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Life
styles are what make people unique. The way we
wear our hair, the type of clothing and fashion we
prefer, and the selection of decorations within
our homes all makes up an individual’s style. The
type of
credit card
we choose, and how we use it is also part of our
individual "financial style". As people grow from
children to adults, they often are seen imitating
what they see their parents and close circle of
friends doing. Just walk through the halls of any
middle school, and listen to how certain groups
talk and look- it’s almost as if they have their
own mini-cultures! Children often learn how to
handle (or not) their finances by watching their
parents or caretakers’ deal with finances. If the
parents spend money like water, the children will
probably grow to do the same. On the other hand,
if the parents were careful with their finances,
paid every bill on time, discussed money matters
with the children, then chances are- the children
will become adults who have very few credit cards
and do not carry a revolving balance from one
month to the next.
Regardless of your personal credit card style and
habits, it never hurts to be reminded of the most
affordable way to use your credit cards. It is
most financially efficient to pay your credit card
accounts in full at the end of each month, and
there should be little to no balance carried from
one month to the next. Of course, most people
don’t have that sort of credit card style- as
evident by the number of people who have several
thousand dollars racked up on a few different
cards!
One of the best things you
can do with your credit cards if you have cards
with balances on them, is to find the 0% transfer
balance deals and move your debt from the cards
that you are paying interest on to the new card
that allows you to make payments without paying
interest. This is a "financial style" everyone can
appreciate! Most deals give you a specific amount
of time to pay on the transferred balances, and as
long as you make the monthly payments on time, you
will not be charged interest on the balance you
transfer. This is a great way to pay down the old
debt and not be charged additional money in the
process. Just take care to cancel and close out
the original credit card(s) that the debt comes
from, otherwise you are likely to keep spending on
those cards while you are working to pay off the
debt you just transferred off of there! This is a
recipe for financial disaster!
Another popular credit card
style is to cash in on the
cash back
credit card options, and
rewards programs
that actually give you something back for using
their card. There are many of this style of credit
card available, but you need to really understand
the credit card terms because sometimes
rewards cards
have higher
interest rates,
or
annual fees
that cost more than what you earn back when using
the card. Typically, cash back and rewards credit
cards are best for individuals who do their daily
spending on a credit card, and pay off the balance
at the end of each month. That way, you aren’t
carrying a balance and aren’t being charged
interest, and you are earning the maximum rewards
or cash back by using the card often. If your
credit card style is to have a card in your wallet
for emergencies only, then chances are you are not
going to benefit from a cash back or rewards card.
Taking time to understand your personal credit
card style can help you find the best deals when
it’s time to get a credit card, or move your debt
from one card to another. If you are a frequent
flyer, it would be worth the time and effort to
compare different credit cards that feature
rewards in the way of miles that can be redeemed
towards your air travel. If you like to save on
gasoline or at a particular store, you can find a
card for that as well! A little research goes a
long way in finding a credit card that would work
the best for you financially, one that your name
would be in "style" on.
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