Credit Card As Au Pair
It’s a financial question I know you just want to avoid, but let’s talk about the pro and cons and what would make actually sense for us as Au Pairs. For some of us it will be the first credit card and if that’s you I suggest you to read till the end.
For what do you need a credit card?
America is mostly cash-free. You pay everything with card, your debit card. The one with the ‘checking account’. Your Host family should help you setting this one up and it’s most likely at the bank where they have their accounts too.
And because you have a debit card, you ask yourself why should I need a credit card?
The thing is that if you travel a lot, most Hotels and rental car companies require you to pay with a credit card. And the other important reason: for emergencies. In case you missing your flight and need to book fast a new one or unexpected medical expenses. (I also want to mention the reason to build credit history, that’s something you need if you plan to stay further in the US)
PRO arguments for a credit card
There are Credit cards that offer perks. (perks is fancy for bonuses) Starting out we don’t get a lot but there are some beginner credit cards that give you 1-2% cash back on your purchases, gift cards or travel credits.
Also some credit cards offer car rental insurance. So you can happily decline the overpriced insurance for your next rental car if you pay with your credit card.
CONTRA arguments for a credit card
If you have trouble sticking to a budget and overdo it with purchases you might end up spending more than you have. A credit card is a mini-loan. If you don’t pay it off at then end of the month you pay HIGH interest. Never spend money you don’t have, to close the credit card your balance need to be $0.
What else you need to know
You can totally use a credit card from your home country if you have one. Just consider the currency exchange rate.
Look for the annual fee when opening a new credit card, you want it to be $0.
credit limit: Your credit limit is the maximum amount you can charge on your credit card. It's important to use your credit card responsibly and not charge more than you can afford to pay back, as this can lead to debt and financial troubles.
Not every credit card has equal benefits. Consider what you want. Do you want cashback and just collect cash for your points or do you want to travel with the points and book flights and such? Take a look which airlines you can book with your points and choose one that actually flies from your airport!
My own experience
I wish I knew it earlier. I had my German credit card for emergencies and rental cars. But two months ago I opened my first credit card in the US. I used it like my debit card and put all my spendings on there, paid it off every other day (scarred to miss pay day) and see there. After two months I have over 10,000 points and could get either a $100 gift card or $104 off my next flight.
And I didn’t buy anything I wouldn’t have had without a credit card.
I got the Chase freedom student credit card. (No, you don’t have to be a student, they just call it that)
This is not sponsored and just my own experience with Chase bank.
Other options
On this website they give you different options. Important is that you choose a credit card that fits your spending needs and the reward that benefits you the most.
But, how do you cancel it?
When your time is over and you want to cancel your credit card you simply pay off the rest balance, use your last rewards, send them a letter and tell them you want to cancel the account. THE END.
Sometimes you can even do that online. Simple. You got this.
REVIEW
It’s worth thinking about it and earn some extra goodies if you’re good with money and can pay it off on time. Now go out there, save some money and make your time magical.
Love, Michelle
