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Using Credit Cards - Using Credit Card Wisely
How to Use a Credit Card Wisely
Whether you got your credit card because you were offered one or you applied for it, please be careful
about using it. I
Please watch out and use it wisely.
I can remember getting my first credit card. I was so
excited about it.
However using credit cards wisely wasn't even a
consideration. I used up my credit limit in just one
month. Then I couldn't use it again.
It took me a long time to pay down that credit card.
If I had known how to use a credit card wisely, I
wouldn't have been charged with so many fees such
as over the credit limit fees.
Advantages of Using Credit Cards
1) Using a credit card can be a good way of managing your money if you used it for that purpose only
2) Consider using only major credit cards instead of chain store credit cards.
3) Unlike chain store credit cards, major credit cards can be used to purchased almost anything anywhere.
4) Consider obtaining a secure credit card so you can have some control over your credit limit
5) When using a secure credit card start your credit limit small to see if you can handle the monthly note.
6) Use the credit card to help you gain a positive credit rating and to increase your credit score.
Here's how using a credit card can improve your credit ratings without going into debt.
1) Use the credit card to purchase your groceries, gas and any other items you would normally pay cash for
2 ) Save the cash. Don't spend it.
3) Before your monthly statement is printed take the cash you saved and send it to the credit card company, meaning you will be paying the balance in full.
4) Don't use no more than 35% of your credit limit.
For example if you have a credit card with a credit limit of $1000, you should only use up to $350. Then put the card away until you reduce your balance. Keeping your balance low will improve your credit scores as well as it will be easier to pay down.
5) Pay a lot more than the required minimum balance
Disadvantages of using a credit card
If not used wisely it can:
1) Put you in debt real fast
2) Cause you to have a negative credit score (decrease your scores)
3) Take years to pay them off even with small balances
4) Cost your net worth to decrease because credit card debts are liabilities instead of assets.
In conclusion
It is my desire that this tutorial has helped you understand all that you need to know concerning credit cards and using them. Learning the correct to use them is very important when it comes to keeping more of your money in your pocket. Again its fine to use them but use in a wisely manner. Thank you for visiting.
Next Credit Tutorial will teach you about the 3 Credit Bureaus
If you are ready to learn about the credit bureaus click next below
Hi, I'm Abbie.
Your financial
education tutor.
Welcome!
