Credit Cards

5 Credit card hacks to score best rewards in 2023

Credit card hacks are legal ways to hack the most efficiency out of your credit cards. Pro credit card ninjas can make 3x-4x in benefits. Noobs use credit cards for payments and for easy credit access. Herein we will show you how to be a credit card ninja by learning the game’s tricks.

These are all 100% legit programs or rewards offered by credit card companies. We are not gaming the system or trying to hack any website. Our aim is to maximize the associated benefits of a credit card. 

Finally, many credit card companies bundle direct cash benefits like cashback or reward points. Some cards may also bundle non-monetary benefits like free insurance, lounge access, etc.

So without further adieu let’s get into some of the hacks:

1. Credit Card hack to use only one specific Credit Card

Foremost, using one card helps members accumulate cashback and maximize rewards. Multi-cards distribute the spending and reduce the benefits. Members can get a better reward ratio by going for a reward or cashback card. These cards can help them get as much as $500 in a year. If they have a good credit score and have a habit of paying bills on time, it’s easy to get such cards.

Always set up automatic payments for your card bills and pay in full. This helps you avoid any late payment penalties. Card companies offer rewards and cashback only if the payments are paid in full and on time. To get the benefits you have to be prudent and pay on time. 

2. Co-branded credit card hacks

These credit cards are some of the best ways to earn great rewards. Look at some of the popular websites or stores you frequent. All the big retailers and eCommerce stores offer co-branded cards with one or the other banks.  Airlines and hotels also offer co-branded credit cards.

These credit cards offer rewards in the form of cashback on shopping from the website or store. They may also access the benefits of early shopping days. Some co-branded cards of eCommerce companies offer free shipping.

Always be very careful when opting for these cards. If you get too many cards, it may trigger an emotional response to more shopping. Be mindful of your shopping habits. Co-branded cards usually do not carry any membership or renewal fees. Some of the popular cards you can go for in this category are: 

  • Amazon Prime Rewards Visa Signature Card which offers 5% cashback on all purchases. This card offers even 10% cash back on some Amazon category buys. Outside Amazon, purchases fetch  1-3% cash back. This is a perfect card if Amazon is your go-to website.
  • Target Red Credit Cards offer 5% cashback on shopping in the store and on the Target website. Members of this credit card also get free 2-day shipping and other hosts of awards. 
  • Costco Anywhere Visa Card from Citi is a good card for Costco members. This card offers 4% cash back on gas and 2% on all purchases from Costco. This card also offers cashback on purchases outside Costco. Costco Anywhere card requires you to have an active Costco membership.
credit card hacks
Amazon Prime Visa Card

Travel Rewards Credit Card hacks

If you travel a lot because of your business or job or personal travel. You should opt for Co-branded travel credit cards from the airlines. These credit cards help you with free flights or enhance benefits. Members get flight miles when they use these cards for their outside spending. These cards usually offer extra cash back on dining, car rentals, hotel stays, etc. Finally, these cards may reimburse the fees for TSA Precheck or Global Entry programs at airports.

Some popular examples of such cards are 

  • Delta Skymile Amex Card
  • Southwest Rapid Rewards Visa Card
  • AAdvantage Credit Cards from Mastercard
  • United Credit Cards from Chase
credit card hacks
Delta Skymiles Amex Card

It makes sense to choose one of the airlines as a preferred one and its co-branded card as the preferred card. Do not go overboard with too many credit cards here.

Card members can also opt for a co-branded credit card from a hotel chain. Select a popular big chain like Marriott or Hilton which would have hotels in many cities as well as internationally. Marriott offers Marriott Bonvoy Credit Cards from Chase and American Express. These cards offer free nights, accelerated points, elevated status, and benefits to the members.

These cards are beneficial for frequent travelers. Everyone loves to travel these days and the trends on Tiktok and Instagram help people select destinations. People can get further advantages by selecting a better travel card.

4. Apply for Multiple Credit Cards

Once you are comfortable with choosing one card and are financially responsible, apply for multiple credit cards. Multiple cards help you split your monthly spending into various categories. Members can use rewards or cashback cards for grocery shopping. Further, they can opt for travel co-branded cards for traveling or dining-related benefits.

