Use Credit Wisely With These 3 Tips
If you want to save hundreds of thousands of dollars through the course of your life, then start using credit wisely. It can help you to get and have more and it can act as a way of securing your financial future. If you have poor credit, you are not left out because you can improve your credit and begin using credit wisely to gain the same rewards. In order to help you accomplish your goals, here are some strategies that you can follow.
When You Use Credit. Making purchases that are not necessary or buying things that are not worth the cost is what you need to avoid when you are using credit. Remember, it is not only the cost that the sticker says, but the finance charges that go with you that you will pay. A rule called the 24 hour rule is a great way to do this and this is a rule that you can use for yourself and your spouse. For instance, you need to wait until a full 24 hours before making a particular purchase such as if you want to make a single purchase over the cost of $200. Doing this, you will be given the time to really determine if this is indeed a wise choice.
Taking On Credit. Part of managing credit is not taking on more than you can handle safely. You should not have more credit than you make in a year. It’s also a bad idea to keep opening new credit lines so you should avoid this. Even though opening credit cards that have lower interest rates seem to make a lot of sense, before you do make sure to close other cards first. There are those that believe that it’s good to have lots of credit but the truth is, it’s also a bad thing to have too much.
Stay On Top Of It All. Make sure that you take your credit cards, stick them in the back of a drawer or freezer or any other place where you know you can’t use them when you begin to fall behind in your credit. Make payments on time and pay them off each month. Avoid getting stuck with late charges and fees.
While you should have some credit, only taking on what you can handle is a way of using credit wisely. Having a credit card is not necessary in some things such as buying a vehicle, purchasing a home, or even getting certain jobs. You need it, yes, but first make sure you can handle the credit.
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