Smart credit card habits

Plus: Math tricks for everyday life

View this email online Today’s newsletter is brought to you by producer Clare Marie Schneider How do credit card issuers make money? Off of you – their customers!  When you open up a credit card, the issuer lends you money and may even give you some perks, like cash rewards and discounts.  They agree to do all this because, on the whole, they make money from interest charges and fees that accrue when you miss payments, says John Kiernan, managing editor at personal finance website WalletHub.  That doesn’t have to be you. If you understand the credit card game, you can reap the rewards without paying additional money. But if you miss a payment or don’t understand how interest compounds, the game quickly becomes no fun.  Here are three tips to help you stay out of debt and get the promised benefits out of your credit card of choice.  More benefits, less debt We Are/Getty Images Find a card with benefits that work for you Think about your shopping habits. Do you tend to spend a lot of money on food? Airfare? Road trips? Look for a credit card with perks that would benefit you most.  That may just be one card, because it’s easier to manage, or several. Some people “have an array of cards for different types of purchases,” says Kiernan. “You could have one card for gas, one card for grocery stores, one card for travel. And that enables you to get the best possible collection of terms.”  Get a card with benefits you’ll actually use, says Kiernan. For example, maybe one card offers no transaction fees on international purchases. “But if you're not going to travel abroad anytime soon, you don't really need to worry about foreign transaction fees.”  Don’t forget that some cards have an annual fee. So make sure the rewards you expect to earn add up to more than that fee, says Kiernan.  Pay off your balance in full every month To avoid costly interest charges, pay your full statement balance every month at the due date, says Kiernan. Otherwise, they can get “very, very expensive.” Interest compounds fast -- and how it’s calculated is often misunderstood.  Let’s say you open a credit card with a 27% APR, or annual percentage rate.  You buy something on January 1 for $100, then you don't make any payments on it for a year.  Assuming $30 in late fees a month, plus interest and compounding interest, your bill would almost double by the end of April!  There’s another reason to pay your monthly statement balance in full, says Kiernan. You don’t want to lose your grace period. It’s an interest-free period that many credit card companies offer between the time you make a purchase and your payment due date. If you don’t pay the full statement balance one time, that grace period goes away -- and you’ll start accruing interest every day not just on that purchase, but on everything else you buy going forward. Call your credit card company and ask for help  If you make a mistake that results in a late fee or interest, call the customer service number on the back of your card and ask them to cut you some slack. They will often waive these charges if it’s your first time.  “They're not going to do it every month. But if you've been a good customer or you’re a new customer, they [may be] more willing to cut you a break than a lot of people realize,” says Kiernan. “There's a lot of competition among credit cards and banking, so they know you have other options.” Kiernan says you can also ask your credit card company to change your payment due date to a time of the month that’s more convenient, like right after you get paid.    I wanna be a credit card pro Newsletter continues after sponsor message More credit card tips from Life Kit We Are/Getty Images Want to get into credit card points? Here's what you should know. Credit card rewards programs can offer big perks like airline miles and hotel upgrades. Finance journalist Katherine Fan explains how to choose the right card and what to know before signing up. Read the story here.   Boost your credit card IQ. If you use credit cards intentionally, you can free up some valuable perks. We geek out on strategies to make credit cards work for you. Read the story here.  Tricks to improve your credit score. A strong credit score can make major purchases and financial transactions much easier. Here's how to make yours better and keep it high. Read the story here.  Listen Sponsor-Free Support public media while getting expert advice on health, finance, relationships and more with Life Kit+. You'll get sponsor-free listening AND that warm fuzzy feeling that comes with making a difference. You can also check out loads of other NPR+ podcasts with benefits at plus.npr.org. Climate Solutions Week: The future of food Credit: Becky Harlan/NPR Climate change is affecting our food, and our food is affecting the climate. NPR is dedicating a week to stories and conversations about the search for solutions, from how we farm to what we cook to reducing food waste. Composting can help fight climate change. Get started in 5 easy steps. Whether you've got a small apartment or a big backyard, there are ways to compost your kitchen scraps in any space. This episode is your starter for how to compost your organic waste into rich soil. Read the story here.  Do you love seafood? Here's how to eat it responsibly. Fish populations are dwindling around the world due to overfishing. Here's how to make the right choices when dining out or buying fish at the market. Read the story here.  How to eat more like a vegetarian — even if you're not one. Meat production takes a heavy toll on the environment. Here's how to dial back your meat intake and make a big impact. Read the story here.  How to cut down food waste (and save money). Tossing out overripe avocados, wilted greens and sour milk isn't just costing you money — it's also contributing to climate change. Reduce your food waste by planning ahead and using creative recipes. Read the story here.  In case you missed it Elena Rui/Getty Images Can magnesium help you sleep? TikTok users claim that drinking the "sleepy girl mocktail," a mixture of magnesium powder, tart cherry juice and other ingredients, can help you sleep. But does it really work? NPR's health correspondent Maria Godoy brings us the science behind the trend – and magnesium's effect on sleep. Listen to the episode here.  Math tricks for everyday life. If math never quite stuck for you, Ben Orlin is here to change that. He says think of math as a language. Numbers are the nouns and the arithmetic operations are verbs. This episode, learning the language of math to help you in your day-to-day life. Listen to the episode here.  What to say to kids when the news is scary. Whether a school shooting or a deadly tornado, scary events in the news can leave parents struggling to know when — and how — they should talk with their kids about it. Rosemarie Truglio of Sesame Workshop and Tara Conley, a media studies professor at Montclair State University, give us tips. Read the story here.  10 more clever and commonsense ways to save money on groceries. Check your receipt. Grow your own veggies. Ask about senior discounts. NPR readers share their top tips on cutting costs at the grocery store. Read the story here.  Upcoming Life Kit topics 🗳️ Voting 🌎 Going plastic-free  💪 Resilience  Stream your local NPR station. Visit NPR.org to find your local station stream. What do you think of today's email? We'd love to hear your thoughts, questions and feedback: LifeKit@npr.org Enjoying this newsletter? Forward to a friend! They can sign up here. Looking for more great content? 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