Big card gurus go for 10-12 new cards every year. They may even hack the system to get welcome benefits on a credit card. If your spouse has a good credit score, you can opt for a second referral credit card in their name. You will get twice the welcome bonus and referral bonus as well. This is one of the great hacks to multiply the rewards.

One good example of such a card is the Chase Rewards Freedom card. This card offers 50,000 points when you spend at least $4,000 in the first three months of card issuance. Once you have reached the limit, refer your spouse or partner for a new card, and you can repeat the benefits.

Credit card companies keep elaborate data on their customers. So users can’t go on repeat and rinse the above technique several times. But even for one time, this is a good hack for reaping rewards. Do note that applying for certain credit cards may require a hard look at your credit score. This may also affect your credit score briefly.

Also, keep in mind not to get into the debt trap by spending too much on credit cards. Further, your credit history may go for a toss if you are not able to manage your cards.

5. Luxury Cards 

There are high-end luxury cards offered by issuing banks or co-branded by luxury brands. These luxury credit cards offer exquisite rewards and offers. One obvious downside of such cards is that they usually come with hefty joining fees. They may also have annual renewal fees.

There is a delicate balance on these cards as the rewards are mouth-watering. For example, Golf Club Memberships, Free access to platinum lounges, and Premium membership status in hotels and airlines can be yours. But are you okay to shell out hundreds of $$ in annual membership fees? This is a question to ponder. 

Credit score betterment

Credit cards can also help you improve your credit score. If you have a balance available on one of your credit cards, increase the credit limit of the card. This will help the member increase the credit ratio which will improve the credit score. Do remember this activity takes time and it may take months before your credit score moves. 

Finally, the aim of the game is to maximize the rewards and not let the credit debt pile on. Credit card debt has one of the highest interest rates and penalties, so be conscious of using your cards. Don’t overspend to reach a rewarding milestone. The human brain is wired in such a way that we run towards a goal without thinking of consequences. Never fell into the debt trap. In conclusion, this game is about maximizing returns not selling your soul to become the slave of the card company.

Personal Finance

Virtual Credit Cards – A Complete Guide to empower beginners

A virtual credit card is a number generated by a credit card company, that is not tied to a physical credit card. A credit card company or bank issues virtual credit cards. They are available for online transactions, such as making purchases on eCommerce websites. Users can pay bills through these cards on online apps and websites.

As there is no physical card, a virtual credit card is safe. There is no risk of card skimming or duplication. A user can’t do physical swiping of a virtual credit card. This makes it a good option for security-concerned individuals. It helps to protect personal financial information.

Features of a virtual credit card

They do not have a physical card like a normal bank credit card. They have everything like a normal credit card like CVV, valid through date and name. Major companies such as Visa, MasterCard, or American Express issue virtual credit cards.

virtual credit card
Visa Virtual Card

Virtual Credit Cards are good for increasing the security posture of a user. They are useful if you shop online or if you are using any apps which do not appear to be of top-notch security. A lot of services also ask for credit card details to verify a user’s identity through a credit card. In place, of providing their original credit card details a user can opt to use a virtual credit card. Further, this can help to mask real credit card details.

Identity protection in Virtual Credit Cards

A virtual credit card can help protect your identity. They provide an additional layer of security for your personal financial information. Since a virtual credit card is not tied to a physical credit card, it cannot be stolen or used in a physical transaction. It is difficult for a potential thief to use your credit card information to make unauthorized purchases or access your accounts. Virtual credit cards do not offer too many rewards. If you are looking for a rewards credit card, do look for our guide.

Security features in virtual credit cards

Many virtual credit cards offer security features that can help protect a user’s identity. These include the ability to generate a new virtual credit card number for each transaction. This means that even if a thief is able to access your information, they will not be able to use it since the number will no longer be valid. Using a virtual credit card can help reduce the risk of stolen identity. While it’s not a foolproof solution, it can provide an extra layer of protection for your personal financial information.

What are the advantages of using Virtual Credit Cards?

