Using a credit card for virtually any purchase can provide a great deal of convenience and savings. That might sound odd given all the negativity surrounding the use of credit cards. In this article, we’ll share a few tips from Freedom Financial Asset Management about how to use your credit cards the right way.
Grocery stores, gas, housing utilities, cell phone bills – these are all great ways to use your credit card. We know what you are thinking: What about all of the interest I’ll have to pay?
You’ll only pay interest if you allow a balance to carry over from one statement to another. By paying off your balance on the statement closing date, which is before the payment due date, you won’t incur interest.
Freedom Financial Asset Management has worked with a large number of customers when it comes to lower cost alternatives to credit card financing. One thing that can catch people off guard is if the credit card company charges interest daily. If that is the case, this technique won’t work. While it is uncommon to charge interest daily, be sure to check with you credit card company before using these tips.
Credit Card Rewards Programs
Another great tip shared by Freedom Financial Asset Management is use of credit card rewards programs. Take note of all the places your using your credit card. Then choose a credit card that offers the best points or cash rewards programs. It won’t take long to hit the rewards program’s milestone for payout.
These payouts are like a discount on your purchases.
If you lose a $5 bill or even $20 bill, it’s gone forever. With a credit card, there isn’t any cash to lose. Even if you lose your credit card, you’re not out.
Simply report to the credit card company that you’ve lost your credit card. They will issue a new credit card likely with a new number for security reasons.
Freedom Financial Asset Management points out that since most credit cards now have security chips, it’s even more difficult for someone to fraudulently use your credit card.
All Expenses Are Tracked
This feature is great for keeping track of your payments/expenses. Depending on the credit card company, they may even categorize expenses, which makes it easier to see where your money is going. When is the last time you logged onto your credit card company’s website? You might be surprised by all the features it offers for tracking spending.
Many financial software programs such as Quicken will also download your transactions right into the program, saving you lots of time in keeping up with expenses.
Unlike with cash, if there is a charge you disagree with, you can easily dispute it. In fact, the credit card company will issue you an immediate credit for the disputed amount. This credit will remain on your account pending the outcome of the dispute, which might be a few months later.
Sometimes even well disciplined use with credit cards can lead to a lapse in payment or the beginnings of unwanted debt accumulation. If you find yourself in this scenario, Freedom Financial Asset Management can help with lower cost loans. You can find out more about the personal loans they have available at freedomplus.com.