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5 Credit Card Habits That Will Have Your Credit Cards Printing Money, Instead of Burning It

5 Credit Card Habits That Will Have Your Credit Cards Printing Money, Instead of Burning It

Credit cards can do one of two things. They can earn you tons of value through rewards, points, miles, cash and perks. Or, they can burn a hole through your wallet with fees, penalties and sky high interest rates.

Here are 5 habits that will turn your credit cards into money earning power houses.

1. Free Loans

Did you know there are two ways you can get a bank to lend you money for free? A credit card’s grace period essentially lends you money with no interest from the time you make a purchase to 21 days after you receive your credit card statement. That’s free float that can bridge a short term cash flow issue or allow you to earn interest (although not much nowadays) on the banks dime.

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Another way to squeeze free money out of a bank is through 0% balance transfer credit cards, cash advances and purchase rate promotional periods. Many credit cards offer 0% promotional rate for limited time periods. Take advantage and you can either transfer high interest debt to 0%, or borrow money for a new purchase completely free for 6-12 months and more sometimes.

2. The Golden Rule

Missing credit card payments can jack your rate, trigger late fees and destroy your credit score. The challenge is, no matter how good our intentions are, many of us get distracted and fail to make our payments on time.

There is a fail-safe way to never be late on a credit card payment again. By scheduling automatic monthly payments to your credit card, you’ll have the choice to pay down your entire balance or your minimum monthly payment by the statement due date. You’ll literally never be late again.

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3. Every Dollar Counts

If you’re going to make a purchase you might as well get rewarded for it. Why use cash or debit cards when you get nothing in return. Credit cards are a great way to manufacture significant savings on everyday purchases like gas, grocery, restaurant and pharmacy spend.

Many of the best cash back credit cards now offer opportunities to earn 5% in cash rebates in selected merchant categories. In fact, you can even combine multiple cash back credit cards with bonuses in different categories to maximize your earnings on all your spend.

Whether you’re buying a pack of gum, jeans or booking a cruise, get rewarded for every cent you spend. Not only will you maximize your rewards, you’ll also get the added budgetary benefit of seeing exactly how much you spend and where on your credit card statement.

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4. Welcome the Bonus

Yes, earning rewards from your credit card spend is valuable. But credit card issuers give away the most value in their sign-up bonuses to lure new customers. Think about it! Do you want to spend $50,000 to earn 50,000 points, or simply get a new credit card and earn the 50,000 points? Why do you wait 2-3 years for a free trip when you can get it right away?

The lesson is, loyalty doesn’t pay. Too many people stick to the same credit card year after year. Instead you should get a few new cards with significant welcome bonuses each and every year and watch your rewards multiply exponentially – rinse, wash, repeat. When doing so, just make sure to take note of the credit criteria, minimum income and minimum spend required to get approved for the card and receive the bonus.

5. Get Perky

Not only can credit card perks add comfort and luxury to your travels, they can also save you real dollars.

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Look for cards that offer perks with real cash value, such as free bags at check-in ($25-$35 in savings per bag), free roadside assistance ($65 value per year), free annual companion ticket ($250+ per year), complimentary travel insurance ($400+ per year), free wi-fi ($10 per day), free lounge access ($40 per visit) and free extended warranty coverage ($100+ per year).

Conclusion

Credit cards do have a dark side. But used properly, as they are by millions of people, they can bring lots of value to your pocket. Instead of running scared, embrace the positive, limit the negative and watch your credit card rewards bank bulge with points, miles and cash to spare.

Featured photo credit: Kaiyan / Flickr via flickr.com

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Marc Felgar

Marc Felgar is an aging, health & senior care expert focused on improving the lives of mature adults.

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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