Is it possible to actually use a credit card for free? Yes it is, and I’m going to show you how.
While a credit card might be a nice thing to have, the fees and interest attached to it could turn out to be a heavy burden on your shoulder. Nonetheless, you can use a credit card for free if you know exactly how to.
I’ve compiled seven simple things you can do to keep your credit card free.
How To Use Your Credit Card For Free
Let’s get started:
Choose A Credit Card Without A Monthly Or Annual fee
If you choose a credit that comes with a monthly or annual maintenance fee, you’ll be required to pay for the credit card even if you don’t use it all.
However, some credit card companies waive your annual fees once you’ve made a specific amount of charges in a year.
However, if this lowest amount is outside your regular charging limit, it could be difficult for you to keep your credit card free.
Ensure That Your Credit Card Comes With A Grace Period
You should do everything possible to pay your balance during the grace period so you wouldn’t end up paying interest on your balance.
Another well-known charge is the finance charge. This charge is usually added to your balance each month.
In case you’re wondering, the grace period is that period of time you’re given to settle your balance in order to prevent a finance charge.
But what happens if your credit card doesn’t have a grace period? It simply means you’ll never be able to use it for free and you’ll start incurring charges right from the day you begin a charge.
Avoid Late Payments
You should do all you can to never miss a payment on your credit card. You’ll be required to pay a fee for late payment if you miss your payment.
Paying at the right time means you have to send your minimum payment prior to the due date. But if you really want to maintain a free credit card, you’ll have to send the entire balance prior to the due date.
Never Spend Over Your Credit Limit
The credit limit of your credit card is the maximum amount you can spend without incurring charges. Some credit card companies have gotten rid of over-the-limit fees which are often charged any time you spend beyond your credit limit.
If you’ve decided not to choose a card that comes with an over-the-limit fees whenever you make a transaction that exceeds your spending limit, your credit card will be declined.
But you shouldn’t take unnecessary risks, if you stay below your credit limit, it guarantees that you have a balance that is low enough for you to payback in full.
Make Sure Your Check Never Bounces
If you had to write a check, make sure you have enough balance in your account to cover for the payment. If your check bounces because you don’t have enough money I your account to make the payment, your credit card company will charge you a returned fee.
For many credit card companies, the fee rages from $35 – $39.
So always confirm that you have enough money in your checking account to pay a check before you issue one.
Avoid Cash Advances And Balance Transfer
Cash advances and balance transfers are deals that attract fees automatically. Once you make a cash advance or transfer a balance, they’ll automatically incur a fee which is often a percentage of whatever transaction you make.
Credit card companies hardly waive these fees. One other key reasons why you should stay away from cash advances is that they don’t come with a grace period. They attract interests and transactions instantly.
Read Your Card Agreement To Understand All The Fees
Credit cards often come with other fees that people aren’t always aware of. Some of these fees include a credit limit increase fees which is often charged whenever you asked for an increase on your credit limit.
One of the easiest ways to figure out what fees your credit card company charges is to read the Credit Card disclosure. It is often added to your credit card application and most likely your credit card agreement.