These cards are good for certain use cases wherein a user doesn’t want to divulge their credit information. Some of the use cases of virtual trade cards are as follows:

Fraud protection in virtual credit cards

If you do not trust a particular website or if it looks a bit sketchy it’s good to not use your real credit card. Apply for a  virtual credit card and use it to process any payment transaction on these websites. As your credit card details are not exposed online you can save yourself from any fraudulent use.

Recurring payments

A lot of websites offer recurring monthly payment options. You may end up paying for services whether you use them or not. A $10 service may appear to be a bargain but if you add up too many subscriptions this may be a drag on your budget. Subscription services are easy to set up. But when the user wants to cancel the subscription, the process may be through hoops. A user may have to call up a number and wait to speak to an agent to go through the cancellation request. Virtual Credit cards can be a savior here. If you are not sure that you want to use the service for a long time, it is a good idea to use a virtual credit card. You can block any future transactions or use the service for a month and forget about any repayment.

virtual credit cards
Online Shopping

Identity Theft

Impersonators and bad actors set up websites to collect the credit history of novice users. These bad actors may use the credit card details and other personal details available to impersonate a person on social media. They may also get a complete credit history of the person from the credit bureaus. These bad actors can further misuse credit information to take a loan or mortgage in the name of the victim. To prevent yourself from this agony, we recommend using a virtual credit card as much as possible in your web use.

Data leakage

With the advent of the cloud, all our financial information is now available online on cloud servers. More and more companies put their data in the cloud. This data is only as secure as the company that is securing it. Hackers target less secure websites, and apps. They gain access to user details, stored credit cards, and other personal data. They sell this financial information over the dark web to other hackers or bad actors. For the safety of your own data, it is advisable to opt for virtual credit cards for less secure websites. Even popular websites have fallen to data leakage in the past from hackers.

Are Virtual Credit Cards Safe?

In conclusion, any financial instrument is only as safe as the safety habit put in place by a user of the service or product. Virtual Credit cards provide another layer of safety that the product offers limited downside.

Of course, it’s important to keep in mind that no method of payment is completely foolproof. It’s always a good idea to take steps to protect your personal financial information. Always use strong, unique passwords for your online accounts. Avoid sharing your credit card information. Finally, make it a habit to check your credit card statements for unauthorized charges.

What is the downside of using Virtual Credit Cards?

There are a few potential disadvantages to using a virtual credit card. One potential disadvantage is that not all merchants accept virtual credit cards. A user may not be able to use her virtual credit card to make purchases at certain stores or websites.

Some virtual credit cards may have fees associated with their use. For example, this could be a monthly or per-transaction fee. Virtual credit cards do not provide fraud protection as physical credit cards. In case of abuse, a user has to block their cards themselves.

While they do offer an added layer of security as compared to physical cards. There is still a risk that a thief could gain access to your virtual credit card number. Bad actors can use it to make unauthorized purchases.

While virtual credit cards are a useful tool, they are not without potential drawbacks. It’s always important to weigh the pros and cons before deciding if a virtual credit card is right for you. In the end, apply for a virtual credit card unless you have good use of a virtual credit card.

Where can I get a Virtual Credit Card?

Usually, banks, Credit Card issuers, and FinTechs offer Virtual Credit cards. To apply for a virtual credit card reach out to an issuer. Though, each company will have its own process for applying for the card. But in general, you can expect to fill out an online application. In the online world, if a Bank is asking to come to a branch for a virtual credit card, it should be a hard pass.

After submitting the application, the company will review it. They will determine if you are eligible for a virtual credit card. If they approved a user’s application they will generate a virtual credit card number. They will also provide the user with instructions on how to use it.

Customers can access their virtual credit cards through the company’s mobile app. Some virtual credit cards may have fees associated with their use. Finally, always read the fine print before applying for all financial products. So that tomorrow you are not surprised by the charges.

Credit Cards

8 of the best hotel credit cards in 2023 for best rewards

Co-branded hotel credit cards are jointly issued by credit card issuers with a hotel or hotel chain. These co-branded hotel credit cards earn extra rewards in participating hotel chains. These cards are like any other credit card and can be used for everyday spending and purchases.

