Not many customers have thought on how their regular credit cards can bring their holders some money. Every time we withdraw cash from ATMs or proceed with any other financial operation – our balance score can raise up or fall down. Not much, but such changes can load our bank accounts with some impressive sums at the end of each year.
However, only a tiny percent of people actually knows what those tiny pieces of plastic are capable of. Let us take a closer look at what we are dealing with and unveil secrets that can help us earn money while spending it.
Check the papers
Every credit card is given away in an envelope that contains a card itself, an agreement with do’s and don’ts and an instruction on how to use it right.
The last one usually gets in a trash bin without being read, because we all think we already know what to do with our cards.
It is a huge mistake. Those instructions usually include a list of banks that take no fees for money withdrawals and amounts of cash that bank is ready to return for this or that manipulation.
Trustworthy financial institutions keep all the help available. Customers of Effectify are provided with basic information on their plans even if they use no online banking client.
Stop withdrawing
Holding cash in a wallet can not only attract pickpockets, but make entire financial situation unstable. Money should work on us, which is impossible when we hold it in the form of cash. Major banks return at least 10% of purchase to their clients if they pay with credit cards.
Do not forget that we can block our cards in case of robbery. Plus we always know our exact balance and can set the limit of operations per day in order not to spend too much. One smart decision has many advantages.
It is wise to consult a bank for detailed card plan. But comparing them all before getting a card is even wiser.
Pay in full monthly
A credit card is like bomb. It explodes if we use it wrong. Taking money whenever we need it means we have to give it away on time. Debts can eat away all the scores we earn so hard every month. Set up a direct debit to repay in full and never cross the line you don’t want to cross.
Financial experts advise on a system of four envelopes:
- rent
- food
- credit card
- other
These are the four divisions for every wages we get. As soon as money arrives – it should be separated and never taken away from one envelope to another. This is how we will always have cash for the most important things in our lives.
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