Financial Fitness with Alan Akina - Tips on Using an "Expense" Credit Card

You can use a credit card to keep your financial house in order. Alan Akina has more in this week's financial fitness segment.

Good morning, everyone. Last time I talked about the many benefits of using what I call an expense credit card. In today's tip, I want to show you how to safely use this card. First thing, the card you choose must not carry an existing balance, so you can either use one you already have or Apply for a new one. Secondly, this card is to be used only for your monthly living expenses and not to buy anything frivolous. Look back at the starting line worksheet where you wrote those down. Now, whatever you would pay cash for or write a check for should now be paid with your expense credit card. If you're getting a new credit card, look for one with no annual fees and that possibly has some type of reward attached to it. The card you choose must have at least a 22-day interest-free grace period. It would also be nice if your card has at least 2 months of your living expenses in availability. If possible, this card should be set up for automatic bill payment. So call the issuer of the card and ask them if they're able to automatically zero out the balance on the due date, taking the full amount from your checking account. Now be wise when you use this card, folks, and ensure that you pay off the entire balance each month. All of this information is at the Wake Up Today webpage at khoin2.com. I'm Alan Akina. See you next week.