There are plenty of secrets that credit card companies do not want you to know. There are ways that you can avoid user fees and pay little to no interest on what you buy. You are the custmor and each credit card company wants your business. Make them work for your business. Here's a few excellent credit card secrets that will offer you fantastic personal finance help.
1.Interest Backdating
Unfortunately many credit card companies charge you as much as 18% interest from the moment you make a purchase. Suddenly the cheeseburger you bought on the first day of the month for four bucks has suddenly cost you $4.72 or 18% more. The more purchases you make with that credit card the more everything will end up costing.
Other credit card issuers only charge interest to people who have an outstanding balance with their account. This is a better option for those who use their credit card a great deal but if you are the type of person who carries a balance every month you may quickly find that you are falling into debt.
Here is three solutions for either type of person that will provide a great amount of personal finance help.
Option 1: Find a new credit card company. They all want your business and will sometimes compete for it.
Option 2: ALWAYS pay the total amount of your credit card balance in full. Don't miss or be late for a payment.
Option 3: Buy everything with cash. Only use your credit card if that item is a major purchase like a fridge. This will allow you time to budget and still help your credit rating.
2. Double Fees On Cash Advances
Some people don't know that cash advances cost you a lot of money. Many credit card companies impose both transaction fees and finance charges on cash advances. Transaction fees can be as high as 2.5% of the total amount you take out. The other factor to consider is that interest starts from moment of the advance. Suddenly the $200 you took out has become $240 in just 30 days. Another thing to consider is the 'fine print' that you need to read. Some cards offer 'no finance charges' but transaction fees could still apply. The solution to this issue is to limit the amount of cash advances you use or to use none at all.
3. Eliminating Grace Periods
The offers many credit card companies lure you in with may seem a great deal better than they actually are. The $12,000 limit and the limitless rewards and perks are usually a misleading way of finding another way to get money out of you. The usual 'string' attached with these issuers is a card that doesn't have a grace period. That more or less means you are charged interest on each purchase from the first day, even if you pay the bill on time. The personal finance help I am giving is to shred these 'incredible' offers the moment they arrive in your mailbox. There's a good chance your current card is better than anything they are offering.
In my next post I will continue to tell some credit card secrets that will give the personal finance help you may need. Credit cards are pretty user friendly but unfortunately there can be a hefty price tag that comes with that convenience.
I recommend that you check through my blog to receive the free E-Book, free budget spreadsheet, free calculators and links to plenty of tools. We also have some leaked videos to help with your finances.