North Country Business Blog

Why should I use my credit card? This question has different answers and it is difficult to explain a single answer when many of us have different lives, and for each credit card we use it differently. The reality is that the credit card is a double-edged sword, and if we do not know how to use them properly can result in a situation where we may not want to see. I hope these tips help you identify how to improve the use of credit card and leave a comment at the end of your suggestions or feedback:

If you are using, have a plan to pay.
As Ricardo Arjona says the problem is not that the use … The problem we have is that we use the credit card regardless of how or when we will pay. Before making a purchase, just think how long you take to pay the bill. One card is very timely to buy flights on offer, holiday gifts, etc. If you can pay with a plan, it need not be a problem.

An example: If you spend $ 600 on a new computer and pay with your credit card before you buy thinks like you will pay the computer. You say to yourself / a: I pay in a year! Divide the $ 600 for 12 months, and have the amount needed to pay each month. It is true that this does not take into account the interests, but that’s not the problem, if the person ends up paying the minimum ($ 20) without thinking as to take into pay.

Do not buy your requirements or monthly charges with the card.
If you buy something with your card you should be paying your salary, you may be in trouble. You should not pay your phone, cable, your food, rent, etc. with borrowed money (credit card is borrowed money) because this should be covered by your monthly income. If you had an emergency temporary, and you’ve exhausted your emergency fund, you could use the card to get you under a truck. But if your income has decreased and two months ago that you can not recover, you should think about your priorities and begin to remove services that you can not really afford.

This is one exception: card points. If you have a card miles points (rewards, etc.). You can use the card to pay all your monthly expenses and thereby accumulating points, but this only works if you have the money to pay the full account at the end of the month. If this is not your situation, read the first paragraph again.

If it is tempting to dismiss it.
It is true that a closed card can lower your score on your credit. But if this has become one finds temptation to spend, you should not have to cancel this odyssey. You can reduce your score now, but ultimately is what will help you keep your high score and your debt to a minimum.

No need to use them to keep them open.
Many people believe that you have to use your credit card every month, or you should have a balance to pay to keep them open, and this is not true. You can have an open credit card without using it. It is true that this can be closed, but did not pass through stop using it for three months. To keep it open and without balance, you should buy something small, and before that meets monthly cycle should be closed.

Not all are good deals.
Do not take credit cards only to have them, having many hurts you also open the score. You should have no more than 4 or 5 card, and even that amount is great.