Co-branded hotel credit cards offer exclusive perks and benefits. For example, bonus points for the hotel stay, room upgrades, and free nights at hotels within the respective hotel chain. These credit cards may also offer travel rewards. These may include benefits such as travel insurance, car rental discounts, and exclusive access to hotel events and promotions.

We help you to compare different hotel co-branded credit cards to choose the best one. Ultimately, choosing the one that best fits your needs and travel habits is a good way to earn rewards.

Advantages of co-branded hotel credit cards

Hotel co-branded credit cards come with lots of freebies and rewards for card members. These credit cards offer great rewards to card members. For example, these rewards include bonus points, free nights, cash back, amenities at the hotel, discounted offers at restaurants, etc.

Free Nights

Firstly, these credit cards are issued with a particular chain of hotels. Popular hotel chains include Marriott, Hyatt, Hilton, Wyndham, and others. These hotel chains offer free reward nights either on the issuance of a new card or completing some milestones. These cards earn bonus points which are redeemable against free nights. These offers are not available in other such rewards credit cards.

Upgrades and special offers with hotel credit cards

Apart from free nights, hotel credit cards also offer other rewards. These may include room upgrades to better categories. Free breakfast buffets as part of the hotel packages. Discounted access to recreational facilities in properties like spas, gymnasiums, restaurants, etc.

Here is a curated list of some of the best credit cards available in the USA. These are co-issued by hotels and credit card issuers. 

#1 Wyndham Rewards Earner Plus Card

hotel credit cards
Wyndham Visa Card

Fees: This credit card charges a $75 annual fee.

APR: This credit card offers 0% introductory APR for 15 months on balance transfers. The transfers should be made within 45 days of account opening. After, the Introductory APR, 19.49 – 28.74% of a variable APR is applicable.

Rewards: Card members earn 45,000 bonus points (enough for up to 6 free nights), after spending $1,000 on purchases in the first 90 days

Our Rating: 4 / 5

Pros and Cons of this card: Card members earn Wyndham Platinum status with privileges. For instance, late checkouts, early check-in, and car upgrades. They can earn 6 points per $1 spent on eligible purchases made at Hotels by Wyndham and also on gas purchases. Card members earn 4 points per $1 spent on eligible dining and grocery store purchases. Finally, they earn 1 point per $1 spent on all other purchases.

Afterward, card members receive 7,500 bonus points on each of the anniversary years. These points can be redeemed for up to one free night at participating properties.

#2 Hotels.com Rewards Visa Credit Card

hotel credit cards
Hotels.com Rewards card

Fees: This card has $0 Annual fees and no foreign transaction fees.

APR: 19.24 – 27.24% variable APR 

Rewards: Card members earn 2 rewards nights (worth $250) on spending $1,000 in the first 3 months of the new card opening.

Our Rating: 3 / 5

Pros and Cons of this card: Firstly, the rewards are in the form of stamps. Card members earn 1 stamp on spending $500. They also earn 1 stamp on booking one night on Hotels.com. They can redeem 10 stamps for a free night. Subsequently, they earn 1 night of rewards on spending $5,000 on this card. Card members can choose from 500,000 properties worldwide available on hotels.com.

Hotels.com card offers silver membership benefits at selected properties that offer free amenities. For example, free wi-fi, complimentary breakfast, and late checkouts. Finally, this card also covers trip cancellation reimbursement for a non-refundable trip 

#3 Marriott Bonvoy Brilliant American Express Card

hotel credit cards
Marriott Bonvoy Amex Card

Fees: This card has an annual fee of $650.

APR: 19.99% to 28.99% variable APR.

Rewards: Card members earn 150,000 Marriott Bonvoy Bonus Points after using the new card. Card members have to make $5,000 in purchases within the first 3 months of Card Membership.

Our Rating: 5 / 5

Pros and Cons of this card: Firstly, this Marriott Bonvoy Brilliant American Express credit card is an expensive card with $650 annual fees. But, this card offers some of the best amenities and rewards. This is a perfect co-branded hotel card with a ton of rewards.

