Thursday, November 4, 2010
• Before you apply for your credit card, check for the ones that come with a signing bonus; you can earn up to $250 this way.
• Look for cards that offer cash-back rewards; for every few dollars you spend using the card, you get back some money. Choose cards that don’t limit the amount of cash you can earn every year and which credit the amount to your account immediately or whenever you choose to redeem the amount.
• Some cards offer instant discounts on certain purchases at certain outlets or points of sale; so if you use your card to buy gas at designated gas stations, your bill is considerably lower.
• Use the points earned on your card towards necessities – when you let your reward points accumulate, you can use them towards flight tickets, gas and other essentials that you would have to spend cash on otherwise. Ensure that your card allows you to carry forward points earned in one year to the next.
• Some cards allow you to convert your reward points into cash, so if you don’t see any rewards that are worth it and which will save you money, ask for a check that you can deposit into your account.
• When you use your credit card for most or all of your purchases and expenditure, and when you pay off your bill in full and on time every month, you’re actually using an interest-free loan. The money you would have spent otherwise (if you had paid cash or used your debit card) earns interest in your account for a period of up to 40 days.
Of course, it may not be possible to use all the tips together, so do some research and choose one or two cards that offer the most number of advantages. And do remember that to make these money-making ideas a reality you must pay off your credit card bills in full, every month, and on time. If not, you’re going to be stuck with the burden of paying huge amounts of interest on the money you’ve borrowed. Also ensure that you don’t go over your credit limit so as to avoid unnecessary fees and fines. Some banks don’t accept your card once you’re reached your limit but others allow you an overdraft and charge you a high interest on it, so ask for a card that does not let you spend more than your credit limit. And finally, keep track of the amount you’re spending using your card so you don’t spend more than the money you have in your account.
This guest post is contributed by Omar Adams, he writes on the topic of online accounting degree programs . He welcomes your comments at his email id: firstname.lastname@example.org