March 14th, 2013
Credit cards can be used in smart ways and dumb ways. Examples?
Credit cards can be used in smart ways and dumb ways. Examples?
A smart way to use credit cards is to have one that you pay all of your bills off with. This will allow you to see where a lot of your money is going each month (gas, groceries, etc.). As long as you pay it off every month in full, you will not pay any interest. Instead, the credit card will likely pay you. My husband and I use our Amazon credit card to do this with. We get anywhere from 1-3 points per dollar we spend and use the money we get to buy the things we were going to buy on Amazon anyway. There are a ton of dumb ways to use credit cards. A lot of people use their credit card(s) for the same reason Finley suggests to, but they don’t pay it off in full every month. Millions of Americans are charging every-day items on credit cards and never paying it off. Credit card companies like the majority of Americans; they dislike responsible people who cost them money instead of making them money.
Well put, Katherine. Let’s recap. Credit cards are not evil nor or they wonderful, they are just pieces of plastic. It is how we use them that matters.
If you are an organized person who pays their credit card bill off each month, you may benefit plenty by its convenience combined with some type of rebate that the card may offer. Just as Katherine stated; using it to track your spending can be a very effective way to track where your money is going.
If you are disorganized and not paying that bill off each month, you need to STOP THE MADNESS! Credit cards can cripple you with their high interest rates and fees. If you have poor habits it can get ugly. Poor habits? Pay the minimum. Pay late. Go over your limit. Use the card in the ATM when in a pinch. If that is you, cut the card up or put it away until you can change your ways.
Take control of your credit. Your financial future depends on it.