Credit Cards

As I said in a previous post I use very little cash. I try to charge as much as possible, then pay the charge card off each payday. I find it easier to keep track of spending this way.

I only have two active charge cards. Amazon Visa and Blue from American Express. Blue gives cash back and Amazon sends a $25 voucher after so many points are earned. They periodically have double and triple points. I use the voucher for magazine subscriptions, Cd's or books that I really want. I normally don't purchase books (I go to the library) and now Amazon sells groceries and other items besides books.

If you are using store credit cards with high interest rates while carrying balances, check out Credit Cards.com or Bankrate.com for a better rate. Make sure you close the original line of credit and destroy the card. If you have multiple credit cards you can also consolidate to one low rate card. But you MUST be disciplined enough to destroy the original cards and CLOSE the accounts. Also make payments on time and even extra to pay down the balance as quickly as possible.

I NEVER get a card that requires an annual fee. There is no reason for an annual fee in my opinion. Also if there is a choice between two or more cards and one offers cash back or points that I can use to my benefit and one doesn't, I go with the one that benefits me.

When I have transferred money from one card to a new one in the past, I NEVER pay for it. Look for a card that has NO FEE or call and ask to have the fee waived. If the offer is for ZERO percent for a fixed amount of time. Divide the amount by the number of months and divide that by the number of paychecks you'll have in that time. Round up and make that amount of payment each payday by computer.

Assignment:

Verify the interest rate you currently pay. Look for a card with a lower interest rate and no transfer fee with the longest time frame to repay.

$2.78 gas station (junk food)

January 10, 2007

$1.58 McDonald's
5.50 Water Store