by Paul Wilson
Quick Facts About Credit Cards
Credit cards are widely used as a convenient source of credit purchases in hotels, on-line shopping, gasoline stations, restaurants, mail order, grocery stores, and others as well as products advertised on telephone and television. There is a number of advantages of using credit cards if you do it in a wise way. As well you may have drastic and painful consequences if misuse your credit card. Read more...  A credit card that offers a reward point scheme means that as you use the card you accumulate a certain number of points which can then be converted into a reward of your choice. It can be air miles, gift vouchers, or a purchase of some kind. But to get the most benefit out of a reward card you need to ensure that it offers good value for your money. Did you know it could take over five years and an expenditure of over US$ 5000 to get a free ticket within the US .
Types of Credit Cards
There are 4 major credit card types: bank debit and credit cards, travel and entertainment cards (T&E cards), retail store cards, oil company cards (gasoline cards). Interest rates, fees and applications are different for each type of card. Applying for a credit card, the consumer agrees to the terms and conditions of a credit card company that issues his card. Read these terms and conditions very carefully to understand it before using the card for purchases, cash advances or balance transfers. Read more...
Credit rewards are carrots dangled by credit card companies. Before you are caught by the enticement evaluate your monthly earnings, expenditure, as well as loans. Do not invite a financial hurricane if you are not in a position to pay all your bills every month. Interest rates on reward cards can be at least 2-3% higher than other cards.
1. If you love travel then choose to treat reward points as frequent flier miles. Check out the options your credit card offers.
2. Many cards offer a cash rebate. The enticement carries hidden a higher interest rate and if you are not in a position to settle your bill immediately you will spend much more than you earn on the rebate.
Current Credit Card Products
Classic credit cards is the basic products and is the most widely used bankcard in the world. Read more...
3. Use a card that offers a large number of options. Then you have the luxury of selecting from a huge variety of merchandise.
4. Be clever use the reward points quickly before the card company downgrades the points gathered by you.
5. Check whether your reward points can be set off against the annual fees payable by you. If you have a no fee card then choose rewards that are of use to you like gasoline, travel assistance, retirement incentives, flier miles, or cash back. Do considerable research and choose a scheme that works for you.
Credit Card Wealth Secrets & Ideas
There are 2 kinds of credit card debt: `good debt` and `bad debt`. Bad-debt occurs when you borrow to purchase some consumer items. Doing so you limit your future financial status. It may look like you have more, because you get it right now. But you pay interest extra, and consider a psycological factor when you`re buying more on credit card. Paying cash you`ll never do many useless purchases. Read more... 6. Use the card that offers you a reward steadily but be sure you can settle the bills every month otherwise, the interest you pay will negate the rewards earned.
7. Use the rewards card to pay for groceries and utilities every month. It is a necessary expenditure which can earn valuable reward points.
8. If you have a mortgage payment to make and the bank accepts credit cards then pay with you credit card and earn the reward points. However the outstanding must be settled immediately.
9. Always be well informed check consumer reviews and with www.cardratings.com about the cards you hold.
Cash Back vs. Rewards Credit Cards
Some credit cards will offer you cash back, others reward points. There are also cards that allow to donate your ‘cash back’ points to a charity and those that put your cash back into a special savings account for college. Read more... To reap good value out of a rewards program you will need to use your credit card often. By using the card to pay for utilities, groceries, prescriptions, mortgages, and more you can earn many points perhaps even a 1000 dollars in a year. Handle your finances wisely, never spend more than you can afford.
Cars and Credit Reports
You`re probably not going to like the best solution but it is anyway: pay for the car in full! If you saved the car payment every month in a good money market account; you will save both time and money. Read more... |
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