Credit card companies have long had their schemes for getting you to sign up with them. They implode your mail box with offerings, they offer you free food in college if you just sign up, and they have catchy commercials that capture your attention. They do all of this so that they can charge you exorbitant rates and get your money. But the problem is not with the credit cards, but with how you use them.
Credit is a slippery slope and a double edged sword. It's a bad idea in general to borrow money, but you have to if you want to be able to buy a house or a car. The really bad thing is that a number of people borrow money that they cannot afford to pay back, causing them to need the assistance of credit counseling services. So the following are some tips to help you keep from going bankrupt and use your credit card wisely.
The first and foremost rule to having a credit card is to never spend more than you can afford to pay off in any given month. You should pay your balance in full every month and only use a credit card as a credit building tool. Paying your balance in full every month will keep you from paying interest and will keep you debt free. Make sure that you pay on time and in full so that you aren't charges late fees as well.
Look, realistically, not everyone can pay off the whole thing every month, it's understandable. If you have to just pay your minimum balance, make sure that you add at least five to ten dollars to it, even if you have to split it up over the month. When you are paying minimums, part of this money goes to interest. Paying a little extra a month goes directly to the principle.
A huge mistake that people make with credit cards is that they purchase luxury items or things that they wouldn't have been able to purchase if they didn't have credit cards. Smart people only use credit cards to purchase things that they can afford, and then they pay for them at the end of the month. You should never use a credit card to go out to eat if you can't afford it, buy and expensive outfit that you can't afford, or go on a trip that you can't afford.
You can find out more information online about a variety of credit card topics. If you are interested in building your credit using credit cards, it is a good idea to shop around and really look at what each card offers in the way of benefits. You need to make sure that you get the lowest interest rates, and read all the fine print about over limit fees, late charges, and financing fees. You need to be clear about everything you are getting into, because you can't use the excuse that you didn't know. - 29958
Credit is a slippery slope and a double edged sword. It's a bad idea in general to borrow money, but you have to if you want to be able to buy a house or a car. The really bad thing is that a number of people borrow money that they cannot afford to pay back, causing them to need the assistance of credit counseling services. So the following are some tips to help you keep from going bankrupt and use your credit card wisely.
The first and foremost rule to having a credit card is to never spend more than you can afford to pay off in any given month. You should pay your balance in full every month and only use a credit card as a credit building tool. Paying your balance in full every month will keep you from paying interest and will keep you debt free. Make sure that you pay on time and in full so that you aren't charges late fees as well.
Look, realistically, not everyone can pay off the whole thing every month, it's understandable. If you have to just pay your minimum balance, make sure that you add at least five to ten dollars to it, even if you have to split it up over the month. When you are paying minimums, part of this money goes to interest. Paying a little extra a month goes directly to the principle.
A huge mistake that people make with credit cards is that they purchase luxury items or things that they wouldn't have been able to purchase if they didn't have credit cards. Smart people only use credit cards to purchase things that they can afford, and then they pay for them at the end of the month. You should never use a credit card to go out to eat if you can't afford it, buy and expensive outfit that you can't afford, or go on a trip that you can't afford.
You can find out more information online about a variety of credit card topics. If you are interested in building your credit using credit cards, it is a good idea to shop around and really look at what each card offers in the way of benefits. You need to make sure that you get the lowest interest rates, and read all the fine print about over limit fees, late charges, and financing fees. You need to be clear about everything you are getting into, because you can't use the excuse that you didn't know. - 29958
