Credit Card Secrets – Personal Finance Help Part One

There are many secrets that credit card companies don’t want you to know. There are ways that you can avoid user fees and pay little to no interest on purchases. You are a customer and each credit card company wants your business. Make them work for you. Here are a few great credit card secrets that will offer you a great deal of personal finance help.

1. Interest Backdating

Unfortunately many credit card companies charge you interest rates as high as 18% from the moment you make a purchase. Suddenly that cheeseburger you bought on the first day of the month for $4 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 those who have an outstanding balance with their account. This is a more favourable option for those who use their credit card a lot but if you are the type of person who carries a balance each month you may quickly find that you are sinking into debt.

There are three solutions for either situation that will provide a great amount of personal finance help.

Option 1: Find a different credit card issuer. 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. Never miss or be late for a payment.

Option 3: Only use cash. Only use a credit card if that item is a major purchase like a washing machine. This will allow you time to budget and still help your credit rating.

2. Double Fees On Cash Advances

Some people don’t realize that cash advances are a costly way to spend money. Many card issuers impose both transaction fees and finance charges on cash advances. Transaction fees can be as high as 2.5% of the total amount taken. The other aspect that many people don’t take into consideration is that interest starts from the day of the advance. Suddenly the $200 you took out has suddenly ballooned to $240 in just one month. One other thing to consider is the ‘fine print’ that you need to read. Some cards offer ‘no finance charges’ but transaction fees may still apply. The solution to this problem is to limit the amount of cash advances you use or to not use them at all.

3. Eliminating Grace Periods

The offers some credit card companies lure you in with may sound a lot better than they actually are. The $12,000 limit and the endless rewards and benefits are often a misleading way of finding another way to get money out of you. The most common ‘string’ attached with these issuers is a card that has NO grace period. That basically means you are charged interest on every purchase from day one, even if you pay the bill on time. The personal finance help I am offering is to shred these ‘too good to be true’ offers the moment they arrive in your mailbox. Chances are the card you have right now is better than anything they can offer.

In my next post I will continue to share some credit card secrets that will offer the personal help you may need. Credit cards are incredibly user friendly but unfortunately there is often a hefty price tag attached to that convenience.

I suggest that you look through my blog to receive the free E-Book, free budget spreadsheet, free calculators and links to various tools. We also have a few leaked videos to help with your finances.

Brandon

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Tagged with: Budgeting tips • Financial planning tips • Free financial advice • Money saving advice • personal finance help

Filed under: Budgeting Tips

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