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5 Secrets About Credit Cards Your Bank Would Not Tell You

5 Secrets About Credit Cards Your Bank Would Not Tell You
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Credit cards be an enigma. Powerful tools if you use them right, but dangerous weapons if you’re not careful. On top of that, every card is loaded with tons of fine print you probably don’t know about (and your banks would rather you not know). Here’s a few secrets about your credit card that your bank won’t tell you.

Annual Fees Are Negotiable

Don’t feel like paying your card’s annual fee? Don’t do it. Call up your provider and ask nicely – and lots of times they’ll waive it. Use this script:

Customer Service [CS]: Hi, this is Mary with MasterCard. How can I help you?

You: Hi Mary, I’ve had this card for a while and I really like it. I’ve been a [Bank Name] customer for the last [number of years]. I’ve spent [$x] on this card and I’d really like to keep using it, but I didn’t realize there would be a fee. Is there anything you can do about that?

CS: Let me check.

A lot of times, they’ll say or act like they can’t do anything about it. This is where most people give up. Not you, stick around and be persistent.

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You: You said you’re not sure if you’re able to get the fee waived?

CS: Yes, that’s correct.

You: Well, can you check?

CS: I’m pretty sure we can’t waive the fee sir / ma’am.

You: Can you check with your manager please?

When the manager comes on, ask again with the first script. Be confident, but polite – they’re not going to want to do favors for jerks. When in doubt, be patient, polite and don’t give up until you get a direct answer from the manager in charge of the card. Often, they like to keep loyal customers and waiving the annual fee to keep one as a customer is a no-brainer. That said, it doesn’t work 100% of the time, so your mileage may vary, but it’s definitely worth trying. If they’re not going to waive the fee, then you can go on to the next tip.

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You Don’t Have To Cancel The Card

If you have an annual fee you don’t want to pay, but also don’t want to cancel the card (and want to keep your credit clean), you don’t have to cancel the card. Ideally, you’ve already had the conversation above. If so, continue on with this script:

You: Hi, well I’d really prefer not to pay an annual fee. Is there another version of this card without the fee?

CS: Oh, yes, there’s the _______ card.

You: Can you please confirm that there’s no annual fee with this card?

CS: Yes.

You: Can we do that?

CS: Sure, we’ll have that card out to you in the next 7-10 days.

You: Thanks for your help [their name].

Voila.

You Don’t Actually Have To Spend Money

If you want to hit the minimums on your card – you don’t have to spend tons of money to hit credit card bonuses for sign-ups and accrue lots of miles or points. The infamous buy $1,000 of coins from the US mint trick sadly no longer works – but there are other options out there. There are other techniques you can use to essentially spend money on your credit cards and accrue points or miles without having to pay tons of cash out of pocket.

The Vanilla Card Churn Strategy

Essentially, you load up vanilla reload cards at $500 each. Each one has a $3.95 sign up fee. You can typically load up to $5,000 on different cards. So basically, you’ve bought 5,000 miles for $39.50. That’s a mileage value of .008/mile – which is pretty darn good considering most miles are valued at about .002 each. You then transfer vanilla card balances to a bluebird debit card and use that money to pay off your credit card balance. There’s more in-depth information on this entire vanilla churn strategy here.

The Paypal Load Strategy

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This is similar to the vanilla, except you can use it in your Paypal account without paying the ridiculous Paypal credit card and international fees. If you have international employees – it’s often cheaper to load up a Paypal reload card and pay your employees with that balance than it is to pay an international + credit card fee if you tried to use your credit card directly on the site. There’s always more of these on the way as well. If you plug into the great community at flytertalk, you can get wind of when these types of opportunities pop up.

You Can Use Your Card To Travel For Free

If you start stacking up enough miles in your various mileage bank accounts, you can start to do pretty neat things as far as travel goes. Sure you can use those points and get cash back, but if you turn them into miles, you can book a RTW ticket like Steve did for just a few hundred bucks (which would normally cost thousands). Miles were also a huge way that Chris Guillebeau traveled to every country in the world.

Some of these trips start at just 140,000 miles – which is essentially 3 large signup bonuses for different cards. Even if traveling to the world’s ends isn’t your thing – you can still get a free flight or two out of strategically using your cards. Not too shabby.

You Can Use The Same Card Twice

If you have a card that gives you good perks, you can sign up for it twice. If you wait 9-18 months, you can re-apply and get the annual fee waived. This is great for mileage-accruing cards that give big signup bonuses. If you cycle the cards every 9-18 months, you can get 25,000-50,000 bonus points from each card (without paying the annual fee). Pretty cool!

Well there you have it – five credit card secrets your bank would rather you not know.

Do you have any secrets that you’ve found work magic with your bank?

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Featured photo credit: Bitzcelt via flickr.com

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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