Posts Tagged: ‘credit card rewards’

5 Times you should Never Use a Credit Card

August 29, 2016 Posted by kingcade

Using a credit card responsibly is an excellent way to boost your credit score, build your credit history, track spending, even take advantage of cash-back and other reward programs.  However, if you are unable to pay your bill off every month the high interest rates will cost you.

Here are five times you may want to put the credit card away and opt for another method of payment:

Paying for a BIG expense– Moving to a new city, remodeling your home or going on a vacation are all purchases you will want to save up for ahead of time.  Using more than a third of your available credit on a card can have a negative effect on your credit score.

To consolidate credit card debt– If you are trying to consolidate all of your consumer debts into one payment, the best option depends on your credit score, how much debt you have and, most importantly, your ability to pay down the debt.  If you cannot reasonably pay off your consumer debt in five years, most experts advise debt reorganization or bankruptcy. If your credit score is average, you can tap into your home equity or take a loan against your retirement account or life insurance policy. However, the consequences of defaulting on these loans come with severe penalties.

To fund emergencies– In an emergency situation, a credit card should be your last resort. If you do not have an emergency fund, start one today.  Budget to have the money automatically transferred from your checking account into a savings account- even if it is only $50 a month. This can add up over a year.

To pay for your wedding– Do not start your married life in debt.  Taking out a  personal loan to help pay for a portion of the wedding expenses is a smarter option because these come with fixed interest rates, making it easier for the payments to be factored into your monthly budget.  Depending on your credit, these can come with lower interest rates and allow you to pay overtime.

To pay your taxes– Avoid using a credit card to pay your taxes.  It is better to take from savings or utilize the IRS installment plan option to avoid paying a fee on top of your tax bill. Vendors that the IRS authorizes to accept card payments charge a convenience fee of 1.87% to 2.25% of the amount you owe. E-filing software companies charge even higher rates for credit card payments.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.usatoday.com/story/money/personalfinance/2016/08/20/5-times-you-shouldnt-use-credit-card/88945872/

Don’t Let Your Credit Card Rewards Points go to Waste

May 3, 2013 Posted by kingcade

Credit Card Rewards points are a major marketing factor for credit card companies; however, few people are actually cashing in on the points they earn. A recent study conducted by thepointsguy.com showed that nearly 73 percent of credit card holders enrolled in a rewards program or frequent traveler program do not know how many points they have accumulated. Below are some tips on the best ways to accumulate, track and maximize the points you earn.

• Shop Differently: One expert says he never buys anything online without first checking airlines’ shopping malls. You will find that items are the same prices and you can get bonus miles in addition to what you earn on your credit card. After you rack up some points, use them to upgrade your flight from coach to business or first-class.
• Minimize Programs, Maximize Rewards: Mike Sprouse of Sprouse Marketing says the best way to maximize your rewards programs is to keep them to a minimum. This will make it easier to track and accrue points. Sprouse says that most of the companies that offer rewards programs count on you never redeeming them and having points spread out over fewer programs will ensure your redemption opportunities are on your mind.
• No Credit Card? No Problem: Even if you opt out of using credit cards or credit cards that offer rewards programs, you can still cash in on points programs. For example, Southwest’s Rapid Dining Program allows you to earn points by eating somewhere or going to certain clubs. Do your research and find the points programs that work for you.

Click here to read more on tips to use your credit card rewards points.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.