MONEY AND FINANCE

Tips For Using Credit Wisely

Tips For Using Credit Wisely

In this day and age it seems it is more important than ever to use credit wisely. Credit can be a wonderful friend or a very demanding master. Using it wisely makes it a wonderful friend.

These tips should help you use your credit to your advantage as well as keeping the nasty side away from your door. While this is obvious, some people disregard this one tip and fall into the downward credit spiral.

Only charge what you can afford to repay by the due date of the credit card statement. If you can master this one tip, you will always be ahead of the credit game.

The second tip that will keep the credit wolf at bay is to always pay on time. If you pay on time, you will avoid interest, fees and penalty charges.

Credit is available in a variety of forms. If you have and use the variety of credit instruments – credit cards, loans, charge cards – and apply the first tow tips, you should be on top of your credit life.

Another obvious, but often overlooked, tip is the simple act of avoiding overcharging. To keep from overcharging, you must keep accurate records. This means maintaining your charge receipts and keeping a running total of what you have charged since your last payment. If the total, sends a shiver up your spine, the only remedy is to quit charging.

Using credit wisely also entails having a savings account or emergency fund for periodic expenses. Things like vehicle maintenance and medical bills happen to almost everyone. Birthdays, anniversaries and holidays are also common events. Instead of charging the gift or expense, have an account with enough money in it to pay for these items.

One last piece of advice is to limit the number of credit card accounts. You really only need two or three. Anymore is excess and temptation. It is easy to put an item on a card with a low balance. However, it isn’t paying for those expenses when the bills arrive.
Besides, if you only have two or three accounts, it is much easier to keep track of your charges.


Money and Finance

Tips For Using Credit Wisely