Mastering credit cards took on a whole new meaning when our finances took a turn for the worst in the not-so-great depression of 2008. We went from being middle class to becoming part of the former middle class. The Introduction to my first eBook, The Poor Middle Class Crisis, details what happened to us. As a result we had to find new ways to survive. We created a financial survival toolkit. One of the most essential money making tools became credit cards,the ones we had and new ones we have gotten since then.
Our Financial History Over The Last Decade
Over almost the last decade, we have had to develop credit cards mastery as our invaluable this financial survival tool. It turned into an active endeavour, even an art this year due to the need to visit family in Colorado. That’s when travel rewards credit cards really came into the picture. Before that, our focus had been primarily cash rewards credit card. Due to the need to find a way to afford our trip, we had to learn to master the travel rewards cards.
Earning Credit Card Benefits
The first step in mastering credit cards is learning about them. So that is exactly what I did. I did research locating the best sites and blogs about mastering credit cards. Then I practiced and learned how to do it myself. As part of the process, I created a ‘cheat sheet’ that I could easily refer to. It is called, ‘Tips for Mastering Credit Cards’.
Tips for Mastering Credit Cards
Even though I continue to gather more helpful tips, I think that the ones on this list give me and anyone who reads them a pretty good start. What I would like to do for the rest of this post is go over them and explain any that are not completely transparent already. The detials will cover several blog posts because there is so much information to share.
1. Pay credit card bills in full before the report date and by the due date
The companies that you have credit card and other ‘debt’ with report the amount of that debt. They usually report the current amount of debt to the credit report agencies on a monthly basis. To have them report $0 debt, pay in full before the reporting date. Your credit card companies are supposed to provide you with that date if you request it. Make sure you do and keep track of that date, the due date and the closing date.
2. Learn to build and maintain excellent credit
There are many resources for learning to build your credit. They are listed at the end of this post. Notice the colored sections in the image above. They indicated credit levels. Excellent credit is the bright green bar.
3. Get new credit cards with cash or points bonuses
Many credit card offers include a promotion of either cash or travel points. This is in addition to the regular cash back % and points that they acru. Be sure to compare offers. There are several variables. This includes the promotion, the amount that must be spent to get it, and the regular benefit. The best ‘investment’ I have ever made was a $200 bonus on a $500 required expense. That’s a 40% return. Where else can one get that kind of a deal. It also happens to be a very decent cash back credit card. What a way to use a credit card. This is why we want to learn to master them.
Note the cashback % on this card: 3% restaurants, 3% gas, 1% the rest. Later in this post I will discuss credit card pairing. Therefore if you buy groceries more than you eat out, you can use another card for groceries at 3% like the BoA Cash Rewards card. If you pair these two, you get 3% for both groceries and gas. Then you can really benefit by using the Quicksilver card as one examples which pays 1.5% across the board for other expenses. This will be elaborated on later in this post.
Please note that this post is in several sections and will continue with Mastering Credit Card Tips: Part Two.