San Antonio, Texas (PRWEB) August 14, 2007
A new website, Credit-Card-Rewards-Classroom, detailing how the use of credit cards can create real profits for their holders, has been launched in a teaching format online. The site has suggestions, ideas, recommendations from how to use credit cards at a profit, to exercises to do on a long flight and everything in between.
When used properly, a credit card can make its holders a lot of money and not cost a thing. Firstly, existing credit card holders, and those with new credit cards, should make sure their cards offer rewards points of some kind, says Gina Henry-Cook, author of a travel manual series entitled, "Free Vacations!" She reminded travelers at a recent seminar, "When you travel, make sure you get airline miles because you may never have to pay for another airline ticket."
Cook-Henry said, that if a credit card user doesn't want frequent flyer miles for some reason, points are still worth collecting because, as an alternative, the credit card company, airlines and others, offer discounts on purchases, which may be redeemed for products of all kinds, or an automatic deduct of up to five percent of dollars spent kicked back on your bill.
Secondly, there is more profit for the points collector if a credit card with a zero balance that can be paid off the entire outstanding balance every month is used. An existing card can be paid off in full and used for this purpose, or a new credit card instead, she said.
The key, Cook-Henry says, is to pay every bill due each month for which most people send a paper check for, or pay online with a debit card, with a credit card with a zero balance instead. Then, the credit card bill can be paid with the cash that you would have sent to a creditor, by sending payment to the credit card company instead, but within the 30 day cycle.
Paid it this way, there are never finance charges, even if the credit card has a 25% interest rate because credit card companies allow from 28 to 30 days without incurring finance fees or interest, according to Capital One's website -- who cares what the rate is? Interest is never due, anyway. There are no finance, interest, late, or over limit fees, the customer gets the rewards points totaling the amount usually spent anyway, causing points savers to look forward to cashing in a trip, buy an MP3 player or pots and pans, or five percent of purchases coming back as a reduction of the bill, as credit scores go through the roof, and the credit card company even documents expenses.
The only way this works, though, Cook-Henry warned, is if just the things you charge are already budgeted for anyway. If an unpaid balance is left after the billing cycle has closed on the account, then interest will be charged, which can defeat the whole purpose, Cook-Henry reminded the group.
Additionally, credit card customers should be asking for an interest reduction from the credit card company anyway. If they won't do it this time, ask again next month, because if this plan is followed, the company will lower the rate, and on a regular basis. In fact, Cook-Henry said, she doesn't ask for reductions in interest rates or increases in credit limits any more. The companies come to her and offer, she said.
Cook-Henry even pays her mortgage on a credit card every month, and she earns fourteen (14!) airline tickets every year for the bills she pays every month anyway, and it costs her nothing additional, she said.
Look for many more simple but effective uses for credit card bonuses and perks at http://Credit-Card-Rewards-Classroom.com