Be smart with your Credit Cards
Credit cards are so easy to use, however, they are also very easy to abuse. For this reason, my husband and I have developed some rules for credit card use which we have taught to our children as well.
- Never pay for a credit card! If it isn't free, you don't need it
- Find a credit card that pays you back for using it! There are so many rewards cards out there that this should not be difficult.
- Pay your balance off in full every single month. Never pay interest on your credit card debt.
- Pay your balance ON TIME! Do not pay a late charge!
- If these rules don't work for you, get rid of the credit card and go back to paying cash!
We keep a few credit cards that reward us for various purchases. I have a card that pays back 5% of gas purchases and 3% of grocery and drug store purchases. Another card pays 3% of retail shopping and utilities. A third card rotates it's reward each quarter, currently it pays back 5% on office supply purchases. All other purchases on these cards still pay back 1% so I use my credit cards for everything as I rarely have more than a few dollars in my wallet. I view my credit balance online regularly so that I know how much I've spent. If you need to set a limit on your card use, most credit card sites offer a way to send yourself an alarm, notifying you when your balance has reached a certain amount. All of these ways help me to get the most out of my credit card, and not let the credit card get the most out of me!