How To Win The Credit Card Game! Stop Paying Interest And Get Paid!
- Mr. Organic
- Jul 8, 2019
- 5 min read
Updated: Jul 10, 2019
Are credit cards beating you, or are you winning the battle?
It's A Game, Play To Win!
I’m serious when I say credit is a game. You must start to realize that credit cards are by no means a necessity for anyone!
Although, if you choose to partake in the credit game, then understand how to win it!
Credit cards can be helpful in times of need or to leverage opportunities, but often are not the best option in regards to emergency funds or loans.
Too often I hear that a main financial goal is to pay off credit card debt. If you have large amounts of debt it will stop you from creating wealth because of insufficient cash flow and negative net worth if you owe more then you really own.
If you do have credit card debt with high interest, then I suggest focusing on the "STOP PAYING CREDIT CARD INTEREST NOW!" section.
Let me ask you this, would you jump into a marathon with no prior training?
Or join a gambling tournament without knowing how to play the game?
Some of you might say, sure! But in reality it’s gonna hurt, you’re probably going to make some mistakes (maybe even major ones), and you may not even end up finishing the race or you may even lose all your money!
This is an analogy for getting sucked into the credit card game without knowing the rules or how to play.
Understand The Financial Institution
First off, you must understand whom you are working with. By understanding the financial institutions goals, drives, and wants you are much more informed.
There are four rules of any financial institution, and they go like this:
Get your money
Keep Your Money As Long as Possible
Give back as little as possible when the time comes
Get you to add money on a systematic basis
This is true for banks, investment firms, credit card companies, mortgage companies and basically any other financial institution trying to make a profit.
Benefit and Cost of a Credit Card Company
A credit card company's main goal is to get you to build debt.
The more you spend and put onto the card, the more money the credit card company makes via the interest.
Some cards also have annual fees on top of interest charges ranging from 15%-36%!
So why use a credit card? Honestly, don’t if you have shit cash flow. What I mean is, if you couldn’t afford to buy it in cash, then you shouldn’t be buying it.
I totally understand emergencies! And for that you should have a 3-6 month emergency fund. If you are having trouble creating that, see here for an easy step-by-step process to get your emergency fund built.
Utilize a credit card ONLY if you know how to use it. Really that’s kind of the rule of life for anything you do. You first learn to crawl, then walk, then run.
The next section will review important tips on utilizing a credit card for its full advantages and paying as little to no interest to the company.
STOP PAYING CREDIT CARD INTEREST NOW!
How do you get out of credit card debt faster? Here is How:
Have good enough credit - keep in mind qualification comes down to your credit score.
Rollover credit card balances to 0%, some banks do not allow balance transfers within the same bank. See below for 2 of the best current options.
Divide credit card balance by amount of months that interest rate is 0%.
For example, if your credit card balance is currently $3,000. You can Rollover the balance to the Chase Freedom Unlimited which offers 15 months at 0%.
This would result in a $200/month payment ($3,000/15,months), to be paid off before interest starts to accrue. Ideally you should have a strategy to pay off your card in a known time horizon and stop paying interest.
Take advantage of these offers, and often times the %3 balance transfer fee is well worth the saved interest!
How to Win The Game - Get Paid!
You don't have credit card debt, and don't want to mess with it. Great! You are not missing a lot...
Well except for what you are missing! Here is an example of how credit cards can pay you:
0% for 15 months, then 17.24%–25.99% variable APR
3% balance transfer fee
3.0% cash back on all purchases for first year (up to $20,000), then unlimited 1.5% on all purchases there after! Go here for application.
No Annual Fee
Can use points with Amazon.
Includes zero liability protection, fraud protection and fraud alerts.
That's a total of $650 cash back possible in the first year!
0% Intro APR for 15 months, then a variable APR of 17.24-25.99%. Go here for application.
3% balance transfer fee
Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Be sure to activate each quarter!
Enjoy new 5% categories each quarter! Unlimited 1% cash back on all other purchases!
No annual fee
Cash Back rewards do not expire.
Trip Cancellation / Trip Interruption Insurance
Free credit score with Credit Journey℠
The Cards I Use And Why:
Chase Freedom Unlimited - For all bills (1.5%) cash back - High Interest (Introductory 0% is over) Always paid off.
Chase Freedom - Currently 0% credit card for any balances - Has 5% quarterly rotating rewards. This quarter it is gas and select streaming services. I’m using this card for gas this quarter then changing back to the freedom unlimited after the 5% bonus is done.
Amazon card for amazon! - 5% off all purchases - high interest! Always paid off.
Lowes for home improvement - 5% off all purchases - highest interest! Always paid off. $100 off first in store purchase.
I would have an airline credit card if I flew more often, but at this point I’m not flying enough and often fly with different airlines.
Keep Track To Pay Cards On Time!
Utilize a program to pull all of your data together. Applications like Mint are great for consolidating your information in one area.
It will also keep balances in real time so you don’t forget to check any specific account. You must have an online account to link the account to Mint.
Don't play the game unless you understand the risks. At the same time, understand how to maximize all the possible benefits of the credit card game!
Thank you for your time!
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