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Playing The Float With Credit Cards

ITIPress.org - Marlon Jerez / Consultant in Economics

 and Financial Issues

In the world of finance, floating is a concept that is widely utilized and it is one in which consists in using adequately the existing term between the issuing of a check and the moment in which it becomes cash. This is due to the fact that within banks there exist a period of compensation, which may be taken advantage of for financing purposes.

How may a person take advantage of playing the float? The answer is simple and it does not require complicated techniques to reap the benefits. The only requirement needed is that you possess a strong will and to be quite organized with your budget.

If this you have a variety of credit cards, you can apply to enter the game of playing the float, which consists of the following:  

1.      Deposit in the bank a quantity of money that is equal to the amount planed on being spent with the credit card.

2.      Purchase with the credit card the majority of the things that are needed.

3.      Paying the due amount in the card until the date the date of its offered interest rate is expired.

Which is the benefit this person obtained? When you paid the total amount, you made use of free financing (at 0% interest) and no interest was charged. At the same time you maintained money deposited a bank account earning interest. The bottom line is a gain obtained from the interest of the money deposited. 

An important point that you must keep in mind is that this game will have favorable results only if you donít get into debt with the credit cards since once the free financing is used, you will loose the possibility of taking advantage of this game and loose the benefits that go along with it. Remember that you must confront the interest payments, which are usually notoriously high.

Another question would be; what can you do if you have a credit card with a large amount that is owed? You should try to minimize the amount owed as much as possible whether it is consolidating your debts by obtaining a loan with a much lower interest rate and closing these credit cards temporarily. After you have cancelled your debt, you should force yourself to have a maximum of two credit cards and to start utilizing the float to obtain the benefits that go along with it.

So that you may enter this game, you must organize your personal finances. The benefits that may be obtained will greatly depend on the control you have over your spending habits and that your expenditures do not surpass your income. Donít shop just to buy things! You must keep in mind that when you make a purchase, you will obtain the maximum benefit possible from that purchase. You should not invest in items that quickly depreciate or in things that are not necessary in your life.

By following this advice, it will significantly help your financial situation. You should enjoy a good financial life and never be wondering as to where you are going to obtain the money today in order to make your next credit card payment.

"Every single life only becomes great when the individual sets upon a goal or goals which they really believe in, which they can really commit themselves to, which they can put their whole heart and soul into." - Brian Tracy




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