Do you use your credit card regularly? They are almost a necessity now. You need to have one to book things, most commonly hotels or trips. Credit cards can be a very handy device to use. However if you don’t use them right they can end up costing you A LOT of money.
If you want your card to start working for you the time to start is now. If you carry a balance on your credit card you need to stop now! The interest rate on most credit cards is crazy high. Nothing is worth paying 19% or more in interest (unless you have an emergency but a borrowing account with a lower rate would be a better idea for that). It’s time to hide or freeze your cards until your balance is back to zero. Then come back here and find out how to use credit cards to help you.
If your going to use a credit card you want to make sure you are doing a few things:
Paying off the balance in full every month. You shouldn’t be spending more money than what you have in the bank. This will save you a ton in interest.
Collecting points you can use. It could be cash back, points for free groceries or gift cards. No matter what you choose make sure they are “points” that you will use.
Have no annual fees. There is no reason why you should be paying to use a credit card. There are so many free cards out there you can likely find one that will work for you.
If you follow these 3 rules when you have a credit card you will build a great credit rating and collect free stuff at the same time.
Do you regularly use a credit card?