Credit Cards: One of the Best Financial Tools You Can Use

Expense Credit CardToday I want to share one of the best financial tools with you, that I use everyday. Now most financial experts will never tell you to do this, but I have found it extremely helpful when you understand how to use it.

I call it an Expense Credit Card.

Here are 4 reasons why you should consider using an Expense Credit Card:

1. Interest Charge Grace Period

After the 30-day billing cycle, most cards give you an additional 22 to 25 days grace period to pay off the balance with no interest charges. This allows you to keep your cash working hard during that period of time.

2. Accountability

You can go online and check your expense credit card at anytime. You can even see what expenses are going on your wife’s or husband’s card.

3. Free Perks

Like airline miles, hotel points, cash rebates and more. You could have enough miles for a free trip at the end of the year, just by putting all of your monthly expenses on the card.

4. Free Purchase Insurance

You can get additional insurance… on products purchased with your card, for up to 12 months, free of charge.

Just one thing though, you have to manage this resource properly, or it will just cost you money. Here’s how to safely use and maximize all of the benefits of using an expense credit card…

The first very important thing is… the card you choose must not carry an existing balance. So you can either use one you already have that has a zero balance, or apply for a new one.

Next, this card is to only be used for your monthly living expenses, and not to buy anything frivolous. Whatever you would pay cash for, or write a check for, should now be paid with your expense credit card.

Look for a card with no annual fee that has some type of reward attached to it. The card you choose must have at least a 22-day interest free grace period. And it would be good if your card has enough available credit to be able to fund 2 months of your living expenses.

If possible, this card should be set up for automatic bill payment. Call the issuer of the card and ask them if they are able to automatically zero out the balance on the due date, taking the full amount from your checking account.

Just understand, it’s critical that you be wise when you use this card. Ensuring that you pay off the entire balance each month, no excuses.

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