The Right And Wrong Way To Use Credit Cards

Is it ever helpful to your finances to use a credit card? Some financial experts are against any use of credit cards ever. However, there can be positive benefits to using a credit card if it’s used wisely.

First of all don’t get a LOT of credit cards – get one, and get the best interest rate that you possibly can.

Don’t transfer balances from one credit card to another, because it can hurt your credit rating and it will just tempt you to use the credit card that you have just transferred the balance from. That nice new low balance can tempt you into evil – in this case buying things that you don’t need.

Don’t ever pay your bill late. This wreaks havoc with your credit rating.

Don’t pay just the minimum. Pay all of your bill off every month if you can; if not, pay as much as you can until you have paid off your balance.

Don’t close down old lines of credit; close down newer onces.

Don’t apply for department store credit cards.

Do take advantage of frequent flyer miles.

Don’t lock the credit card away and never use it. What, you say? Shouldn’t I be trying to save money?

Yes, but if you never use your credit card then credit scoring companies can not build up a credit history on you. Much better – charge something like groceries that you would have purchased with credit anyway…then pay it off completely every month.