http://www.thesimpledollar.com/2007/01/17/personal-finance-101-charge-cards-and-credit-cards/ Simple, applicable personal finance advice for the modern world Fri, 19 Mar 2010 11:22:05 -0700 http://wordpress.org/?v=2.8.4 hourly 1 http://www.thesimpledollar.com/2007/01/17/personal-finance-101-charge-cards-and-credit-cards/comment-page-1/#comment-849707 deRuiter Sun, 24 Jan 2010 12:32:57 +0000 http://www.thesimpledollar.com/2007/01/17/personal-finance-101-charge-cards-and-credit-cards/#comment-849707 Credit cards, for the financially responsible, are a great institution. I'm a frequent flyer miles junkie, and take wonderful trips funded by the free miles. The secret to credit cards is to use them to buy ONLY what you would pay for in cash each month. Twice a month, on the 1st and the 15th, pay your credit card balances online. Choose airline credit cards, where the first year is free and they give you a bonuse of 15,000 to 25,000 miles. Come the 11th month, when the company wants to charge $60.-$95. for the second year, call customer service to see if the charge can be negated. If so, keep the card. If not, apply for another airline's credit card for a year free, get the miles, and close the first one before the fee has to be paid. There are TONS of other strategies for getting miles free for doing everyday things which one would do anyway. Those free miles are there and the price of them is built into the price of services and goods for which you pay. Think of that free trip to India for $95. (you pay only the government's taxes on the flight), the $50. trip to Europe, that $115. trip to New Zealand! Without my airline credit cards, I'd have to pay full fare, or not travel. A PERSON WITH GOOD SELF DISCIPLINE CAN USE CREDIT CARDS SAFELY, AND PROFIT FROM THEM. You have to be vigilant about the use of the credit cards. If gasoline is 5 cents a gallon cheaper for paying cash, ALWAYS pay cash, as the nickel is more valuable than the miles. If you have automatic bill pay, pay out of your credit card, not your checking account. For every dollar you have to pay anyway, you will get a free mile. Withdrawing the monthly bill money from the checking or savings account does not net you any bonus. Credit is a tool. Use it wisely and it is a grand servant. Use it foolishly and it is a harsh master. Credit cards, for the financially responsible, are a great institution. I’m a frequent flyer miles junkie, and take wonderful trips funded by the free miles. The secret to credit cards is to use them to buy ONLY what you would pay for in cash each month. Twice a month, on the 1st and the 15th, pay your credit card balances online. Choose airline credit cards, where the first year is free and they give you a bonuse of 15,000 to 25,000 miles. Come the 11th month, when the company wants to charge $60.-$95. for the second year, call customer service to see if the charge can be negated. If so, keep the card. If not, apply for another airline’s credit card for a year free, get the miles, and close the first one before the fee has to be paid. There are TONS of other strategies for getting miles free for doing everyday things which one would do anyway. Those free miles are there and the price of them is built into the price of services and goods for which you pay. Think of that free trip to India for $95. (you pay only the government’s taxes on the flight), the $50. trip to Europe, that $115. trip to New Zealand! Without my airline credit cards, I’d have to pay full fare, or not travel. A PERSON WITH GOOD SELF DISCIPLINE CAN USE CREDIT CARDS SAFELY, AND PROFIT FROM THEM. You have to be vigilant about the use of the credit cards. If gasoline is 5 cents a gallon cheaper for paying cash, ALWAYS pay cash, as the nickel is more valuable than the miles. If you have automatic bill pay, pay out of your credit card, not your checking account. For every dollar you have to pay anyway, you will get a free mile. Withdrawing the monthly bill money from the checking or savings account does not net you any bonus. Credit is a tool. Use it wisely and it is a grand servant. Use it foolishly and it is a harsh master.

]]> http://www.thesimpledollar.com/2007/01/17/personal-finance-101-charge-cards-and-credit-cards/comment-page-1/#comment-3442 Golbguru Thu, 18 Jan 2007 21:28:28 +0000 http://www.thesimpledollar.com/2007/01/17/personal-finance-101-charge-cards-and-credit-cards/#comment-3442 I am glad you pointed out this difference. I have dropped the word "charge cards" a couple of times in my friends circle and got a "huh!?" look on their faces :) I am glad you pointed out this difference. I have dropped the word “charge cards” a couple of times in my friends circle and got a “huh!?” look on their faces :)

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