If you do, that's probably the first reason to not
get one.
Credit cards shouldn't
be used as a means of digging yourself out of a
hole. In reality, they're just going to make it
worse. They seem like a great quick fix at first,
but when that first round of late payments rolls
in, you may be asking yourself why you ever thought
that was a good idea in the first place. The allure
of free money is too much for even the coolest headed
people to resist. So, it is important to remember
that it's not free money. In fact, it's like a little
mini-loan with incredibly high interest rates.
If you feel like you need a credit card, you may
want to look into less expensive means of getting
the money you need like small personal loans or
a cash advance. In reality, this type of credit
carries much lower a price tag in the long run.
If you decide that a credit card is the best way
to achieve the financial goals you have, then it's
probably best to keep a few things in mind. A credit
card will not solve all of your problems, in fact
it's one more bill. It will, however, if used properly
increase your credit rating and make it easier for
you to get loans for things like cars and homes
in the future.
The best way to use a credit card is for small
purchases, or purchases you were planning on making
anyway. Pay off these items as quickly and efficiently
as possible. Ideally, try and have a ninety day
payment plan for any purchase you make. Remember,
your card is not additional income, just another
way of exercising the income you already have. A
credit card is, essentially a good way to prove
that you are responsible with your income.
If you get into a position where you have been
sent a credit card that you can't really afford
to have, use it for small purchases and pay it in
full as soon as the bill arrives. Make sure you
pay bills as soon as they come, since it's very
easy to forget when a bill comes due, especially
if you have a lot of bills every month. So another
advisable way to keep your credit good is to keep
only one or two cards around instead of digging
yourself into debt with lots of small store cards.
In any case, credit cards are not a bad
thing, as long as you use them responsibly.
You should always make sure that you don't use them
as an excuse to live above and beyond your means.
As long as you make prompt payments and don't dig
yourself into an insurmountable debt, credit
cards are a great way to build the credit that is
necessary to make larger life purchases like cars
and homes. Keep your financial goals in mind,
and don't get tricked into using your card as cash.
