Live Better by Centric CU

Credit Card Rewards 101: A Beginner's Guide to Smarter Spending

• Centric CU • Season 5 • Episode 345

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The financial decisions we make daily might seem small, but they compound over time to shape our future. When Haley Murphy joins us to discuss strategic credit card usage, she brings years of practical wisdom earned through disciplined financial management.

Most people view credit cards with suspicion, but Haley reveals how they can become powerful tools rather than debt traps. By charging planned expenses like vehicle payments, daycare costs, and groceries to her rewards card, she accumulates valuable points without spending an extra dollar. "We've worked our whole life for our money," she explains. "I want it to work for me a little bit."

The secret lies in her approach: never using credit cards as additional income, closely monitoring spending through budgeting apps, and paying the balance in full each month. This strategy allows her to build credit while earning rewards and maintaining the additional security credit cards provide for online purchases. Simultaneously, she strategically uses her checking account enough to earn the high-yield interest rate of 4.15% on balances up to $20,000.

Haley's financial success speaks for itself. Through consistent habits, hard work (including years where she and her husband both worked multiple jobs), and disciplined spending, they've purchased three homes, each an upgrade from the last. Her story embodies the principle that slow and steady truly wins the financial race.

Whether you're looking to maximize rewards, build credit responsibly, or simply make smarter financial choices, this episode offers practical strategies you can implement immediately. Ready to make your money work as hard as you do? Listen, subscribe, and take your first step toward financial confidence today.


Kelli Green:

Welcome back to the Live Better Podcast, where we share tips and insights to help you take control of your finances and live your best life. I'm excited to introduce today's guest, Haleigh Murphy. Haleigh is joining us to talk about a topic that affects just about everyone. We're going to talk about credit card usage. We'll be diving into how using a credit card for your everyday monthly expenses can not only make life more convenient, but also help you earn valuable points and rewards along the way. Haleigh will walk us through smart strategies, common pitfalls to avoid, and how to make sure your credit card is working for you, not the other way around. So grab your coffee, settle in, and let's welcome Haleigh Murphy to the Live Better Podcast. So grab your coffee, folks, settle in. We are welcoming Haleigh Murphy to the Live Better Podcast. Good morning, Haleigh. How are you? Good morning. Thank you.

Haleigh Murphy:

I'm good. I'm so glad you're here. Yeah, me too. I'm excited. I always like to join in the podcast.

Kelli Green:

So yes. So this is your testimony of your everyday expenses. So you kind of do things a little different. I think you play both sides, though, not only just the credit card expenses or using a credit card for everyday expenses, but you also too kind of dive into using your checking account and leveraging those rewards as well. Is that true?

Haleigh Murphy:

Yes, 100%. So for the majority of our transactions, we use our credit card, but we try to monitor how many swipes we're also getting on our checking account just so that we can make sure we're getting those 12 swipes so that we're also earning rewards on our checking account.

Kelli Green:

That's nice. Yeah. You don't want to miss out on the credit card. Yes, not at all. You don't want to miss out on your checking account. And so something that's really cool too, just so for our listeners to know, you want to kind of lean in and tell us about. So when you earn in your checking account, if you have an Earn Better checking account, you're earning 4.15% up to $20,000. And your dividends that you earn throughout the month will be transferred over automatically into your savings account. So do you have your account set up that way?

Haleigh Murphy:

Yes, 100%. So and then the other point of that is once those funds roll into your savings account, then you're also earning 4.1% on balances up to $50,000. So you're earning in your checking account, and then once it swaps over to your savings account, then you're still earning money on those funds.

Kelli Green:

So yeah, so 4.15 in your checking and 4.01 in your savings. That is so cool. I love it. Okay, so take us through because there are some interesting conversations, I think, around credit cards and how to use them. Um, many people, you know, will use a debit card, you know, for it. We hear a lot of folks say that's just kind of what I use from day to day. But I'm curious, you know, what are some benefits really if you switch your everyday transactions from using a debit card to a credit card?

Haleigh Murphy:

So for me, the main thing is the rewards that I earn. So with Centric's Credit Card, I earn one point for every dollar that I spend, and then there's certain times throughout the year that they'll actually pay you two points for every dollar that you spend. So it's double rewards. Um, and for me, I just I feel like you know, we worked our whole life for our money. I want it to work for me a little bit, and so um that's one of the main reasons. And then also I feel like it's a little bit more secure using my credit card. I feel like those, you know, those funds are a little bit um more protected as far as being from like a credit card. Um, and then um, you know, and then just having all as far as security purposes, having that saved in all of my um, like on my apps and like different products that I use, having it saved with my credit card purchase, my debit card information.

