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CREDIT CARD WORLD, The ALISON D. GILBERT Blog

Mastering The System of Extreme Credit Card Benefits

November 30, 2017 No Comments

Credit cards took on a whole new purpose after our finances took a nose dive in the not-so-great depression of 2008. Using credit cards became a necessity. Over the years, mastering the system has allowed us to develop extreme credit card benefits.

By 2009, we went from being Middle Class to becoming part of The Former Middle Class as well as One Day From Homeless. 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, new ways to make ends meet. We created a financial survival toolkit. One of our most essential money making tools became credit cards,the cash rewards and travel points cards we already had in addition to the numerous new ones we have gotten since then.

Our Financial History Over The Last Decade

Mastering the system of extreme credit card benefits can go beyond achieving necessary income for survival. Mastery can provide extreme credit card benefits. Over almost the last decade, we have worked on fine tuning our use of credit cards to achieve mastery of this invaluable financial survival tool. It has allowed us to rise from survival to live a frugal way of life. It even includes what might be viewed as a bit of frivolity.

Mastery starts out as a science. It develops into an art. This became the situation when the need to visit family in Colorado arose. The art of creating extreme travel rewards credit cards benefits came into play. Before that, our focus had been primarily on cash rewards credit card. Needing to find a way to afford our trip, we had to learn to master 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 details will cover several blog posts because there is so much information to share.

credit cards mastery tips — The List of Tips for Mastering Credit Cards

1. Pay credit card bills in full by the due date and preferably before the report date

The companies that you have credit card and other ‘debt’ with report the amount of that debt to the credit report agencies on a monthly basis. To have them report a $0 debt, pay your balance in full before the reporting date. Your credit card companies are supposed to provide you with that date if you request it. Find out what that date is and keep track of that date as well as 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 below. They indicated credit levels. Excellent credit is the bright green bar.

mastering credit cards — A visual of credit card history as reported monthly by my credit card company.

3. Get credit cards that offer promotional sign up bonuses

Many credit card offers include a promotion of either cash or travel points in addition to the regular cash back % and points that they acru. Be sure to get one with both. In addition, compare offers for the best deal. There are several variables. This includes the promotion, the amount that must be spent to get it, and the regular benefits. 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? This is where mastering skills come into play and why you want to learn mastery.

4. Get credit cards with exceptional cash or travel points rewards

This card also is one of the best cash back credit card. Note the cashback percentages on this card: 3% restaurants, 3% gas, 1% on the rest. (You can see it on the image about the AARP card info above). Other cards with similar cash back bonuses may offer 3% on some items, 2% on some items and 1% on the rest. I suggest using such a card for the items that only get 1%. What is an alternative? This brings up the tool of credit card pairing.

5. What Is Credit Card Pairing?

There are two formulas offered on cash rewards cards. There are 3%/2%/1% cards. There are straight 1.5% cards. Both have their place. The 3/2/1 cards give 3% cash back for either gas, groceries or restaurants. Then they give 2% for the alternative of restaurants, groceries or food. For example, if gas is the priority, you can use a card that offers 3% for gas and 2% for groceries, like the BankAmericard and the Amex Everyday Blue Cash Rewards cards. If you like to eat out, you can use the AARP card that offers 3% for restaurants as shown in the image below.

AARP credit card percentages

Therefore, if you pair cards, you can get 3% or at least 2% for groceries, restaurants and gas. You can avoids using the 1% feature altogether. That is because cards like the Capital One Quicksilver Card pays 1.5% across the board for other expenses. Since pairing requires carrying more than one card at a time, you will needs a tool to remember which card pays what percent of cash back.

6. Remembering What Cards to Pair

I had thought of this tool but did not start using it until I read about it in a blog post by Jim Wang of Wallet Hacks. He actually mentioned writing the cash reward percentages directly on the credit cards in something like waterproof magic markers. It works great.

As I think of them, I will write about more extreme cash rewards benefits. Be on the lookout for future posts on this topic. There is also an (upcoming) Amazon eBook entitled, Mastering the System of Extreme Credit card benefits. As mentioned at the beginning of this blog post, two other Amazon eBooks on this topic are currently available. They are:

The Poor Middle Class Crisis and Using Credit Cards for Survival & Profit.

The third will be available on Amazon shortly:
Mastering the System of Extreme Credit Card Benefits

Conclusion

The responsible and potentially profitable use of credit cards requires one fundamental rule. All credit card statements must be paid in full and on time. There are no shortcuts, no magic tricks or hidden agendas. All of the suggestions, tips and tools mentioned in these posts are totally above board and follow standard credit card use guidelines even when creative techniques or combinations are applied. Study these tools, practice these tips, learn these applications so that you can have the opportunity to experience extreme credit card benefits, too.

