If you want to play the credit card game to win, get cash back credit cards. If you have already established credit for yourself and have been using credit cards as a matter of convenience and paying them off each month, then it is well worth your while to get cash back credit cards. Cash back credit cards are available for both personal and business credit cards.
Using cash back credit cards makes a lot of sense because you have to make purchases anyway. You might as well make them with credit cards and get cash back. If you have gas cards, you might choose instead to use cash back credit cards to purchase your gas. The gas cards most likely do not give you cash back. As gas is a necessary evil for all of us, you might as well get some money back for buying your gas.
If you use cash back credit cards for just your gas purchases and pay cash for everything else, you can get some money back for your gas purchase and pay off the bill each month. You have to pay the bill off each month or else it will end up costing you more than ever when it comes to paying for your gas. And with the way that gas prices continue to rise, that’s probably the last thing that you want to do.
Winning the credit card game is not difficult once you understand how the game is played. Credit card companies want you to charge as much as you can so that you carry a balance on your card. When you carry a balance on your card, you have to pay interest. Interest rates are high on credit cards because they are unsecured debt. In some cases, credit card interest rates can be close to 20 percent. You sure do not want to pay an extra 20 percent on your gasoline purchase.
Whether you have personal credit cards or business credit cards, you can win the credit card game if you pay off the balance every month when the bill comes in. You must also pay the bill off promptly as well and be sure not to go over the limit. This way, you can use the credit card, get money back and not lose any money paying fees. Credit card companies make money on fees. The fees are charged to you as well as to the vendors who you use the credit cards to make purchases from. Vendors usually pay a fee of about 3 to 5 percent to allow you to use the credit card. The reason they are happy to pay this fee is because you are more inclined to spend more money when you are paying with plastic than with cash.
Credit card companies also make money on fees that you will pay if you go over your limit or if you are late on your payment. In some cases, you can expect to pay about $30 each time you are late for your credit card payment, or more. When added to the interest fees, you can really end up paying a lot more than you intend when using credit cards. The only way to win the credit card game is to get cash back credit cards, get the cash back and also pay off he credit cards each month when you get the bill.
Artice Source: http://www.articlesphere.com
Related Articles in Credit Cards
People interested in the above article are also interested in the related articles listed below:
If you have an average to excellent credit rating, then a Capital One credit card is likely to be for you. They offer competitive APRs, rewards similar to mileage points and various benefits which make them a good deal for everyone. For anybody with average credit score, a favorite card is the Classic Platinum Credit Card.
How often have we found our self to be in the receiving end of a credit card bill gone awry? The problem with credit card is that if it's easy to buy things that you've always wanted, it's even easier to fall into a debt trap. There isn't anything wrong in keeping credit cards, but for those who lack fiscal discipline, this is nothing but a death knell. Fortunately a few yet decisive changes can pull you out of a bad credit card debt.
Holidaymakers are being stung because they are not aware how much it costs to use their debit cards abroad. Says a leading UK Building Society. Research from Norwich and Peterborough Building Society (N&P) shows that almost one in three Britons overspent on their last foreign holiday.
in Credit Cards