What is the right way to use a credit card?
Here are the golden rules for using a credit card. If you stay true to them you will never run into trouble, you will build stellar credit history and you will have access to the best credit cards and financial perks available.
Here they are:
- If you don't have the money, do not buy it!
- Pay your credit card back before you are charged for interest.
That's it, it is simple and sweet!
The best way to use your credit card is to use it like you would a check card. The only difference is that you need to track how much you are spending and how much money you have left in your account. It is kind of like balancing a check book, if you write a check for more than you have in your account, your check will bounce. Your credit card won't bounce or mention that you might have insufficient funds. This means you need to be responsible and aware of your financial situation.
The great part about using your credit card responsibly is that it's super easy with online banking and bill pay. Don't ever worry about statements getting lost or mail not getting delivered. Use your bank and credit card websites to manage your finances.
What many people do to avoid trouble is to pay off their credit card online every week or couple of weeks they use it. This way you avoid getting into trouble. This is the best and safest way to use your credit card, never get behind on your credit card payments. Just make a weekly ritual of checking your online credit card statement and paying it off directly from your bank account.
Never leave a balance on your credit card and never pay interest.
With a little bit of discipline and some help on starting off with the right credit card, you will be on your way to financial freedom and a great credit score.