Being a Smart Credit Card User


Credit cards are not the devil. However, if they are not used correctly, they could really put a person in some serious debt. This is why it is important to learn how to become a smart credit card user. If you use plastic the right way, you will have a convenient and sometimes fruitful way to pay your bills without forking over cash or dealing with checks. Additionally, smart use of credit will improve your credit score, which in turn will help you when it comes time to apply for and be approved for a competitively priced home or car loan. The following are some tips for how to become a smart credit card user so that you can secure a great financial future for yourself.

A key piece to being a smart credit card user is to not spend more money than you make. Credit is not free money. You have to pay back what you spend, usually with interest. Thus, you should only use a credit card if you have income coming in and if you know you will be able to pay off this balance each month. It is best that you not carry a balance across different months because it means that you will end up owing credit card companies a significant amount of money. Do not pay such groups more than you have to. Thus, be smart about your credit card: Do not use it if you know you do not have paycheck or income that can cover it.

Try leaving your credit card at home if you know you are going somewhere tempting like a mall. It is important that you not be lured into overspending. Know yourself. If you know that you have a weakness for shoes or clothes, then you may not want to bring your card with you if you are visiting a friend at the mall or about to help a friend pick out an outfit. If you do not have your card with you, then you can not use it on things you do not need.

Always read the fine print so that you know your credit card company’s policies. For example, you should know how long the billing cycle is so that you know when you need to have payments in. This will help you when it comes time to use your card. Similarly, you should know what your interest rate is and should try to periodically find lower rates, too. The more you work on your credit score, the more competitive rates you should be able to find. Know how much a company charges if you go over your limit or are late on a payment, too. The more you know, the more prepared you will be for every situation that arises with your card.

If you use the above tips, you are sure to use your credit card in a smart manner. Moderation is everything when it comes to plastic. Be sure that you have the funds you are spending and you will be more than fine. Stay on top of your finances and do not get lazy with your payments or with credit card use. The more in control you are of your finances and of your credit cards, the better off you will be. Being a smart credit card user ensures that your credit history will be solid and that you do not dig yourself into a hole of financial debt.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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