Chase credit cards feature a unique program they call “Chase Blueprint” (www.chase.com/blueprint), which is meant to help cardholders manage their credit cards and maintain control over their finances.  While credit cards have a reputation of ruining financial futures – the fact is, when they are used correctly, credit cards become part of a strong strategy which can actually improve your financial situation.

Chase Blueprint: Track It

One of the most useful benefits of Chase credit cards is the “Track It” feature.  This feature will sort and categorize your credit card purchases to help you see exactly where you are spending your money.  You can then easily set up a budget based on the types of spending categories you need and the average expense for each.  When you spend more than you should, you can easily see where the money was used unnecessarily and get your budget back into control.

People who use a Chase credit card for all of their purchasing will find the Track It feature most useful, as all of your spending is shown in one place. (more…)

Having average credit means you have a FICO score somewhere between 650 and 699. Usually people who have average scores have either missed an occasional loan or credit card payment or their debt to income ratio is high, meaning they currently have too much debt in relation to how much they make. Many people have the misconception that if their credit score is average they will not be able to qualify for a good credit card. This is simply not true.

If you have an average credit score you can still find a good credit card for average credit. You should expect to spend some time searching the internet to find the best card match for you, though, as it is a bit harder with a less-than-perfect credit score. Your goal should be to find a card that offers some or all of the following:

• No annual fee
• Some type of introductory offer like 0% interest
• Rewards, like a cash back credit card
• Low interest rate (more…)

We’ve all heard the horror stories of using credit cards and the resulting credit card debt that seems to grow and reproduce when you’re not looking – but there are actually many advantages to using credit cards.  When used correctly, credit cards can offer interest and fee free spending power that earns you cash back or other rewards.  Here are some tips for using credit cards to your advantage, instead of letting them rule your life:

Charge Only What You Can Afford to Pay Back

This seems like common sense, but the trick is to charge only what you can afford to pay back in full when your credit card statement comes.  The mistake many people make is using credit cards to the point where they can still afford the monthly minimum payment, rather than thinking about what they can afford to pay back when the statement arrives.  You do not have to carry a balance from month to month and to put credit cards to use in your favor you need to get in the habit of spending only what you can afford to pay back when you get the statement.  This is how you avoid finance charges and interest without using a 0% APR credit card.

Use a Checkbook Register to Track Credit Card Spending

Instead of using your card in a carefree manner all month long and then getting a surprise when your credit card statement arrives, use a checkbook register to keep track of your spending the same way you would if you were writing checks or swiping your debit card.  Know how much you can afford to send in to pay it off, and make sure you don’t spend more than that amount. You can make life even easier by using a free budgeting software like Mint, using the Blueprint feature on Chase Slate or buying Quicken. Checking your credit card balance online regularly can also help you keep a lid on spending so you can minimize interest and maximize what you earn with rewards credit cards.

Short Term Credit Card Use Sometimes Makes Sense

Sometimes you need or want a purchase which is going to cost a little more than you can pay back all at once.  Let’s say your television breaks, and you decide this is the time to upgrade to the new 60” flat panel television you’ve been dreaming of, and it’s going to cost $1,500.  Even on a credit card with 18% interest, if you pay this back within 4 months, you’re only paying around $60 in fees and interest (if you don’t send payments in late) which is not too bad.  Make the same purchase and pay it back over two years and suddenly your television costs $300 more, though.

When considering larger purchases that will have to be spread out, prepare your budget to pay it off in the shortest amount of time and avoid using additional credit until it’s paid in full. If you’ve already made one of these purchases, consider getting a 0% balance transfer credit card so you can repay your debt without incurring more interest.

If you are considering transferring your debt from a high interest credit card to a 0% APR credit card there are some things that you need to know. Let’s take a look.

Your Credit Card Debt Will Not Go Away

Don’t get the false impression that your debt will somehow diminish. While you will save in interest when it comes to your payments, in essence you are using one credit card to pay off another. The debt simply gets transferred, and is still in your name. While a 0% APR balance transfer is the first step in the process, committing to paying down your debt is the most important step you need to take.

Your Payments Will Be Simplified

If you have more than one credit card that you have racked up debt on and you can transfer all of your debt to a high limit credit card, your payments will be easier. First, you will now only have one payment to remember to make each month. Second, your minimum payment each month very well may be lower than the total combined payments you were making when you had debt on multiple cards. (more…)

Paying off credit card debt is always a good thing but eliminating debts too fast can be detrimental to your overall financial health. Debt repayment on your credit cards should be a nicely paced process to ensure you are not putting yourself in other dire financial straights. Your debt repayment strategy should ensure you are not putting all your money in one basket.

When you use a balance transfer credit card to effectively eliminate credit card balances from existing credit cards, it is recommended that you always have a plan in place beforehand to make sure you can reasonably afford to meet the new payment requirements on the balance transfer card. Without a plan, you can get yourself in more debt which is a situation you should avoid at all costs.

Here are some considerations you need to make with your credit card debt payoff plan:

1. You Have to Plan for the Unexpected

If you have dedicated all of your ‘extra’ cash to paying off the credit card debts you’ve transferred to a 0% APR credit card and are not making deposits regularly into an emergency savings fund, you are potentially at risk for finding financial trouble again. Things can happen at any time that can cause you big expenses. For instance, medical emergencies or job loss can derail your finances if you have not been properly planning for such occurrences.

2. You Have to Plan for Daily Living

If you are not operating under a reasonable budget for your income and expenses, you may become highly stressed when you can’t afford daily living expenses because you’ve put all your money towards your credit card debts. There are many daily expenses you might incur on any given day including gas, food, and the like and if you have not allocated your income correctly, you may not be able to afford what you need.

3. You Have to Stop Using Credit Cards

If you have not quit using your credit cards after transferring your existing balances to a balance transfer credit card, you are only creating another circle of debt for yourself. Once you have zeroed out existing card balances, you need to learn your financial lessons moving forward. If you do not have the cash to back up a credit card purchase, you should not be making the purchase. As you progress with your balance transfer card payments that will effectively eliminate other outstanding credit card debts, it is important to stop using your other credit cards at least until you have reached your debt elimination goals.

Your financial planning is key to your success when it comes to paying off credit card debts. Since you have an ideal opportunity to pay off debts at a lower interest rate using a balance transfer card, you will ultimately save money if you plan appropriately. If you do not have a plan in place, you could potentially end up paying hundreds of dollars extra on credit card penalties and other fees associated with not meeting your other debt obligations.