Many people have experienced the issues of poor credit card use. But additionally, there are many people who also have experienced the benefits that credit cards can have. Needless to say, there are a lot of ways that people can use credit cards, and there are a lot of different situations that people can experience when using credit cards. Either way, you want to ensure that you are at the positive end of the spectrum.
“A credit card can be a huge asset to you financially if you know how to use it correctly, which anyone is capable of doing” says Chris Mettler of CompareCards.com.
The difficult part is understanding what you should and shouldn’t do with your credit card. It is not always easy to tell what is best, and the rules may very a little from person to person, but the basic rules usually apply. For your reference, here are some of the best and worst credit card spending habits and how you can ensure that you are using your credit card the best way possible.
Do use your Credit Card Regularly
A lot of people have been under the assumption that you should have a credit card “just for emergencies”. Although this is a valuable aspect of having a credit card, you should not just open up a line of credit that you plan to never use until you have exhausted all other options. Instead, you should have a credit card that you use regularly that you leave a little open credit on in case of emergencies. That way, you can improve your financial standing and have the room you need to work with when you are in a financial bind.
Don’t use your Credit Card for Every Purchase
Though it is a good idea to use your credit card regularly, you should not use your credit card for every single purchase that you make. Some people may be able to do this, but most people will have issues if they try to do all their spending from a credit card. This can lead to credit card debt very quickly, because you will end up spending more money than you have with a seemingly unlimited credit card limit. Instead, use your credit card for only specific purchases and operate with cash or using a debit card for other purchases.
Do Read your Credit Card Statements
It is easy to delete the email or throw out the letter as soon as you get it, because you think that you already know everything that is on it, but it is a bad idea to not open your credit card statements. It is important to look over each statement to see what rewards you are getting and to make sure that there are no fraudulent charges on your credit card.
Don’t use your Credit Card when you don’t or will not have the Money to Pay it Off
If you want to avoid debt, don’t spend money that you don’t have. Obviously when using a credit card, you cannot take this piece of advice verbatim, but it is a good idea to keep it in mind. You should not spend more money that you are capable of paying off, so set limits for yourself and your credit card spending.
