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How to Make Your Credit Card Your Best Friend

If someone said to you, 'credit cards can save you a ton of cash', what would be your answer

If you're like most people, you'd probably think you were being had. Many of us open that monthly statement with dread...if we open it at all...

But, believe it or not, by making a few adjustments to the way you use your card, you can just as easily have it working for you rather than against you.

Here are 10 ways to do just that:

1. Your credit card company will guarantee you against online fraud and non-delivery of goods. I wish i'd known about this when i first came online as i'd heard so many horror stories about credit card fraud. However, if anything goes wrong or your goods are damaged or fail to arrive in transit, it's your credit card company who will be liable.

2. Guarantee after purchase.

Many cards will guarantee your goods up to 2 months after purchase, but do check the small print. Some will only cover part, and not all of your initial outlay.

3. Price Guarantee.

We've all seen those ads on telly where big companies offer to refund the difference if you find their goods cheaper elsewhere. But did you know that many credit cards also offer this facility. So next time you're kicking yourself because you see something you bought is now in a sale or cheaper elsewhere, your card may be liable to refund the difference.

4. 0% Interest on Balance Transfers for 6 months

I recently heard the slightly crude term 'card whoring' used to describe this practice, but why not. It's perfectly legal. As soon as your 6 month period is up, find another 0% deal and start again.

Also think big, if you have a large cash limit of, say $50,000. Why not transfer this into a high interest savings account and use the bank's money to earn you interest!

5. 0% Interest on Your Purchases

Believe it or not, you can actually extend the above practice to your household purchases as well. For instance, let's say you have a 12,000 dollar limit on your card. Spend on all household purchases just short of your limit before the period is up. Then, pay off the entire balance using the cash you'd put into a savings account.

Result: You've postponed all your domestic spending while earning a nice amount of interest!

6. Sensible Use of Extended Warranties

If you're like most people (myself included), at some stage of your life, you've probably been conned into taking out an extended warranty. They're usually not worth the paper they're written on, as even when your goods do break down, it's generally cheaper to get them repaired yourself.

But did you know that many cards will give you this facility free, often a year beyond the manufacturer's offer!

7. Earn Interest in Credit

Seems a little strange, i know...as we normally associate cards with charging us through the nose for interest. But it's worth noting that many cards will offer you a more competitive interest rate than your average bank.

So how can you use this

Well, let's say you were considering going abroad for a long while...maybe a year. Why not stash all your money into your card and earn interest as you spend abroad! By doing this, you'll be less concerned about those monthly repayments back home.

8. Accident Insurance

Sorry if this sounds a little morbid, but it's worth noting. If you were killed or seriously injured while travelling in transport paid for with your card, your card company will generally be liable to pay you some hefty compensation.

9. Financial Peace of Mind

You never have to cart around a huge wad of notes. Better still if your card number is lost or stolen, it's the card company's responsibility, not yours!

10. Keeping Track of Your Spending

Your monthly statements let you know exactly where your money is going. With many cards, you can even get personal finance software to download your transactions from the Net to your own PC.

So there you have it!

I once read the great American success expert Napoleon Hill write that if a human being stood in front of a mirror, he would see his own best friend and worst enemy.

Credit cards are a bit the same. Unfortunately for many of us, they prove to be our worst friend and an unnecessary drain on our finances.

By sticking to the above, why not make your card an asset rather than a liability

by Colin Mc Caig

Copyright 2004 by Colin McCaig mailto:colin@c...

ABOUT THE AUTHOR: Colin Mc Caig is dedicated to helping others become debt fr~ee and generally live more happy and fulfilling lives. Get his fr~ee 3-part mini-course. Learn the powerful secrets to becoming debt-fr~ee using only the money you have today. Send a blank email to: mailto:colind@d...

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