Get The Most Out of Your Credit Cards With These Secrets
When is a good deal not a good deal?
How do you really know if a credit card is right for you?
Just how much room for negotiation is built into credit card fees?
And how do you know if a card is too good to be true?
Banks and credit card companies know how to entice us with great offers that seem like the answer to all our prayers.
However, when the honeymoon period ends, the interest rates soar, and our household debts spiral out of control, we realise that maybe we’ve been had.
Here we’ll look at some insider secrets which will dispel the myths that creditors are counting on you believing.
They will hopefully also help you to make better informed choices that get your credit cards working for you rather than the other way around…
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Low interest rate introductory deals aren’t all that they seem
We all know that paying less interest on your card can allow you to pay down your principal (the amount spent on the card) more quickly and get debt free faster.
As such, we’re naturally inclined to gravitate towards cards with low or zero interest introductory offers.
But take a good long look before you sign up.
Because once that introductory rate expires, you can find yourself lumbered with a hefty new interest rate which prolongs your debt and makes you throw away more of your hard-earned income.
Find out exactly how long the introductory period will last and don’t sign up if you can’t pay off your balance before it ends.
Minimum repayments are a trap. Don’t use them!
It’s easy to assume that a lower monthly repayment means that you’ll find it easier to manage your budget.
However, minimum repayments are a trap that can seriously prolong your debt and see you spend a fortune on interest.
Credit card companies work hard to make minimum repayments see like a great idea.
However, you may find that you’re paying as little as $10 off your principal every month, with the rest going towards interest.
You’re literally throwing money away every month when you make minimum repayments.
Credit card fees are negotiable
Depending on the kind of card you’re using and which company it’s from, you could be spending a small fortune in unnecessary fees every year.
Indeed, some may be paying as much as $120 in fees alone.
Fees that do absolutely nothing to drive down your principal.
The good news, however, is that no credit card company’s fees are set in stone.
If you’re a good customer, the kind who makes payments regularly and on time, you are in a great position to negotiate any fees, charges and even your interest rate.
You have absolutely nothing to lose by asking.
Not all cards have a grace period
In theory, credit cards can be great for your credit rating.
As long as you pay off the balance in full within the grace period (usually between 21 and 25 days) you can use your card without incurring interest.
But be sure to read the fine print.
Because, unbeknownst to many, not all credit cards actually have a grace period.
Credit card companies can take money from your bank account without your knowledge
Shocking but true!
If you have a credit card with your bank and you do not make your payment on time, the creditor / banker has the right to “set off”,meaning that they can go into your bank account directly and take the money they are owed.
Credit card debts getting out of control? We can help!
Conventional wisdom states that you can stay on top of credit card debt by moving it around between different cards.
However, not everyone has the time, the savvy or the credit rating to be able to do this.
If your credit card debt is getting out of control, we can help you to find the right debt relief solutions to suit your needs and circumstances.
We’ve been helping Canadians from all walks of life to get debt-free since 1999.
To find out more about what we can do for you, call us today on (877)879-4770 to arrange a risk-free, zero-obligation and 100% confidential callback.