Credit Cards Save You Money
One of the best reasons to use credit cards is that they save you money in several ways.
Shop around to get credit cards that offer the best incentives, such as 3 or 4 percent off the price of a gallon of gasoline, free hotel rooms or discounts at merchants you use regularly.
For the past several years I have used a gasoline credit card that offers 4 percent off the purchase price of a gallon of gasoline.
In 2008, when everyone else was paying $4.00 for a gallon of gas, I was paying $3.86.
Some cards offer cashback at selected merchants. Go for the deal that’s best for you. Hey, it’s their money so you might as well grab it.
Credit Cards to Balance Your Weekly Budget
One of the most effective personal finance tools in your wallet is your credit card. Use credit cards that allow you to pay weekly and ever carry a negative balance.
That way you can break down your family’s $1,000 monthly food bill into four, slightly more palatable payments of $250.
Instead of paying your car insurance in two $1,200 payments, you can pay $50 in weekly payments to your credit card instead.
Prepay against your credit card and build up a negative balance you can avoid getting hit all at once for the expensive times of the year such as Christmas or birthdays.
Credit Cards for Budget Planning
Pay everything with your credit card and you will get monthly and annual statements that indicate where you spent your money.
This is a great personal finance tool when you annually attempt to figure out a family budget.
This way you’ll know how much you spent on heat, food, entertainment, home improvement, medical, dental or travel expenses when you receive your annual statement from your credit card company.
Credit Cards to Improve Your Credit
Set up for automatic payments from your checking account and you will never have to worry about missing a payment again.
Solid payment history is a great tool in your personal finance arsenal if you are attempting to improve your credit score or if you are coming back from bankruptcy.
Remember, in these days of computer data-keeping, your banks know when you pay early, carry a negative balance, pay just on time or pay late.
Use your credit card payment habits to work for you in improving your credit score.
Credit Card Pitfalls
Credit card use can lead to problems if you spend more money than you make.
Simply said, of course, still many people fall into excessive credit card debt because it’s easy to swipe plastic without seeing how much you have in your bank account.
For the best credit card use, go online daily and check your bank account balance. If the money is in there, use your credit card.
If it’s not, keep the plastic at home where it is safe from hurting you.