Browsing Category: "Credit Card Tips, Tricks, and Trivia"
Save Money with a Credit Card
Save Money with a Credit Card
The Credit Card has long had a Bad rap to conscientious money savers everywhere. However, there is a flip side to the evil credit card that can actually save you money. If you pay off your credit card every month then there are also some penny pinching advantages such as points or cash back.
Save Money Using A Credit Card
By Joseph Kenny
If you are a conscious and energetic saver, then you have most probably been told that credit cards are bad and evil things that you need to stay well away from! However, used the right way, a credit card can be a great way to save money! So, how can you save money by using a credit card?
Let the interest work for you
As we all know, credit card companies make a profit by charging their users interest. But, the interest that credit card companies charge is only charged if the credit card holder – you – doesn’t pay their credit card bill in full each time; deciding, instead, to pay in installments. Nonetheless, pay your credit card bill in full each time and not only are you not charged interest for using the credit card, but you can also get up to 2 months credit free interest.
This happens because the credit card company is normally required to give you 28 days after your statement date in order to pay your credit card bill. However, if you buy your product shortly after a credit card statement date, you can get nearly another month’s interest free credit while you are waiting for the credit card statement to arrive.
As a result, if you are a good and conscious saver, what you can do is open a savings account and every time you make a payment on your credit card, you transfer the money you would have spent on the purchase to the savings account. Then, on the credit card statement due date, you transfer the money from the savings account to pay the credit card bill. In the meantime, the interest that has accrued on that money while you were waiting for the credit card bill is all yours!
Using the loyalty bonus scheme
Aside from making sure you pay off your credit card bill in full each month, another way you can use a credit card to save you money is to apply for a credit card that has a loyalty bonus award scheme. Then, after you have reached the required number of loyalty bonus scheme points, you can use those points to purchase something you would otherwise have had to pay good money for.
So, now that you don’t have to pay good money for the product you just got from the loyalty bonus points, you can transfer the purchase price of the product to your savings account – and you’ve just saved yourself some more money!
Keep in mind, however, that to maximize your credit card savings potential, you really need to apply for a credit card that doesn’t charge you any annual membership fee or have any other additional hidden fees. Provided you have this in place, a credit card can be a really great way for you to save money
About the Author: Joseph Kenny writes for the Loans Store and offer more information on personal loans and other loan topics available on site.
Visit today: http://www.ukpersonalloanstore.co.uk/
Source: www.isnare.com
Permanent Link: http://www.isnare.com/?aid=53858&ca=Finances
Joseph Kenny’s article above pertains to Uk based Credit card companies. Instead of loyality bonuses offered in the UK in the US bonuses are in the form of cashback, rebates, gas, and travel points. The main point is, if you pay your credit card off every month before interest acrues there are definately some ways for smart shoppers to make or save money with a credit card.
Layoffs and Credit Cards a Bad Mix
As the automotive workers get laid off in America the Google searches for credit cards rises. Most Americans live paycheck to paycheck and are used to living a certain life style. I know how it feels, my husband works for the automotive industry, he is laid off indefinitely after 20+ years of service.
The time of year could not be worse after Christmas comes house taxes at the beginning of February. Children can put extra financial woes upon you, as they expect Christmas to be the same as previous years, and also expect to be able to do extra curricular activities and have spending money.
Credit cards are quick easy way to temporarily relieve financial stress. The problem is that is only temporary, using credit cards during a time of uncertainty could leave you in financial turmoil for months and years to come. And sadly sometimes there is no other option.
The first thing you should do is take a look at the big picture and cut costs. Determine what you need and not what you want. Could you buy $.99 bottle of shampoo instead of the $6 one you usually buy. Cancel subscriptions to magazines and newspapers. Really look at your finances and get rid of the things you do not need.
You may still need to use a Credit Card after all the fat is trimmed. Just be carefull not to get to frivolous with your purchases. Because the fat you just trimmed may have to be trimmed for a long period to come in order to pay your Credit Card bills in the future.
Hidden Dangers with Credit Card Rolling – Credit Scores.
I would like to take a moment to explain what Credit Card rolling is. Credit Card rolling is when you incur debt on one credit card and want to transfer a balance to another credit card.
So will Credit Card Rolling hurt my Credit Score? Temporarily, the answer is yes, but only by a couple of points in the long term, no. It my take 1 to 6 months to show the original card paid in full, plus a credit check inquiry and balance for the new credit card. It really depends on how fast a credit card company reports to the scoring agencies. After 6 months your credit history will look better than it did previously. If you are not in the market for a loan, for a new car or house, it is perfectly okay to roll your Credit Cards.
The hidden danger in Credit Card rolling is adding balance on top of your transfer. It works like this; Lets say you transfer $10,000 at 0% for 12 months, then you go Christmas Shopping and add another $1000 on top of that at 5%. Lets say you pay $100 a month on this same card. What happens is this; you are paying on your new debt, and at the end of the year your 0% will be barely paid on.
If you transfer a balance the first thing to consider is whether or not there is a hidden transaction fee, from either card. And the next thing to consider, is whether to keep your old card or get a new credit card to put additional spending on.
Why Visa, MasterCard, and Discover want Groceries and Gas on their Credit Cards.
Have you noticed the increasing amount of credit cards offering cash back on everyday purchases? First of all, I need to point out that, sometimes there is is some very fine print in the terms and conditions of theses cards.
I read one the other day that advertises in big bold print 5% cash back on gas. As I flipped through the pages and searched the terms, I noticed the clause only .5% up until you reach $6500 in charges and the offer was only good for the first year.
Mastercard, Visa, and Discover wants you to get used to whipping out your credit card every time you fancy. A large amount of people will begin to spend beyond their means, then not be able to pay their monthly debt in which the late fees and interest rates kick in. In the long run offers such as these can do some people more harm than good.
If you are shopping for cash back cards make sure you are responsible enough to actually be able to save money, and not go into more debt than you can keep up with. It is of vital Importance to pay the debt vigilantly off every month on time.
In conclusion playing the cash back game with credit cards can be rewarding for responsible people, and on the other hand a worst nightmare for a impulse buyer.
