Thursday, December 21, 2017

Getting the Most from Your Credit Cards

Acknowledgement: Westpac Australia
Most credit cards these days come with a range of loyalty points. Are you using them to gain the best advantage?

When I had my businesses, I put as much of my business expenditure on a credit card as possible. The benefits for me were:

  1. I got about 50 days free credit
  2. The credit card provider supplied me with a monthly statement and,
  3. Each transaction accrued loyalty points
There's a word of caution however, if you want to benefit from using credit cards, you MUST pay the whole amount on the card by the due date, otherwise you will be required to pay interest.

I paid my business credit card my personal credit card on the due date. The bank makes nothing from me except for the annual $100 fee.

There is a range of different things you can do with your points including, using them for air fares, getting discounts on Uber taxis, or buying merchandise or gift cards. As I have all the gadgets I'll ever need, I usually request Caltex fuel cards for my points.

Last year when I drove all over Western Australia, I had picked up $1,500 (AUD) worth of fuel cards which cut down my fuel expense considerably.

Each month, when the bank statement arrives in my inbox, I check each line item to ensure there have been no ripoffs and then file it. At tax time, I can use the statements to see what I have paid that is claimable on tax (not much, unfortunately).

Are you using credit cards to their best advantage? Do you use them for your business expenses?


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