Mar

10

Credit Card Secrets - Personal Finance Help Part One

Posted In: Personal Finance

There are plenty of secrets that credit card companies don’t want you to find out. There are ways to avoid user fees and pay zero interest on purchases. You are the customer and each credit card company wants your business. Make them work for your business. Here’s several excellent credit card secrets that can give you fantastic personal finance help.

1. Interest Backdating

Unfortunately many credit card companies charge you as much as 18% interest from the moment you buy something. All of a sudden that cheeseburger you bought at the beginning of the month for four bucks has suddenly cost you $4.72 or 18% more. The more you use the credit card the more everything will end up costing.

Other credit card companies only charge interest to people who have an outstanding balance with their account. This is a more favourable option for people 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.

Here is 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. Don’t miss or be late for a payment.

Option 3: Buy everything with cash. Only use a credit card on major purchase like a stove. This will give 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 card issuers impose both transaction fees and finance charges on cash advances. Transaction fees could be as much as 2.5% of the total amount taken. The other factor to consider is that interest begins from moment of the advance. Suddenly the $200 you took out has become $240 in only 30 days. One other 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 for this problem is to use very few cash advances or to not use them at all.

3. Eliminating Grace Periods

The offers many credit card companies draw you in with might seem a great deal better than they actually are. The $12,000 limit and the endless rewards and benefits are usually 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 each thing you buy from the first day, even if you pay the bill when it’s due. The personal finance help I am offering 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 can offer.

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 get 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.

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You can pay off your debts and save money at the same time! Say goodbye to your boss forever! A blog that will show you the secrets of the wealthy: http://www.howtomanagemoneytips.com

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Article Source: Credit Card Secrets - Personal Finance Help Part One