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US Credit Card Debt Closed Last Year at an All-Time High
Samantha Rosen
Contributor
Samantha was one of the first 20 employees at TPG. She started as the site's first full-time social media editor and also served as its lifestyle editor.
March 08, 2019
•
2 min read
US Credit Card Debt Closed Last Year at an All-Time High
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America, we need to talk.
We got news that US credit card debt closed in 2018 at an all-time high — $870 billion, to be exact. I'm sorry, what?! It's time for a little tough love.
While we're always here to tell you which credit card — or cards — to get, we've also said this time and time again: Don't get a credit card if you cannot afford to pay your bills, on time, in full, every single month.
A credit card is not a magical piece of plastic (or metal) that gives you unlimited funds or monopoly money (as much as we wish that were true). It's a savvy way to rack up points and miles for travel, but you should never get a credit card and buy things that you normally wouldn't have, just for the sake of "getting the points."
Even if you're (gasp) not using a credit card to rack up points and miles, the same thing holds true: Don't spend money on your credit card that you don't have. Creditcards.com Managing Editor Brady Porche also wants to remind you, "If you're a credit card user and you want to avoid getting into debt, it's critical to create a budget and stick to it. Avoid spending more with your card than you can pay off each month. Better yet, pay your balance down to zero each week if your budget allows it."
While we're on the subject, now seems like a good time to reiterate our 10 commandments for travel credit cards.
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- Pay your balance in full
- Do not miss a payment
- Don't cancel a card before you have opened a new one
- Don't cancel a card and lose your points and miles
- Don't allow your rewards to expire
- Don't miss out on a sign-up bonus
- Take advantage of category bonuses
- Don't ignore cards with annual fees
- Pursue retention bonuses
- Don't pay foreign transaction fees
The bottom line? Don't spend what you don't have, and pay your bills in full every single month. Now let's lower that number for 2019, shall we?
Featured image by Getty Images/iStockphoto
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Cons
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- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month
Apply for Capital One Venture X Business
at Capital One's secure site
Terms & restrictions apply. See rates & fees
Best for businesses with high spending
TPG Editor‘s Rating
Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month