Best Credit Card Advice Ever Heard
Are you looking into getting a credit card? Do you have a credit card? Are you wondering how to best use your credit card? Would you like to get expert advice on how, when, where, and why you should or shouldn’t use a credit card? Great! Because we have here the best credit card advice ever heard. And our aim here is to give you insight and expertise on the matter so you don’t find yourself in debt, or bad credit.
Your Credit Score
First and foremost, it is imperative to understand what a credit score is, how it affects you, and why it’s so vitally important. The only way we can provide the best credit card advice ever heard is to provide you with a little background on what having a credit card will do. Your credit score will follow you for the rest of your life, whether buying a car, purchasing a home, or even applying for certain jobs. It even affects you getting declined or accepted at Best Buy, Costco, and the likes. And when you’re waiting on a paycheck, or money owed, it’s crucial sometimes.
Your credit score is based on taking out credit, and how you pay it back. If you borrow something, it has to be paid back on time, and there are ways to do this best. The bottom line is if you fail to make payments, or if you make payments on time, it will affect your credit score and ultimately end up being a deciding factor in many large purchases in your life. For more information on your credit score, you can read another one of our articles, Building Credit Scores in 2017.
If you are thinking about getting a credit card, let us first point out some very important factors.
If you don’t have money, don’t get a credit card.
While every bank or credit card company in the world would tell you otherwise, that is the best credit card advice ever heard. Because as soon as you purchase something on credit that you can’t afford? Then the credit companies own you, and you are stuck with higher interest rates, a bad credit score. You’ll pay a long time for that mistake. So if you don’t have it, don’t buy it.
Now, if you do have some money saved up, a job, support – it is a smart play to get a credit card and build your credit. Instead of paying for things with cash, or from a debit account, charge it on your card, and then make the payment from there. This will begin to build trust with the banks and put you in for a good rating.
Never miss a payment
Whatever you do, by all means, never miss a payment. It will go on your record, hit your credit score, and increase your rates. It’s one of the worst things you do, so if you’re ever debating on buying something with your credit card, and you don’t have the funds? Don’t do it.
Don’t be late
The second worst thing you can do is make a payment late. They will ding you for all the same things, and it will cost you. If you are buying things you can’t afford, you’re doing something wrong. You have to treat it as a tool, something you will build your future with.
Don’t use it regularly
If you don’t have it, you shouldn’t buy it. Unless you’re building your credit, or unless you’re waiting to get paid maybe. If you already have a balance you’re going to pay off or make payments on, you don’t have to add more. Just pay with cash so you don’t get your bill too high.
Pay Frequently
You don’t have to wait for your balance to be due or your minimum payment. Pay 2-3 times per month. It looks good to your creditor and will help you keep the balance low.
Pay more than the minimum payments
If you have a credit card and you are trying to build your credit, one of the best ways to do that is to pay more than the minimum payments. Paying the minimum doesn’t cut it, and it costs you. When you factor in the interest rates, you end up spending a lot more than you would have. Why would you want to pay $20 more for a $50 item? Or even worse?
Don’t pay off your card
You’re asking yourself now, “This is the best credit card advice ever heard?” But it’s the truth. It’s not BAD to pay off your balance every month, but it’s better to not do it. Pay more than the minimum, pay more if you can, but don’t pay it all off. They want to earn their interest a bit.
Keep Your Alerts
With any card or bank, you can get notification or alerts on everything related to your account. You want to be notified when you have a payment due when payments are made, etc…so always keep your alerts on so you know where your account stands at all times.
Never ever, ever…
And in conclusion to the best credit card advice ever heard… never, ever, overdraw your account. If you have a limit, stay within it. You will not only be penalized, or have your credit score affected. As a result, you will usually always pay a penalty fee. And that’s for each time you go over that limit.
Be smart when purchasing a credit card. Don’t live beyond your means. Many of us have made that mistake, myself included. I’m still paying for it. This is for those who are getting into the world of credit, and I hope this helps you. I hope you think this is the best credit card advice you ever heard, and come back for more. Because there will be several follow-ups from this.
Best of luck to you all.
Thanks,
Wes
