We all want to be on somebody’s A-List. It means you’re the favorite, you’re the best, you’re a star! Credit card companies have an A-list too. Those on the list are the customers they love the most. But they love them because these customers make them the most amount of money. So you might want to do everything you can to avoid being included in this list at all.
Here are some ways you can make the credit card companies love you.
Be late with your payments
Most people think credit card companies want you to be on time, every time. That’s just not the case. The credit card companies want you to be late. And if it happens every month that’s even better. Every time you’re late with your payment they can add on additional late fees. Late with your payment again this month, sir? You get a Gold Star.
Haven’t you ever noticed how credit card companies don’t let you automatically deduct your payment from your bank account every month? (Well at least Capital One doesn’t let you do that). When you don’t pay your car loan a few months the bank will take your car away and keep your payments. But when you don’t pay your credit card or you’re late the bank will just add fees but they won’t take your card away. Oh no, they want you to keep using it even more.
Don’t ever pay off your balance
Paying off your balance at the end of every month is not the best choice if you want to be included on that A-list. If you pay your balance off every month the credit card company can’t charge you any interest. Carry a balance from month to month so they can keep charging you interest and they’ll be happy to put your name at the top of their A-list.
If you always pay off your balance your credit card company may even “reward” you by raising your credit limit. They figure if they raise it you might spend more than what you can afford to pay back in a month, which is what they want. They want you to give you just enough rope to hang yourself.
Keep track of your interest rate
Yes, the credit card companies really do want your business, they’d love to put your name on their list. That’s why they send you those 0% interest cards. They know you’re eventually going to forget all about the deadline and they can really sock it to you. Watch how high your interest rate can climb. Oh and if you keep the card and use it after the trial period is over, you’ll get a Gold Star, too.
It’s not really the balance of your debt that will eat you alive, it’s the interest rate that will. So keep an eye out for any changes to your rate. You can always contact your credit card company and ask them to lower your interest rate or else you’ll switch to another company that’s offering a better rate. You can also pay back your credit card debt several times per month. Waiting until it’s due is a bad idea, since interest accrues daily.