7 Ways to Maximize the Use of Your Credit Card

7 ways to maximize the use of your credit card

Your credit card is a plastic with some imbedded chip card that keeps your financial record so, the more skills you have in handling it the better. Lets get straight to find out how you can maximize you credit score.

1. Reduce the interest rate: 

The credit card system gives one a sufficient opportunity to create a reasonable financial control if skillfully applied. You could save much money, reduce your average interest payable or use your credit as a form of investment.

      

One of the ways your credit balance increase overtime is as a result of high interest rate you pay,

take for example paying 20% interest rate on a $6000 average monthly  that means you would be paying the bank/credit organization a yearly interest of:

For a month; 20% X $6000 = $ 1200

For a year;     $ 1200 X 12 = $ 144, 000

That’s heavy I must confess. Can you imagine what you could achieve with a whopping $ 144,000 in a year or how many people can afford to pay off such dept in one year? If you’re in such predicament where your interest rate on your credit card is outrageous; 

2. GET ANOTHER CREDIT CARD WITH A LOW INTEREST RATE.

The lower the interest rate the juicier, ask, negotiate, enquire, push but make sure you get a Master Card with a much more lower interest rate before you sign up. After acquiring your low interest card transfer or buy back the credit balance from the card with the higher interest rate or use the card with less interest rate to pay off the credit balance by applying for a cash advance on your lower interest credit card.

Let’s assume you were able to obtain a credit card with the following interest rate:

10% interest rate = Save  $74,000

12% % interest rate = Save  $

13% % interest rate = Save  $

14% % interest rate = Save  $

15% % interest rate = Save  $

And so on.

By doing this you are saving a whole lot of money. The lower the rate, the easier it is for you to come out of dept.

3. Pay cash or send a check for purchases

Do you know that it cost the online merchant some valuable resources processing your credit card payment. And these online merchants would prefer cash for some purchase to credit card payment. Find out first whether the product can be paid for with cash and opt to pay for with sending a check, but just before sending them the check ask for a rebate, a discount or request for a better terms for the purchase like increase in warranty time, faster delivery time or any term you think will make your life better.

4.  Pay for assets with a low interest credit card:

It makes sense to pay with your credit card when buying asset and you don’t want to pay cash. It will do you much good when instead of borrowing money to pay for asset you use a low interest bearing credit card hassle free and no paper work. Of course that’s one of the reasons why we have credit cards

5. Apply and carry two (2) or three (3) credit cards:

There are many logical reasons why you should carry more than one credit card.One that readily comes to mind is when you click on shopping cart in order to pay for an item online and the system notify you that you are over your credit limit, and you however know that there is a mix up somehow and trying to make a call at his time may not produce an immediate response and waiting for three or a week to correct the status of your credit card would mean you’re grounded, what do you do especially when you need to buy some necessities of life online or offline, your use your back up credit card, it comes in handy. Just withdraw the out of credit limit credit card and use this card to make your purchases.

Secondly, if you misplaced visa or your card got stolen; we all know that it takes some time to place lost or stolen cards. These things do happen from time to time and without a back up credit card you may have to wait

6.  When you want to pay for an asset that cost so much and you believe it will take you at least six 

 months to pay off the credit balance, your best option is to pay with the no interest credit card which does attract a higher yearly rental, after all you have paid for the rental why not use 

     

7. The more cash you carry or are you are known to pay with cash the more vulnerable you are to being burgled.

When you make most of you purchases with a credit cards you keep burglars away, because they won’t get money from you and so the look elsewhere. The less cash you carry the safer you are. Except of course when you pay for a hotdog or for things lest than $10 dollars