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Winning the Credit Card Game

Updated on March 17, 2014

Credit Cards, Traps or Tools?

It's happened to everyone, you get your statement in the mail and your finance charges are almost equal to your minimum payment. Frustration is now setting in as you realize at this rate you'll never pay off your debt. That's exactly what the credit card companies want you to think.

Well, now is the time to change. Credit card companies have been preying on consumers and taking advantage of them for decades. It's time to learn how to take advantage of the tools they offer and become one of the few who profit and benefit from using a credit card.

Credit cards have great tools to offer the savvy consumer. Let's take a look at how to use things like online payment programs, cash back programs, balance transfer programs, and other rewards programs to your benefit.

Duel Debate Module

So you have a credit card, right? Well is it a good tool or an evil vice? Share your opinion!

Good vs. Evil

What's My Rate?

First Lower Your Rates!

The first thing you need to do is make sure you have the lowest rate possible if you carry a balance. Most credit card companies offer an introductory rate or even a very low fixed balance transfer rate. If you already have a card with a zero balance check to see if a balance transfer is available. Careful though, never transfer a balance to a card that already has a balance. Most credit card companies apply your payment to the balance transfer part of the balance first, leaving the higher interest charges continue to accrue and compound at the higher rate. If you do not already have a card available you can find a great balance transfer offer at smartbalancetransfers.com

Automatic Payments

Man vs. Machine, who performs the best?

Once you have your balance at a reasonable rate you should set up an automatic payment to make sure you always keep current. One of the biggest money makers for credit card companies is the late charge. It can be as high as $39 each month. This is huge for card companies. Imagine, a credit card company can easily have 10 million customers. If 10% of those made a late payment each month that would be $39 million that the card company earns each month. Anyway, you get the idea, the credit card company will definitely get their money not to mention they will not hesitate you raise your rate as fast as they can. Trust me, I have personal experience with this one and I was only a week late. It wasn't even long enough to affect my credit, but the issuer raised my rate to 24.9%. Luckily, I was able to immediately transfer the balance to another card at 3.9%.

Most companies will let you set up a payment online and you can schedule your monthly payment to happen automatically. If you carry a balance, at least set up the minimum payment, but if you can the entire balance each month do it! Either way, you will avoid the late charge and the costly penalties that come with it.

Highest Guaranteed Rate of Return You'll Ever Have!

In This Case Saving is Earning.

Once you have your balance at a reasonable rate you should set up an automatic payment to make sure you always keep current. One of the biggest money makers for credit card companies is the late charge. It can be as high as $39 each month. This is huge for card companies. Imagine, a credit card company can easily have 10 million customers. If 10% of those made a late payment each month that would be $39 million that the card company earns each month. Anyway, you get the idea, the credit card company will definetly get their money not to mention they will not hesitate you raise your rate as fast as they can. Trust me, I have personal experience with this one and I was only a week late. It wasn't even long enough to affect my credit, but the issuer raised my rate to 24.9%. Luckily, I was able to immediately transfer the balance to another card at 3.9%.

Most companies will let you set up a payment online and you can schedule your monthly payment to happen automatically. If you carry a balance, at least set up the minimum payment. If you don't set up a payment to pay the entire balance. Either way you will avoid the late charge and the costly penalties that come with it.

Show Me the Money!

Who says you can't have your cake and eat it too?

After mastering the basics of credit cards it time to maximize the benefits. It's almost unheard of to have a credit card that does not offer some type of reward. American Express and Discover are famous for their cash back rewards. Citi and Chase have excellent point systems to earn gift cards, travel vouchers, electronics and almost anything else you may want.

Which ones are best for you? Well, like with most things the answer is it depends. If you travel extensively, you would probably want one that pays extra points or rewards for airlines and hotels. If you spend a lot of time driving you would want to get a card that pays extra rewards for buying gas. If you look around you can find cards that even give extra rewards for shopping at grocery stores.

Have you ever been ripped off by a credit card company? - Shout about it!

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      bankreviews 6 years ago

      I got trouble in my previous credit card. But I have settled it with the credit card company and now my credit runs softly.

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