If you pay attention to public discourse surrounding personal finances and money management, credit cards are seen as the most detrimental objects anyone could ever get their hands on. Truthfully, it’s all about using credit to your advantage. When you develop self-discipline and use the right strategies, you can truly use credit to hack the system in order to financially win. Consider some of the ways you can get started.
Find a credit card with higher rebates
When you sign up for a credit card, look for one that provides higher rebates. Higher rebates mean that you’ll get more rewards. If your credit card has a higher cashback reward, you’ll be able to make more money off of purchases you were already planning to make. You’re essentially getting free money. When you use those cards to pay for gas, food and other vital expenses, those cashback rebates will add up.
Find sign-on deals for new checking accounts
There are plenty of banks that offer different incentives for people who sign up for new accounts. There are banks that will even pay you to sign up. Sure, there are banks that might offer a mere $25 for a free checking account. However, there are banks that will offer thousands of dollars when you open checking accounts and keep a certain amount in the account for a designated time frame.
Use high limit credit cards to raise credit score
If you have a high limit on your credit card, it’s a great idea to use those credit cards as a leveraging tool to raise your score. When you have a perfect credit score, the sky is the limit in terms of how much more you can earn, save and use. Just be sure to pay off the balance every single month. It’s also wise to use a third of the limit. You don’t want to alarm lenders by maxing out your credit card every month.
Get reporting services from your landlord
If you’re currently renting, talk to your landlord about arranging a plan to document and report your timely payments to the credit bureaus. As you pay your rent on time every month, this can show creditors that you’re trustworthy and punctual.
Before you get started, take a look at your finances. Get clear about what you have and need in order to get to the next level from a financial perspective. Remain focused on your goal. Though it might take time to see some of the rewards of your hard work, be consistent. When you’re using credit as a leveraging tool, it’s all about time and consistency. Pay your bills on time, don’t max out your credits and remain consistent. Within six months to a year, your financial situation can improve tremendously.