Kelli Green:

So that's a really good segue into the next thing I want to talk about. So when you think about your different expenses, things like you know, fuel for your vehicle or groceries or little stops here and there, you know, a target run or something. Do you have your credit card set up for things like your recurring expenses, like subscriptions and online purchases?

Haleigh Murphy:

Yes. So I think when we kind of have the conversation about credit cards, there's kind of like a negative connotation of like you have to be really careful when you're using your credit card. And I definitely agree with that. So what my family have we've done, um, we've found that like I only use my credit card on things that I know that I'm gonna be using, I'm gonna be spending anyway. So I'm not using it as additional income because that's where I feel like you could really get in a bond. Um, but like on things that I know that I'm gonna be paying anyway, I just use my credit card so that I'm earning those rewards. So for example, um our vehicles, like we have it set up to where um my notes come off of my credit card versus out of my account. So then it's just stuff that I'm already earning. Like my daycare automatically drafts off of my credit card because that's a very significant chunk that I'm earning rewards off of um groceries. So um I have my groceries delivered. I know that's terrible, but terrible.

Kelli Green:

It's very efficient for working mobile.

Haleigh Murphy:

So um my credit card is connected to my Walmart app so that all of the groceries that I buy is automatically I'm earning rewards on. So anything that I know that I'm gonna be spending that I'm already accounted for within my budget, sure, is what I'm using my credit card for. Um, I definitely don't recommend using your credit card for things that we wouldn't buy in off of your checking account anyway. You know, like we don't you won't want to go in and say, um, well, I need a whole new wardrobe. I'm just gonna put it on my credit card. That's definitely not what you want to do. There you go. But just things that you're already gonna be spending money on.

Kelli Green:

Um it's kind of how we utilize that. I love it because that you're exactly right, Haleigh, in saying this. You're maximizing those rewards, those are large expenses that you have that you know that are going to happen every single month. And what a way for you to really maximize and leverage that, you know. You think about the amount of points that you get every single month just from those very large expenses. And another point that I think is so great, which I think is very telling for what you do in your professional career, teaching people how to really live better through managing their finances, through everyday expenses. So I love that you've said we don't want to allow that credit card to say, hey, here's additional income. Right. You know, here's another, you know, here's something else that you can do to just leverage this because you're interested in, you know, a shopping spree or there's a big sell somewhere. Um, yes, for emergencies, I think they're great. Kind of take me through that, you know, every month, ensuring that your is your credit card paid off every month. If it's not, what does that look like for you?

Haleigh Murphy:

Yes, so for us, we were our budget is pretty spot on with how I monitor. So I really recommend that A, that you have an app that you're monitoring weekly, if not daily. Yes. Um, so that you can, as you're spending those transactions, you're also looking at your checking account and saying, okay, well, I know that I have the funds in the in my checking account to pay off my credit card because, like I said, we're monitoring to make sure that we're not spending anything that we wouldn't spend anyway. So at the end of the month, we pay our card off completely. Um I love it. And that that's what we have found that works best for us. That way, you know, we're still we're still growing our credit. Um, we're not hindering that in any capacity, we're not um getting any kind of negative remarks on our credit by utilizing our credit cards as our debit card basically. Um, and then just making sure that our budget is still on point with throughout the month.

Kelli Green:

I love that. That is so great, and that is such great advice. You know, and Haley, I want, I know I've known you for nearly a decade now, and I count myself as very honored, and and it's just an honor to know you. I love and admired what you do with your family from a financial standpoint, the way that you have um, the way that you have set a standard, you and your husband have set a standard because you know you've got a very lovely story. I love to hear you share this information and the way that you have, you know, you have paid cash, but you have worked sometimes two, three jobs when you were a lot younger, you know. But you establish a savings because that was critical to you. Oh, yes, ma'am, 100%. And I think you continue on with that same mindset which has led you to today.

Haleigh Murphy:

Oh, yes, ma'am. 100% I definitely accredit all of that just to kind of my youth and you know, growing up with things, growing up a certain way that I never want to live again, you know. So um kind of attributed all of that to our financial goals and just our strategies of how how we live day to day, 100%.

