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Using Credit Cards to Your Advantage

Don't think of credit cards as your enemy, if you use them accordingly you can keep using credit cards to your advantage. This can be your tool in receiving back up to 30% of money returns in a year. If one has a good credit score and is not part of a rewards program, ask your credit card provider if they have a rewards program for different types of purchases that will earn you money back with every purchase. In the end of the month, just don't forget to pay the full amount that has accumulated last month. This is one of the reminders when using credit cards to your advantage.

Sign up for a credit card that has no annual fee. An annual fee does not help one by using credit cards to your advantage. It is like paying something on a card that one may not have been used or if the annual fee is around 30 dollars, it will look like a three percent APR increase on a one thousand dollar card. Choose an airline that converts your airline credit purchase into a miles bonus that will probably enable you to get a free ticket during regular days except for specific holidays. Pay amount owed immediately before earning more airline miles bonus as you keep on using credit cards to your advantage.

Some restaurants or grocery stores offer discounts on specific items for specific types of credit card. An example would be, supermarkets offering discounts if one uses a MasterCard while purchasing groceries. If it were a 10% against a thousand dollars then one could have saved a hundred bucks and in the end of the month using credit cards to your advantage. Purchases must be diligently paid or interest rates can sky rocket without warning. Paying the minimum payment always is using credit cards to your advantage. This should be done in cases when a person encounters financial instability because missing a payment would hurt one's credit score.

Balance transfers are using credit cards to your advantage especially when transferring big balances to a new card that has zero annual percentage rates for the first twelve months. Some people would do this in order to avoid having to pay high interest rates and they can pay off the account in one year if they have to pay more to balance out the account. However, not all credit card companies exclude balance transfers in there introductory zero percent APR so try to find out first before doing balance transfers in using credit cards to your advantage.

Be vigilant in using credit cards to your advantage. There are lots of companies that don't want to lose a customer like you and would probably give you the best financial offer to help you manage your debt. People with good credit score would probably earn more rewards like upgrading one's credit card, which has no annual fees and probably a $500 sign-up bonus with no strings attached. Using credit cards to your advantage may have a lot more benefit than what we expect.