Are you using float to your advantage?6 of 7Say your clothes dryer tumble-dries its last load. You'll be able to pay for a new one after payday in a couple of weeks, but you need to do laundry now. A wise way of using credit cards is to "use the 30-day float," says Tim Chen, CEO of NerdWallet.com, a credit card research site. Float is the grace period between making a credit card purchase and paying your bill in full to avoid interest charges. That means, buy the dryer now, and pay for it later in the month when you get paid."Using a credit card for the 30-day float between the time you buy something and the time you have to pay can be wise, as long as you pay the bill off on time," Chen says.<< Back to the Frugal Living Guide. Related Articles:Save money on groceries10 ways to save on carsTweet for sweet dealsGroup buying saves moneyRelated Links:331 ways to cut costs!Saving goals calculator100 tips to help you saveSaving on foodadvertisement
Say your clothes dryer tumble-dries its last load. You'll be able to pay for a new one after payday in a couple of weeks, but you need to do laundry now. A wise way of using credit cards is to "use the 30-day float," says Tim Chen, CEO of NerdWallet.com, a credit card research site. Float is the grace period between making a credit card purchase and paying your bill in full to avoid interest charges. That means, buy the dryer now, and pay for it later in the month when you get paid.
"Using a credit card for the 30-day float between the time you buy something and the time you have to pay can be wise, as long as you pay the bill off on time," Chen says.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.