credit card Archives - The Broke Professional

For some, credit cards can be a trap, creating a never-ending spiral of debt and high-interest rates. For others, credit cards are a source of free airline miles, gift cards, and even extra cash. If you are a savvy consumer and always pay your bill in full, credit card rewards are the icing on the cake, giving you free perks just for spending on the stuff you already buy.

If you are financially responsible with a strong credit score, you can get in on these credit card bonuses and enjoy a steady flow of cashback, gift cards, airline miles, travel perks, and other offers. While you make sure to avoid the common credit card mistakes, read on some tips for making the most of your credit card bonuses too.

Book Some Quick Rewards with Signup Bonuses

Competition is stiff among credit card issuers, so much that banks will pay you to take their cards. If you watch the offers and choose your cards carefully, you could scoop up hundreds of dollars in sign-on bonuses just for using your new card.

Requirements differ, and you will need to read the fine print and make sure you satisfy all of the qualifications. Some bonus offers require a minimum amount of spending in a set period, while others ask that you maintain a bank account at the issuing bank. Be sure to follow up once the requirements have been met to make sure you get the points or cash you have coming.

Sign Up for Extra Points

From time to time, credit card issuers offer exclusive bonuses, like five times the points at restaurants or gas stations or extra cash back or points for shopping online. Be sure to sign up for email alerts, so you know which offers are active and how to take advantage of them.

Keep careful track of when these various special offers expire so you can adjust your card use accordingly. It may take some juggling, but these bonus offers can pay handsomely if you are willing to work at it.

Use the Right Cards in the Right Places

If you truly want to maximize your credit card rewards and take advantage of the best bonus offers, start by using the right card at the right time and place. If you have a card that gives you bonus points when eating out or buying groceries, pack that plastic before heading out to the store or local restaurant. If another card offers extra points for gasoline purchases, make sure you have it the next time you fill-up.

These bonus offers are subject to change, so make sure you keep abreast of the changes to maximize your rewards. And be sure to double-check your monthly statements to make sure you are getting all the base and bonus points you deserve.

Maximize Rewards with Discount Offers

Once you have earned the rewards, it is up to you to maximize them. Different rewards can have different monetary values, so look at your options carefully and choose what is best for you.

For instance, you may be able to turn your credit card points into cash, but a gift card could be an even better value. If you can get a $125 gift card to a favorite merchant instead of a $100 check or statement credit, that could give you the best bang for your credit card buck.

It is easy to get sucked into a spiral of credit card debt and high-interest charges. Still, there is another side to the financial equation. If you are highly disciplined with a solid budget in place, you may be able to beat the credit card companies at their own game, starting with the reward maximizing strategies listed above.

Getting your first credit card means setting off on a road of financial freedoms, as well as taking on a huge responsibility. When researching credit cards, there are a lot of different things to consider! From interest rates, to payments, as well as all of the reasons to have one, you should keep in mind a lot of different things.

Why are You Getting a Credit Card?

All in all, getting a credit card is a major life decision. How you use it and manage the payments can greatly affect you in the future! Before you get your first card, you should really contemplate all of the reasons why you are getting it. You can also look into why you should get a card to begin with!

You Need it for Purchases

If you’ve traveled in the last few years, or tried to make a large purchase, you will find more and more things require a credit! Not only that, but you can’t even make the purchase without one! Here are a few things that you will likely need a credit card for:

Building a Credit History. In order to build a credit history beyond student loans and mortgages, a credit card is a good idea. This will help you to make large purchases down the road. All things considered, houses, cars, boats, condos, anything having to do a credit check beforehand will lead to you needing a good credit score.
Renting a Car. Not only can you travel using credit card points, but you can also use a card to rent a car. It’s actually a requirement for most major rental car companies. Because companies don’t want to risk their assets, if you damage a rental car, they need you to pay. A card is a great way to ensure they get their money.
Reservations for Hotels, Cruises, Vacations, etc. Although you can make a lot of reservations with a debit card, there are some companies that only make reservations with a credit card. Not only can you not book the destination packages, but you may not be able reserve the holiday of your dreams to begin with!

Altogether, there are more and more purchases that you can only make with a credit card.

Credit Card Rewards

One of the reasons you may be looking into your first credit card may be to reap the widely advertised benefits. You can get discounts at places you regularly buy goods from, or even services provided. Not to mention the wide array of cash rebates, travel rewards, merchandise perks, gift cards, and so much more that credit card companies offer! All things considered, it’s not a BAD reason to get a credit card and build a credit score.

First Credit Card Need to Know

Before you get you first credit card, you should know how you’re going to pay it off, all of your personal limitations with spending, as well as how you’re going to use it! Like knowing what happens to your debt when you die, you need to know all the different details about your own spending and debt.

Whether you simply use it to fill your gas tank, to get groceries, or even to buy plane tickets, you should first know whether you can pay your minimum monthly payment. Once you know this information, you can get down to the nitty gritty of what you need to know before getting your first credit card.

How Do Credit Cards Work?

One of the most important factors to consider when getting credit cards is how they actually work! Having a credit card is like taking out several tiny loans. First, you’ll get approved for the card. Secondly, you’ll begin to make purchases with said card. Thirdly, you’ll repay the outstanding balance within your thirty-day period to avoid interest. Building your credit history can be uncomplicated, inexpensive, as well as rewarding!

Credit Cards Interest Rates

There do come times when paying off your entire balance within the thirty-day period is, in a word, impossible. Because your first card will be a new experience, it’s important to understand interest rates before you sign up!

Interest rates are calculated according to your unpaid balance, or your average daily balance after your payment is due. Next, this figure is multiplied by the card company’s annual percentage rate (APR), as well as the number of days in the month, and other figures in your contract. Finally, you have your monthly interest rate that accrues if you continue to let your balance go unpaid.

It’s good to know exactly how this works in detail. If you have questions, or even need someone to explain it to you in more thorough detail, you can always contact the credit companies directly. This makes it easier to understand what may happen if you can’t pay the entire balance each month, as well as how you can help avoid paying the rates to begin with!

Knowing the Ins and Outs of Your First Credit Card

There are so many things to consider when researching getting your first credit card, perhaps of many. Whether you’re looking into finding the interest rates, knowing how you can pay off the minimum monthly payment, as well as finding the right rewards, there are a lot of factors! Using these helpful points, you can confidently sign up for your first credit card and start spending wisely.

How To Maximize Your Credit Card Rewards?