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Too Much Credit
It has been my experience that if someone who has never had credit wishes to acquire a credit card and tries enough places, somebody will issue him one. The difficulty with this method is that once the first company issues a card and the person uses it wisely, other companies will soon follow suit, and he will be swamped with credit card applications. The temptation of too much credit is often overwhelming for a young person (or couple), and he can quickly find himself over his head in debt.
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I would offer the following advice to anyone using credit cards for the first time or who has ever got into trouble through the misuse of credit cards. It is good advice, and it will save you many problems.
1. Never use acredit card to buy anything that isnot in yourbudget for the month (which means, in turn, thatyou will need abudget). It is tempting to use a credit card when you are on vacation and run out of your allocated vacation funds, or when you need clothes but don't have the money to take advantage of the great sale in progress, or when you need tires for the car but don't have the money saved, or when you're out of work and need food, utilities, and rent. But when you use a credit card as a buffer in place of trusting God, you may fall into a trap that will take you a long time to dig yourself out of.
Pay the entire credit card bill each month. I have heard many people say they never misused their credit cards because they paid them completely each month. I have since discovered that using credit cards--or any credit--wisely is not just a matter of being able to pay them off on time. Credit cards are the number one tool for impulse buying in our society. And impulse buying is generally the prerequisite for indulgent buying. Simply put, consumers will buy things they don't need and pay more for them, using credit.
