Personal Finance

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3 Major Benefits of Using a Credit Card

3 major benefits of using a credit card!


Credit Cards

When was the last time you heard of the term “credit card” and associated it with something negative? high-interest rates, bills you may never be able to pay off, credit cards have a very bad stigma surrounding them. What if we told you that you could use credit cards to your advantage if only you learned to utilize them wisely? 

While many think that the plastic rectangle is dangerous, it can be a tool for good.

How Credit Cards Work?

Credit runs the world, and great credit can create much leverage for someone. By making regular monthly payments, consumers can quickly work to rebuild or establish great credit. Also, many modern credit cards, such as travel cards or reward credit cards, come with cashback incentives, allowing you to reclaim some of that spent money. Whatever your credit situation, Residual Education will guide you through this process.

Major benefits of credit cards

The benefits of a typical credit card depend on the credit card company/bank or how the credit card is used. Three of the major benefits are:

  1. Cashback
  2. Reward Points
  3. Deferred Monthly Interest

1. Cashback

Probably the most popular benefit any credit card can offer is cashback. Some airline companies offer something similar in terms of air miles, but the situation is the same, you spend money, and they’ll give you some back. 

There are different cashback programs for different buyers. Some offer a flat percentage back, while others provide different rates based on where you spend. 

By paying off your bill EVERY month before the interest accumulates, you can make money by spending it!

2. Reward Points

By far, the most attractive feature of a credit card is earning rewards every time you purchase something using a credit card.

Almost all credit card companies give points on purchases through credit cards, depending upon the purchase amount. Reward points earned this way can be redeemed on various online shopping websites.

For example, you can use your credit card reward points to get airline tickets, pay for a new TV, book a hotel, or even donate them.

3. Deferred Monthly Interest

While some credit cards are designed to offer reward points or cashback, others provide debt reconsolidation. It is accomplished by postponing monthly interest for a specified time and not charging a fee on transfer balances.

In other words, there are credit cards known as debt transfer cards that will not charge you interest or fees as long as you make the minimum payment each month.

If you have three credit cards with significant debt and even higher interest rates, you can consolidate them all onto a single card with a particular no-interest term.

This no-interest period varies for each credit card, but the average is 12 to 18 months no interest cards.

While it can help you leverage and pay off your other high-interest credit cards, you must pay the entire bill within 12 to 18 months, or you will be charged extremely high-interest rates.

Nonetheless, these balance transfer cards can SAVE you money on interest while repaying a debt you were already paying!

How to get these benefits?

To get maximum benefits out of your credit card, you must first learn how to use your credit card the right way. You may also need to check what specific benefits your credit card provides. You can reach out to the credit card company or bank to find out about these benefits.

  1. 1. Make full payments on time: Paying off your credit card bills on time can help you avoid paying hefty interest rates. 
  3. 2. Buy what you can afford easily: Always buy the things you can also afford with cash. This way, you can easily manage your debt-to-income ratio.
  5. 3. Never exceed your credit limit: You should always try to stay well below the credit limit of your credit card. This will positively influence your credit score and help you secure better deals with your credit card.


The Financial Accelerator Course contains all the resources that you would need to manage your budget and maintain your debt according to your monthly income. 

This course is equipped with a robust budget management tool where you can enter your monthly income and expenses and easily plan your annual budget. It will show you where extra money may be hidden and what you can do to get it back so your money can start working for you.

Managing finances can be overwhelming, but you don’t have to face it alone. Through Residual Education’s Financial Accelerator Course, you will become much more comfortable with your money, create peace of mind, get into the investment journey, and, most importantly, create the financial future you desire!

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The Importance of Personal Finance

Do you know that more than 64% of adults cite money as being one of the major causes of stress in their life? To be honest, that statistic isn’t that unrealistic, especially when we take the current global recession into consideration. Making money and getting ahead in life have become two very different things. And bridging the gap between them is personal finance. 

Simply put, personal finance is all about managing the money matters of your home. This includes budgeting, tracking, and analyzing the income, spending, savings, investments, and safety expenditures- both short and long-term, of your personal self and family.  

Today, we’ll take a detailed look at why personal finance is important and how you can better educate yourself in this regard.  

Why is Personal Finance Important? 

Better Mental Health 

Making and managing money can be stressful at best and a cause for depression at worst. So, the best way to get ahead of this issue is by giving your personal finances the attention it deserves. By properly budgeting your expenses, you’ll have a clearer sense of where your money is going, which in turn will result in peace of mind and help alleviate all that anxiety about money matters.  

A Secure Future 

From inflation to the recession, there’s a lot of uncertainty that encircles our global economy. A single negative economic indicator can mean the loss of your source of livelihood. Well, your mortgage payments and credit card bills won’t care whether you have a job or not. 

Fortunately, personal finance will help you maintain your future expenditures by creative independent sources of income and making your spending patterns more transparent.  

Freedom of Time 

We can all agree that money management is an arduous task. But the rewards are unimaginable. By knowing where your money is going and having a financial organization you have the ability to create true freedom.

This means that you place enough attention to your personal finances that your money is being allocated in the right places and most importantly it is growing and working for you. Organizing your finances will give you the freedom of time to do what you love to do because you have allocated your money so it is working for you.  

Final Thoughts 

Thinking about the future from a financial perspective can be overwhelming. We get it! But only by taking action can you get true financial freedom. If you’d like to know more about personal finances, and building generational wealth, consider taking one of our financial education courses on our Residual Education online education platform. 

One of our coaches, Mei Jing is an industry expert whose Financial Accelerator Excel is the talk of the town these days. For less than a price of a book, this personal finance course will help you manage your money, analyze your spending patterns, create financial mental programming, and chart your path to financial freedom in real-time.

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