Tag Archives: credit cards

How To Make Money Using Credit Cards

credit cards

In your search to make money online there is likely to be one thing that you haven’t looked into. Making money using your credit card is relatively easy (provided you have a good credit rating at the moment) and everyone who has can do it. All you need is a little bit of extra time, and to understand your rights. It’s often referred to as credit stoozing and it enables you to beat the system.

What Exactly is Credit Stoozing?

When you look up credit stoozing you may get a little confused. Many websites don’t explain it properly and it can seem a little more complicated than it actually is. There are seven main steps involved in credit stoozing. These include:

  • Step One – Opening up a high interest savings account
  • Step Two – Applying for any standard credit card
  • Step Three – Taking out a cash advance for the full balance of the credit card. Put it into the high interest savings account.
  • Step Four – Apply for a 0% transfer balance credit card
  • Step Five – Move the balance from the standard card to the new balance transfer card
  • Step Six – When enough interest has gathered in the savings account, pay off the credit card in full
  • Step Seven – Keep the profit that has been earned in the savings account

The above steps are simple enough, and while they can work it is worth pointing out that credit stoozing isn’t always profitable. There are a number of things that you have to think about before you begin.

The Things That You Need to Consider

One of the main things that you have to think about is how expensive cash advances can be. Most credit cards will charge a fortune for a cash advance. Usually you are warned off taking out any advance on a credit card. However, in terms of credit stoozing it can work out because you are paying the balance off with a 0% balance transfer deal. Still, it’s much better to look for a credit card with a low cash advance rate as it will save you money in the long run.

The balance transfer card that you end up with will not charge you any interest on the balance for a set period of time. This means that the money can be left building up in the savings account. Say the credit card is charging you 2% each month and your savings account is earning you 4%; you get a profit of 2% each month.

One problem that you could encounter is application fees. If you want to make money from credit stoozing then you have to avoid any annual fees and maintenance fees if you can.

It is worth keeping in mind that you won’t earn a massive amount of money from this type of money making scheme. Typically you may earn a few hundred dollars over a six month period. This isn’t going to be enough to retire on, but it beats the hell out of the card companies profiting from you all the time.

If you forget to pay one of your credit card repayments then you will throw the entire system off track. You need to be sensible with your money in order to make this successful. Credit stoozing definitely isn’t for everyone and it can get you into a lot of financial trouble if you aren’t organized with money.

One question which you might have is whether stoozing will affect your credit score. The answer to that is highly likely. You will be applying for a credit card and getting into debt on that card for a six month period.

This will show on your credit report. However, what will also show are the repayments that are regularly made. Then at the end of the six months when you pay off the debt completely, it will improve your credit rating.

You should always close down all credit cards once you have finished stoozing. This is useful in case you want to apply for another credit card. The lender will look at how many cards you currently have and if you are using them. If you aren’t then they will wonder why and they will be less likely to give you their credit card.

The Benefits of Credit Stoozing

As well as earning a little extra money from credit stoozing, you can also use it to pay off your credit card debts without the use of a loan. If you have debts then you can transfer them onto the 0% balance transfer card and open up another high interest savings account to pay them off. Of course, the only trouble with this is that if you have a credit card debt, you will find it more difficult to get a good deal on a balance transfer card.

Although this little money making scheme can be used by everybody, it doesn’t mean that it’s suitable for everyone. As long as you aren’t forgetful you could earn hundreds of dollars a year doing this.

Before you start a credit stoozing scheme, make sure that you use an online calculator to estimate whether or not it will be worth it. There are various online stoozing calculators which will work out how much you can expect to earn from your stoozing deal.

Stoozing has been around since the early 2000’s. It is quite new and many people have been using this method for years to make back thousands of dollars.

Beware of the Risks

Overall credit stoozing can be really beneficial and it is a great way to beat the creditors. However, it really isn’t for everyone. If you tend to be forgetful, aren’t great with money, and suffer with a lack of financial discipline then it would be a bad idea to take part in this type of money making scheme.

Remember there are things out of your control that can go wrong too. Changes to interest rates often occur and that can throw the whole thing out of whack. You could lose a couple of points off your savings interest rate meaning you have to move your money, or you could find that your credit card company decides to start charging an annual fee.

You have to stay alert and look out for anything that could turn this little venture from a tidy income stream to another drain on your finances.

This article was written by Timothy Ng.

