Credit Card Secrets: 3 Great Tips for Using Your Debt


Like other financial investment vehicles, credit cards have a lot of “secrets” that the average consumer never learns to take advantage of, and companies like it that way. By the way; if more people knew about them and used them; lending through credit as an institution would eventually cease to exist as margins shrank.

Here are some credit card secrets to better position you to take advantage of the many ins and outs of these ultra-competitive lenders. With just three tips, you’ll learn how to use credit cards in ways you may never have thought of.

Tip 1 – Get cards with a choice of beneficial rewards

This may seem obvious. But the truth is that too many people get credit cards that have rewards that don’t really apply to their lifestyle. After all, if you hate the cold, what good is getting a trip to Moscow as your end-of-year reward?

With this in mind, when you get a card that gives you frequent flyer miles; Make sure you don’t pay cash for things like groceries, department store purchases, or even gas—put it on your card!

Of course, to really take advantage of this offer, you should avoid carrying a balance: go home and pay for the purchase right away. So the credit card companies can’t take advantage of the interest, but of course they have to pay the promised rewards and points.

The truth is; This only works so well for them because most people carry their credit balances from one month to the next. Many people each year take advantage of this and get free trips to Europe or Canada etc at the end of the season for their whole family. You can really rack up frequent flyer miles with this disciplined approach.

All card companies love it when you carry a balance; after all, that’s how they make money. If everyone followed this advice, companies would have to close because they would go bankrupt and would not be able to finance their operations.

Tip 2: Put all business-related purchases on credit

The next credit card secret involves very high-level banker-type knowledge; as such, we will use an example of how to take advantage of it. Let’s say you want to buy repairs on a house; it will be hard to get a loan in the post-2008 housing market crash.

There’s no way lenders want to risk shelling out money after the subprime collapse, which happened, after all, because they sold loans to people who couldn’t pay them back.

Then what do you do? Put the repairs on a credit card. Even if this card has a 12% APR, if you borrow $50,000 or more, and you only hold it for a couple of months, then you really only owe 2% of the full amount if you pay it back.

Of course, for this to really work, you have to be in the home remodeling business. In short, you will be paying a small fraction of the usual amount needed to finance business projects with the necessary capital.

Tip 3 – Use Multiple Lines of Credit Wisely

If you’re like most people, you probably have multiple credit cards, right? If so, you can use the competition among bankers to your advantage with this next credit card secret.

First of all; ask your bank if they have a balance transfer option available. If so, make sure it’s a zero percent balance transfer. For example, if you carry a balance on a Capital One card and later sign up for a Bank of America card, email or call them regarding the terms of your balance transfer offer.

If it makes sense, pull the trigger and move your debt. Plan to pay it off in full within the next 6-9 months (usually) to get ahead.

Obviously, if a bank can get you to transfer your competitor’s debt into its own coffers, then it gets you to pay interest on that debt for a long time. This means that, to sweeten the deal, they often give you several months of no interest on that debt. It’s literally like giving money away!

So, if you transfer your debt from one lender to another, receive a 9-month moratorium on interest payments, and manage to pay off your debt in those nine months, then you have effectively received a free loan from your new lender.

Smart use of credit cards

In conclusion, especially with the last “secret”, you can move your debt from one bank to another for a period of several years! You’ll save several years’ worth of taxes on a large enough sum if you finally pay off the loan within the resumption period.

Keep in mind that all credit card companies compete with each other; in the free market, this means that they make the most money by giving the consumer the best deal. Take advantage of it!

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