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Should You Add Accounts to Your Credit Card Bank? |
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by: Debbie Dragon
Most people do not have other accounts with the bank that holds their credit cards. The reason is that they already have established checking and savings accounts with local banks and this option does not present itself when applying for a credit card. And, most banks do not promote this opportunity, either.
But, there are some good reasons for considering doing this. They make sense and can help you manage your money better.
Auto Deposit
The most important of these reasons is the option to auto deposit money from your paycheck into a secondary account. This means that when you get a paycheck, you can automatically assign an amount to go to an account that you have established with your credit card bank. Using this helps you to manage cash flow.
Easy Payments
Making payments to your credit card account becomes an easy transfer from your secondary account into your credit card account. You might even have an automatic payment option which means that you will never have a late payment again which avoids those fees that can accumulate on your credit card account.
Special Use Accounts
Use these accounts to set aside money for special items like building up money for a new car, or down payment for a house. Or, just keep money separate from the rest of your accounts for management purposes. Intermingling money that is specified for particular reasons makes it difficult to maintain control over.
Better Rates
Some banks might offer better rates and lower fees with the opening of an additional account with them. The reason for this is because studies have shown that when customers have more than one account they stay with a bank or financial institution for a longer period of time. Also, banks are more inclined to make offers to customers who are preferred with more than one account.
Good Money Management
Solid money management techniques include using all available tools to help watch cash flow to make sure that payments are made when they need to be and money is saved automatically. And, it does not have to be major money amounts that drive this activity. Just a few dollars per paycheck can help in this whole process.
Budgeting Assistance
Need help allocating money to certain expenses? Opening additional accounts can help with this task, too. You can then take money that is in a specific account and pay designated expenses. When money is auto-allocated it helps prevent spending it on things that it is not intended.
Using credit cards in a responsible way means that you have to get creative and work harder than ever to “win” at the game and make the cards and accounts work for you and not against you. Most people are content to sit idly by and allow fees and charges to accumulate while they struggle to just pay the minimums. And, some are not even able to accomplish that feat.
But, taking control of your credit cards is hard work and involves a total strategy of working a financial plan that will improve your finances, even if it is just a little at a time. That is why this suggestion to add accounts to your existing credit card bank makes sense: it fits the strategy and helps you get be a better money manager.
Ultimately, you have to make better decisions based on sound advice. That advice has to fit your situation and be applicable in ways that propel you ahead towards solid financial footing. Taking the time to check all suggestions out is wise and solid advice. Keep yourself open to new and better ways to reach your financial goals. You’ll be glad that you did.
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Credit Card Articles > Credit Card Education > Should You Add Accounts to Your Credit Card Bank?
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