In my opinion, credit cards are double-edged swords. They
can help you raise your credit scores when you are a bit short, or they can
drive you a debt hole that could be difficult to climb back out. However, if
you use your credit card carefully, you could avoid great debt because of high
interest rates and keep your credit card free. Here are a few ways to do such.
1.
Pay in Full
In my opinion, the convenience of a credit card is not
because you could afford to have payment plans for expensive items and services
instantly. A credit card is a tool to raise your credit limit and avail for
yourself better financial deals with lenders in the future. I always make sure
to pay my credit card bills in full. Not only do you avoid debt and raise your
credit score, you also avoid the stress of having to worry about your bills
later.
2.
Pay on Time
The number one reason I ended up with great debt in the past
is because I always skipped the deadline payment date for my credit card. My
card had a 5% interest rate at that time. Even for just three months of an
additional 5% of my previous bill, it could create a hole in the budget. So pay
on time and in full always.
3.
Limit your Purchases
If you apply for a credit card, you will need to use it at
least once monthly. I use my credit card to purchase groceries or things that
my family only needs. I don’t go overboard and purchase things that I want,
such as a new television. Limiting your purchases allows you to fulfil tip
number 1 and 2. You could do this more effectively if you write your purchases
in a notebook to keep an eye on them.
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