In the right hands, credit cards are a great way to not only get your credit limit up, but also get the items that you most need without having to put all your money into said purchase at one time. In the wrong hands, though, credit cards are a great way to plunge yourself deeply into debt. It’s not just college students who don’t know any better getting themselves into massive debt thanks to credit cards, it’s adults who should know better. All it takes is one missed payment to go from having no debt to having a lot of debt. Don’t look at your credit card as a magical tool to get whatever you want; think of it as a way of getting what you need when you would rather pay a little bit now and a little bit later.
Here is a good rule to follow when it comes to making purchases with credit cards: if you don’t have the money for it now don’t buy it. Don’t think of your credit card as a way to get items that you don’t have the money for, only limit your purchases to items that you either already have the money for or you know will have the money for in the purchase. In addition, don’t buy something with the idea that you are going to only pay off minimum payments each month. One of the best ways to get debt quickly is to only pay off with minimum debts.
Another great way to make sure that you stay out of debt when it comes to charging on a credit card is to get one of those pre-paid credit cards that are popular right now. This way you, or your kids, only pay the amount that is on their credit cards and can’t overcharge in any way.
If you are looking to build credit up one of the best things that you can do is make small purchases each month that you know you can pay off. Instead of going out there and buying a big item that you pay off little by little each month, put a couple of grocery trips on your credit card tab that you can pay off at the end of the month. Simply showing that you are paying off the total each month will help you with your credit.