subject: Choosing The Best Credit Cards [print this page] Properly choosing the best credit cards will make all the difference in your life. Far too many people have been hugely impacted by their overspending with this plastic money. They are harming themselves in many ways when they use this as a way of life.
That's why education with regards to credit is crucial. And, it should be starting at a very young age to ensure that future generations have a better understanding and don't have to suffer by making these grave errors. Having said that, it's never too late to start learning about it.
Very often, when you're provided with offers from creditors to lure us into using their cards. They obviously have many reasons to do this. For one thing, they earn interest when their clients carry balances. For another thing, each time you make a purchase, they make a commission, so to speak. Basically, they charge the merchant a percentage on every purchase that is made. So it's big business and serious money.
Certainly, no one is saying that you should avoid credit cards altogether. The world works in funny ways these days, requiring people to have them. Let's face it, you can't even rent a car or a hotel room without one. However, to own one or two means that you have to have a plan. The fact remains that this is not at all "free money." It is merely a short-term loan without interest if it is paid off at the end of the month. So, set a budget!
So, it's essential that you have cards that are best for you. To begin with, you don't need many of them. Don't give in to all the offers creditors provide. Have one or two cards. That is all you really need. Do your best to never carry a balance. That means that you should be buying with your bank account in mind. If you don't have the money to cover the purchase at the end of the month, hold off if at all possible.
Then you have to choose which cards are going to keep. Obviously, the best ones are those with low interest rates. You should also take into account that some of them charge annual fees. So if at all possible, let those go as well. In the meantime, try to avoid them for surpassing the 50% mark of your overall credit. This is bad on your credit score. Of course, you should always make your payments on time, even if they are only minimum payments.
If you live within your means, you will be saving thousands of dollars in interest. So, if you have some low interest rate cards, use the funds available from them to pay off other high interest cards. Right away, you will notice a huge decrease in the amount of money being wasted on interest.
That means that you can use that extra money, no matter how little it may be toward paying down your debt on the other remaining cards. Soon, with a little willpower and a plan, you might even be debt-free.
