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Monday 31 october 2022
Millennial Money: 7 credit card moves

to stretch your budget

By MELISSA LAMBARENA
of NerdWallet
As prices on goods and
services soar, every bit of
value squeezed from credit
cards helps.
Perhaps paying an annual
fee became less appetiz-
ing. Maybe you scaled
back expenses in certain
categories a credit card
once rewarded, or you’re
seeking opportunities to
save with your credit cards.
When you aren’t focused
on debt and are looking In this Jan. 31, 2018, photo, an assortment of credit cards and
to make the most of your rewards cards are shown in Zelienople, Pa.
cards, consider these sev- Associated Press
en tips to free up money for this option to increase her added up to a minimum
other goals. likelihood of approval for a value of $700.
1. REQUEST A PRODUCT new card with the same is- “You have to figure out if
CHANGE suer, but she says it doesn’t it’s worth it, based on what
Ask your issuer if you can work with every bank. they offer, for you to keep
upgrade or downgrade “Call a special reallocation it,” Greenstein says.
your credit card when it line and say to them that 4. MEET BONUS REQUIRE-
no longer aligns with your you only want the card MENTS WITH GIFT CARDS
spending habits. Down- and the bonus,” the New When chasing a credit card
grading to a different cred- York resident says. “It usu- bonus, don’t overspend to
it card is ideal to avoid an ally makes them feel bet- earn it. If your budgeted
annual fee, while upgrad- ter to know that they don’t purchases aren’t enough
ing can provide more valu- have to extend you more to meet the bonus spend-
able perks or rewards. credit.” ing requirements within the
For rewards credit cards, 3. SEEK A RETENTION BONUS designated time frame,
ask whether existing points, When you’re on the fence consider using the credit
miles or cash back will be about keeping a once- card to buy gift cards you
affected before making valuable credit card, ask can use later.
the switch. the issuer whether it can You could buy a gift card
2. REALLOCATE YOUR CRED- offer any incentive to help to a grocery store, a res-
IT LIMIT you decide. taurant delivery app or an
Some issuers allow you to As a loyal customer with often-frequented retailer.
reallocate a credit limit a good track record, you Just don’t overdo it be-
from one credit card to an- might get a retention bo- cause some issuers have
other within their product nus that grants rewards in rules against abuse.
portfolio. Reasons why you exchange for meeting a 5. NEGOTIATE A LOWER APR
might explore this option minimum spending require- If your account is in good
include: ment. Offers may vary de- standing, try negotiating a
Avoiding maxing out a fre- pending on the issuer, and lower annual percentage
quently used credit card. there’s no guarantee you’ll rate with your credit card
Earning more rewards. get one, but it’s worth try- issuer. Your creditworthi-
Preserving credit before an ing. ness factors into the inter-
account closure. Greenstein and her hus- est rate, but an issuer may
Qualifying for a new credit band recently accepted be willing to go lower.
card with less risk to the is- two retention offers total- Delia Fernandez, a certi-
suer. Cindy Greenstein, a ing about 70,000 points on fied financial planner who
points and miles consultant credit cards with high an- owns Fernandez Financial
and creator of the blog The nual fees. Advisory LLC, a Califor-
Points Mom , has tapped She estimates the offers nia-based firm , suggests
searching for competing
offers at a different bank
or credit union and pre-
senting them to your credit
card issuer to get a lower
interest rate.
This option may also be
ideal if you have plans to
finance a large purchase
and don’t want to open a
credit card with a 0% intro-
ductory APR. q