subject: Credit Cards Using Them Wisely [print this page] Credit cards have the power to either improve or destroy your household finances, and it all depends on how wisely you use them. Almost everyone has heard stories of people who racked up tens of thousands of dollars of credit card debt and dealt with seemingly endless collection calls and financial ruin.
But you also can run into people who have several credit cards and use them wisely to manage household funds, earn rewards, and build a solid credit history. Here are some recommendations from us at CreditNowUSA on how to use your credit cards wisely.
1. Pay off your balance in full each month if you can afford to. In most cases, you can do this if you only spend on the credit card what you know youll have money to pay for when the bill arrives. Dont use your credit card as a license to overspend, and remember that youll have to pay it back, with interest, eventually. Making the minimum payment only is one of the worst possible credit card habits.
2. Have two to five credit cards in your name, and dont get them all at once. You should usually wait at least six months before getting your next card to avoid damaging your credit score and to make sure that you can handle your existing cards wisely. Get more cards to increase your credit available in an emergency and to improve your credit score, not to take on lots of debt.
3. Set aside one credit card for emergencies only. These are situations in which you need funds immediately, like if your furnace breaks in the middle of the winter or you need to fly to see a family member who is on his deathbed. Keeping this credit line available for emergencies gives you a financial cushion.
4. Use special services, like balance transfers and cash advances on your credit card, only when you need them. These often have fees and higher than normal interest rates, which means youll end up paying big for the privilege of borrowing.
For more information, go to Credit Cards at http://www.creditnowusa.com/Credit-Cards
