Almost everyone has at least one credit card these days. However, few know much about having one, or getting one. There are many things you should know before deciding to get another one, or your first one.
They seem great at first, almost like free money. There is a big purchase you want, but you do not have all the money for it right now. Do you save up and get it in the hopes that it is still in the store when you have the money, or do you swipe a piece of plastic and make monthly payments on it. If you use a credit card you get to enjoy it right away, if you save you have to wait until you can finally afford it.
Many people put purchases on their credit cards that are big, thinking they will make more than the monthly payments and they won’t have to pay so much interest. However, sometimes things come up; you can only afford the minimum monthly payment here and there. Then you put another purchase on it before you get the chance to pay it off. Before you know it, you know it your bill is larger than you think you can handle.
Take a tip from those who use it in a very wise way. Some people will put a large purchase on their credit card, then put their credit card in a safe place in their home where they know it will be safe and not use or lose it. In this safe place it will stay until the purchase was paid off, then they can put it back in their wallet. This way they are able to make that original purchase and pay it off, without adding more and more to the bill. Sometimes it is too easy to swipe a piece of plastic without thinking.
There are others who put smaller purchases on their credit cards every month. These purchases are small enough that they know they will be able to pay them off when the bill comes. Sometimes they will even take cash they have and were going to use on something, and set it aside. Then they use the credit card to pay for it, and when the bill comes they have the original amount already set aside and will only have to add more for interest.
By doing these things it makes it much easier to up your credit score. It is a good idea to have a credit card so that you can build your credit. That is if you use it right. Do not let spending with a credit card get out of hand. That is the number one mistake people make, especially younger people. If you are smart a credit card can be a good thing.
It can also help if you need to put gas in your car to get to work but do not get paid for another day or two. That can be your small purchase for that pay check or month. Then when you get paid, pay it off.
There are good ways and bad ways to use a credit card. If you are smart and pay more than your monthly minimum, it can be a good thing. Even if you only keep it for emergencies, having a credit card in your wallet can be good. Do not believe those that say all credit cards are bad. The only way credit cards are bad is if you over spend, under pay, and let the balance get out of hand. It can be very easy to use one to up your credit score without getting into a lot of debt. Just keep these tips in mind when looking into getting a credit card and you will be fine having a card in your pocket!
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