Credit Card Strategy 501

Okay, we all have to use credit cards at some point, be it for a hotel stay, booking air travel, renting a vehicle, or putting a down payment on that Harley Sportster. Okay, maybe not the last one.

Consider this. Anyone who owns a home knows at some point they'll be buying appliances. Don't forget TVs, DVRs, home theatre systems, laptops for the wife and those freaky cell phones or toys for the kids. Do you remember replacing the last item because its predecessor didn't last as long as you thought it would. Well, wake up and smell the Folgers.

Nothing lasts like it once did. Do you know anyone with a 30-year-old Kenmore microwave that has traveled from Texas to Hawaii, then Virginia, Iowa and back to Virginia? Yep, it's true and it's still going like the Energizer bunny. Yet, a new one model microwave, car, computer, camera (or fill in the blank here) won't last very long.

Consider putting any purchase that's going to break down on your credit card for the protection it offers. Check the benefits tied to your Visa or Mastercard. Many of them now offer extensions on the manufacturer's warranty. It's common to see an extra year free of charge. No paperwork or registration is required for this.

Not sure if your credit card offers this free protection? Give them a call. They should be able to provide you something in writing. Once this arrives, keep it in a safe place- perhaps filed with your warranties. If the credit card company can't provide this or if it's unavailable, you may think about moving to another credit card.

Even if you have the cash ready to pay, put the purchase on your credit card (that offers the extended warranty) and redirect the cash. Pay it in full on the first statement to avoid finance charges.

Stay on top of it

It's so easy to fall behind on your banking. We all get crazy busy with life and its details, but getting behind can cost you money.

Monitor your bank accounts and credit card statements for errors. These same errors may run in favor of the bank or credit card. If they know they made a mistake, let your financial instutition or credit card company know. They may be unaware of the situation, but they're usually quick to make corrections. This simple habit of monthly monitoring your statements could save you hundreds every year. Simple diligence folks.

One extra cost that easily stands out- extra costs to you for past due fees, overlimit fees, returned check fees, finance charges, etc.