Sources and Resources

Wallet Hacks
NerdWallet
CreditCards.com
Next Advisor
Wise Bread
The Frugal CrediTnista
The Penny Hoarder
Credit Karma
Credit Sesame

Helpful Facebook Pages and Groups

Survival Comes First
A Savvy Saving Survivalist
Savvy Saving Survivalism
Credit Card Swag
The Credit Card Maven
The Poor Middle Class Crisis eBook
Using Credit Cards for Survival & Profit
Mastering The System of Extreme Credit Card Benefits

Please note that I have not received any compensation for mentioning or promoting specific credit cards.

CREDIT CARD WORLD, The ALISON D. GILBERT Blog

Using Credit Cards for Survival and Profit

July 21, 2017 No Comments

financial survival tools — My two published eBook on Amazon.com

My second eBook, USING CREDIT CARDS for Survival & Profit is now available on Amazon along with my first, The Poor Middle Class Crisis. The second eBook temporarily is available in the older version entitled, Mastering Credit Cards for Survival & Profit.

Introduction

I am The Credit Card Maven. I have learned ways to use credit cards for survival and profit. This post is designed to share these techniques with my friends and followers.

I started using charge cards many years ago. I never abused them. The bills were always paid on time. But they were not credit cards. They were charge cards for department stores. At one point, I decided to eliminate most of them.

Credit Cards Replace Charge Cards

My FICO score has always been in the excellent range. In spite of that, I had no idea how FICO scores worked. It was just one of those mysteries of life. I continued to carry a limited number of cards as well as having a credit score of over 800. When our financial situation changed in 2008, credit cards took on a totally new meaning for us.

Credit Cards Become Currency

Due to circumstances which I detail in my first eBook, The Poor Middle Class Crisis Introduction, our financial profile changed drastically. Our equity was gone as well as our income. We no longer had savings. Suddenly credit cards became a way to earn money and derive other benefits from them, as well.

The biggest incentive to use credit cards as currency was our need to take a trip to Colorado to visit our families. Because of that, I signed up for a total of four travel rewards cards. One of them was the airline travel rewards card. I signed up during a promotion. If I spent $1,000 in three months using this card, I would get 30,000 bonus points and $100. off the airfare. I have earned enough points for a free trip to Colorado and back, again. Hopefully it won’t take six years to see our families again.

Mastering Credit Card Use

As you can imagine, using so many cards can become very confusing. I am still perfecting my system. But I can tell you what I have learned so far. We are fortunate enough to have excellent credit. So we were easily able to secure all the cards we wanted. If you don’t have great credit, do everything you can to improve it. There is a link to an article from NextAdvisor.com in the Sources and Resources section about paying down if not getting out of debt. Do read it.

Treasure An Excellent FICO Score

For the person with excellent credit, you want to keep it. Great credit is precious. Here are some golden rules on how to train yourself to use your credit cards wisely.
• Sign up for cards that best meet you needs and spending habits. There are websites that show you which to use.
• Always pay bills in full and on time.
• Make a chart of closing and payment due dates for all your cards.
• Keep an accounting of how much you spend each month so that you do not exceed your budget.
• Use no more than 30% of the credit limit you have on each card.
• It is better to charge larger amounts on a few cards than to charge small amounts on many cards.
• For cash rewards cards, write on the card itself the cash back % you get on each category of purchases.
• Do not close old credit card accounts. It is best to have as long a credit history as possible.
• Avoid fee based cards unless the benefits greatly outweigh the out-of-pocket expense.

Credit Card Myths and Tips

Myths about credit cards abound. So here are some tips to dispel them.
• A credit score will not necessarily be lowered by having numerous cards. But don’t sign up for too many too close together. That can appear to the credit card score companies like you are in crisis.
• Almost every credit card company has a ‘Check Your FICO score’ feature. You can use it without negatively impacting your score. This is a ‘soft’ check.
• A ‘hard’ check can negatively impact your score. That could be checking by a loan company, a future employer,etc.

Conclusion

There is so much more that can and will be said about credit cards, their use and mastery in future posts. Credit cards can be like a loaded gun. They can be dangerous, even deadly if you do not know how to use it. On the other hand, they can be a lifesaver when properly trained.

Sources and Resources

0% Interest Card Offerings Now, from NextAdvisor

Getting the Right Card for Your Balance Transfer
Credit Cards Dos and Don’ts

The Ten Best Cash Rewards Cards from CreditKarma.com

How To Pick The Best Credit Card for You from NerdWallet.com

Find The Best Credit Card Offers for You

5 Money Problems You Can Solve With A Good Attitude

There are so many invaluable posts on the WalletHacks.com site, I am linking to their archive

Using Credit Cards from The Alison D. Gilbert Blog