by 247365education

Created on: December 16, 2007   Last Updated: December 31, 2007

Credit cards are the most convenient way of paying for every day purchases and bills. Unfortunately, people tend to over spend. Credit card companies capitalize on this spending weakness by mailing millions of pieces of 'special offers' to their consumers. However, you don't have to succumb to these offers. I have compiled an essential list, that will make your credit card company pay you for making use of their credit card.

1. Know what your limits are. NEVER overspend. Easier said than done. However, having a solid understanding of the money you make and your necessary expenses (that HAVE to happen), will give you an idea when you are sinking into the red.

2. Make all payments on time. This way you never pay any finance charges.

3. Scrutinize every offer from your card. Those low interest checks, usually have strings attached. Most card companies charge a transaction fee, just for letting you use these checks.

4. Almost always, the low interest checks qualify as a cash advance. So you not only pay a transaction fee, but interest from the date they post on your account. YOU DON'T GET A GRACE PERIOD. Before using such checks, make sure you read the fine print.

5. Many credit card companies (like Providian, Emigrant Direct) offer cash back when you use their card for purchases. This cash back accumulates and is paid back to the consumer periodically. If your credit card offers such a thing, take advantage of it. I consider it better than airline miles. You get a decent check in your account.

6.If a credit card offers cash back, consider paying all your monthly utility and other bills through that card. Make sure, that the utility or biller, does not charge you for automating monthly payments. In some cases the biller may offer you a discount, because they are guaranteed a payment on time.

7. Last but not the least, demand every penny that is owed to you.

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