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Chapter 5: Credit Cards???

 Managing credit card use will make the difference between ending up in the credit trap??? or building a great credit score. 

For most people a credit card is their first credit. It is important to get in the habit right from the start of paying off your credit card every month.

Credit Card Payment Due Date

Your credit card will always have the same Payment Due Date unless you request to change it. So if your first statement has a payment due date of June 11 then your next payment will be due on July 11th and the next on August 11th.

I cannot say it too many times. Pay off your credit cards completely every month. The interest they charge is huge.


It is hard for most people to pay off significant credit card debt. Your bill will show you that you can just make a minimum payment and postpone paying off your card until later. The consequences of paying just the minimum can be devastating.


The best thing is not to get into credit card debt in the first place.


Payment Reminder If you do not use autopay I would recommend you put a payment reminder in your phone or calendar that comes up every month 15 days before your payment due date.


What is Autopay?

Autopay is a feature from credit card issuers that allows you to set up automatic payments from your bank account to pay your credit card bill each month.

With autopay you can choose to pay the minimum amount due, the full statement balance, or a custom amount.

Autopay will keep you from getting late fees, and keep you from messing up your credit history with missed payments.

Monthly Payment Due Date


Acquiring More Credit Cards

???

Credit card churning for cashback rewards is a strategy in which you open and close credit card accounts to receive sign-up bonuses and cashback rewards.


The process involves applying for a new credit card that offers a sign up bonus, meeting the minimum spending requirements to earn the bonus, and then closing the account before the annual fee is due or after the reward is received.


To credit card churn effectively, it is essential to have an excellent credit score, as credit card issuers typically only offer sign-up bonuses to customers with excellent credit scores.


The benefits of credit card churning include accumulating large amounts of cashback rewards, points, or miles that can be used for travel or other expenses and multiple sign on bonuses.


Credit card churning can affect credit scores positively or negatively, depending on how it is managed. Applying for multiple credit cards within a short period will result in hard inquiries, which can lower credit scores. However, maintaining a low credit utilization ratio and paying bills on time will keep your credit score high.


My Credit Card Churning

I have made a lot of money and free flights by churning my credit cards. I have probably gotten a dozen new credit card sign on bonuses. They have ranged from $200 to over $1,000 each.



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