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Dumb With Credit Cards
Credit Cards Are The Best And Worst Thing In The World
A credit card can be one of the best finanical tools in the world. Giving a credit card to some one who doesn't understand their use can be like giving a baby gasoline and a matchbook. At least the baby has a fighting chance because some one will try to save the baby.
Even though everyone complains about credit cards, they are a decent tool for building your credit. I'm what you would call a credit card leetch. I actually make money off of using cards. Credit cards allow me to defer my payments of normal bills by 30 days (on average). I then keep that money growing in a savings account.
f I get any extend 0% credit card offers, I jump on them. I use that money for the full time period and pay it off immediately. I then dump the card. It's fun, I get credit card offers everyday (2-3 on average). I always pay my bills in full and date the checks or e-payments I send one day prior to the due date.
Using this method, I was able to build a solid credit rating. Three years ago I gained 5% interest on all of that money for 340 days (less the 15 days because of transfer periods). So using this method I made about: $175 in interest and $524 in credit card rewards this year. Not to mention my credit rating is outstaning.
How to use credit cards to make you money with large purchases.
The credit card companies call this the "Rate Tart" trick. Find 3 credit card companies that offer you 0 % (on balances and transfers) for at least 6 months.
Call them and verify that the 6 months and transfers is good for up to 2 years. This is really not that difficult to find. I found over 5 companies within 10 minutes on Google.
Buy something large you planned on buy anyway and had the money for. Purchase the item with one of those cards. Put the money you saved for it into a 17-month CD. Switch the balance twice to new cards. I would say more times, but folk lore seems to indicate that it affects your credit score.
I had my fair share of problems with credit cards. My father went into debt because of his and my mother's countless spending. I have a credit card, but it's for special occasions and emergencies only. If you can't pay the bills, don't get it.
DeShaun at at 10:27AM, 2011/07/17.
I once had a problem dealing with credit cards. I had a bit of a problem in controlling myself. Sometimes it's just too tricky to have them. There's always a tendency to overuse them.
Andrew Paulus at at 07:07AM, 2011/07/18.
You got great tips here, thanks! I think every credit card owner should know this. There are just a lot of credit card users that abuse it.
Paula Portis at at 07:09AM, 2011/07/18.
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at 05:47, 03-24-2023.
Because we all can be smarter with our money.