This card offers a complimentary Elite Platinum Marriott Bonvoy status. Next, the card members also get complimentary access to American Express Experiences. This provides card members access to exclusive events in sports, music, and theatres.

Furthermore, the members earn 6x points for all the spending in participating Marriott Bonvoy hotel. Card members also earn 3x points on restaurants and airline tickets. They earn 2x points on every other purchase using this credit card. They also receive $25 in statement credits for purchases against restaurant spending.

Card members earn 1 Free night on their card anniversary in Marriott Bonvoy properties. They also get $100 in property credit on making bookings in Marriott hotels for 2 or more nights. They can earn $100 in statement credit for Global Entry or TSA PreCheck. This credit card also provides access to Priority Pass membership with access to 1200 lounges at airports worldwide.

Evidently, this card offers one of the best deals in comparison to the annual membership fees that it levies.

#4 Hilton Honors American Express Aspire Card

hotel credit cards
Hilton Honors Amex Card

Fees: This credit card charges $450 in annual fees.

APR: 19.99% to 28.99% variable APR.

Rewards: Card members also earn 150,000 Hilton Honors Bonus Points. They have to spend $4,000 in purchases on this credit card within the first 3 months of the credit card membership.

Our Rating: 5 / 5

Pros and Cons of this card: Firstly, this credit card offers complimentary Diamond status in Hilton Honors membership program. Next, the card members earn one free night on the anniversary of the card. They can also earn an additional free night on spending $60,000 in a year.

Card members also get $250 in statement credits against purchases made in the Hilton Resorts and hotels. They also get $250 statement credits against incidental charges on one selected airline in a calendar year. This is a good reward to earn back any charges like excess baggage, gate charges, or others charged on this card.

Card members earn 14x points on eligible purchases in the Hilton hotels and resorts portfolio. They also earn 7x points on eligible travels booked through AmexTravel and on dining in US restaurants. For the rest of the eligible purchases, they earn 3x points.

Finally, this card also offers Priority Pass Select membership for Primary cardholders and one accompanying guest. Hilton Honors American Express Aspire Card offers some of the best rewards in its category.

#5 IHG Rewards Premier Credit Card

hotel credit card
IHG Rewards Premier Card

Fees: This credit card has a $99 annual fee.

APR: 20.24 – 27.24% variable APR

Rewards: Card members earn 140,000 Bonus Points on spending $3,000 in the first 3 months from account opening.

Our Rating: 4 / 5

Pros and Cons of this card: This card elevates the current status of the cardholder to IHG Platinum Elite status. Card members earn 10x points while booking stays in IHG properties worldwide. They also earn 5x points on travel, hotels, gas stations, and restaurants. For, the rest of the purchases card members earn 3X points for every dollar spent.

Further, on redeeming 3 consecutive nights at a property the card members receive the 4th night free at the same property. They can also redeem statement credit of up to $100 spent on Global Entry, TSA PreCheck, or Nexus. Card members also get $50 in United Travel cash each calendar year.

Card members also receive one anniversary night free every year. Further, there is trip cancellation insurance offered on this card.

#6 Best Western Rewards Mastercard from First National Bank of Omaha

best western rewards card
Best Western Rewards Card

Fees: This card charges an $89 annual fee.

APR: 20.99 – 27.99% variable APR.

Rewards: Card members can earn up to 140,000 bonus points (worth 8 free nights). They get 100,000 points on spending $3,000 in the first 3 months. They get 40,000 points on spending $5,000 in the first anniversary year.

Our Rating: 3 / 5

Pros and Cons of this card: Card members earn 20 points on spending $1 in Best Western Hotels. Though they earn 10 points as a Best Western member and 10 points on using this credit card. So, a valid membership of Best Western hotels is essential to get maximum rewards.

Card members also earn 2 points on $1 spent on other purchases. Further, they are entitled to a 10% discount from Best Western Hotels. Card members get an elevated Platinum status in the Best Western Rewards program. They also get early check-in and late check-outs.

#7 World of Hyatt 

World of Hyatt Visa Card

Fees: Card members get this card for a $95 annual fee.

