Fortunate because you can now identify these mistakes in your own behaviours, and stop yourself from repeating those mistakes.

1 You keep using the card

Overuse is a popular way to get yourself into credit card debt because if you do not track your credit card purchases and budget to repay your balance in full each month, the compounding interest charges make it harder by the day to repay your growing balance. Plus, even if you have budgeted for your purchases and have simply not paid your credit card before the end of the interest free period, your budget is blown because of the extra cost you now need to cover to repay interest charged.

Once you are in credit card debt and having interest charged on your balances, you need to change your behaviour right away. Continuing to use your credit card when you are in debt is a mistake because your new purchases will not enjoy any interest free days because interest free days do not apply if you have an outstanding balance. This means you are going to continue to be charged interest on your outstanding balance and immediately on your new purchases growing your debt even faster.

2 Misusing a balance transfer

Balance transfers can be a wise way to get out of credit card debt but they can just as easily lead you into even more debt if they are misused. A balance transfer is when you apply for a new credit card with a low or 0% interest rate offer, usually for a limited time, to pay out your existing high interest credit card debt. Your existing credit card balance is then repaid to zero and you make payments to your balance transfer credit card, at a much lower interest rate.

However, misusing a balance transfer turns into as big mistake when:

· You spend on your new balance transfer card. You can often be approved for a balance transfer with a limit greater than the transferred amount however, unless you have chosen a balance transfer and purchase credit card offer – where the interest rate charged on new purchases is the same as the balance transfer rate, and offered for the same period of time as the balance transfer – then you can lead yourself into more credit card debt. This is because your balance transfer card repayments will go towards repaying your transferred balance first. Therefore if you apply new purchases these will instantly be charged a higher rate of interest until you have repaid your transferred balance in full.

· You spend on your old, repaid credit card. When your existing, high interest credit card suddenly has a zero balance it can feel freeing, not to mention tempting. However, if you start using your old card again without budgeting or repaying your balance in full each month, then you will find yourself in need of another balance transfer in a few months’ time, and with one already on your credit report, you may not be as easily approved for a second.

· You don’t repay your transferred balance within the offer term. Most balance transfer offers are for a limited time, often six to 12 months. After the term of the balance transfer offer, the interest rate charged on your balance reverts to the card’s regular purchase or cash advance rate. Therefore, if you don’t budget to repay your transferred balance within the offer period, you will be stuck with just another high interest credit card balance.

3 Ignoring your debt

Ignorance of your finances is a great way to get into credit card and is a particularly good way to stay there. If you are not crystal clear about the amount you have to spend in your budget each month, then you can easily spend more on your credit card than you can afford to repay, and quickly be saddled with a growing credit card debt.

Once that credit card debt has established itself in your life, it is even easier to go on ignoring the issue because it seems so hard to handle. However, blindly making the minimum repayment on your credit card debt is a mistake many people make and a mistake which can keep you in debt for a long time.

Instead make sure you are aware of:

· Your credit card balance.

· Your minimum repayment amounts.

· The current interest rate charged.

· The fees charged on your account.

Keep all of this information in a format you can easily refer to, whether it is a spreadsheet on the computer, a notepad on your desk or a page in the back of your diary. With all the facts in front of you, you can more easily plan your attack because you can budget for the minimum repayment amounts required and then look at your budget to allocate any extra funds you have available to make more than the minimum payment.

It is also important that you check on the fees and interest charges on your credit card because neither will be static. Interest rates on credit cards can changes just as frequently as the interest on a variable home loan and credit card providers often move much higher than Reserve Bank decisions.

4 Missing payments

When you are facing mounting credit card debt it is no time to set about destroying your credit rating so don’t make the mistake of missing the monthly repayments. It is easy to think ‘well I’m already in debt this far, what difference will a missed payment make?’ but keeping on top of your repayments and budgeting to meet your credit card obligations each month can keep you on track to managing your debt – slow and steady can win the race.

