Learn how you can use credit to achieve more and avoid paying interest…
In the current economy many who have excellent credit or good to excellent credit are utilizing the credit system to float credit in a way that best serves their financial goal(s) and not the goal(s) of creditors.
Many “baby boomers” may remember floating checks for a number of days (for their benefit) in the past due to the slow processing of checks by the banking industry several decades ago. Fortunately, gen x (those born after the baby boomers), gen y ( millennials) and gen z (those who followed the millennials) don’t have to contend with the slow processing of the past as many financial transactions seem to happen instantly.
However, the opportunity to float credit (for your benefit) is available to you and all who have the desire to do so in the current economy.
In this discussion The Wealth Increaser.com will look at a number of ways that you can use credit to your advantage (float credit) so that you can avoid paying interest, gain rewards that fit your lifestyle—and use the card to make purchases that you normally make anyway—to achieve more credit wise—and in the management of your overall finances.
Avoid Paying Interest
If you have excellent credit you can use zero percent credit cards (many are available that provide up to 18 months of zero percent interest) to make purchases on grocery, lifestyle purchases, clothing and other purchases you normally make on a monthly basis.
In some instances credit cards can be used in ways you don’t normally use credit such as tuition and related fees, monthly utility payments and the like.
As long as you have the monthly income (discretionary income), a properly funded emergency fund and the mastery of your credit at your disposal—you can use your credit card(s) to manage your finances to your benefit and pay zero percent interest as long as you pay off the balance within the promotional period (i.e. the 18 month period). Keep in mind that you will have to make a “minimum payment” during the promotional period based on your balance.
Alternatively, you can use your credit card that does not have a zero percent promotion to charge in the same manner discussed above, however to avoid interest you would have to pay off your balance monthly (usually within 30 days).
For example, if your goal was to purchase a vehicle, house or other major purchase you might want to do that first—then start avoiding the payment of interest based on the above strategies. In short, it all depends on your outlook for your future and how you want to go about achieving your future goals.
Use Reward Cards More Effectively
If you have excellent credit you can use reward cards to reward yourself for utilizing the card and get the perks that you desire or may find to be of benefit to you and your family.
If you are a frequent flyer you can find a number of reward cards (including many that are issued by the airliner) that will assist you. If you like to eat out a lot, purchase grocery, gas, household goods, furniture and the like—you can find reward cards that will reward you at various levels when you use them.
We all have a purpose for our life and the direction that we all take will differ. Many credit card issuers recognize this reality and offer perks or rewards in many forms that are designed to entice you to make purchases with their card. As long as you are wise in your approach and you have a handle on your finances–you can make reward cards work for you and not against you during your lifetime.
Manage Your Credit & Finances on Purchases You Normally Make
You can use zero percent cards, reward cards and make the decision to manage your credit more efficiently by utilizing your credit in a wise manner.
You already know that you must eat on a daily basis, take transportation or travel to various destinations, purchase household items etcetera—so why not do that and at the same time avoid paying interest and make one (or a few depending on how many credit cards you use) monthly payment(s) for all of those items at one time—thus helping you manage your finances more efficiently and in many cases more effectively.
You can also use this approach to see where you are spending on various categories on a monthly basis as many credit card issuers will provide you a breakdown of where spending on the credit card went.
In addition to a helpful monthly breakdown of your credit activity by category many credit card issuers will also provide you a helpful chart and possibly tips and other promotions based on your spending habits.
You can use this information for budgeting and planning your future in a more precise manner. This information can help you get on a serious path to managing your finances more comprehensively throughout your lifetime if you are not doing so at this time.
If you have excellent credit and a meaningful understanding and handle on your current finances you can use many strategies to get out in front of your credit usage. It is imperative that you have analyzed your cash flow, established a sufficient emergency fund and analyzed your credit and finances in a comprehensive manner prior to using the “floating credit” strategy mentioned in this discussion.
You can choose to float credit and build wealth more efficiently as one of many strategies in the overall planning of your financial future.
If you are one who likes to avoid the use of credit at all costs—you can continue to do so ! If you now have no credit card debt or you can pay off your credit cards (if you find yourself in the unfortunate position of owing credit card companies at this time) and then stop using credit–you can put yourself in position to get ahead financially!
However, if you desire to “float credit” in an effort to achieve more financially—it is ” the hope of TheWealthIncreaser.com that this discussion has given you some insight on how you can get it all started or continue to use credit to your advantage throughout your lifetime.
You don’t want to get in a position where creditors are in control and you are paying them interest on a monthly basis at anywhere from 10% to 25% by “carrying a balance” and not paying off the debt in a timely manner!
You must avoid that scenario or put together a plan to get out of that scenario at the earliest time possible!
If you decide to apply for a zero percent interest card or a reward card be sure that you always pay on time and you must be keenly aware of the effect that a new card will have on your credit utilization, credit time length, credit type and inquiries as a “hard pull” by creditor’s can pull your score downward some for a certain time period and negatively affect your credit file(s).
Therefore, you want to use your best judgment if you anticipate a major purchase where your credit will be utilized in the near future as your credit and credit score may affect your ability to qualify for the loan or line of credit.
You may also not know your “credit limit” (the total amount of credit available for use on your card) until the hard pull of your credit is done and the card is granted to you in almost all cases.
Also, be aware of processing fees, convenience fees and other fees when you use your card in a non-traditional way such as at a public or private university, governmental agency, quasi-governmental agencies and the like as those fees can eat away at your zero percent interest and/or rewards in a way that makes paying with credit less appealing when the fee(s) are factored in.
In addition, look for the opportunity to “triple dip” by finding a card that offers zero percent for a time period certain, rewards and the ability to help you manage your credit more effectively and efficiently by providing you the monthly breakdown of your spending activity and possibly your credit score—all with one card.
However, if you now owe credit card companies you must come up with a pay off or pay down plan so that you can use credit to your advantage by “floating credit” or “not utilizing credit” because you have the cash flow and/or net worth that allows you to make the decision to utilize or not to utilize credit—your choice—not creditor’s!
Or another way of looking at it is “you” are in control of your credit and financial future!
To keep it short and sweet, you have learned how to use credit cards in an intelligent, consistent and proactive manner so that you can achieve more throughout your lifetime and you now know how to make credit work for you and not against you and you are now on your way to managing your finances more responsibly by seeing your future with more clarity.
By doing so you can start on a real path to getting your credit right.
Isn’t it time you approach your credit in an intelligent, consistent and proactive manner so that you can achieve more throughout your lifetime.
All the best toward your “floating credit” success….