8 Wonderful Ways of Using Credit Cards (Part I)

There are 8 wonderful ways of using credit cards to your advantage. People say that “Money is the root of all evil” and if you have incurred debts due to the use of credit cards you will probably think that “credit card is the cause of your debts”. Like the term “money is the root of all evil” would probably be mouthed by people with bad experiences with money but it should actually be termed as “the greed for money is the root of all evil” that is causing the bad experience, it is actually the doing of mankind. Likewise, it should be “the misuse of credit card is the cause of your debts”, therefore if you exercise self-control on credit card usage, you will definitely benefit from their use.

Let us now take a look at the first 4 Wonderful ways:

1. No Cost Credit Cards

Get the right credit card, no-fee, low interest rate to complement your low-minimum checking account and high-yield savings account. Find a no-fee card that will give you 1% cash back, some even pay 3% or 5% on certain purchases. But be leery of rewards cards with annual fees. Those fees probably aren’t worth paying unless you’re a big spender. And here again if you are a big spender you should not be paying annual fees for using credit cards. If you topped off your big spending with good paymaster you will have a very strong bargaining power.

2. Waiver for Annual Fees

If you are currently having any credit cards that come with annual fees, do not cancel them if you have already been using them for a while. Whenever the annual fee is charged, take the trouble to call the bank to waiver the annual charges. Most banks will normally do that for you. Only cancel the card if you request is being refused. There are lots of other banks willing to give you lifetime free cards nowadays.

3. Getting rewarded.

Indeed, if used deftly, your cards will help you collect rewards, build a great credit score and earn even more interest. The strategy is to pile expenses onto credit cards that pay cash back or other rewards. Place all utilities like electricity bills, mobile phone bills, paid television, broadband bills etc on the auto-billing method by charging into your credit card. This not only helps you earn rewards monthly but also save you time and stress of bill paying. The only inconvenience is doing all this instruction once. You will then have to just settled your bills at the end of each month.

You can even get double reward; one from your credit card and another from other reward cards. All this comes with a few caveats so pick your reward cards carefully.

Remember that all these rewards points are money where you can claim “cash vouchers” to use for other necessary purchases. This is another way of getting discounts on your spending.
4. Save interest rate

Until these bills come due, keep your money in your online account where interest is being paid on the daily rest. Pay all your credit card in full monthly which will help you build up a good credit score. Take full advantage of the 21-day interest free period to maximise your return. Do not overspend or you may be hit with financial charges which will turn this to a disadvantage. Keep a ongoing record of your monthly card charges to avoid any unpleasant surprises at the end of each month. Knowing the maximum of monthly spending amount allowed on credit card will help you keep tab. Ensure to stick to the limit.

Look out for 4 more Wonderful ways……..