Understanding Free Credit Card Usage
Be careful if you have points in free credit card. Points that accumulate too long are scorched or expired for various reasons. Some of them, because the credit card bill delinquent for months or indeed the bank determines the period of redemption of points. Therefore, immediately redeem points or mileage to the Bank even though there is actually a gift target that we seek for a certain number of points. For example, you are pursuing the latest iPhone gift on terms of redemption of 3000 points.
The points you have are still 1000, while the redemption period of 5 months stay, it would be better if you immediately use before the point redemption time. You can redeem with other prizes, do not get too obsessed about getting the grand prize. The most important thing, the point should not be scorched and don’t until entangled credit card debt just because the pursuit of these points. So remember also to see the expiration date of bank points.
For whatever reason, try avoiding credit card charges. Even paying a minimum bill is not recommended it is because there is interest charged to you if you are in arrears. The existence of this additional burden will make the reward wasted. Therefore, the value of points or cashback collected may be used up to cover the interest, even could be even not enough.
One example is if you are overdue $35 this month. In the following month, the arrears will be charged to the bill plus interest. So if for example you buy goods with cashback $35, same lie. Cashback money is so meaningless. In fact you lose because they have to pay the interest on the arrears.
This is an important note for any free credit card holder that there is no need to pursue excessive rewards. While we focus on the card reward type, it does not mean we should pursue the reward without thinking about risk. One example, for the sake of chasing points to be exchanged with the latest iPhone instead shopping crazy. Even once shopping once every month to be two to three times a month. Relaxed in pursuit of points, buy that if it needs to be purchased.
Because if ambitious chasing points, rather than profit, can even be stumped because of increased expenditure. Remember, using a credit card means you owe it to the bank. If you cannot afford to pay off, you have to get ready for the risks, such as blacklisted from local bank. This will make it difficult for you to make various transactions in the future.