5 min read ⌚ 

Using Credit To Improve Your Financial Life and Bottom Line

When you hear the word “credit”, you immediately think of debt.

So do credit card companies. That is why they are giving you a credit card – hoping that you’ll immediately enter debt as soon as you are given the chance.

Unfortunately, most of the time – they are right.

Read on and find out how you can do the opposite, and protect yourself from heavy debt.

Who Should Read “How You Can Profit From Credit Cards”? and Why?

Curtis E. Arnold does a great job explaining the biggest problems with owning a credit card, and how you can avoid them.

You do not need to stay away from credit cards, but you need to spend wisely.

He gives alternatives and tips such as using the card companies’ money for little interest, earning airline miles, or getting a cashback on your purchases.

Sounds too good to be true?

Well, it’s not. In fact, it is doable.

We recommend “How You Can Profit From Credit Cards” to all credit card users, who feel they need a change in tactics.

About Curtis E. Arnold

Curtis E. Arnold is a consumer advocate that has founded a website that advises consumers on the topic of credit cards.

“How You Can Profit From Credit Cards Summary”

Credit cards are great, and they have tons of benefits.

However, many people do not know about anything else about credit cards except that they can use them to pay for things they cannot afford at the moment.

Hence, all the benefits that credit cards can offer are practically worth nothing if you do not know how to use them.

Luckily for you, we are here to tell you how you can take advantage of all the great perks like partial mortgage payments, gift certificates, free airline miles, buying things with no interest and many more.

Hey, you can even use credit cards to increase your credit rating, and thus be able to get car loans, mortgages and many other deals on major purchases.

You don’t believe us?

But it’s true!

Credit card companies’ environment is highly competitive. So, they need to use different incentives to lure the customers in and make them choose their company over their rivals’.

If you are wise, you will use all of these benefits without stepping too far and without paying high-interest rates.

Let’s start with the basics.

First, what you want to do is to take your time and read all the critical information that the credit card company gives you before you sign up, such as annual percentage rates, annual fees, interest calculation methods et cetera.

Also, take notice of the rebates the company offers you. Some time ago, the discounts were low, but nowadays they are as high as 5%, which matters a lot since usually, the cash rebate cards have higher interest than other cards.

So, do not be fooled increased rebates. Credit card companies give them because they believe that you will not pay your whole balance each month. So, they may offer you a higher rebate if you carry a balance, but it will only bring you a higher interest rate.

Plus, these cards are bad for you since you will feel the temptation to overspend.  

Of course, we are not saying not to use them, but you should do that wisely.

Furthermore, spend some time understand how credit card companies calculate their interest rates.

Sometimes you can use some credit cards with a lower interest rate to eliminate the debt on another one, with a higher interest rate.

The best interest rate you can look for is below 10%. However, you can only get such bargain if you keep a high credit score.

You can also check out credit unions for low rates.

Whenever you want to negotiate a lower rate, do not hesitate to contact the credit card company. They will listen to you, since losing you will cost them money, especially if your credit rating is high.

When you do get the lower rate, keep it that way by paying on time and not going beyond your credit limit.

Also, do not apply for new cards more than once every six to twelve months, since issuing a new card will lower your credit rating as well.

As you can see so far, credit cards are great, but only if you know how to use them properly. If you don’t, they will sink you into debt.

The worst possible way to handle your credit cards is to make only minimum payments.

Think of them as ticking time bombs. If you use them incorrectly, they can kill you.

But if you know how to make them work for you, you can benefit greatly.

Key Lessons from “How You Can Profit From Credit Cards”:

1.      Strategies to Avoid Credit Card Debt
2.      Credit Cards and College Students
3.      “Targeted” Cards

Strategies to Avoid Credit Card Debt

• • “Don’t fall for the hype.”

• • “Manage your finances.”

• • “Get support and save money.”

• • “Avoid extra expenses.”

• • “Is a card right for you?”

• • “Pay before your due date.”

• • “Treat your credit cards like cash

• • “Limit the plastic in your pocket.”

• • “Cash advance = financial suicide?”

• • “Say ‘no’ to extra products and services.”

• “Benefit from planning and saving.”

Credit Cards and College Students

Credit companies just love young people. Or, should we say, inexperienced people.

Students can easily be fooled by the seemingly great conditions credit companies offer them and amass a pile of high-interest rate overnight.

So, teach your kids and the youngsters you know about the dangers of debt and make them savvy spenders.

“Targeted” Cards

There are various targeted credit cards.

For example, you can use a secured card to make a deposit as collateral and increase your credit rating, which you can also rebuild by using different retail cards.

Wealthy individuals can use prestige credit cards, and use benefits such as hotel upgrades and frequent flyer miles.

Of course, these cards come with higher annual fees.

Ultimately, your choice of a credit card depends on how deep your pockets are.

Like this summary? We’d Like to invite you to download our free 12 min app, for more amazing summaries and audiobooks.

“How You Can Profit From Credit Cards” Quotes

Our Critical Review

A very informative book. The only downside is that most of the advice is valuable for US citizens only.

Emir Zecovic

Emir is the Head of Marketing at 12min. In his spare time, he loves to meditate and play soccer.