At the same time don’t take it too slowly and make the mistake of thinking that just paying the minimum amount each month will clear your debt. Making just the minimum monthly payment will see you repaying your debt for many years and repaying many more hundreds of dollars in interest so budget to repay as much as you can spare.

5 Keeping quiet

It can be embarrassing to be in debt at any level and the last thing you want to do is tell your friends and family about your woeful financial situation. However, making those around you aware of your struggle can make it easier to stay on track to repaying your debt because friends will not pressure you for expensive dinners out every week and family arrangements can be made so Christmas time is less of a burden for example.

Also make sure to speak up to your credit card provider if you are looking at mounting credit card debt. You should be able to negotiate a new repayment schedule which you can meet within your budget and you may even be eligible for a lower interest rate. Talking to your provider before you default can save you money, save you face and save your credit rating.

Alban is a personal writer at Home Loan Finder, where he provides tips and advice on refinancing and debt consolidation

Now that you have chosen the best cash reward credit card and that you use it on a daily basis (please see my guest post on The Financial Blogger for the Part2 of How to make money with cash reward credit cards), you need a plan B to finance unexpected expenses. In an ideal world, you would have about 6 months worth of salary as an emergency fund or a line of credit that can cover for such spending.

However, it is always useful to have a second credit card in your wallet as an easy plan B. The second credit card would also be very useful if your cash reward credit card is de-magnetized or frozen for fraud protection for example.

Imagine that you go in France for 2 weeks and your cash reward credit cards is being cloned at the same time. You just finish a great dinner at a fancy restaurant and you can’t pay the bill because your cash reward credit cash has been frozen or canceled to stop the fraud… This is when you pull out your second card out of your pocket and pay your bill (thinking that you won’t get your points back from this expense ;-).

Since it is very common to have a credit card cloned (don’t worry, you won’t have to pay any fraudulent transactions), it is always a good thing to have a second credit cards to cover these situations.

For this one, you are actually looking for a cheap (no annual fees) card. As this credit card will be used for emergency only (in the case your reward credit card is not accessible), you should not look for any features requiring an additional fee on it. Try to find the best free card possible. Here’s a couple of free credit cards:

Here is the complete 6 Easy Steps to Make Money From Cash Reward Credit Cards of Point Rewards Credit Cards (links will be updated as article goes live).

1- Select a card with cash rewards or a good point system that suits your needs

2- Use your credit card for your day-to-day spending (guest post on The Financial blogger)

3- Keep another credit card for emergency

4- Do not withdraw money from your bank account anymore

5- Pay it completely at the end of the month

6- Enjoy rewards from your credit card

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1- Select a card with cash rewards or a good point system that suits your needs

Checkout your spending habits

The very first thing to do before looking for good cash reward credit cards is too look at your spending habits. Why? Because there are credit cards that will give your more points or cash rewards on gas (like the Discover Open Road Card for example) while others will give you a flat cash reward percentage (the Discover More Card offers up to 5% cash rewards in popular categories such as restaurant and gas).

By determining where you spend the most, you will be able to identify the type of purchase that will give you the most cash or reward points at the end of the year.

Checkout your needs

Several people want to use their points or cash reward for a specific goal. We often hear people say that they bought their plane tickets with their points. Actually, travelling seems to be the big trend when it comes down to cash your credit card reward points. It’s a cheap an easy way to finance a part of your vacation.

If you prefer to get travelling rebates, I suggest the Platinum Delta SkyMiles® Credit Card from American Express. This one is giving you 1 mile by dollar spent along with 20,000 bonus miles with your first purchase! You can exchange your points everywhere and fly to your dream destination in peace… and for free!

You may find a great credit card offering a great reward program but if the program doesn’t fit your needs, there are no point getting this so called generous credit card. You have to find the reward program that fits your needs.

Start hunting!

We have the bad habit of getting the very first credit card we see or the one that is offered by our bank as our main credit card. Well a credit card is way much more than simple piece of plastic granting you the privilege of paying goods later in time. This should actually be used as a transactional tool that makes your purchase free of charges along with giving you cash rewards or points.

