Comments on: The Upside of Credit Cards

By: Credit Card Limits to be Cut by 2 Trillion by 2010 - How Does This Impact You?

Credit Card Limits to be Cut by 2 Trillion by 2010 - How Does This Impact You? — Wed, 26 Aug 2009 21:27:04 +0000

[...] The Upside of Credit Cards « gailvazoxlade.com [...]

By: Janice

Janice — Tue, 21 Jul 2009 00:12:35 +0000

If you are going to use a credit card for a low rate balance transfer, be sure the card is paid off in full before you do the transfer because once that low rate transfer is posted, then any payment’s uou make to the account is applied to that transfer amount, leaving any purchase’s, on your account, accumulating interest, at your regular interest rate, until the low rate balance transfer is paid off in full. Do not use your credit card while you have a low rate balance transfer on it!!!!

By: Shannon

Shannon — Sun, 12 Jul 2009 01:57:42 +0000

Joanne: if you pay your c/c balance in full BEFORE your credit card CLOSING DATE, no payment obligation is required. When you get your c/c statement, no payment is required (minimum payment =0 because your paid your balance before the statement closing date) therefore NO PAYMENT ACTIVITY REPORTS TO THE CREDIT BUREAU FOR YOU. Make sure you have a PAYMENT DUE when the statement comes in, then pay the balance in full by the due date, and your payment history will report to your credit file. Cycle of activity on a c/c is usually 30 days, ie all charges minus – payments/credits = payment due by particular date. ie activity from June 12 to closing date of July 11, payment due July 31). If you pay in full before July 11, no payment due therefore no activity reported to bureau. Make payment between July 11 and July 31, reports to bureau, no interest charged.

By: Stacey

Stacey — Tue, 07 Jul 2009 20:19:29 +0000

I am very thankful for my cc.
I use it to cover the costs of my medication and medical supplies, because they are *very* costly to pay up front for. I have benefit coverage, and for some items the gov’t pays me for, so once my claims have been submitted, and the gov’t cheque shows up, it all goes right onto my cc right away. My coverage is only 90%, but I tend to pay back to my cc about 110% just to keep up with the previous balance. (along with monthly paments which I pay more than the min.)

By: Carissa

Carissa — Fri, 03 Jul 2009 15:37:15 +0000

I highly recommend the documentary film Maxed Out by James Scurlock, a Wharton Business School Graduate. The film highlights how cc companies utilize predatory lending practices and their target lending groups: college students (who are unemployed but are attending the ‘right’ schools), and people who have already declared bankruptcy once (in the U.S you can’t file for Chapter 13 again?). A Harvard professor asked cc executives to consider restricting credit access to low-income, high-risk customers in order to reduce the staggering amount of individuals forced to filling for bankruptcy, and her suggestion was met with this criticism: ‘But that (high-risk group) is where the majority of our profits are made’.

Our socio economic state in Canada is not healthy (why are ministers of finance and industry do not enforce our usury laws are beyond me), but in the U.S. and the UK the debt load is pushing people over the ledge.

By: jolie

jolie — Fri, 03 Jul 2009 14:45:40 +0000

I ‘borrowed’ the Credit card jar from someone who posted on here. Might have even been Nikki. It sure helps you to both use your CC successfully AND maintain the jar system.

When I bought my new vehicle last month, I wanted to use my MC to pay the downpayment (I had the money already in my chequing account) but the dealer would not take that. I was so disappointed not to get the points.

By: This and That: Best of the blogs update | Canadian Capitalist

This and That: Best of the blogs update | Canadian Capitalist — Fri, 03 Jul 2009 01:18:19 +0000

[...] almost chocked on my morning coffee when I read the title of Gail’s post: The Upside of Credit Cards. Gail hasn’t gone over to the dark side — she explains that credit cards are simply a [...]

By: Milan

Milan — Wed, 01 Jul 2009 17:11:02 +0000

The other piece of advice I would have is not to fall in love with the rewards or cash-back plans. I have yet to see a plan that offers more than 1-2% back in rewards, and they typically have higher interest rates and/or annual fees.

Rewards plans are insidious in a way, because they encourage you to spend money. If you’re really disciplined when it comes to shopping and money management, they’re fine. But most people are not, and that’s why the credit card companies offer them.

By: Rachel

Rachel — Wed, 01 Jul 2009 16:44:32 +0000

@Nickiford

That’s a great idea to have a credit card jar!!!!

By: Michelle

Michelle — Wed, 01 Jul 2009 15:56:20 +0000

A friend of mine had a credit card with a high limit as it was the card they used for their business. He paid a huge amount in advance giving him a credit and then went and bought a car using the credit card, walked into the bank and paid the balance of the card off in full. The most bonus points I have ever seen anyone get in one time! He had the money saved for the car already – he just wanted the points! That is the way to work the system!

By: jay

jay — Wed, 01 Jul 2009 15:28:02 +0000

@ Kit Kat: just signed up for it last week!

The only thing is, they don’t offer a download of ‘interim’ transactions, making it a bit harder to keep track of until you can get your full statement download at the end of the month. This is a bit inconvenient as I like to download the transactions days after making them so that I know where I am.

By: Milan

Milan — Wed, 01 Jul 2009 13:57:40 +0000

I found that there are really only three keys to using credit cards effectively:

1. Read your credit card agreement thoroughly.
2. Avoid at all costs any situation where you have to pay double-digit interest rates, especially in an age when you can get an unsecured LOC for under 5%.
3. Never have a credit card balance that you can’t either pay off entirely or move to a low-interest LOC at any time.

You can even use credit cards for short-term loans. Most of them offer balance transfers at very low short-term interest rates. Just make sure that you make the monthly minimums and — this is the key — don’t use the card for anything else. Usually, the way it works is that you may have 2% for balance transfers but it’s 20% for everything else, and any payments count toward the low-interest balance transfer first. So if you take out a $5,000 balance transfer, buy $5,000 worth of stuff on the same card then make a $5,000 payment, you will be paying 20% on the entire balance, not the advertised 2%. If you also need a card as a cash substitute, get a separate “convenience” card that you pay off in full every month.

I have also found that some credit card companies will resort to dirty tricks like claiming your cheque was “late” or “lost in the mail”, just as an excuse to level exorbitant interest rates and/or penalties. If that happens to you, just pay off the balance and cancel the card. Use Internet banking to make payments if at all possible.

By: Kit Kat

Kit Kat — Wed, 01 Jul 2009 12:49:51 +0000

MBNA Smart Cash Credit Card. No Annual Fee. Promo for 6 months of 5% cash back on groceries and gas puchases, 1% cash back on all other purchases (no limit). Regular benefits are 3% cash back on gas and groceries and 1% cash back on all other purchases (no limit). I think it’s the best cash back card out there right now. It’s not posted on MBNA’s website yet, but you can call them to ask for it. Code: CGLE

By: GinnyGreene

GinnyGreene — Wed, 01 Jul 2009 11:54:50 +0000

I agree! I use my aeroplan credit card for absolutely everything. We are planning to go to Italy in 2 years, and will likely at least have enough aeroplan miles for 2 tickets. This would not work in the long run, b/c there is a fee of $129.00 yearly on the card, but for a few years using this card we will save on the costs of our trip. And I can track all my spending so much easier than when I use cash.

By: The Upside of Credit Cards « gailvazoxlade.com | Calling Cards Live

Wed, 01 Jul 2009 03:50:40 +0000

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