APR: 20.24 – 27.24% variable APR.

Rewards: 30,000 Bonus Points after you spend $3,000 on purchases in your first 3 months from account opening.

Our Rating: 3 / 5

Pros and Cons of this card: Card members also earn 2 bonus points on every $1 spent in the first 6 months up to a total spend of $15,000. They earn 4 Bonus Points per $1 spent at Hyatt hotels. They also earn 5 Points from Hyatt per eligible $1 spent for being a World of Hyatt member.

Card members earn 2 bonus points on $1 at restaurants, fitness clubs, gym memberships, taxis, local riding, and airline tickets. They also get one free night every year on the card anniversary. Additional free night every year on spending $15,000 in a calendar year.

#8 Disney Premier Visa Card

hotel credit cards
Disney Premier Visa Credit Card

Fees: $49 annual fee

APR: 17.74%‐26.74% variable APR

Rewards: Card members earn a $300 statement credit after they spend $1,000 on purchases in the first 3 months from account opening.

Our Rating: 3 / 5

Pros and Cons of this card: Card members can earn 5% in Disney Rewards Dollars on card purchases made directly at DisneyPlus.com, Hulu.com, or ESPNPlus.com. This card offers a 0% promotional APR for 6 months on select Disney vacation packages.

Card members get 2% rewards on gas stations, grocery, restaurants, and most other Disney locations. They can redeem Rewards Dollars toward Disney vacations. 10% discounts on select merchandise and at restaurants at Disneyland and Disney world resorts.

Disadvantages of hotel credit cards

Though the hotel’s co-branded credit cards have some of the best rewards available. These rewards are limited to hotel properties of these hotel chains. Usually, large hotel chains from five-star or four-star offer these credit cards. Budget, business, or boutique hotels rarely have such offerings of credit cards.

Some of the top rewards on offer with these cards, make sense for frequent travelers only. Hotel co-branded credit cards usually carry an annual fee. In conclusion, if you prefer a particular hotel chain for your travel, it makes sense to apply for a co-branded credit card offered by the hotel.

Personal Finance

7 Tips to manage credit card debt in 2023

Credit card debts are increasing year by year and by the third quarter of 2022, Americans hold $925 billion in credit card debt. More and more people are not able to manage credit card debt. Credit card balances saw a $38 billion increase since the second quarter. As per the latest Quarterly household debt and credit report by the Federal Reserve Bank of New York, there is an increase in credit cards outstanding. This jump of 15% year over year is the highest in the last 20 years.

Numerous studies show that shoppers with credit cards are willing to spend more on items. They check out with bigger baskets and focus on and remember more product benefits rather than costs. But what about when paying electronically or with cash? Credit card debts are some of the most expensive forms of debt. Those advantages of credit cards also help build large debts on the credit cards. 

A lot of people in the USA have a credit card debt problem. On average, a consumer has a debt of $5000 on their existing credit cards. We are making Big Banks happy and prosperous by paying hard-earned money in interest charges and penalty fees. Credit Card interest rates are also on the rise and currently at the end of 2022 average interest rates have reached 20.1% as opposed to 18.32% at the start of 2022.

1. Manage credit card debt – Make a budget

The first step in managing and paying off credit card debt is to create a budget. This budget should outline your income, expenses, and savings. This will help you identify how much money you have available to put toward your credit card debt each month. 

Always make a realistic budget that you can stick to. Your monthly budget should have some spare which should go for paying off the credit card debt. You do not need fancy tools or subscriptions to make budgets. It’s easy to do it in a journal or diary if you are a bit old school like me. If you have Microsoft Excel, it comes pre-loaded with lots of templates. A first-level easy-to-use template can be accessed from the home screen itself.

2. Prioritize your debts

Once you have a budget, your credit card debts should be the first priority. Start by paying off the credit card with the highest interest rate first, as this will save you the most money in the long run. Credit Cards debts also affect your credit score badly as most of these card debts are unsecured. 

Debt is in our mind

Different people work on different stimuli if you have multiple credit card debts. You can look to cut the debt of a credit card first, and then move to the next credit card. This is termed the snowball effect. Reaching the first milestone and moving to the next gives a feeling of fulfillment to the user.

