade Your Credit Card
The next thing I want to address is those of you who are still using the same credit card from your college days. It’s time to upgrade your card. If you’re using a card from the place where you banked, like a regional credit union or a campus bank that signed you up for their starter card when you opened a checking or savings account freshman year—well, it might be time to move on.
You don’t have to stick with that card, and you likely shouldn’t still be using it. Instead, find a card that actually works for you, and those starter cards almost never do. This is where your research comes in.
You want a credit card that has a rewards program aligned with things you’re already spending your money on. This way, you can maximize rewards points or cash back. But, and this is a big but—don’t get caught up in details that don’t matter, like the annual fee.
When you do your research, you’ll notice that the premium credit cards often have high annual fees—sometimes a couple hundred bucks. But those fees pale in comparison to the benefits you get when you use the right card.
Understanding APR and Other Misconceptions
Now, let's dive into something that might be a bit controversial, but fun for me. First, you shouldn’t stress too much about the Annual Percentage Rate (APR). As long as you’re paying off your credit card balance in full every month, surprise—the APR is irrelevant.
It should not affect your decision-making when selecting a card, because if you’re using your credit card like a debit card (spending money you already have), APR doesn’t come into play.
But here's where credit card companies get tricky: they make it look like you only owe the minimum balance. That’s the number they highlight on your statement, making it seem like you don’t owe much. If you only pay the minimum every month, the APR absolutely matters—and that's when the credit card companies start winning.
Debit vs. Credit: Which is Better?
Here’s something else I want to clarify: if you think using a debit card is the way to save money, that’s flat out wrong. Debit cards don’t offer the same benefits as credit cards. They don’t have rewards programs, they’re a pain to replace if lost or stolen, and they don’t offer many of the extra perks that come with credit cards, like price protection, car rental insurance, airport lounge access, fraud protection, and cash back.
Some newer debit cards offer basic rewards or perks, but they rarely stack up to what credit cards—especially premium credit cards—provide. When it comes to maximizing your spending power and protection, credit cards win hands down.
Closing Unnecessary Cards
Now, let’s talk about how many cards you should have. If you’ve got several cards or old store cards, here’s a quick guide: store cards, close them. Unless you opened one to finance a large purchase at 0%, and even if you did, once you’re done paying it off, close that card.
Managing Your Credit Wisely
I know some of you might be worried about closing credit cards, but the truth is, if you’re managing your credit wisely, closing a few cards won’t tank your score—though it might lower it temporarily. But as long as you’re using your credit cards responsibly, that dip in score will be temporary.
I have four cards in my name: two of which I use—my Bilt card for rent, and my Amex card. I also have the American Airlines and Marriott Bonvoy cards because I like the free nights. My current credit score? It’s an 800.
Final Tips: Pay Your Balance Off Early
Lastly, here’s how to make sure you never pay credit card interest. Instead of paying your balance when the statement is due, pay it off the day after the billing cycle closes. This eliminates all the confusion credit card companies love to create. You’ll always see a fresh month’s charges when you log in to your credit card account.
Closing Thoughts
Credit is a tool. If you know how to use it and play the game right, it can work for you. So, here’s the takeaway: Do not use your credit card like free money. If you can get a handle on that, you win, and the credit card companies get nothing.
That’s all for today! If you want to see just how corrupt the credit card industry is, try Googling “deadbeat” and “credit card.” See you next time.
THE STUFF OUR LAWYERS WANT US TO SAY: Stash Wealth is a Registered Investment Advisor. Content presented is for informational and educational purposes only and is not intended to make an offer or solicitation for any specific securities product, service, or strategy. Consult with a qualified investment adviser (that's us) before implementing any strategy. Investing involves risk, including the loss of principal. Past performance does not guarantee future results. There…we said it.
