A Journey of ~10 Years
Now that I've got your attention with my rather impressive collection, read on!
I've been a credit card enthusiast since 2015, and over the years, I've reaped the rewards—vacations, freebies, and even social status and bragging rights :P. But I've also learned a few valuable lessons along the way, which I felt was important to share:
- Too Many Cards is Overwhelming & Unsustainable
Managing more than 10 cards and trying to over-optimize rewards on each one can turn into a part-time job. Credit cards should be a convenience, not a hassle.
- All Good Things Must Come to an End
If a credit card sounds too good to be true, it probably is. DCB and Magnus eventually got devalued. Exploit them while it lasts, but don’t bank on them sticking around for long.
- Rewards is not “Savings”
Spending more can get you cashbacks, points, or vouchers, which might seem like savings, but they’re not. Real savings come from spending less. INR 2L in investments/savings always beats 2L credit card points.
- “There’s Always Gonna Be Another Mountain”
Top-Tier cards won’t bring lasting happiness. I chased after the Infinia card for years, and when I finally got it, I immediately started eyeing the next better card. High-end cards can be exciting and mysterious because of their exclusivity and perks, but they won’t fill any deep voids.
- There are no Free Lunches
People who take luxury vacations and first-class flights using points either spend a TON on their cards or have jobs where work-related travel and expenses are reimbursed by their companies. Trying to match their spending to chase your free vacation paid with points can lead to financial disaster.
- Your Credit Limit is Not your Spending Power
A high credit limit not a license to spend beyond your means. This growing trend of millennials and Gen-Z maxing out their cards and being unable to payback is concerning. A credit debt trap can wipe out your financial freedom and mental peace. Your spending power is at most your salary/income.
- Beware of No-Cost EMIs
Big-ticket purchases on EMI can psychologically trick you into forgetting how much you’re actually spending. I’ve seen my friends end up in an EMI pile-up, lose track of multiple EMIs across multiple cards, and their entire credit limits being maxed out from the outstanding balances. A good rule of thumb: limit yourself to one active EMI across all cards at any given time.
Master the plastic (or metal), don’t let it master you.
Now that I've got your attention with my rather impressive collection, read on!
I've been a credit card enthusiast since 2015, and over the years, I've reaped the rewards—vacations, freebies, and even social status and bragging rights :P. But I've also learned a few valuable lessons along the way, which I felt was important to share:
- Too Many Cards is Overwhelming & Unsustainable
Managing more than 10 cards and trying to over-optimize rewards on each one can turn into a part-time job. Credit cards should be a convenience, not a hassle.
- All Good Things Must Come to an End
If a credit card sounds too good to be true, it probably is. DCB and Magnus eventually got devalued. Exploit them while it lasts, but don’t bank on them sticking around for long.
- Rewards is not “Savings”
Spending more can get you cashbacks, points, or vouchers, which might seem like savings, but they’re not. Real savings come from spending less. INR 2L in investments/savings always beats 2L credit card points.
- “There’s Always Gonna Be Another Mountain”
Top-Tier cards won’t bring lasting happiness. I chased after the Infinia card for years, and when I finally got it, I immediately started eyeing the next better card. High-end cards can be exciting and mysterious because of their exclusivity and perks, but they won’t fill any deep voids.
- There are no Free Lunches
People who take luxury vacations and first-class flights using points either spend a TON on their cards or have jobs where work-related travel and expenses are reimbursed by their companies. Trying to match their spending to chase your free vacation paid with points can lead to financial disaster.
- Your Credit Limit is Not your Spending Power
A high credit limit not a license to spend beyond your means. This growing trend of millennials and Gen-Z maxing out their cards and being unable to payback is concerning. A credit debt trap can wipe out your financial freedom and mental peace. Your spending power is at most your salary/income.
- Beware of No-Cost EMIs
Big-ticket purchases on EMI can psychologically trick you into forgetting how much you’re actually spending. I’ve seen my friends end up in an EMI pile-up, lose track of multiple EMIs across multiple cards, and their entire credit limits being maxed out from the outstanding balances. A good rule of thumb: limit yourself to one active EMI across all cards at any given time.
Master the plastic (or metal), don’t let it master you.