Entries Tagged 'Credit Cards' ↓

In my line of thinking, there are just two types of credit card users. The first group is the most common - people who carry a balance month-to-month. These folks often pay the minimum payment on their credit card bill, whether out of ignorance or inability to pay more. Often, the balance doesn’t go down monthly; it goes up instead. These people are simply digging themselves deeper and deeper into credit card debt. Instead of credit being a valuable tool, these people see credit as a noose, and it gets tighter and tighter every day. You do not want to be this type of credit card user.

The second type of credit card user is the smart one. He uses credit to his advantage. He sees credit as a tool, and not as a crutch. He pays his balance off in full, every single month. To him, credit allows him to make one single payment every month, and track his purchases very carefully. It’s easy to see where your money is going when you get an itemized bill every month.

In addition to not carrying a balance, the second type of user generally uses some sort of reward credit card. Whether he gets points, airline miles, or even cash back, the second type of credit card user actually makes money by using his cards, instead of paying interest.

Granted, if every type of credit card user was the second type, then we’d likely see a drastic change in credit card programs and policies. Reward programs would get much less lucrative, or even disappear. Annual fees would come storming back. The credit card companies might even introduce all kinds of new, never before seen fees, just so they can earn a profit. See, the first type of user balances out the second type, and enables them to come out ahead. Even so, I’d definitely urge you to join the ranks of type 2, and avoid being type 1. If you are currently a type 1, please stay tuned for some tips to get to the other side.

Apply For a Credit Card that goes along with your interests!

That makes it the highest flat-rate cash back card in America - as far as I know.  The only stipulation is that you have to keep $10,000 in your Emigrant Direct savings account.  Heck, at 4.50% for their savings account - no problem!

Payday Loans cash advance, quick and easy

I’ve seen a few of these posts around, so I decided to add my $.02. Here’s what’s currently in my wallet :

• Drivers license ( of course )
• PenFed Platinum Cash Rewards - my main everyday card. Earns 1.25% cash back, credited automated to each statement.
• Citi Platinum Select Dividend - my gas card. 5% cash back on gas, redeemable when it hits $50.
• American Express Hilton HHonors Platinum - The rewards aren’t as good as my Citi & Penfed cards, but I like having access to my $50k credit line. You never know when I’ll need to buy a spare Lincoln Navigator on the fly.
• Visa Check Card - almost never gets used, and I really don’t like carrying it.  But it does have the $0 liability guarantee, so I guess it’s ok.

That’s it, besides the $11 in green stuff stuffed in the back. I’m not real big on carrying cash, because I don’t get anything out of it. I get paid to use my credit cards, so why not take advantage of the programs?

I’m sure many of you have seen the offers - “transfer a balance and receive a 0% interest APR for a year!” These offers can earn you some free money, provided you read carefully & know what to do.
To begin, you’ll need to get a card that has this introductory offer. Make sure to read the fine print though! Many cards still charge a 3% or 4% fee to transfer the balance. You’ll want a card with 0% and $0 fee - that’s important! Citi has several cards that currently offer program - such as the Professional, Diamond Rewards, and Dividend Select.

Next, you want to request a “balance transfer check.” In theory, this check is supposed to be used to pay off another credit card, but you don’t have any credit card debt do you? When you receive your check, you’ll want to transfer the funds into your online savings account. You did open one after you read my post on them, right?

Now, set up an automatic payment each month, directly from your online savings account to your new credit card. Set it as the minimum - so you know you’ll never pay late, or forget and miss a payment.

Hide your card! This is the most important part. Do NOT use your card for purchases while you have a zero percent balance transfer active. You’ll end up paying interest on all your purchases, until the full balance is paid.

Be sure to note when the zero percent period ends, and pay in full before this time. All the interest earned by keeping that money in your high yield online savings account is yours to keep. Congratulations - that’s free money!

MBNA’s Charles Schwab Visa is offering a great perk right now - open an account, and make 1 purchase within the first 45 days, and get a $100 statement credit. In the past, this card has offered a free iPod shuffle ( I got in during that promotion. ) It seems MBNA is really pushing this card - they can’t stop giving away free stuff. The card is a decent one, if you carry a balance. The APR is pretty low these days. Besides that, it isn’t really a card I’d be able to recommend, as the rewards program is pretty weak. It uses MBNA Word Points rewards. I prefer cash back of some kind, so I’m not limited to what my “points” can buy me. In any case, $100 is $100. Free money is the best kind after all.