Kelli Green:

So, listeners, I know that she would not she would definitely not brag and say this, but I'm gonna do it for her. But just in in talking about, you know, she's she's sharing with you guys the things that she and her husband do that has has proven itself very you've been very lucrative, you've been very successful from a financial standpoint. Um, I think that you because of the choices that you make day in and day out, um, you're very mindful of saving for tomorrow. Um, we don't know what comes for tomorrow, even if tomorrow will come, but you're very responsible from a financial standpoint and really making your finances work for you. One of the things you said that you work hard for your money and you want your your money to work hard for you. That's right. So kind of I just want to celebrate as we're kind of wrapping up this information too for you, is it's just you know, looking at what you've what you've accomplished, you know, just here in the most recent couple weeks, you know, you've purchased a new home.

Haleigh Murphy:

Yes, yep.

Kelli Green:

You know, so you've moved up in home. This is your second home that you've purchased.

Haleigh Murphy:

Well, yes, it's actually our third home. Oh we've purchased think about that. But that's a wonderful. So we've just kind of moved up slowly but surely, um, you know, with the size and land and different things like that. But 100% I attribute that just to hard work and dedication, especially like with my husband and I, you know, like you mentioned earlier, we've when we first got married, we worked, we both worked two jobs for three years. Um, so it's just kind of putting in that that work towards your goals and just having your goals in mind and knowing what you're wanting, and then really sticking to that. Um, I tell people all the time it's okay to pivot a little bit, you know, like life happens. Yes. So that's you know, understandable if you if you're like, you know, I'm working towards this goal, but then my car breaks down. Okay, well, we need to fix that first before we continue on our goal of whatever our large purchase was. But just knowing what your goal is and then just sticking to that um as best as possible is really absolutely because life's gonna hit you in so many different ways, right?

Kelli Green:

So, I mean, there could be emergencies that come up, children are sick, or you just never know what's gonna happen, and that can kind of wreck your budget. But that's why I think it's so important to have like an emergency saving set aside so you can kind of lean into that versus a credit card where you're gonna be charged interest if you're not paying that off every month. So I love your story. I think it's so great. I want our listeners to really lean into it's slow and steady, wins the race every time.

Haleigh Murphy:

100%. Yes.

Kelli Green:

Be consistent, pay yourself first every month, ensuring that you know that you cover that debt. If you are charging something on your credit card and you're not 100% positive that you could pay it off, that's a no. You agree or disagree with that?

Haleigh Murphy:

Well, 100% agree. Yes, yeah.

Kelli Green:

I think we see members a lot of times that get into a bond with that where they maybe overspend and then it just kind of starts from there and it just kind of melted, just creates this huge mountain of debt.

Haleigh Murphy:

Yep, 100%. And I think people sometimes get in the mindset of like, once that first mistake is made, they're like, well, I've already got the debt, you know, it is what it is. When that's the opposite of how we should think and look, we should really focus on the debt that we have and try to pay that off prior to making any additional commitments.

Kelli Green:

Absolutely. I love it. So, something I really want to lean into about our credit card program that we have here at Centric is that this is something that there's no annual fee. Oh, yeah. I'm a huge fan of that. I think that's great. We're one of the only credit cards that offers rewards at no annual fee. And so it's very easy to apply. You can apply online or you can visit any of our centers. Um, we have instant issue credit cards. So the day that you apply and are approved, if you are approved, then you will receive your credit card the same day. So that is cool.

Haleigh Murphy:

Yep, I love that because I so I've gotten in a very bad habit of uh when I get out of my car, I just get my keys and my credit card. Yes. And then I stick it in my pocket, and then I'm like, okay, well, I know that it's somewhere in my house. Yeah. And so that's I love that I'm just able to go to a center and be like, can you print me a new card, please?

Kelli Green:

Yes, that is wonderful. And you upload it to your phone so you can just tap to pay to. So that's incredibly convenient. So, Haleigh, any final words?

Haleigh Murphy:

No, I don't think so. I feel like we've kind of covered everything. Just thank you so much for letting me join you today. I've really enjoyed it.

Kelli Green:

It's an honor to have you. It's an honor to know you, and it's an honor to work with you. Most importantly, I value you as a member. Without members like you, we wouldn't make it. And so we're just so grateful. Thanks so much for helping our listeners live better. Thank you. Thanks so much to Haley for joining us today and sharing her experience with using a credit card for monthly expenses. We love hearing how our members are making smart money moves in their everyday lives. Remember, these are personal opinions and experiences, not official advice from Centric. If you'd like to learn more about managing credit cards wisely or exploring Centric's credit card options, be sure to check out the resources on our website at mycentric.org. Thanks again for listening to the Live Better Podcast. Until next time, keep taking small steps towards living better every day. Centric is federally insured by the NCUA.