There are several credit cards in my wallet. I use Raiffeisenbank, Sberbank, Citi-Bank credit card has recently appeared (plus I am their payroll client). Some people think that a credit card is evil and dangerous, for me it is a source of convenience and income. Cards helped me out in difficult life circumstances more than once, starting from banal sudden breakdowns in the apartment and ending with larger force majeure. In connection with the latest events, I have assessed the map several times. In this post, I will share my rules that will help you use a credit card profitably and even make money.

First rule: spend as much as you can return

You should always have money with which you can pay off credit card debt. If you want to buy something, but now that the purchase will cost several salaries, or even more, it is better not to buy. To have enough money, discipline yourself, and keep a record of finances. Now there are various applications – Zen-mani, Money Lover, Monefy. It’s convenient for me to record expenses and income directly in the Citi Mobile application.

The second rule: pay off the debt ahead of schedule

According to my map on debt repayment is given 100 days. However, sometimes in the money transfer system, there may be failures and delays, especially during the holidays. Better to protect yourself and pay off your debt earlier. Otherwise, the bank will credit you for the delay in the loan and write a large fine for violating the loan agreement. Frankly, several times I went beyond the grace period, and I was annoyed to pay the interest due to my carelessness.

The third rule: make more than the minimum payment

A minimum payment is set for each credit card, the repayment of which is a prerequisite for further use of the card. Usually, the size of this payment is small. Wells fargo bank routing number This is beneficial to the bank, but not to you. If you make only the minimum payment for a credit card every month, interest is paid first. A small part of the payment goes to cover the main debt. To quickly close the debt and win in money, you need to try to make the payment as much as possible and repay the debt ahead of schedule.

The fourth rule: get and spend accumulated cashback

Cashback – refund of money spent in the form of money or bonuses. Many people regard cashback with disdain and believe that save not save, you will get a penny anyway. In fact, you can get real benefits if you understand and learn how to use cashback. Start by analyzing your spending. Banks offer different formats and sizes of cashback – for example, if you are actively using a car, you better look at offers with high cashback at gas stations.

The fifth rule: earn on the rest

When you apply for a credit card, it seems that it will allow you to spend more of your opportunities, and then you can slowly pay with the bank. Such an approach would not be useful. I believe that a credit card works in conjunction with a debit. How do we act: choose a credit card with a long period of the interest-free period. We use the card for everyday spending – transportation, food, entertainment, and other expense items. We keep our salary in the same amount on a debit card with a percentage of the remaining funds. During the interest-free period (in my case, 100 days) I save from 7% to 10% of the total budget. I transfer the saved funds to the savings account. The main thing is that the balance on the credit card does not exceed the number of available funds on the debit card. Watch for this.

The sixth rule: get a second credit card with a grace period and free cash withdrawal

This rule is for advanced credit card users. The second credit card will allow you to close the debt on the first credit card until the expiration of the grace period. An important condition is the ability to withdraw cash without interest. There are few such offers on the market, you have to look. How it works: you withdraw the missing amount to pay off the debt on the first credit card, repay the loan before the end of the grace period. It is reset, and the card is again available for daily expenses. And then you close the debt on the second card, also until the end of the grace period. What gives this method: using two credit cards, you can not be afraid of interest and freely use preferential terms. Profit 🙂

The seventh rule: save money using a credit card

A credit card helps save money. Sometimes travel companies or shops hold lucrative campaigns with a limited duration. In case of withdrawal of funds from the deposit account, there will be a loss of interest. To make a bargain here and now, you can use a credit card. I bought a refrigerator at a good price in M. Video with a card for 100 days without interest and paid off the debt before the grace period expired without overpaying a dime.

The eighth rule: use a credit card for collateral

I was twice faced with the requirements to present a credit card: the first time when renting a car in Paris (through Europcar service), the second – when booking a Radisson hotel in the Canary Islands. Then I found out that the participating Radisson Hotel Group hotels only accept credit cards to reserve funds to make sure that there are enough funds on the card to pay the final bill and keep this amount for the duration of the guest’s stay. How it works:

• When you want to rent a car, you are asked to leave a deposit. Assume $1000.
• You give a credit card, and the operator blocks money on it. This money is “frozen.” You use the machine and return it on time.
• After the rental company receives the car back, it will unlock the frozen amount on the card. Everything is transparent – no overpayments.

The ninth rule: do not withdraw cash

Banks earn when a customer pays with a card. USAA Routing Number When withdrawing cash, the client deprives them of income, and they are forced to take various unpleasant measures: an additional commission for withdrawing, canceling the interest-free period, and increasing the credit rate. So, when withdrawing cash, some banks charge a fee, which can be up to 5% of the withdrawn amount. If you withdraw 20,000 rubles, a debt of 21,000 rubles will form on your card, and interest for using the bank’s funds will drop on this amount.

Tenth Rule: Build a Credit History

With careful use of borrowed funds and timely repayment, a credit card becomes a weapon for forming a positive credit history or leveling it. If I am going to take a big loan, then the meaningful use of credit cards has already formed by positive story. Inaccurate use of a credit card can lead to the fact that in other banks to get a more meaningful and large loan does not work.

A credit card is not free money from a bank, but a financial instrument. The most important thing is how you use it. Do not be afraid to get a credit card, there is nothing dangerous or bad about it. Bad – do not understand how the card works and allow you to make rash expenses. As I wrote, one of my credit cards at the moment is 100 days without interest from CitiBank.

Conditions for a credit card 100 days without interest Classic from Citi Bank:

• 0 rubles – credit card issue;
• 100 days without interest. The borrowed funds of the bank can be used for 100 days absolutely free. The interest-free period begins at the first purchase, cash withdrawal or other card transaction;
• Up to 500,000 rubles – credit limit;
• 50 000 rubles per month – cash withdrawal limit. The commission is 5.9%, but not less than 500 rubles;
• To receive it is not necessary to go to the bank – free card delivery home.

To summarize again:

• Banks do not do charity work. Spend on your credit card exactly as much money as you can return. Remember that the money is not yours, but the bank;
• Close the debt until the end of the grace period. Do not bring to percent;
• Pay more than the established minimum payment to win in money;
• Use the accumulated cashback;
• Store your own funds in a savings account or debit card with a percentage of the balance;
• Combine two credit cards for perpetual preferential terms and avoid interest;
• Do not use a credit card to withdraw cash and transfer money – you will immediately catch high interest;
• Use a credit card to make a deposit when booking accommodation or other travel services;
• Use a credit card for profitable and limited offers from shops and other companies;
• Build a positive credit history.