Accepting Credit Cards at Your Business

credit cards

There are only a few things needed today for business success. Besides a great product or service, an exceptional management team and employees and if applicable a great location and marketing strategy, the other thing that’s also very important is credit card acceptance. Credit card acceptance; are three words that conjure up business freedom for your customers. Because without it they are restricted to using cash, checks and yes, even going elsewhere to purchase what they want. So with that being said, accept credit cards at your business as it will present payment options for your customers and in the long haul effect your business positively too.

Businesses accept credit cards because it provides a quick and easy way for customers to pay for a product or service. When they pay via card, they get proof of their transaction which comes handy when they are dissatisfied with their purchase and would like to return it. This may not be beneficial to your business since you are losing the sale but it provides an added value to the customer which is important.

Once you decide to move forward with accepting credit cards it’s important to understand everything about merchant accounts because that’s the account which you will have to set up with a credit card processing provider. A merchant account is basically an account between your bank, your customer’s card bank and an overall presiding bank (known as the merchant acquirer) that manages over the transactions that take place between the other two. The acquirer takes the batch of all the approved transactions and sends them to Visa, Mastercard, Discover etc. for payment. These credit card companies send all the payments to the appropriate card issuing banks and eventually the acquirer gets paid and the money is transferred over to your business account the following day.

There are many merchant account providers out there that provide various services. One such provider is North American Bancard. NAB is a reputable provider that has been working with businesses of all sizes for many years and offer great services. But don’t take my word for it, it’s important that you conduct thorough research before settling with any single provider. Accepting credit cards is mutually rewarding for your business and your customers alike. Ultimately the decision lies in your hands on allowing the freedom of payment options.

How to Interpret Your Credit Card Statement

understanding credit card statement

By: Guest blogger Mark

Understanding a credit card statement is important if a credit card is used regularly to spend money and budget is being followed. For someone who has been using a credit card for an extended period of time, reading the statement is old hat, but for someone who is new to using a credit card there are some features of the statement that need to be explained. Understanding the fine print, both on the front and back of the statement, is important to fully understanding the charges within the statement. The statement for each credit card company varies slightly but for the most part there are common elements in each of the statements. There are several key pieces of information that must be examined when each statement is attained that will help the individual better understand their account.

APR – On the front of the document the first piece of information that needs to be examined is the Annual Percentage Rate, or APR. This is the amount of interest that will be paid on an annual basis. The APR is an important factor in calculating the amount of money going into the credit card. The higher the rate, the more money it will cost in the long run to use this credit card. Interest rates of each credit card can be compared on a variety of websites available online.

Minimum payment – Another pivotal piece of information that must be looked at is the minimum payment due. This is the minimum amount of money that must be paid on the credit card during each billing cycle in order to remain in good standing with the credit company. This amount is typically determined as a percentage of the new balance. The minimum payment must be made by the due date in order to protect the individual’s credit reputations. Late payments have a negative effect on an individual’s over all credit score, which reflects poorly when trying to take out a loan for a house or other large item.

New Balance – The new balance on a credit card is the amount of money that is still unpaid or owed by the cardholder and will be a number present on the statement. This can be determined by starting with the remaining balance from the previous month and subtracting any payments that were made on the balance. To calculate the amount owed the new charges and miscellaneous fees accrued during the most recent billing period must be added to the previous amount.

Interest Paid – The finance charge is essentially the cost of doing business with the credit company. This is the money paid to the lender for using their credit. This finance charge is indicated on the each monthly statement and it is the interest that is paid on the unpaid balance of the account. The way in which this charge is determined varies with each credit company and the way in which it is determined affects the amount of money that the individual will be charged. The most commonly used calculation method is the average daily balance, which calculates the monthly finance charge based on the amount of debt on the account each day.

Fine print – The back of the credit card statement should not be ignored. There is a lot of fine print on the back of the statement and can present quite a headache. Although these paragraphs are not the most interesting read ever, there are many important details that can affect whether the individual is a successful credit card holder. One of the most important pieces of information that can be found on the back of the statement is the information about the Cash Advance Fee. This is a charge that the credit card company charges the individual when the card is used to take a cash loan from a bank. Generally there is an allowed amount of money that can be withdrawn using the card and the fee the credit company charges is a percentage of the loan amount. It is important to recognize this information on the back of the card in order to not break the fine printed rules of the credit company.

Understanding a credit card bill is the first step towards being a successful credit card holder. It is important to take the time to review the information on the statement and make sure that everything on the state is in line with the contract that was signed. It is also important to notice and verify any changes on the statement compared to the previous statements. An error can always occur and it is the responsibility of the cardholder to recognize these errors. Understanding finances is difficult but taking the time to learn a little about a credit card statement could save a lot of money in the long run.

Mark writes about finances at CreditCardCompare.com.au, an Australian website based just north of Sydney.

