Sunday, 17 May 2020

5 Things To Do After Getting Your First Credit Card

In this article, I'm going to share with you five things you must do once you first get your credit card. Now, I've made a ton of mistakes in my credit card journey where I've lost a lot of money some of these mistakes could have been prevented early on just by reading an article like this, I don't want you to make the same mistakes I did, so I'm going to share with you exactly five things you need to do once you first get your credit card.

1. Set Up Automatic Payment

I know this sounds like a no-brainer, but I've actually made the mistake myself too especially when I started applying for a lot of the same similar card so an example is, when I got the chase Inc business preferred, I had automatic payments set up but I forgot to activate it on my Inc unlimited and on my Inc cash, just because I saw the same cards under my category I didn't know at the time either that I had to set up automatic payments I thought it would all pull from the same account I was actually wrong and I know a lot of people think the same thing as well too. So make sure you don't go through that same mistake what you want to do is make sure you set up automatic payments. 

You don't ever want to pay interest on your cards and the only exceptions I tell people maybe it's okay to not set up automatic payments, is when you're first initially in that grace period for that card, and on top of that, you have a no-interest promotion where you're not going to be paying an additional amount of money for carrying a balance 

But generally for the most part for 90% of people out there turn on automatic payments and make sure you treat your credit cards like a debit card, don't overspend, it doesn't accumulate credit card debt, that's not how you can win in this game you need to think about this long term and make sure you turn on automatic payments so you keep a good credit score and on top of that, you don't pay any credit card interest.

2. Request Expedited Shipping On A Card

Another thing that I like to do as soon as I get approved for a card is to call the credit card issuer and ask them to expedite the card. Almost all these credit card issuers can expedite the card, and as soon as you get approved for the card that's when that welcome bonus timer starts going off, so generally it's about three months where you have to spend a couple thousand dollars, sometimes you have to spend $3,000 to $4,000 or even $5,000. Now you don't want to wait a whole week for you to first get that card before you can start spending. I know for me as soon as that three-month time limit starts, I'm going to get right on it, I want to be able to spend as much as I can, as soon as I can, but not overspend, I'm talking about purchases that I would have made already but making sure I can still get that welcome bonus for that card. What you can do is actually call or chat the credit card issuers when you're in on your account saying hey look, I got to approve of this card but I'm looking to get this card expedited.

Usually what they can do is get that card overnighted to you, if they can't they'll speed up the process a significant amount as well.

3. Enable All Benefits And Status Of The Card

Make sure you activate all your benefits and offers for that card, a lot of people overlook this and if you get a card for example, like the American Express Platinum Card, some of those benefits are something like priority pass, enabling the hotel gold status for Marriott and Hilton 

In addition to that, you get car rental status, and even on top of that you get a $200 airline credit but you have to first select which airline you're going to use that for. 

A lot of these cards offer different types of benefits but we have to go inside of the system and make sure that we activate them. I know this can be a pain in the butt because there are a lot of offers and benefits, make sure you first apply and activate the card benefits inside of your cards we'll get something like chase offers or American Express offers and there are a lot of offers associated with that and one of the issues that I consistently had was going through the app and turning them on every single month it takes up a lot of time and for me, I wish those offers were automatic. 

4. Do Not Enable Paperless Statements

Another thing that I recommend people do don't ever get paperless statements. I know you can get an email to you but as soon as you detect that, you say okay, you can be in little to me, I don't want extra mail I don't like getting a credit card statement in the mail and if you have 12 to 15 cards you're getting a lot of mail every month. But the way I like to handle these things is I like to ask these credit card issuers to give me an incentive to be able to sign up for some of these promotions. So if they want me to go paperless I chat with them or call them hey, do you have any promotion maybe I can get $5 off my statement or maybe I can get $1,000 extra points, you could negotiate that, but when you're first applying for this card or before you get it and you check that box, you're canceling yourself out for any future points or discounts you could get.

5. Know The Ins And Out Of Your Credit Card

learn more about the card, understand the reward programs, understand your credit limit, and how much you can spend, how much your points are worth and where you want to use your points. A lot of people like to blindly open for these cards not really knowing how to transfer their points out. Check out some videos on YouTube or guides on how to use your points most effectively. There are a ton of people out there too that don't even understand how much rewards are getting back with certain cards, so make sure you know the full benefit of your card. And on top of that, if you have any questions, I like to contact the customer support line or even just chat with them for any issues or things that I'm not a hundred percent sure about, for me, if I have the Platinum Card and I know I want to go to Korea for example, I can talk to a dedicated concierge line and ask them like hey, I have the platinum card do you recommend any travel incentives or do you recommend anything for me to maximize the points of this card so I can get the best value.

Usually, these guys will really help you out, if you're going with companies like Chase, American Express, they are trained to specialize in things like this so make sure you know the full benefit of your card.

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