How to Really Use Your Credit Cards

Posted on August 22, 2017


Credit card addiction has thrown a lot of people into debt. In fact, some statistics claim that average American households have over $15,000 dollars in credit card debt. Honestly, I do not feel that everybody needs a credit card. The “buy now and pay later” syndrome can sometimes do more harm than good. Of course, it is nice to book flights, go on vacations, and buy things on a credit card; but then, who says a debit card can’t do all of those things either?



I think that only responsible people should opt for credit cards to begin with. If you must absolutely use a credit card, be sure to pay it off at the end of every month. Accumulating interest is not a very wise thing to do. If you cannot control the way you spend, a credit card is only going to accelerate your doom.



Here are 4 Ways to Actually Use Your Credit Cards:


1.       To Make More Money

Smart, rich people use their credit cards to make even more money. However, the vital thing to remember here is that they pay off their balances at the end of the month. They always avoid pay interests. Remember, a debit card comes with a daily limit allowance but credit cards offer you unlimited spending power. Hence, if your credit card allows you to increase your income or expand your business, then do not hesitate to use it.


2.      Not for Personal Use

If you cannot afford to pay off your credit card at the end of the month, then you cannot afford to buy the item in the first place. You may believe that you can pay it off, but the people drowning in credit card debt thought the same thing. One trick to limit personal use of your credit card is to leave it at home. Only unwise people pay interests because they spend on things that they cannot afford to buy.


3.      Your Personal Bookkeeper

Your credit card could fill in for your accountant. Credit card companies send you statements at the end of each month, year, or quarter. This will easily allow you track your spending and see where the bulk of your expenses go.


4.      Perks, Points, Rewards

Using a credit card can give you access to points, privileges, and rewards. Cash back rewards can save you a ton of cash if you continually take advantage of these offers. Additionally, if you have a business credit card, you can enjoy even more perks like discounted ticket prices and not paying exchange rate charges when you travel abroad.

We all know the perks and the risk that comes with a credit card. If you use it smartly, however, you could be among those that are happy to receive their statements at the end of the month. To learn how to make the best of your credit cards, improve your credit card rating and debt profile, visit today to get started!


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