When and How to Consolidate Credit Cards Debts?

credit card debt

By: Andrew

As my wallet gets full of plastic cards and my mailbox gets full of credit card bills, this is the time to consolidate my credit cards. Just like other consumers, I prefer to organise my finances especially these days when costs of living simply get out of control. Carrying lots of credit card debts surely make anyone’s finances all the more crumpled. That is why it is high time to consider several available options to consolidate my credit cards.

I want to save on costs and lower interest repayment expenses. This is the usual intention why consumers aim to consolidate debts. There are several ways to consolidate my credit cards to attain lower interest rates and shoulder lower monthly payments. Stretching the duration of such loans would also be strategic.

Balance transferring of credit card debts

I have learned that one of the most effective, fastest, and manageable ways to consolidate my credit cards is through doing balance transfer transactions. This means consumers should intend to transfer their balances on high-interest credit cards into a single credit card, which facilitates such transactions and offer a much lower interest rate.

As I consolidate my credit cards through balance transfer, I make another decision. Should I use a 0% interest rate or a lifetime low-interest balance transfer? The 0% interest rate balance transaction is usually offered as an introductory scheme and would only be effective in just six months or shorter, as specified by the credit card firm. After that period, any transferred balance would incur a higher ‘revert rate,’ which could reach up to 19.99%.
Transferring balances and closing accounts

Another option I have been considering when I intend to consolidate my credit cards is closing the credit card accounts after transferring balances of some of those into a single low-interest one. Many consumers would agree that this is a wise move especially these days when credit card purchases get more tempting. If I get rid of some or most of my credit cards, I would surely manage purchases and debts more effectively.

How should I decide which credit cards to lose?

When I consolidate my credit cards, the first thing I look at is the interest rates applied. I prioritise repaying debts in cards with higher rates. Once I have cleared balances on such cards, I consider closing the accounts. This way, I would never struggle to fight the temptation again to use them and to seize opportunities to earn special ‘rewards’ points from purchase transactions. Are such points worth all the fees I pay and the troubles of accumulating debts?
Consumers like me should not wait further to control and manage credit card debts.

It is always the best time to consolidate my credit cards before debts get higher and before I get into further troubles. After all, keeping one or two multipurpose and low-interest credit cards would surely be adequate to cover my basic card purchases. How about you?

– Andrew has been working in the finance industry for several years.

Paying off Giant Credit Card Debt

credit card debt

The bills are getting so out of control that you will be forced to stick with a budget to become debt free. This sounds like it will never be accomplished, but this time you have really gotten yourself into big financial trouble. It has gotten to the point where you are using one credit card to make minimum payments on another. Sure, this may be a sign of the bad economic times, but you really had this horrible habit long before the recession hit. What are you going to do to finally get out of debt? Where do you start?

Make a Commitment

Basically, everything will have to start with you. You must make a commitment to become fiscally responsible so that you can get your financial life back on track and begin living again. Sure, you made many bad financial choices in the past, but this does not mean that you can’t make better choices now and move on. Basically, you will have to make a change for the better if you want to pay off your giant credit card debt and become debt free and it must start now.

Stop Spending

The bottom line is that you have to stop spending money. Whether it is cash or credit, you will never become debt free if you continue to spend money unwisely. You should never let your credit card spending get out of hand and you need your cash to pay down the credit cards. So never feel like it is okay to spend cash when you could be putting it somewhere else like on an unpaid bill or in a savings account. Make the commitment to spend money wisely. This mindset will get you closer to your goal of becoming debt free.

Start Saving

When you stop spending money and learn how to budget, there are only a few things that you can do with it at this point. You will make investments, pay off bills or put it into some type of savings account. Before you tackle a long term goal of paying down bills, you should create a basic savings account and an emergency savings account.

Contrary to belief, the two accounts are different and should be a part of your budget plan. The savings account will be for larger items that you want later. The emergency savings account will be for emergencies that you have no control over. Both accounts will be needed when you start paying down your giant credit card debt. You don’t want to stop your long term payment plan if an emergency breaks out. In addition, it would be wonderful to have extra money on the side to reward yourself if you reach your debt free goal. Once you have at least 3 month’s salary in your emergency savings account, you can begin your long term payment plan.

Create Your Long Term Payment Plan

What method are you going to use to pay off your giant credit card debt? You need a budget plan that is realistic and easy for you to follow. The following are a few suggestions to get you on your way:

1. Make a list of all debts. Before you can tackle your debt you have to budget and know exactly what is outstanding. Write each credit card down on a sheet of paper along with the outstanding balance beside each credit card.

