| |
| |
|
Credit Information |
|
|
|
Fun with Credit Cards
For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I'm about to describe is not one of those illegal credit card schemes. Instead, I'm talking about taking full advantage of the benefits and offers that credit card companies and store chains offer their customers all the time. I get several credit card offers each month, but I only accept those that come with no annual fee and pay me at least one percent cash back or credit on my purchases. I don't care about the interest rate. It could be some exorbitant rate like 50% for all I care, since I never carry a balance and always pay off what I owe at the end of each month. Right now, I probably have about 15 different cards, but I only regularly use three of them. I have one card that gives me an instant five percent credit on my gasoline purchases. Therefore, I buy all of my gasoline with this card and never use cash to buy it. I have another card that gives me five percent cash back on any purchase I make at a drug store or grocery store. Needless to say, I try to use that card exclusively at those establishments. The third card I regularly use gives me a one percent instant credit on all purchases. I use it for just about everything except purchases of gasoline or purchases at drug stores or grocery stores. The more I use my cards the more credits and cash back I get. The credit card companies are, in effect, paying me to use their cards and I am more than happy to oblige. Some credit card companies will take things one step further and even pay you to take their cards. These payments will take the form of gift certificates, bonus cash back, and/or bonus credits. There is one minor catch in that most companies will generally require that you use the cards at least once each to get those benefits. That's never a problem for me as I will use them once to get the benefits and then toss them into my "inactive" drawer. Having lots of credit cards means I get lots of offers in the mail (and sometimes by phone) from the credit card companies in which I am asked to try out some kind of worthless subscription for 30 days. Most of the time, I just throw these offers in the trash can. However, there are some that I will try because they will "bribe" me adequately to do so. However, they must offer me at least $10 and the offer must have a free trial period. I will then cash their check, put the money in my pocket, and cancel before the free trial period ends. However, I have found that I need to be careful with these offers. Sometimes they'll offer me $10 to try something that costs $10 (or more) per month, with no free trial period. I avoid those like the plague, since the best I can do is break even. Speaking of worthless subscription offers, most credit card companies will push some kind of credit card insurance. The way it works that you pay about half of one percent of your monthly purchase totals so that this insurance will make your minimum monthly payment in case your are disabled, laid off, have a death in the family, or suffer some other kind of qualifying malady. This insurance may be a good idea for those who run a monthly balance and only make the minimum payment, but it's worthless to those of us who pay off our balances each month. However, the credit card companies will never acknowledge this fact and will pay you to try it and will usually give you a free trial period. I take these subscriptions only for cards that I don't use, so it never costs me anything. What's better is that when I try to cancel it, they bribe me again to keep the subscription active! The bribe is usually in the form of rebate tickets of $10 to $25 per month for about six months. When I make a purchase that equals or exceeds the face value of the ticket, I send in the receipt along with the ticket and get a cash rebate about eight weeks later for the face value of the ticket. Then, when the tickets run out and I attempt to cancel my subscription again, they offer me even more tickets to stay subscribed. Sometimes, I have tried to cancel before the six months ran out and got even more tickets for the same card in overlapping months! If you have several cards you don't use, each with one of these subscriptions, the rebates could really add up! In addition to the cards issued to me by the credit card companies, I have several cards issued by store chains like Sears, JC Penney, Hecht's, etc. Most of the store chains that issue credit cards will offer discounts of 10, 15, 20, or even 25 percent at various times for simply using those cards to make purchases at their stores. Some will even offer a bonus discount for just signing up (and being approved, of course) to take one of their cards! They can afford to do this because they know that most people will not pay off their balance each month, but will instead make the minimum payment along with paying an ungodly amount of interest. The stores will more than make up for those discounts right there. Meanwhile, those of us who don't run monthly balances reap the benefits of discounts that other people are paying for! What I have just described is not illegal, immoral, or unethical. Credit card companies and store chains are in the business to make money and sometimes they'll offer things that don't seem to make sense in order to maintain and/or expand their customer base. Contrary to popular belief, credit card companies do indeed make money off people like me, who never pay a dime in interest or annual fees and take full advantage of all of their offers. The money comes from the businesses that accept those cards by way of the fees they pay each I time I use one of my cards. Those businesses, in turn, are willing to pay these fees in order to attract as many customers as they can. Therefore, everyone in the credit card cycle benefits. Those who use credit cards the way I do are just making sure they are getting their piece of the pie. Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Tips For Getting Your First Credit Card Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and all of us stumble into the same types of difficulties when it comes to finding an issuer and managing the credit card. Most banks ask for a prior type of credit history that most of the time lacks and for some type of warranty that we will be good payers. What Is A Credit Report? Even if you have heard of a credit report, you may not know exactly what it is. If so, this credit report article is for you. 5 Ways To Prevent Credit Card Late Fees Paying a credit card late fee is the same as throwing your money away. Late credit card payments can also hurt your credit score. Getting Married? What Are The Finance and Credit Implications? There is a big difference between looking after your own finances while living alone, or with parents, and living with a partner. The transition can be very difficult, especially if both partners are strongly independent, or one partner is financially weak and the other strong. Identity Theft - Guard Your Childrens Social Security Numbers Identity theft is a growing concern among Americans, and rates among the top five complaints received by states' Attorney General's offices. A stolen identity can lead to tens of thousands of dollars worth of debt in the victim's name and it can take years to completely undo the damage done to the victim's credit report. What You Need to Know About Interest Rates For all people shop around for the best rate, there are few who have taken the time to sit down and add it all up. After all, why would you bother? The answer is that understanding just how interest rates work can help you see how important small differences in rates and payment amounts can be. Credit Card Debt: One Way To Avoid It One of the biggest problems people have in these modern times is Credit card debt, and worst is USA. Simply because there have always been so many laws and regulations before you could have a card in the rest of the world, you can't for instance borrow someone elses card and go shopping because you always have to show some ID before they accept cards in Europe. Credit Score - Reporting Your Financial Health Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not. 4 Steps to Creating Good Credit As a consumer you've learned the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit worthiness will be judged by your credit rating or credit score. Trying to Land a Job? Poor Credit Scores May Hurt Your Chances Many employers are now looking at an applicant's credit report for hiring purposes. During an interview process a potential employer may request your written consent to access your credit report. UPS Delivers the Goods, Your Identity Well now we add CitiGroup and UPS to the Identity Theft corporations who have allowed Americans identity to be lost. Each time we have another identity theft case, we find larger and large numbers being lost. The Exact Action To Take When You Find Errors In Your Credit Report There are times when you may be turned down for credit and you do not understand why.According to the Fair Credit Reporting Act you are entitled to a free copy of your credit report if you have been denied credit because of negative items on your credit report within 60 days of the request for credit, if you are unemployed but looking for work, are on state benefits, or believe that your credit report is incorrect because of fraud. Credit Cards or Store Cards - Which Is Better? Introduction In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances. Understanding Credit Card Penalties Because most of us have one or two credit cards and we use them every day, understanding credit card penalties and fees is a significant issue since one time or another we have paid a penalty for some reason. Every user of a credit card must first understand that every charge on the credit card represent a loan which must be repaid. Student Credit Cards 101 If you're a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. What Are the Most Common Ways to Commit Identity Theft or Fraud? It's the number one source of consumer complaints at the Federal Trade Commission (FTC), and unfortunately, it's one of the simplest crimes to commit. Identity theft involves information from your daily life, from shopping, bill-paying, and even applying for a job. 10 Dirty Tricks Credit Card Companies Play The credit card companies make billions each year in legitimate interest charges and fees, but are under constant pressure from the shareholders to increase their earnings. To make this extra money the credit card companies sometime adopt some dirty tricks to make this money. Establishing Credit - What You Need To Know Part 1 Establishing credit is one of the most important things you can do in order to add stability to your financial record and dramatically increase your ability to borrow necessary funds in order to purchase a new home, new car or even pay for college expenses. Unfortunately credit has two sides to it that consumers can exploit. Credit Card Disclosure Table - Do You Understand It All? In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are unavoidable with a particular card (like an annual fee or a program participation fee), while others are triggered by certain circumstances. Choosing the Best Low Interest Credit Card With so many low interest credit cards on offer, how do you know which one to choose? Here is a brief guide for choosing your low interest credit card.The Chase Manhattan MasterCard is a great choice, for those with an excellent credit rating.
|
| Good Credit Loans | home | site map | School Bus Clothing | Florida Pool Heating |
| © 2006 |
