🌱 Dive Into the Journey of Credit Card Wellness

Hey folks,

I hope you've all had a fantastic week and are gearing up for the weekend ahead.

🗒️ This week’s rundown:

• Topic of the week - Credit Card Wellness

• 5 Credit Card Terms That You Must Know!

• Rewards reminders and activations!

• Wicked Pay App Updates

💳🌱 Credit Card Wellness

Today, I want to kick off our newsletter journey with a focus on something super important: Credit Card Wellness. While it might not be a household term in the financial world, its significance cannot be overstated, especially in today's economic landscape. However, as members of this financially savvy club, let's dive into it 😎 

Because there is no real definition of “credit card wellness”, let’s make sure that we’re on the same page about its meaning. Truth be told, credit cards offer an exciting yet bewildering array of perks and rewards. However, understanding the terms and intricacies requires considerable effort. If credit cards are not managed carefully, you risk damaging your credit and future opportunities, accumulating debt, and facing hefty interest charges. But Credit Card Wellness isn't just about avoiding debt (although that's important!). It's about harnessing the power of credit cards to:

• Boost your financial well-being: Maximize rewards, build credit score, and make informed spending decisions.

• Feel empowered, not overwhelmed: Understand credit card terms, avoid sneaky fees, and build healthy financial habits.

• Achieve your goals: Use credit as a tool to travel, pay for education, or invest in your future.

Credit card wellness, much like physical or mental health, takes continuous effort. We’re only starting the conversation in this issue of our newsletter and will delve deep into understanding and achieving a healthy relationship with our credit cards in the future. But here are some important things you can start doing to start a healthy relationship with your credit:

1. Self-Assessment:

• Track your spending: Understand where your money goes. Awareness is key!

• Review your credit cards: List all your cards, their annual fees, interest rates, and rewards categories. Identify any unused or underutilized ones. Our Wicked Pay app can be very helpful for this.

• Check your credit score: Utilize free credit score services like Equifax, Experian, and TransUnion to understand your current standing and potential areas for improvement.

2. Building Responsible Habits:

• Pay your statements in full and on time: Avoid unnecessary interest charges and late fees. Set up autopay if needed.

• Prioritize high-interest debt: Tackle cards with the highest rates first to minimize interest payments.

• Be mindful of minimum payments: Paying only the minimum keeps you in debt longer. Aim to pay more whenever possible.

• Resist impulsive purchases: Don't rely on credit cards for everyday expenses you can't afford with cash.

3. Optimizing Rewards:

• Identify your spending habits: Analyze your spending categories to choose cards with targeted rewards that match your lifestyle.

• Take advantage of welcome bonuses: Look for cards with sign-up bonuses aligned with your spending habits.

• Utilize rotating categories: Maximize rewards by using specific cards for designated categories each quarter.

• Don't chase rewards blindly: Prioritize responsible usage over maximizing points at the expense of your finances.

4. Setting Goals:

• Define your financial aspirations: Do you want to travel, invest, or pay off debt? Align your card usage with your long-term goals.

• Set realistic spending limits: Create a budget and stick to it to avoid overspending and potential debt traps.

• Monitor your progress: Track your credit score, reward points, and expenses to see how your efforts are paying off.

✍️ 5 Must-Know Credit Card Terms for Everyone:

1. Credit Limit: This is the maximum amount you can borrow on your credit card. Staying below your limit helps maintain a good credit score while exceeding it can incur expensive fees and damage your credit.

2. Interest Rate: This is the annual percentage rate charged on your unpaid balance. The higher the rate, the more you pay in interest, making it crucial to avoid carrying a balance whenever possible.

3. Minimum Payment: This is the smallest amount you must pay by the due date to avoid late fees. While making the minimum keeps your account open, it takes longer to pay off debt and accumulates significant interest. Aiming to pay your statement in full is ideal.

4. Annual Fee: Some credit cards charge a yearly fee for the privilege of using them. Knowing this fee beforehand helps decide if the card's benefits outweigh the cost. Evaluate if the rewards and perks justify the annual expense.

5. Grace Period: This is the window (usually 21-30 days) from the statement date where you can pay your balance in full without incurring interest charges. Understanding this timeframe allows you to strategize payments to maximize the grace period and avoid interest.

Bonus Term:

• Credit Utilization Ratio: This is the percentage of your credit limit you're currently using. Keeping it below 30% helps maintain a good credit score. Monitor your utilization and pay down balances strategically to stay within a healthy range.

🔔 Rewards reminders and activations!

Current Discover Bonus Categories - Q1 (Jan. 1–March 31)

• Restaurants

• Drugstores 

Current Chase Freedom & Chase Freedom Flex Bonus Categories - Q1 (Jan. 1–March 31)

• Grocery stores.

• Fitness clubs and gym memberships.

• Self-care and spa services.

Current Citi Dividend Bonus Categories - Q1 (Jan. 1–March 31)

• Amazon

• Select streaming services.

⚡️ Wicked Pay App Updates

Can’t start this section without thanking all of our supporters and well-wishers. Here’s what’s going on with us:

1. Our Wicked Pay app is still on TestFlight. Your feedback is crucial for our continuous improvement. If you've tried our app, please share your thoughts through our survey form here.

2. We’re growing our team! Stay tuned for updates on our team and the passionate individuals driving this vision forward.

3. Well if you couldn’t tell already, we started our Wicked Club Newsletter to foster a community where we can start talking about utilizing credit cards to the fullest in a responsible and informed way.

   Upcoming:

   1. If you're someone who loves finding credit card hacks online, be sure to follow us on our Instagram, TikTok, and Twitter (or X whatever)! We're gearing up to ramp up our activity on social media very soon.

   2. We’re also preparing to publish our app on the App Store soon, so be on the lookout!

   3. Wicked Pay founders are off to Tampa, Florida next week to participate in a startup pitch event. Will share exciting updates next time.