2. Arrange your credit cards according to the outstanding balances. List them from the lowest amount to the highest. Most financial professionals say that you should budget and handle the credit card with the highest interest rate first, whereas there are others that would strongly disagree. Think about the motivation that you will receive once you see the first debt paid off, which will be easy to accomplish if you pay off the lowest amount first.

3. Concentrate on one credit card at a time. Make the minimum payments on all cards, but put an extra amount each month on the lowest credit card, if you have it in the budget. If not, make little extra sacrifices. Once you have paid off the first card move on to the next. The amount that you paid towards the first paid credit card should now be put on the second card until it is paid off. Notice a pattern?

4. Do the same for each credit card on your list. Continue making payments in this manner until each credit card on your list is paid off. If this strategy is followed, you will eventually reach your goal of being debt free.

Don’t Fall for Empty Promises

One word of warning would be to not fall for the rhetoric of companies that claim they can help you become debt free. Sure, they might be able to help in a small way, but it will cost you money. Why else would they be so willing to help you get out of debt? What will they get for helping you become debt free? Do you really want to budget for extra service fees to pay to debt consolidation companies when you could put this money on your credit card payments? Why make these companies richer and yourself poorer? Move on to a debt free life and don’t fall for the empty promises of these financial companies.

Change! Change! Change!

In conclusion, if you want to pay off your giant credit card debt and become debt free, do something about it. The change begins with you. Stop spending money unnecessarily and find ways to save money for the future. Look inward and determine ways in which you can make financial adjustments in your life.

Try to figure out the various ways that you waste money on a daily or even yearly basis. Do you really need to have fast food every day for lunch? Do you really need to have 225 pair of black designer shoes in your walk in closet? Does your kitchen really need new granite countertops? Do you really need to have an oceanfront condo with a balcony on your next family vacation?

Reconsider these purchases. Adjust your budget accordingly. These are all ways that you can modify your budget and reach your long term goal to become debt free.

Timothy Ng is a personal finance writer, and has a real passion for encouraging people to compare credit cards to ensure they get the best deal.

How To Make Money With Your Credit Card

credit cards

It is possible to use your credit card to make some extra money if you know how. While credit cards are usually associated with the thought of debt, they can actually make you profit.

In order to make money using your credit card you’ll have to always use it wisely and use self-discipline when you spend with it. If you are able to keep these things in check, you have the potential right now, as a credit card holder, to start turning a profit.

Make money with your credit card

Here are some ways that you can use your credit card to make money.

Get a credit card that offers a cash back program

If you make an application for a credit card that has a cash back program attached to it, you will get paid for using your credit card. You’ll have to use your card often and for big items in order to see much profit, but if you plan on doing some spending in the near future it will definitely pay off.

The thing you have to watch when you have this credit card, however, is to always pay the bill in full every month. If you don’t, you’ll be hit with a high interest rate that you’ll have pay. This can cut into your profits so much that it is not worth getting a cash back card if you’re not sure if you can pay off the balance every month.

You also need to read the fine print before applying for a cash back card to find out if there are any limits as to how much you can get back in a year. Some cards will only pay out $300 or less on a yearly basis.

You also need to find out if you can get cash back on any type of purchase. If the purchase types are limited, this card may not work for you if it is a type of spending you plan on doing with the card.

A problem can also arise if you become a careless spender just to get the cash back. As long as you use this card properly, it can be a little money maker for you.

Get a balance transfer card

Start by opening an account for savings and begin to see interest accumulate. Next, apply for a balance transfer card with a 0% interest rate. Once you have transferred the balance over to the new card you’ll be able to pay off your debt without having to worry about any interest being added.

The interest that you save can be put directly into your savings account so that you start seeing more interest added to your savings.

Starting a new business with a credit card

If you are sure that the business you’re going to start up is going to give you immediate profits, the best way to get started is by using a credit card. While there is always a risk in beginning any new business, it is one worth taking if you have done some research and know that the profits will be there.

Finding a low interest card

If you can find a credit card that only charges 5% to 6% for a cash transfer or withdrawal, and a savings account with a 7% interest rate or more, you can transfer money to the account and profit from it. You’ll have to make sure that you don’t use your card for any spending if you follow this practice. Only use the card for this use and you will definitely end up with more money in your savings account every month.

While you may have never before thought it possible, a credit card can be used to earn income. As long as you use the credit card following the advice above, you will end up with more cash at the end of the month, every month.

This article was written by personal finance writer Timothy Ng from Sydney, Australia. He is genuinely passionate about helping people compare credit cards and helping them through researching to find the best credit card.