The hardest part of writing this blog is choosing what to tell you about as I'm the type of person that gets SUPER excited about "getting a deal". But in light of what I've seen on the news a lot lately in my area, I decided to write about something that not only provides a "deal", it will also protect your money.
I have always a debit card person. I rarely have cash on me so when shopping at retail stores or gas stations, I always paid by debit card. In our area, at least once a week for the past couple of months, they talk about how they have found credit card readers on gas pumps placed by scammers attempting to steal credit card information. If they get your debit card information, they can wipe out your bank account before you know what has happened.
Because of this, I decided to switch to an actual credit card through my local bank. I know this option is not for everyone, but it is something to definitely consider in order to protect your bank account information. Not only does it provide safety for your banking information and cash, most also provide rewards in the form of points that can be cashed in for cash, gift cards or merchandise. So it's 2 fold!
The best part is that, all I have to do is transfer funds from my bank account to the card to make payments which can easily be done online or through their mobile app. The key though is to MAKE DAILY OR WEEKLY PAYMENTS, not wait until the bill comes, in order to keep the credit card paid in full and avoid interest payments. I will say that this practice takes discipline.
First of all, ONLY use it to shop for the things you regularly shop for that you used your debit card for previously! Do not use it as a credit card for frivolous purchases!!!! Second, you must decide your payment schedule, whether daily or weekly, to transfer funds or make payments in order to keep it paid off. If you do not do this, your credit card balance can get out of control quickly!
Here's what I do. I mainly use this card for grocery and gas purchases but will also use it for dining out, entertainment, etc. It just so happens that the card I use gives me double reward points for gas and grocery purchases so I will definitely use it for those purchases. I typically complete my grocery shopping in a single day. I have found that for me, it is best to make payments at the end of each spending day or every couple of days. I place all of my receipts in a pile until I am ready to make my payment, then when ready I add them up and transfer the funds using my mobile app or the website, whichever is convenient at the time. You can make as many transfers to the card as you want and there is no penalty.
Obviously, this can be done with any credit card, not just through your bank and most banks, if not all offer bill payment at no cost so this option can still work. The key is to use whatever card will offer YOU the BEST rewards program for your spending so you may have to do some research! As far as the rewards go, they vary per card. I started using my card just after Thanksgiving 2015 and I have over 2500 in rewards which equals $25. Again, this is just from purchases that in the past I would use my debit card for and not receive anything for in return. Additionally, when I opened the credit card account, I had received a $150 incentive. If I spent $500 in the first 90 days, I would receive $150 in the form of a credit to my account (which I did in the first 30 days). If you can find a credit card account with an incentive like that, even better!
Again, this idea is not for everyone. You must remain disciplined with your spending and payments. If you are paying interest on a balance, you are not gaining anything so carefully consider this option before trying it. But if you can stick to it, its a great way to earn some bonus money and keep your bank account safe!
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