Wednesday, 20 May 2020

Top 4 Amazing Credit Card Tips You Need To Know

4 Amazing Credit Card Tips

In this article, I'm going to be sharing with you four amazing tips you need to know if you are first getting into credit cards. These tips will save you money it will give you a better blueprint of what you want to do in the long term run and these are some mistakes that I made that I wish I didn't.


Let get started


Tip 1. Join Credit Card Forum

 There are resources my favorite ones are a Facebook group, second, it's going to be my FICO forum, and then third, it is going to be on Reddit. So Reddit has a credit card group, they have a personal finance group, those are some credit card groups you want to look into and the reason is that you're surrounding yourself in a community where you can ask yourself questions and you can absorb information very easily. Instead of reading articles and learning the conventional way by reading all the fine print, you can find out the most important details that people ask commonly to, just being in this group. 

If you're trying to be passionate, if you're trying to be an expert in anything one of the first things I always do regardless of the natural market is I join a group. I join a community, I do a lot of work with Facebook and Facebook is actually prioritizing that type of movement as well too they're putting a lot of emphasis into community and groups because that's where a lot of the real engagements are if you're surrounded by people in whatever you're doing say, you're a plumber you want to be with other plumbers, say you're a huge fisherman you want to be in a fisherman's group around that area or you are a nature enthusiast or you have a certain car you like, you want to surround yourself with that community, it builds it up overall and it's just amazing being in it because you learn a lot and you get entertained pretty well too. That's what I recommend to start off with.


Tip 2. Have A Plan To Get The Welcome Bonus

Don't open a card without a minimum spend plan. If you don't know what minimum spend is that is another word for the signup bonus, that is another word for a welcome bonus. But basically, if you are opening a card most of the time they offer you an incentive if you spend X amount, you get an X amount of cashback or X amount of points, just as an easy example, I will use the Chase Sapphire Preferred, their welcome bonus always changes it always fluctuates, but right now you could sign up and you can get a 60,000 dollar points to sign up bonus when you spent $4,000 in three months.

In those three months, you need a strategize how you're going hit those $4,000, I know some people who sign up for these credit cards and they often neglect that, if you get that credit card do not use any of your other credit cards unless they're like $1 or $2 purchases or subscription purchases. Hit that minimum spend, know you can hit that welcome bonus, and know you can receive it. If you're going to get a credit card you're going to get a vast majority of your points from that welcome bonus package, you do not want to miss out on it because 60,000 points are worth a lot. But if you're not going to get that welcome bonus, in the beginning, it's just foolish to get credit cards.


Tip 3. Don't Spend What You Can't Afford

This happens so much and if you do do this I will share with you an alternative towards the end of this point, but you don't want to spend money you don't have, if you have $500 in your bank account please do not take your credit card and spend $2,000 on it and get around 20% interest on paying that back. There are exceptions. If you get something called a business credit card which is a personal credit card on steroids, If you do that it will not affect your personal credit score and some of these business credit cards even offer you a 12 to 15 month no APR promotion. I have an article on this blog dedicated to business credit cards, as someone who is in the credit card community, I do not recommend you spend money on your credit card that you don't have. This just negates the benefits you get and I know circumstances happen, this is why I recommend business credit cards as an alternative

Read: How To Get A Business Credit Card - (Step By Step)

If you have no idea about business credit cards or you're afraid to get a business credit card because you don't have a business and you think you'll get denied that is a common misconception a lot of people have, a lot of people actually get accepted to business credit cards, the credit card issuers and companies want to give them out to more people and I see a lot of people getting accepted for them right now.


Tip 4. Set Up Automatic Payments

It doesn't even have to be your full statement balance, but please set up automatic payments and do not have a missed payment. This is something that can drastically affect your credit score if you miss your payment not only will you get a late payment fee, but this can be a mark on your account. So set up automatic payments as soon as you get the card, I always knock it out right away just because I don't want to have to think about it, it's so easy it takes a couple minutes, I always set up automatic payments for my entire statement balance, if you are looking to carry over a balance which I don't recommend you to do, but if it does happen, do it on your business line of credit and then set up automatic payments for your minimum balance.

People often get confused about the statement balance, your balance due, your current balance, and then the minimum payment. I know it can sound a little confusing, but here's what you need to know. If you do not want to pay interest on your card you just have to pay for the statement balance. If you pay for that current balance it's always going to be more than that statement balance, but the current balance is revolved. 

The easiest way to break it down is like this, 

Joe spends $500 on a new camera last month, that is his statement balance for that month, this month so far say he spent another $300, if he goes on his credit card account right now it's going to say he has an $800 current balance and a $500 statement balance, that current balance is for right now, and it's going to be for the statement balance that's coming for this month. He have to make sure He pay off the statement balance for last month, you don't have to keep paying your current balance and that doesn't really make sense because that means you would have to pay off your credit card every single day if you use that credit card because that current balance is revolved. It hopes that made it clear for anyone who didn't understand that too. Just set it off for statement balance. 

There are three options, statement, minimum, and current. Statement balance you're good, if you're going to carry over debt just do. Minimum balance and make sure you look into business credit cards.



Those are the 4 credit card tips that I have for you. Hopefully, you learn something new.

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