Are credit cards really that bad? Will you go deep into debt just by using them? Well, it all depends but if you use credit cards right, then you will actually benefit from them. Many credit card users think they are just for emergencies but that is not really the case. The truth is that credit cards can be used for many different things and one of those things will really help you save money and actually come out ahead for using them. Below are some tips on how to benefit from using a credit card:
Use A Rewards Card – The best part about a rewards card is that they give you things back. For instance, you can get a rewards card that will give you a credit for every dollar you spend. These are the rewards cards that you need as they will give you a reason to spend with them. Just know that when you do use your credit card you need to quickly pay the balance off so that you can keep spending on it. One thing that many smart credit card users do is they pay with their credit card and at the end of the week they will pay that amount off. This works as long as you stick to this plan.
Another great rewards card is an Air Miles card. The best part about an Air Miles card is that they give you miles for every dollar that you spend. For people who would rather travel than have money given back to them, this is the card for you. Just know that some air miles expire after a certain amount of time.
Pay It Off – You will never be able to benefit from a credit card if you always have to worry about a balance on it. It is because of this that you need to pay off your credit card as soon as possible. My advice is to pay off your credit card in the first month before you are charged any interest but if that is not possible, then make sure you pay it off within the first 2 months. If you can’t pay off your credit card within 2 months of making the purchase, then you are spending too much and you need to stop using your credit card and find an alternative method such as using debit or paying with cash for everything.
As you can see, you can really benefit by having a credit card or two. Just keep in mind that if you don’t pay off your credit card each month then the chances of you falling deep into debt is far more likely, and the interest you pay will make any rewards that you receive obsolete.