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Dollars & $ense: Make Your Credit Card Work
Choose the Right Card with the Right Terms and the Right Rewards for Maximum Benefits
If you’re like most people, your mailbox is overflowing
with credit card offers. Before you shred the next batch,
take a look and see what the credit card companies are
offering these days. You might find a deal that’s better than
what you already have stuck in your wallet.
Companies are offering everything from airline miles to
groceries to electronics as incentives for using their partic-
ular credit card. Find the card and benefits that are right for
you and you can rack up some really nice rewards. A few
tips for success:
1. Find the perfect card. So which card is going to be
“your” card? That depends. What benefits are you looking
for? Do you want to collect airline miles for a trip? Do you
want to receive rewards from a particular store or vendor?
Maybe you want cash back on each purchase instead. For-
tunately, there are many choices out there and with a little
research you can find a card that suits your needs.
2. Compare offers. Don’t jump to sign up for the first
offer that looks good. Be sure to read the fine print because
interest rates, annual fees, payment terms and reward
redemption will vary widely from compa-
ny to company. Know what you’re
getting.
3. Skinny down your wallet. Once
you’ve added a new card you might
want to consider closing older
accounts. Closing accounts that have
higher fees or interest rates can save
money. However, there can be draw-
backs to closing established credit
card accounts. Understand the poten-
tial impact on your credit score
before you close down old accounts
that have a good history.
4. Access to low interest funds. If
you need ready access to cash, many credit
card companies offer no interest, or very low interest rates
called teaser rates, for a certain length of time on cash
advances. Carefully check the terms on your card, but don’t
overlook this option for accessing funds when you need
them.
5. Fringe benefits. Many credit cards come with
extra benefits most people don’t
use or even
know
about.
Some offer addi-
tional car or
accident insurance
when you travel.
Others provide an
extended warranty
on certain purchas-
es. Know the details
so you can take full
advantage.
6. Don’t forget to
redeem. As you start
piling up points, don’t
forget to use them.
Some rewards will have an expira-
tion date on them. Don’t lose out on the very benefits you
signed up for in the first place.
Smart Money
While you’re enjoying the benefits and rewards of your
credit card, be sure to heed these additional tips:
• Avoid unnecessary fees. Make sure you know about and
understand any late payment or over-the-limit fees. You
may also incur fees for cash advances and balance transfers.
Some companies may even charge a fee if you pay by
phone or online. Know the terms of your card and stick to
them.
• Don’t just make the minimum payment. It may look
great on paper that you only owe $25 for last month’s shop-
ping spree, but ideally, you’ll pay your bill off each month
or pay as much of the total as you can so you’re not incur-
ring interest charges, which can really accumulate and are
not generally tax deductible.
• Pay on time. Know when your payment is due and get
that bill paid on time, allowing plenty of time for the mail
to get there or for online transfers to take place. On-time
payments will keep you from incurring late fees, keep your
interest to a minimum, and keep your credit score looking
good.
Shop Around, Reap the Rewards
A lot has been written about the perils of credit cards and
the debt people can amass by using them. But credit cards
can also provide some excellent benefits that can help you
achieve your goals, whether that’s travel or a little cash
back in your pocket at the end of the month.
Dollars & $ense is a regular column on personal finance
prepared and distributed by certified public accountants
from the Oregon Society of CPAs (www.orcpa.org). For
more money tips, follow ‘Oregon Saves’ on Facebook:
facebook.com/OregonSaves.
An Urban
Entrepreneur
Foundation Program
If you’re a high schooler and you like new technology,
here you won’t want to miss the iUrban Teen Tech Summit.
The summit offer a chance to learn about what's new in the
amazing world of technology. You will get to preview,
hands-on, cutting edge products, such as mobile devices for
students, on-the-go, gaming and more.
The all-day event will run from 9 a.m. to 3:30 p.m. at the
University of Portland campus. It is open to all teens, but
minority and underserved groups from Portland Metro and
S.W. Washington regions are specially encouraged to
attend.
Find out how to kickstart a career in gaming, cybersecu-
rity ormobile apps, as well as how NIKE uses technology.
Hear from the experts and get inspired by a real life
Tuskegee Airman, as featured in the movie Red Tails. (And
go home with a goodie bag.) Spaces are limited. The first
iUrban Teen Tech Summit program launched on the Wash-
ington State University Campus in October 2011. It served
102 local underrepresented youth, 26 parents and 30 volun-
teers. Intel, Nike, Tripwire, Applied Cinematics and
AM:PM PR presented products at the event.
Sign up online at www.iurbantech.com.
Page 12 The Portland Skanner March 28, 2012