3. Consolidate your debts

If you have more than one credit card debt with a high-interest rate. It is a good idea to consider consolidating your debts into one credit card with a lower interest rate. This can make your monthly payments more manageable and save you money on interest charges. 

Another good idea is to refinance this credit card loan to take a Personal or Business Loan from a lender with a manageable interest rate and pay the credit card debts off it. High-Interest credit card rates should always be paid first. 

Customers can also look to Balance transfer their credit card debts to a low-interest loan or credit card. Consolidation of debts in a single place can help a user manage the debt effectively. 

4. Set up automatic payments 

This is a no-brainer if the payments are automatically debited from your account. To avoid late payments and incurring late fees, set up automatic payments for your credit card debts. This will ensure that your payments are made on time each month and help you avoid missed payments.

5. Avoid using your credit cards

 While you are working to pay off your credit card debt, avoid using your credit cards for new purchases. This will prevent you from adding to your existing debt and make it easier to pay off your balances. Look to cut down on your credit cards as the next best measure. That shiny credit card in your wallet which gives you access to international lounges may add to your debt woes. 

6. Increase your Income:

This is most obvious but if you are in a lot of credit card debt, raising your income level will not hurt. Work towards a plan to increase your income so that you can get rid of debt. Further, this additional income can be in the form of extra shifts at your existing job or selling things you do not need on eBay or Craigslist or even in a garage sale. Make use of any talent you may have. Give a few guitar classes or yoga lessons to others. Social Media and influencer culture have made common folks celebrities. Make use of it to earn some dollars. In the end, use that extra money to pay off your debt.

7. Take outside help from a 3rd party

It is good sometime to take guidance and help from experts. There are financial experts and planners who can help you plan your overall budget and finances. These experts for a small fee can help organize your debts, help sort out what should be your priority, and provide guidance on an easy payment mechanism. 

These tips may help you to ease some of your credit card pain.

Finally, there is no silver bullet to vaporize the debt altogether. It depends on how financially prudent a consumer is to get the debt under control. To conclude, one strategy might not be enough for you and may look to adopt multiple strategies to reduce your debt. 

Personal Finance

5 Best Practices to use Credit Cards in 2023

Credit cards are definitely one of the wonders of the Financial world. They let you use free money for a period of 30 days and then a further 15-28 days to pay the bill. So a member gets at most 45 days to pay up their bills using their credit cards. In this article, we will take you through some of the best practices to use credit cards.

There are advantages of a credit card but there is a big downside to this free credit period. Credit card companies charge huge fees and interest on late payments and interest. Credit Card companies charge some of the most prohibitive interest rates. For example, some credit cards charge in the range of 2.5% to 4.5% per month of the outstanding amount.

1. Always pay your bill in full and on time

Ensure to pay your credit card bills on time and always in full. This is the surest way to ensure a good credit score and also keep your finances healthy. Paying the least amount due and rolling over credit looks good. The punishing interests and penalties will eat into your hard-earned savings. Think of interest charges on credit cards as negative balances. It eats into your savings and earnings.

If a card member misses payments, they could end up paying penalties of hundreds of dollars. Also, the interest charged can very well run up to thousands of dollars. These are unnecessary payments you can avoid by paying bills on time. Another negative impact of missing timely bill payments is the hit on the credit score of a user. This will further affect the future loans or mortgage requirements of the member.

As a good practice automate the card payment. This will remove the hassle and you will pay in full to the Credit Card Company near the payment due date. This will prevent any accidental oversight. Also, it will prevent any delay in payments and avoid late penalty charges. Credit cards have different billing and payment cycles. It is difficult to remember payment dates if you have many cards.

2. Keep tracking your Monthly Statements

Always keep track of your monthly statements to detect any anomaly in the statement. There might be any fraud activity or extra fees which may go under. Also, be careful of interest rates or charges that the credit card company might be charging you. Setting up notifications on your phone or a credit card app on your phone will help you keep a tab on the spending on the card.

