What Financial Coaches Wish More People Understood About Credit Cards

I attended the season 3 finale taping and congressional panel discussion for “Opportunity Knocks,” a PBS show that connects families facing financial challenges with coaches and community resources. There, I asked the coaches and show creator what they wish more people understood about credit cards.

Their answer was simple: A credit card rewards strategy depends on whether cardholders can pay in full, avoid interest, and use the card without adding financial stress.

What ‘Opportunity Knocks’ Reveals About Credit Cards in Real Life

“Opportunity Knocks” follows families as they navigate financial challenges and connects them with coaches, community resources, and tools to stabilize their finances. High-interest credit card debt often becomes a pressure point for families on the show.

Credit cards can offer rewards and valuable benefits, but for many families, they’re how the grocery bill gets paid when paychecks run out.

“Working on ‘Opportunity Knocks’ has revealed that many people who were previously using credit cards for luxury and travel are now using cards to pay for some day-to-day living expenses,” says show creator Jamie Strayer. “Many paychecks are not enough to make ends meet with the rising cost of groceries and gas.”

For one family featured on “Opportunity Knocks,” refinancing maxed-out credit card debt into a lower-cost unsecured loan freed up $800 a month. Strayer says it eliminated toxic financial stress and created room for clear thinking on solutions.

The average “Opportunity Knocks” family increases their income by $17,946, says Strayer. That’s part of what makes responsible card use accessible. Getting to a place where you can use a card for points and travel requires income to support payments.

A Credit Limit Isn’t a Budget

Credit cards can help manage transactions, but they don’t address income gaps or replace planning. A $10,000 credit limit isn’t a budget — it’s the ability to borrow up to $10,000. Using credit cards can be especially problematic when families become overly dependent on them.

“Many people still believe credit cards are a financial solution when they’re really just a financial tool,” says “Opportunity Knocks” financial coach Louis Barajas. “A credit card can’t fix a cash flow problem, spending habit, or lack of planning. It really just amplifies what’s already there.”

Pay in full every month, and a credit card can add value. Use it to cover expenses you can’t pay off, and the same card becomes a source of pressure. 

“Many people are becoming intentional about using credit cards as a convenience rather than an extension of their income,” says “Opportunity Knocks” financial coach Patrice Washington. “The strongest users tend to have a clear plan for how they’ll pay off charges before they ever swipe.”

Interest Can Cancel Out Rewards

Barajas has seen firsthand that interest can outweigh rewards, with families celebrating a free flight while paying thousands in credit card interest.

“Earning 2% cash-back doesn’t help much if you’re paying 20% or more in interest,” he says. “The math simply doesn’t work in their favor.”

Financial coach Jean Chatzky is direct about who rewards cards serve best.

“Points aren’t for people making only minimum payments,” and she recommends that those cardholders focus on finding the lowest interest rate possible. She says rewards are questionable for anyone carrying a balance long term, where paying off debt is almost always the wiser financial move.

“For people who pay off their cards every month, or most months, points can be an exceptional way to get great value, especially on long-distance flights and hotels,” says Chatzky.

Washington agrees that rewards are only as valuable as the discipline behind them. “Saving 2% on purchases doesn’t create wealth if the card encourages unnecessary spending,” she says.

Awareness Creates Better Credit Card Habits

The coaches are encouraged to see more people track their credit scores, examine spending in real time, and use technology to stay on top of their finances.

“Awareness is one of the foundations of financial dignity because you can’t improve what you don’t measure,” says Washington. She recommends weekly money dates — regular check-ins where you review spending, automate payments, and treat credit card balances as obligations rather than options.

Washington suggests a test before making a credit card purchase: Would you still buy it if you had to pay cash on the spot?

“That simple pause creates awareness, reduces emotional spending, and helps ensure your financial decisions reflect your values rather than impulse,” she says.

Barajas recommends treating credit cards like debit cards: Know what you can afford before you spend, not after. The highest-impact change he recommends is paying the balance in full every month to avoid interest.

“Even reducing your balance consistently each month can create tremendous momentum,” says Barajas. “Wealth is not built by maximizing credit card rewards. Wealth is built by minimizing interest payments, living below your means, and creating financial breathing room.”

For Chatzky, the payment method matters less than the awareness behind it. “Whether you use a credit card or another mode of payment, conscious consumption is the key to saving more and spending less — as well as spending on things that you truly value.”

Final Thoughts

Credit card strategies don’t look the same for every cardholder, and they can evolve as your financial situation changes. What works when you’re debt-free and optimizing rewards isn’t the same as what works when you’re stretched thin. The advice from these coaches isn’t to stop using cards, but to make sure credit card foundations are solid enough for rewards to pay off.

If you’re paying in full most months, tracking your spending, and confident that your rewards exceed interest costs, it’s a good time to optimize rewards. If you’re occasionally carrying a balance, leaning on cards for everyday expenses, or not sure your card is working for you, that’s worth unpacking before adding another annual fee to the mix.