Credit Cards

So, Which Card For You?

Now, as for that one card. Which one? What type? That’s easy...you want a card with no annual fee. Why should you pay them to carry around their card? You shouldn’t, so don’t. A card with no annual fee allows you to pay only for value which you receive. Do not put any unearned money into anyone’s pocket but your own.

The card should also have a grace period for purchases. The grace period allows you enough time to pay for a purchase without having to pay interest. Which you will do each and every time. You will use your card for very specific transactions, not for every unplanned impulse purchase.

The card should have as low of an interest rate as you can find. Sometimes this is difficult to find, coupled with a no fee card. Our friends(?) at the credit card companies try to make money anyway they can. But it is more important that you find a no fee card than a low interest rate. You ask why?....

Because you are not going to carry a balance. Remember?

Since you are doing that the interest rate really doesn’t matter. So go for the low or no fee card. Now what to do with that card once you find it?
Now, Lock It Away

You lock it away. Your credit card can be used for car rentals and other transactions where the you need to show you are a real person. Other than that, the only time you should use your card is for a transaction to keep it active.

Let’s face it, the credit card company does not extend credit hoping you will pay it off each month. They want to make money from you when you carry a balance and they can charge interest. It’s just you are not going to do it.

It's No Secret, They Want Your Money

Oh, they will entice you with checks to use that draw on your credit line (Don’t even think about using them. The interest clock starts ticking the minute you use it. No grace period.) They stuff their statement envelopes with offers for this and that. Understand they want your hard earned money.

So eager for your money, they may sometimes require you to use your credit card every so often just to keep it active. They hope you won't pay it off. If this is the case, go ahead and do it, thenpay it off. They can require you to use it every once in a while to keep it active, but they can’t require you to pay interest.