Browsing Category: "credit cards"
How to be responsible with credit cards
A few days ago I wrote a post about how there are actually good credit cards and if used responsibly they can be a great financial tool. I thought it would be good write an article about how to be responsible with credit cards in order to take advantage of them.
I have used a credit card for years to pay my monthly expenses, but I have always paid the balance in full each month. There are hundreds of credit cards available today and each offer something special for using their cards. If you have good credit you can get gift cards, free air miles, free hotel stays, and other items just for signing up. The days of a free t-shirt or poster are over, credit card companies offer much better temptations. However, you have to realize they are giving this stuff away for a reason, they are still making plenty of money. The trick is to be one of those responsible users in order to take advantage of the credit card companies.
The first step of using credit cards responsibly is to not spend money that you don’t have. Don’t plan on buying big items that you know you won’t be able to pay for when the bill comes. Credit cards are a very convenient way of paying for everything as long as you only use them for properly.
Second, pay your bill on time. Credit cards always carry harsh penalties and fees if you are even one day late paying the bill. You will probably see at least a $25 to $30 late fee for being one day late. Also don’t think you can call in a payment the day it is due without paying a hefty fine. Keep a calendar or schedule of when all your bills are due and check up on it daily. Paying your bill on time will save you some cash.
Finally, don’t choose a credit card that carries an annual fee to use. Most of the time the advantages that these companies try to offer won’t be worth the annual fee. There are hundreds of credit card companies willing to pay you to take their card so why pay them?
Just like anything else in life use credit cards responsible and they can be rewarding. Don’t get caught up in the spending spree spending more money that you have. Always pay your bill on time and never pay to use a credit card. Follow the rules and be responsible, credit cards can be rewarding!
Be responsible with good credit card offers!
Even though our economy isn’t in the best of shape right now there is some good to come from the credit crisis. Right now if you have good credit you can find some great deals on good credit cards. I know most financial advisers and mentors will preach about how bad credit cards are and you should not use them at all costs, but I tend to disagree. If you are a responsible well organized individual who is in charge of your finances then take advantage of the great deal credit card companies are offering.
As I’ve said before my wife and I make all our purchases on a credit card and pay off the balance each month. I’ve been doing this since I graduated college and on this paticular card have never carried a balance. I have also never missed a payment and I’ve not been late on a payment either. I was close once and had to pay the bill over the phone and pay a small fee but I’ve still came out way ahead on the credit card rewards.
Currently many credit card companies are offering 0% interest rates for over 1 year and many of them even offer this same interest rate on purchases. Many credit cards are offering lower fixed rates for the life of the loan and many great rewards program.s
Be advised that there is fine print with all credit cards and be sure to read this. There are many terms that you must be advised about before you transfer the balance. Some charge a fee, usually 3% but a maximum amount, usually $50. Most of the time you will still save a lot of money on the lower interest rate, but be advised of these terms.
Be responsible and in control of your personal finances and take advantage of any offer that will benefit you financially.
Credit Cards, Designed by the Devil?
It’s pretty obvious our economy is a mess, but who is really to blame? You hear a lot of talk about how banks, credit card companies, and other lending companies are all to blame. It is their irresponsibility that has got America into the financial mess we are in today. But is this really true? Can we blame this mess on the people who lend the money?
Is it really the responsibility of lenders to take care of us and make us pay or financial obligations? Do they need to babysit us and make sure we send our payments in each month? Or is it our responsibility as adults to make sure that before we take out a loan, we can actually afford to repay the debt?
I think that credit cards, banks and other lending institutions are great financial tools if used properly and responsibly. If an excellent credit offer comes your way and you can responsibly control your finances then take advantage of the offer. I have personally used a credit card for over 6 years to pay my monthly expenses and paid the bill every month. I have never been late on a payment or missed a payment (on this card, I was late one time on another card), therefore I have came out way ahead since I get 1% cash back on all purchases.
If used properly credit cards, banks and other lending institutions can be great financial tools. If you are looking for a place to find some great deals on credit cards you may want to take a look at www.requestcredit.com. Be smart, be responsible and be successful!
Caught by the 0% interest balance transfer game
Alright, I have to admit I got caught by the 0% interest balance transfer game. We transfered part of loan a while back for about $4,000 on a credit card that had 0% interest for 6 months with no balance transfer fees. Sounded like a great plan since we would have the $4,000 paid off in less than six months, right?
Well, 4.5 months came around and we ran into some unexpected expenses and we still didn’t have the money to completely finish paying off the loan, so I had a great plan, transfer the balance to another 0% interest rate credit card with no balance transfer fees for another 6 months. I proceeded to fill out the online application and submit it for review. Of course I was approved in seconds and never thought much more about it until I realized the payment was due in 2 days for the loan and it hadn’t been paid off yet. It was Friday night and the payment was due on Sunday so the only option I had was to overnight the payment or call it in over the phone. $15 later I was paying the bill via telephone to avoid a $30 late fee from the credit card company. It really is hard to beat the credit card companies at any game!
Beating the credit card companies
Can you beat the credit card companies at their own game?
Yesterday I read another blog about a guy who owes thousands of dollars to credit card companies, however he also has thousands of dollars in the bank. He could pay off the credit card balances, but instead he keeps the money in the bank to collect interest, Why? Because most of the credit card balances carry a 0% interest rate. Can you really come out ahead in this game?
Cash or Credit?
Cash or Credit?
So I hear everyone saying that it’s so much better to use cash instead of credit cards. There are many statements that I hear about credit cards and I’m going to examine each of them for validity. Some of the most common comments I hear are: You spend more when you use a credit card, you can’t beat the credit card companies at their own game, people who use credit cards are buying stuff they can’t really afford. Are these statements true?
Gift giving credit cards
Gift giving credit cards
Let me start by saying I’m not a big advocate of gift cards or credit cards. According to Needham, Mass.-based consulting-firm TowerGroup, more than 10 percent of the $58.3 billion in gift cards bought this past year won’t be used. It’s a great way for companies to add extra profit but it’s also a good way for you to waste money. Those unused pennies left on gift cards that expire add up quick when you are talking about millions of consumers.
