Credit Card Strategies to Increase Net Worth

by MSE Staff | Published 16 Aug 2021 (Updated 2 Nov 2021)

Financial success is not easy, and there are a few steps that you can take which will lead towards making more money and becoming wealthier in the long-term. One of those first steps? Building credit! It sounds simple but it's actually tricky because we're all so busy these days juggling work, friends, family -not to mention finances. But with strategies for increasing net worth using credit cards (which could make things easier) people may be able to get on the road to wealth much faster than they thought possible before.

Retirement Contributions by the Numbers

Credit card companies are getting more and more aggressive in their marketing tactics. The minimum monthly payment is the lowest amount a customer can pay on their revolving credit account per month to remain in good standing with the company, but many people who only make this bare minimum will end up paying higher interest expenses than those who put down a little extra each month. With all of these new gimmicks from banks like 0% interest for 6 months, it's hard not to get sucked into an enticing offer or two--but always be mindful that making just the minimum due may lead you deeper into debt faster.

An APR is the annual rate of interest you can expect to pay as a borrower. Fees are additional costs that you agree to pay in exchange for access to credit and other services such as withdraw, late payments on your card, or maintenance fees.

What Are the Benefits of Making Overpayments?

Making overpayments is a great way to get out of debt faster, but there are risks involved. If you don't make at least the minimum payment each month, then your credit rating will be damaged when that information gets reported as missed payments and late fees!

When you make an overpayment, a sense of accomplishment and pride comes with that. You'll feel better about the direction your finances are moving as well as have less stress in your life! Not to mention increased motivation for taking more proactive steps in not only financial aspects but other parts of life too.

The Difference Between Minimum Payments and Overpayments

Believe it or not, your credit card issuer is keeping track of whether you make a minimum payment or an overpayment. Minimum payments are a strong indicator that you're going to have trouble paying down your credit card and making them means you’re giving away your money! That’s money that could be invested instead in opportunities with higher returns. Conversely, when you do the right thing by opting for an overpayment on balance owed each month; this reduces the amount accrued from interest which can then lead into more savings!

You Deserve a Healthy Relationship with Your Money

Knowing how to use your credit cards wisely can help you increase your net worth. The first step is understanding the difference between a minimum payment and an overpayment on a credit card, as well as what APR means for each of these terms. Once you know this information, Curtis has some tips that may be helpful in helping you do more with less when it comes to managing your finances. If any of this sounds confusing or overwhelming, schedule a discovery call today so we can walk through everything in detail together! You deserve healthy relationships not just with people but also with yourself and money too!