Using Credit Cards Wisely

Using credit wisely is a good habit that, with only a little financial education, you can learn quickly. Using credit cards wisely will enable you to save money by avoiding late fees or penalties for exceeding credit card limits. You can even learn how to pay NO interest and have your credit score reflect the fact that you are using credit cards wisely! Credit cards are not evil, nor are they a problem provided you learn to use credit cards wisely.

Wise credit card use means making payments on time and avoiding having too many credit card accounts. Condense your credit cards in to one or, at the most, two credit card accounts to help you focus your financial decisions. By using credit cards wisely, you will not find yourself juggling credit card payments.

Using your credit cards wisely begins with a few credit basics. Keep in mind that credit cards are not a problem unless you use them incorrectly. Unwise credit card use means, for the average consumer, letting the balance continue to build from month to month. Credit card companies request payment every month, so take the hint and use credit wisely by paying your credit cards completely every month, just like your electric bill, or your mortgage payment.

Using credit cards wisely also means taking advantage of the convenience of credit cards by using them like cash, spending only if you will have the funds for payment that month. Let the credit card company keep your records for you by itemizing each purchase and managing your account. Then, in order to avoid finance charges, pay the credit card balance in full every month.

Use credit cards wisely to allow you the freedom you need in today's society without the hassle of carrying cash or writing checks. Don't allow the credit card balance to grow unless you have a real emergency. If you do have an emergency, you'll have the credit line open for use. By paying off the credit card balance every month you maintain a good credit line and enjoy a good credit score. And, using your credit cards wisely ensures your credit rating will only go higher.

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