The term “credit card churning” refers to the act of repeatedly opening credit card accounts to earn the cash rewards, points, and miles that are awarded as signup bonuses. Then, once you’ve met the minimum requirements to receive your rewards, you close the cards before annual fees come due.
These days it’s easier than ever to make purchases. With most items only requiring a click, tap, or swipe of a credit card, you’re able to quickly purchase an item without ever thinking twice about it.
Credit card balance transfers can be useful when used strategically and in combination with other efforts to reduce your overall debt and total interest paid. However, depending on the situation, they may not always the best decision to assist with credit card debt.
Let’s face it…while credit cards are a great way to build your credit, they can get you into trouble if you’re not careful. With so many people taking advantage of the ease of online shopping these days, overspending can happen fast, and before you know it, you’re up to your ears in debt.
Most people will encounter a time where they will need instant access to cash. If you have a credit card, you may be considering a cash advance to help you out of a tight financial spot. However, cash advances should always be used with caution and only in emergencies.
While it may be difficult to predict exactly when you’ll encounter medical expenses, the simple fact is they are inevitable. Everyone will have to go through the stress of dealing with medical issues and the costs that come with them at some point.
Transitioning from high school to college is a major milestone in a teenager’s growth, and it brings many changes. Some of those changes are financially related, and one of the questions that both teens and their parents often ask is whether they should have a credit card in college.
Balance transfers can be amazing tools for helping you maximize credit card point potential, reduce your interest rates, and pay off your credit card balances faster when used wisely. However, they can easily become crutches that do little to address your debt and only rearrange it, like pushing unpleasant vegetables around on your plate rather than eating them.
Because a Personal Loan has a set time limit to repay the balance, this helps limit the interest you pay. Credit cards, on the other hand, only require the minimum payment each month. This often results in more time to repay the balance – which leads to you paying more in interest each month.
Borrowing money to purchase items, no matter how much or how often, can be expensive. Whenever possible, it's best to use cash for purchases. That doesn't mean you should never use credit – there are plenty of benefits to doing so.
