How Should You Use A Credit Card?

How should you use a credit card? To make your credit cards work for you, use them to purchase things that will earn points. There are a couple of ways. Say, for example there are cards that gain points...

There are a couple of ways. Say, for example there are cards that gain points for purchases, gain points for different merchandise, trips, or airline malls. So a good way to manage your credit card debt is that you may have the money already secured in the bank, but you may use your credit card for daily purchases. You use your credit card when you have the financial discipline to pay that bill off every month. At the same time, what you are doing is gathering these great points that are allowing you to save money on other things. Maybe you have one card and you filter your spending on to that credit card if you are physically responsible to pay it off every month. But I would say that you never want to have interest charges. I am a big believer in people doing credit well. Do not give any credit card interest to those companies. The key is to let those credit cards work for you, and the way to make those credit cards work for you is to say, "I am going to spend $500 on my credit card this month, but guess what, I've got that $500 in the bank and I am going to pay that card off." I pay that off and guess what, I just earned all these points and and I am getting free merchandise. This credit card company is working for me. I am not a slave to them. That is really how I would teach people to manage their credit cards.

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