There are many good things about having a credit card, but these good things can also be your downfall. Even though it's hard to get a credit card and get it approved, it's ten times harder to get out of credit card debt, so don't wait for that to happen. Now that you're your own boss, show your credit card who's in charge!
Advice on How to Choose and Use Your Bank Credit Card
Smart and Practical Shopping: If you can afford to pay cash, do so. Cash payments get you lower prices and no interest fees. Second, don't buy things with your credit card that you don't really need. Think of your credit card more like an emergency lifeline or a genie lamp that can only grant a certain number of wishes. Only use it when you have to.
Not every ad is for you - Credit card companies often offer special deals to their customers. Even though these deals can be helpful, that doesn't mean you should take advantage of every one. For some promotions, like getting a raffle point, you have to use your credit card. If you have credit cards with high interest rates, this is not a good choice.
Getting discounts: Credit card companies often have deals with retail stores that let you get discounts. Find out which stores your credit card is linked to and use all the discounts they offer. A penny saved is still a penny made, and pennies are worth a lot these days.
Cash Advances: This option can be a lifesaver in many situations, but it should only be used as that: a lifesaver. If it's not going to kill you, don't use the cash advance option on your bank credit card because it has even higher interest fees and costs than regular credit card purchases.
Before you sign on the dotted line, make sure you're getting exactly what you want and need. Figure out if a credit card with rewards or one with a low interest rate will help you more.
Reward credit cards are better for people who can spend a lot but also pay their bills on time. Low-interest credit cards, on the other hand, are better for people who use their credit cards to make extra money.
Supplemental Credit Cards: Only let people you trust use your credit cards for more than one thing. If you give your kids their own credit cards, make sure you set the limit much lower.
Payment: First, pay on time every time. If you don't pay on time, you'll have to pay extra fees and maybe even pay more in interest, depending on the terms of your credit card contract. Second, try to pay more than the minimum amount as often as you can, since the minimum amount just covers your interest charge.
Above all else, you should remember that credit cards let you spend money you might not have right now. If you can't pay cash for something today or in the next week, it's best to assume you can't pay for it with credit either. Cash should always be your first choice for payment, not a bank credit card.
