Credit Cards – Source of Income
Many people treat credit card as one of their expenses, something that costs them money. Many people refuse to take a credit card just because they feel they can not afford to have one. Thought, once the credit card will pay more. This is completely wrong. They do not understand what the credit card, credit card can does for them. Some pay more just for their own bad habits of using credit card.
Credit card can earn more for us if we use it wisely and has opted for a credit card right for us. The two most important factors for the credit card to earn more to give up the card without annual fee and interest card.
Before applying for a credit card, we have to make sure no annual fee will be charged. There are some credit cards that are totally free for life without any condition. Some conditions are free. As a normal condition, at least 12 purchases a year. Another condition is normal, at least some amount of purchase for one year. Please make sure you can meet the condition before you apply for it. It also takes into account the method used resign. Some credit card issuers just need a call to waive the annual fee. And some need to see his signature black and white. For me, I only want to apply for a credit card that only needs a call because I am not prepared to send an application form to apply for the waiver of annual fee. This is simply because I have to pay more if I have to submit an application in comparison with a phone call.
Second factor is, without interest. We must ensure we are able to pay before you buy anything, before using the credit card, so that no interest will be charged. The interest charged by credit card is the highest among all banking services. If you use a credit card to own something that really is not affordable, then you pay more for credit cards can not be won through credit card. If you are that kind of person, then you can stop reading this article. We can do it with a credit card to earn more with us only when we are able to pay the total balance statement.
I feel that we are spending more money on making the payment to the credit card. For me, I prefer to make payment through internet banking which is the most convenient and inexpensive method of payment. If I have to go to court operations to make the payment, then I have to pay for petrol, parking, and I am losing more time to do it.
With three factors above, we are paying the minimum amount, which is perhaps a phone call to get the annual fee waiver and free Internet banking. If the credit card is a free service for life of the card, even to save the phone call. Here are five factors that can make us earn some money.
First, each month we have to make a full payment before the due date, an amount that consists of many purchases we made. If you pay cash for the purchase, the money will leave our wallet or purse before we have the goods. But if we are using the credit card, money is still in our bank account accrued interest. If we can pay the credit card payment after a longer period and then do more. For example, if I made a purchase in one day and make credit card payment after 10 days, after winning only 10 days of interest, because money is still on my bank account over 10 days. If credit card payment after 20 days, then surely win more compared to 10 days. So now, how to have a long repayment period, including more than a month?
Must be at least two credit cards with their statement date almost half month apart. Before using your credit card, just choose the credit card just now. For example, a credit card, dated 5 months and 20 months each. Today is August 7, then you should use the credit card of 5. If the expiration date is 20 days after the statement date, then the due date for payment by credit card will be September 25. This is because the statement of the date of purchase on August 7 drops September 5th. How much interest you earn as a result of paying late? The interest you earn will be August 7 to September 25, which is total of 50 days (over one month). If you pay your property into cash, you are losing the opportunity to earn 50 days of interest, because the money leaves your wallet on August 7. By having two credit cards with statement date half months, we will have a higher average repayment period. Let’s say you only have one credit card statement dated 5 months and today is August 4. We have no choice and must use this
credit card, although we know that tomorrow is the date of the declaration. The expiry date for this purchase come August 25. 22 days means you earn interest. If we have another credit card with statement date 25th of each month, and then we can use that card for the purchase and can earn 42 days of purchase (date of expiry of the September 14th take).
Most credit cards provide redemption point. We can achieve anything we want through the redemption of points we have, without paying a single cent of the goods. When I need some electrical items for my house, always looking for the redemption of the list. But if they refuse to use the credit card, you have to pay for everything you need.
Many card issuers offer 0% interest card payment plan for buying expensive items like furniture. This makes it easier for cardholders own something expensive (of course, you have to make sure you are able to pay the full fee each month). The plan helps you earn more interest (using the same concept mentioned above) by the payment plan period (from 6 months to 2 years). The most important question here is, the plan must be interest free. Already the plan, more is gained.
One last chance to earn more is the cash rebate or cash back. Some credit cards cash repayment plan. The rate of discount for cash payment is approximately 0.4% to 1% of the balance of the statement. The grant is to reduce the balance on your credit card. Some cards are giving a flat discount rate and some will depend on its state of equilibrium.
All the above is the case in Malaysia. Some may not be true of your country. Please use the credit card wisely is to make money for us.
