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How To Use Credit Cards Responsibly

I was always told a rule of thumb that I highly recommend to everyone when it comes to the use of credit cards, “If you don’t have cash or the funds in your checking account to pay for something, then don’t use your credit card to buy it.” Now, that is great when it comes to personal or material things, but what happens when you’re in a bind and need a new tire and you can’t afford it until next week? Read below to find out the best ways to be a savvy credit card user.

Emergencies

Say you are on the freeway and your tire blows. You’ll definitely need a new one! If you don’t have enough funds in your account that day, but you would next week, that is the perfect time to pull out the good old credit card and put it to use. As long as you pay it off when the funds hit your account of course.   Credit cards can be a lifesaver if you find yourself in a sticky situation where you really need an extra hand. Just remember, that purse that you think you need or those shoes that you want are not emergencies or good reasons to use your credit card.  

Building Your Credit Score

If you are responsible, some of the best and fastest ways to build your credit score involve the use of a credit card.   A lot of people will buy their groceries and gas on a credit card and pay it off at the end of the month or every two weeks as their paycheck allows. This shows the bank that you are responsible with borrowing money and paying it off quickly.   Credit cards can get out of hand quickly. Especially when people aren’t inclined to pay off the balance each month.  

Keep Track of Purchases

If you are the type of person who goes months on end without ever looking at your bank statement, then credit cards may not be the best option for you. It is so easy to forget if purchases were made with cash, debit or credit card.   Sit down every two weeks and check your bank statements. It is important to be responsible and not let yourself fall behind in payments. If you are worried about falling behind on payments, most credit card companies provide the option of setting up a weekly, bi-weekly, or monthly automatic payment. That way, you will never skip a payment or fall behind.  

Perks

Most credit card companies offer a rewards program with your card such as cashback, flight credit, gift cards, etc. There are so many people that brush these rewards off and never use them, but why turn down free things when you’ve fully earned them?   If you have any questions regarding what your credit card company does for rewards, simply log onto your account online or call customer service.  

Last word

When choosing a credit card company to go through, it is important to review the fees, what they offer, and what the interest rates will be.   Remember if you have any questions, you are connected with a plethora of people who can share their ideas and thoughts with you.   Feel free to contact us with any questions!

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