5 Tips to Use Your Credit Card Wisely
Using credit cards is a great way to help build credit and earn rewards that the cards offer, but you want to make sure you use them wisely to control your debt.
Here are some rules to follow to help you use credit cards wisely.
- Set up autopay. This will ensure that you never miss a payment.
- Always pay the full statement balance. Don’t just pay the minimum. This is how you will get caught owing large amounts on your credit card or maxing out your card. Every month that you pay just the minimum, you will continue to pay interest on your balance at a high rate, thus eventually increasing the minimum payment due.
- Don’t charge more then you have in your bank account. To be able to pay off your full statement balance each month, don’t spend more than you have in your bank account. Additionally, keep a buffer in your bank account in case of emergencies, so you don’t have to charge more than you have.
- Never charge an item that you can’t pay for in cash. If you don’t have the cash to pay for an item, save for it and once you have enough cash, buy it with your credit card. That way you can still pay off the full balance statement.
- Track your accounts. If you have multiple credit cards, have a way to track use. That way the charges won’t sneak up on you.
If you find yourself in credit card debt, talk to your bank about credit card consolidation loans. Minnesota First has many options available to help you eliminate your credit card debt. These options often times have significantly lower interest rates and monthly payments.
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