It’s important to manage credit cards properly. They are important for building credit, but you must always be able to pay the balance off within the month, and try not to carry a balance. Never put more on the card than what you can pay off that month. Otherwise, the interest can make it nearly impossible to pay them off.
I only get credit cards that earn me some type of rewards and I always pay it right back so I never have to pay any interest. For example, my discover card always pays me back 1% but for the last 3 months they paid me back 5% on gas! I earned $32 cash back! I sure do wish they always provided 5% on gas.
5%??? I need a freaking Discover card.
I always pay my credit cards off once the transaction posts on the account. Sometimes I am too quick about paying and will receive a statement credit or reward that gives me a negative due amount.
@Stephanie M. Sam’s Club Mastercard offers 5% cash back on gas on to the first $6000 per year.
I’m afraid to get one for the fact I’ve heard horror stories about them
There is no horror if you understand the responsibility of managing debt and credit.
I have never had a credit card and do not plan on getting one. I've seen people get there selves in one heck of mess before.
Biggest suggestion…. just don’t get anything on credit for anyone!!!! Anything! People have no ties or responsibility to the loan or you… when you do! So don’t do it! Even for Dear Momma!
I agree !!
I have always used my credit card, but a smart way is to treat your CC like a debit card.
Great tip Hoi W.
I think credit cards are good.
When I was younger I didnt care about my credit and how it would impact from buying a house. If you can recorrect your credit dont wait to long.
Good news
Thanks
I got a couple of credit cards when I was in my early 20's and went overboard for a few years and left some unpaid balances so I was dinged on my credit report for years. I ended up changing my way of thinking for over 20 years and if I didn't have the cash to pay the entire amount I didn't get it. Now that I decided to improve my credit it was suggested that I get a few credit cards to improve my credit score. So I applied for and received 4 different cards which I use responsibly and only keep a small balance on each and pay every month on time. It has worked and I have a 100% on time payment score!
I got a couple of credit cards when I was in my early 20's and went overboard for a few years and left some unpaid balances so I was dinged on my credit report for years. I ended up changing my way of thinking for over 20 years and if I didn't have the cash to pay the entire amount I didn't get it. Now that I decided to improve my credit it was suggested that I get a few credit cards to improve my credit score. So I applied for and received 4 different cards which I use responsibly and only keep a small balance on each and pay every month on time. It has worked and I have a 100% on time payment score!
I got a couple of credit cards when I was in my early 20's and went overboard for a few years and left some unpaid balances so I was dinged on my credit report for years. I ended up changing my way of thinking for over 20 years and if I didn't have the cash to pay the entire amount I didn't get it. Now that I decided to improve my credit it was suggested that I get a few credit cards to improve my credit score. So I applied for and received 4 different cards which I use responsibly and only keep a small balance on each and pay every month on time. It has worked and I have a 100% on time payment score!
I got a couple of credit cards when I was in my early 20's and went overboard for a few years and left some unpaid balances so I was dinged on my credit report for years. I ended up changing my way of thinking for over 20 years and if I didn't have the cash to pay the entire amount I didn't get it. Now that I decided to improve my credit it was suggested that I get a few credit cards to improve my credit score. So I applied for and received 4 different cards which I use responsibly and only keep a small balance on each and pay every month on time. It has worked and I have a 100% on time payment score!
Agreed. Never spend money that's not yet in hand. Many of us don't yet appreciate how powerful our credit cards are. They can generate a considerable amount of income when used responsibly. In addition to the rewards, we can earn bank interest by floating the money owed in high interest deposit accounts. This is particularly favorable during 0% interest periods.
I only ever pay the statement balance on the due date. This does 2 things; 1 it ensures I never pay a dime in interest and 2 that a balance is consistently reported to the credit bureaus which demonstrates responsible credit usage. By only paying the statement balance, we're able to hold on to our cash longer. If the credit card statement period runs the 23rd to the 24th and the due date is the 20th of the following month, that gives us anywhere from 24 to 51 days to earn interest on money that technically belongs to the credit card companies.
Never close a card. Like so many said above. But… Maybe destroy it when you get to zero balance and make it hard to use it. So you have to order a replacement to use it. Then you retain the credit history and amount but avoid the temptation to use it.
While credit cards can be a huge temptation, it's also the simplest way to build good credit. So, if you trust yourself, open a no-fee card and use it once a month to buy something you already have the cash to buy (even a pack of gum counts!). Then immediately pay it off. If you don't trust yourself, open a no-fee card and immediately cut the card up (I have also heard of people freezing it in a block of ice!).
@Shaina P., I like the way you're earning interest on your cash before paying off!
I agree with many of the comments here. If you use a credit card responsibly than it's better than cash. After all the rewards is just free money back to you if you are responsible with the card.
Don't do that. If you destroy it you may lose it to inactivity.
I learned the hard way in my late teens and early twenties that I simply don’t have enough self control to own a credit card. I finally set up an account at a local credit union at the instance of my aunt who pointed out that she was getting tired of being my purchasing person for online shopping! I’m ok with that because I have my account set up so I can never spend more than what I have in my account. The card will simply prevent the purchase bc of insufficient funds. I’m a strictly cash person for the most part. If I can’t pay for it right then? I don’t need it.
I learned the hard way in my late teens and early twenties that I simply don’t have enough self control to own a credit card. I finally set up an account at a local credit union at the instance of my aunt who pointed out that she was getting tired of being my purchasing person for online shopping! I’m ok with that because I have my account set up so I can never spend more than what I have in my account. The card will simply prevent the purchase bc of insufficient funds. I’m a strictly cash person for the most part. If I can’t pay for it right then? I don’t need it.
@Jason I don't believe it's a lack of self control for any of us. You simply haven't found a money management plan that fits your personality and lifestyle. May I suggest either a spending plan or zero-based budgeting? It's a method where you give a purpose to every dollar you earn.
