Credit cards can be a dangerous game. If you do everything right, you have access to cash back and travel rewords worth thousands of dollars. If you miss payments and skip paying your bill in full, you can end up with thousands of dollars in costs. How you handle your accounts is up to you, but these five credit card secrets might make your credit card use a little more beneficial.
You Can Get a Signup Bonus and Close the Account
But there's always a however. This card also has a $450 annual fee. After 11 months, I decided that fee wasn't worth it to keep the card so I cancelled it. But I got to keep those 100,000 miles anyway.
You can Get a Fee Waived or Lower Interest Rate if You Ask
Some banks are willing to lower your interest rate or waive a fee. You just have to call them and ask nicely. Really. It happens all the time! Try this script to get yourself started.
Issuers Make a Ton of Money from Interchange
Those processing fees add up to billions of dollars in profits each year for your credit card issuer. You can open a no annual fee credit card and never pay a cent of interest, but your bank will still make tons of money if you use the card regularly. Keep that in mind, as it is an incentive for banks to want to keep you around, even if that means waiving an annual fee or throwing in an extra perk every once in a while.
You Can Convert a Card to One with No Annual Fee
I used to have an American Express Delta airlines card with an annual fee just shy of $100 per year. I wasn't getting $100 in benefits, so I called and asked them to convert it to a card with no fee. I now have the no fee version of the same card, and my credit score keeps on rising.
A Perfect Credit Score is a Gateway to Free Travel
Some rewards programs come with flexible hotel and airline transfer partners. Some offer cash back on travel purchases. Others still allow you to book travel directly through the issuer's travel portal to use your points with no blackout dates or restrictions.
Put Your Credit Card to Work for You
5 Credit Card Secrets the Banks Don't Want You to Know was originally posted on Due Payments Blog by Eric Rosenberg.