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How to make Your Credit Card Your Best Friend
by Colin Mc Caig
If someone said to you, 'credit cards can save you a ton of
cash', what would be your answer?
If you're like most people, you'd probably think you were
being had. Many of us open that monthly statement with
dread...if we open it at all...
But, believe it or not, by making a few adjustments to the
way you use your card, you can just as easily have it
working for you rather than against you.
Here are 10 ways to do just that:
1. Your credit card company will guarantee you against
online fraud and non-delivery of goods. I wish i'd known
about this when i first came online as i'd heard so many
horror stories about credit card fraud. However, if
anything goes wrong or your goods are damaged or fail to
arrive in transit, it's your credit card company who will
be liable.
2. Guarantee after purchase.
Many cards will guarantee your goods up to 2 months after
purchase, but do check the small print. Some will only
cover part, and not all of your initial outlay.
3. Price Guarantee.
We've all seen those ads on telly where big companies offer
to refund the difference if you find their goods cheaper
elsewhere. But did you know that many credit cards also
offer this facility. So next time you're kicking yourself
because you see something you bought is now in a sale or
cheaper elsewhere, your card may be liable to refund the
difference.
4. 0% Interest on Balance Transfers for 6 months
I recently heard the slightly crude term 'card whoring' used
to describe this practice, but why not. It's perfectly
legal. As soon as your 6 month period is up, find another
0% deal and start again.
Also think big, if you have a large cash limit of, say
$50,000. Why not transfer this into a high interest
savings account and use the bank's money to earn you
interest!
5. 0% Interest on Your Purchases
Believe it or not, you can actually extend the above
practice to your household purchases as well. For
instance, let's say you have a 12,000 dollar limit on your
card. Spend on all household purchases just short of your
limit before the period is up. Then, pay off the entire
balance using the cash you'd put into a savings account.
Result: You've postponed all your domestic spending while
earning a nice amount of interest!
6. Sensible Use of Extended Warranties
If you're like most people (myself included), at some stage
of your life, you've probably been conned into taking out
an extended warranty. They're usually not worth the paper
they're written on, as even when your goods do break down,
it's generally cheaper to get them repaired yourself.
But did you know that many cards will give you this
facility free, often a year beyond the manufacturer's offer!
7. Earn Interest in Credit
Seems a little strange, i know...as we normally associate
cards with charging us through the nose for interest. But
it's worth noting that many cards will offer you a more
competitive interest rate than your average bank.
So how can you use this?
Well, let's say you were considering going abroad for a
long while...maybe a year. Why not stash all your money
into your card and earn interest as you spend abroad! By
doing this, you'll be less concerned about those monthly
repayments back home.
8. Accident Insurance
Sorry if this sounds a little morbid, but it's worth
noting. If you were killed or seriously injured while
travelling in transport paid for with your card, your card
company will generally be liable to pay you some hefty
compensation.
9. Financial Peace of Mind
You never have to cart around a huge wad of notes. Better
still if your card number is lost or stolen, it's the card
company's responsibility, not yours!
10. Keeping Track of Your Spending
Your monthly statements let you know exactly where your
money is going. With many cards, you can even get personal
finance software to download your transactions from the Net
to your own PC.
So there you have it!
I once read the great American success expert Napoleon Hill
write that if a human being stood in front of a mirror, he
would see his own best friend and worst enemy.
Credit cards are a bit the same. Unfortunately for many of
us, they prove to be our worst friend and an unnecessary
drain on our finances.
By sticking to the above, why not make your card an asset
rather than a liability?
ABOUT THE AUTHOR: Colin Mc Caig is dedicated to helping
others become debt fr~ee and generally live more happy and
fulfilling lives. Get his fr~ee 3-part mini-course. Learn
the powerful secrets to becoming debt-fr~ee using only the
money you have today. Send a blank email to:
mailto:colind@d...
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