FinTok Superstar Follows This Credit Card Advice to Make Money

Seeing a family member struggle with credit card debt is enough to scare many people away from using credit cards. That wasn't the case with John Liang. Although he saw his father go into credit card debt to pay for graduate school, Liang realized that with a different approach, he could use credit cards to save money.

Liang is now a top FinToker, a term used for financial influencers on TikTok. He has 2.2 million followers thanks to his advice on credit cards and other personal finance topics. He considers credit cards to be a useful financial tool, when used correctly.

In a recent interview with MarketWatch Picks, Liang revealed his best credit card advice. He shared some good tips, so if you want to improve how you manage credit cards, here's what Liang had to say.

Use a cash back card with no annual fee for daily expenses

This first tip is an easy way to make some extra cash, just from money you're already spending. Instead of using a debit card to pay for purchases, use a cash back credit card with no annual fee. If you pay your credit card bill in full, you won't be charged any interest, so you come out ahead from the cash back you earn.

Pay annual fees for credit cards if you know you'll use them

No annual fee credit cards are always a good option, since they won't cost you any money to carry. However, credit cards with annual fees often have more benefits. If you see a credit card with valuable features you're sure you can use, it could be worth it to pay an annual fee.

For example, many travel credit cards charge annual fees. But they also have perks that outweigh those fees, if you can use them. For example, there are cards that offer free checked luggage, elite status at hotels, or spending credits. With the right card, you could come out ahead compared to what you pay for it.

Pay your credit card's full balance every week

One of Liang's more unorthodox tips is to pay off your credit card's entire balance at the end of every week. He recommends this because one of the biggest parts of your credit score is your credit utilization ratio. That's the ratio between your card balances and your credit limits, and the lower it is, the better.

By paying off your cards in full every week, it keeps your balances low, which is good for your credit score. You'll also stay out of debt this way.

Keep in mind that there's nothing wrong with paying your credit card monthly instead of weekly. What's important is paying by the due date and paying off the full balance so you can avoid interest charges and debt. It's up to you if you prefer paying every week or once per month.

Think twice about flashy or expensive purchases

This is more general personal finance advice than credit card advice, but it bears repeating. As you make more money, including as your income increases and as you earn credit card rewards, it's tempting to spend on expensive luxuries. Liang recommends that you prioritize investing instead.

There's nothing wrong with treating yourself from time to time. Just make sure you're being responsible with money by building your savings and investing for the future, too.

Making money using credit cards doesn't need to be complex. As you can see from Liang's tips, the most important things to do are find a rewards card that works for you and pay the full balance regularly.