Billing errors though very rare can creep into the card statement. A few minutes spent going through the card statements may help you later with heartburn.

Credit Card companies also offer fraud prevention. The minute a user reports fraud, they can relax as any transaction is the company’s responsibility. So as soon as you reach out to the company, they can help you take care of any fraudulent activity on your card.

3. Stay well below the credit limits of the credit cards

To improve your credit score do not use your credit limit. Try to keep your monthly spending below 30% of your total credit card limits. “Credit Utilization” is the term for this credit card. This reports how much of the available credit is a customer actually using. Lower credit utilization is more financially responsible for a user.

Running through an example, if you have 2 credit cards with a total $20,000 limit on both cards. 30% of the same works out to be $6,000. So keeping your total spend of a month below $6,000 will not affect your credit score. It is always a good idea to be a responsible spender and not go overboard with the limit. An extra payment will help improve the score and bring you back within the limit.

4. Best practices to use credit cards and know your Credit Card

Few card members are aware of the features or the fees on their cards. Users usually buy a credit card from a card sales guy or a recommendation from a friend or family member. Knowing your own credit card can help you detail out the fees, penalties, or charges. Usually, these details are available on the credit card website or their app.

Look out for some of the below charges or fees applicable to your card as the same may impact you as a user.

i. Annual Fees

Firstly, always try and opt for credit cards with no annual fees. The cards which annual levy fees usually offer much more rewards and value. Always, take a stalk if the extra fee is worth the extra benefit the card is offering. Unless you are getting 3 times the rewards from a credit card’s annual fees, there is no point in paying the same. A $1000 annual membership card may offer a golf membership but if you aren’t a golf player the fees are not worth it.

Chase Freedom Unlimited Credit Card

ii. Balance Transfer Fee

Secondly, look for the balance transfer fees. This fee refers to transferring your credit card debt to another provider. Companies charge a fee of 3-5% of the outstanding amount as a one-time fee for a balance transfer. Do check what your credit card is offering you for this service.

iii. Foreign Transaction Fees

Credit Cards may charge exorbitant fees on foreign transactions. Always check the currency display on any eCommerce site so that you are paying in USD. If you are a frequent traveler, choosing a specific card that offers better Foreign Transaction charges makes sense. In spite of additional cost, a credit card with zero foreign transaction fees may come out beneficial for frequent travelers.

iv. Late Payment Charges

Credit cards also levy fees for late payment charges. These Late payment fees can start from $30 and can be high as $250. If we look at some of the popular credit cards like Chase Ultimate Rewards Card, which charges a $40 late payment fee. This is an unnecessary penalty for skipping a payment. The best way is to automate the payment and this takes care of any missed payments.

v. Interest Charges

Lastly, always pay attention to the interest rate charges applicable to your credit cards. Credit cards are notorious for their high-interest charges. Banks collect billions of dollars in profit each year by charging this interest. The Interest is known as the Annual Percentage Rate (APR). If we see the details of the American Express Gold card. The card charges an APR of 20.24% to 27.24% based on the creditworthiness of the card members.

best practices to use credit cards
American Express Gold Credit Card

5. Manage the emotional triggers which make you spend

We all falter sometimes with our credit card payments. Obviously, late payments and interest charges are the facts of life. Be responsible, and keep yourself away from triggers that turn into a spending spree. Fast fashion and easy access have made shoppers fall into the spending spree.

Finally, control your surrounding environment. If you are somebody who gets scared of spending cash. Do the same. Don’t use cards, use cash. You may lose on some rewards but would be happy and financially healthy. Identify your own trigger and own your mistakes.

Some credit card companies increase your credit limit if you pay your bill on time or you are holding the card for some time. These credit limits are usually set up with the consent of the card members. Having too broad or large limits may do more harm to you than helping you in your time of need. You may ultimately, fall into an overdrive of spending or into a debt trap.

The best practices to use credit cards are built over time

In conclusion, remember it takes time to build new habits. But today is a good day to start. Keeping a close watch on your credit statement, paying bills on time, and an emotional check on spending triggers can help you use your credit cards. Enjoy the advantages the 21st-century money is providing without the downside.