Credit cards make life easier, but it could get you into debt quick if you don’t manage them wisely. The best way to stay out of trouble is not to spend over what your income can afford. Live within your means. When my brother was young and got his first credit cards, he went on a shopping spree and ended up going bankrupt. There are better ways to use credit cards and actually get rewards.

I use my card for basic essentials like filling up the car with gas. It saves me time at the pump where I can pay instead of going inside to pay the cashier. Another quick place to use the card is when I do my grocery shopping. I’m going to pay for items like milk, bread, and cereal anyway so it doesn’t bother me to charge it. It helps to maintain a budget when all purchased items are itemized and you can see what you’re spending each month for different items.

It’s important to keep a budget and pay off cards when the bill comes in. This should be easy to do if you don’t over spend. If you already are paying a little monthly to cards, then set-up a strategy to eventually pay them all off. Never pay the minimum required amount. Pay off as much as possible each month until your balance is zero. Then, never carry over a balance.

Another good reason to use your credit card is that many cards give you cash back. I have seventy-five dollars that I can use to purchase Christmas gifts that I’ve earned just from using my credit card! This will help reduce the cost of holiday shopping without costing me a thing since I never pay interest. There are even cards that give away airline mileage.

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Filed under: How To Make My Credit Better

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