If you’re like many people, you may have mixed feelings about credit cards. On the one hand, they sure are handy. On the other, they can cost you plenty. Consider the following ways smart people make use of theirs though and any negative perceptions you have may change.
First of all, responsible credit card users don’t look at their plastic allies as sources for financing big purchases. That’s not what they’re there for. Using your credit card to buy something expensive is an easy way to end up with a lot of debt and in a lot of trouble. It’s as simple as that. Those who understand credit cards use them to make purchases more convenient. They also know that by spending smaller amounts, they end up with smaller bills that are more affordable, yet still get to build up their credit score.
Far too many people associate credit cards with free money and being able to purchase whatever they want. As a result, they end up with things they don’t need and debt they can’t handle.
The second thing smart people do is pay off their entire balance every month. By following the above tip, you’ll end up with bills that make it easy to do so. As such, you have no excuse for doing anything but. A lot of people mistakenly think it’s savvy to only pay the minimum, but this is another great way to end up over your head.
Lastly, no two credit cards are the same, so be sure you pick which ones you’ll use wisely. This means looking at annual fees and other issues you’ll need to prepare for. But it also means looking at the kinds of rewards a card provides. For example, a small annual fee may very well be worth using a credit card that will provide you with free airline miles.
So don’t shirk credit cards because you’re afraid of their reputation. At the same time, don’t treat them recklessly like they’re free money. Instead, use the above advice to become one of those smart people who use credit cards.