Therefore, a little research should be implicated in the choice of a great cash reward credit cards. Forget about the interest rate, the 0 APR transfer promotion; focus on the goodies. The plan with this credit card is not to finance purchases; it is to build rewards and benefit from it.

Here are a few examples of great cash reward and points credit cards:

Here is the complete 6 Easy Steps to Make Money From Cash Reward Credit Cards of Point Rewards Credit Cards (links will be updated as article goes live).

1- Select a card with cash rewards or a good point system that suits your needs

2- Use your credit card for your day-to-day spending

3- Keep another credit card for emergency

4- Do not withdraw money from your bank account anymore

5- Pay it completely at the end of the month

6- Enjoy rewards from your credit card

If you liked this article, you might want to sign up for my FULL RSS FEED. Then, you would get my daily post in your email and can read it at any time. To subscribe, please click HERE..

Still though, finding the right credit card can be a challenge. You can find online tools necessary to help you make that sometimes tough decision on which credit card to choose. You can find information on a majority of credit card providers and you can arrange this information in a way that helps you compare them side-by-side.
Sounds easy and it is!

As you compare cards you will notice that some providers offer low interest credit cards. These are popular cards and are some of the top ones being offered. But what are some of the best credit cards?

These are cards that provide no annual fees, provide incentives like cash back on purchases, 0% interest on balance transfer offers, airline miles, hotel miles, car rental insurance and many, many more. The wise thing, when deciding on which of the best credit cards to choose from is to compare various cards here, see what they offer and then choose the best one that meets your needs.

Once you’ve looked over all the various credit cards from the best credit card providers and once you’ve chosen a card that meets your needs for today and tomorrow, you can apply right online, and if your credit is relatively in good shape you can be notified of your acceptance in a short period of time. If your credit is say…not so good, don’t feel lost. There are options that are geared directly towards you!

Credit cards come in a variety of choices and we’re not referring to the incentives they offer. Today you can customize your card, make it more personal to identify with who you are. Some you can add photos others you can choose a variety of pictures or themes. Customizing a credit card is like customizing your check book. You can make it a reflection of your favorite interests, like skydiving, auto racing, sports, movies…the possibilities are endless!
So it’s that easy, choosing one of the best credit cards, possibly even a no annual fee credit card can be a snap, all it takes is a little time – apply today and see how truly rewarding owning one of the best credit cards can be!

The other day, I met a French student that just started his PHD in engineering (I didn’t mind asking what was his specific field of study as he would lost me at “hello” anyway ). He had an important amount of money he received from his parents and wanted to purchase a property.

The problem is that he only had a student visa and no credit experience at all. Therefore, he couldn’t qualify for any mortgage program. No income, no green card, no credit: no mortgage!

So we establish a strategy to get him going and create a favourable credit experience. This strategy is good for students, new immigrants and possibly for people who have bad credit and want to start it over again.

Apply for a credit card

The very first move is to apply for a credit card. The purpose is not to sell you one but credit cards is the best way to build a credit history. Why? Simply because they have the most reliable reporting credit system. They will send updated information to credit reporting agency on a monthly basis.

Don’t try to go fancy with options, insurance and reward system. Simply pick up the most basic credit card ($500 limit, no options). It will be much easier to get approved for basic credit cards than for a platinum or gold credit card.

Use your card on a monthly basis

Pick up one expense type you will pay per credit card and use it every time you make a purchase. For example, if you choose to pay gas, your grocery or cable; always use your credit card to do it. Therefore, your credit card will be used but not maxed out and pay off every month since it’s already an expected expense showing on your credit card bill every month.

Do not ask for more credit for a while

Each time you request credit through an application (loan, car lease, line of credit, credit card, etc.), there is a hit on your credit score. Since you just start building your credit experience, you don’t want to have unnecessary hit dropping your credit score.

Wait

Your credit score will increase over time. If you wait about a year and you have used carefully your credit card during that period, you should get a good beacon score and start applying (moderately!) for more credit request such as increasing your credit limit, applying for a mortgage or a line of credit.

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