Is it possible to use credit responsibly? How do you find the best credit card for you?
Actually, unless you have an addictive problem with credit, credit cards can be part of your financial well-being. FICO – the credit rating bureau, actually wants to see some payment of credit, and if you use credit cards well you can actually help your financial situation. The best use of credit involves paying off the balance every month as much as possible, not paying off one credit card with another, and using cards mostly as a convenience rather than a way of paying necessities. You should be building an emergency fund, but it is also nice to have credit cards as a cusion. It is absolutely essential that you must at least pay the minimum on time every month. If you do not pay on time the companies may not only charge you a late fee but actually raise your rate. As you consider applying for credit cards, consider how you are thinking about them. Because you are approved for $30,000 does not mean you should run up a bill like that. You should live within your means, whether you have a credit card or not.
Not all credit cards are the same. Read the offers carefully to be sure that you are not going to pay a teaser rate that is very low and then be skyrocketed up to an exorbitant rate. Compare all the offers and be conservative. There is not a need to have a pocket full of credit cards, really one or two should meet all your needs. It is difficult to keep track of all the cards, and you want be sure that you are keeping track so that you can be on time for the payments, as mentioned before. Be sure that you consider all these issues before applying for credit cards and then monitor your use of them diligently. You should really only have one or two credit cards, more than that and you will find that it is difficult to track them, and as stated before you absolutely do not want to be late. Carefully compare all the offers that are presented to you before you sign up with a card, consider what credit means to you and you will be able to use it wisely.