Credit cards were, a long time ago, a symbol of financial success. They were the golden ticket which would allow people to get whatever they wanted with money that they didn’t own. Rates were reasonable, but the fact is that greed got to many people, and they ended up in credit card debt. The debt issue remains, but credit cards are now increasingly being viewed as a burden instead of as a relief or a lifesaver.
It’s easy to see how people can drown in credit card debt. Credit cards are charging astronomical rates, and it’s easy to get lured in by the illusion of free money. Worse still, you need a credit card in order to establish credit at a young age. Colleges were inundated with credit card company offers for students who were new to the world, and as such, became increasingly popular over the years. Really, signing up for a credit card is almost inescapable.
There are ways to make credit cards work for you, and to avoid any interest charges whatsoever on your card. The only issue is that they take a lot of determination, and a lot of hard work to achieve. Assuming that you are starting out in life, this is easy, but otherwise, you will need to get out of credit card debt first.
The easiest way to make your card work for you is to get a card that has bonus points, use it monthly, and pay off your balance at the end of each month. It sounds so simple, doesn’t it? Believe it or not, this means that you cannot get carried away with spending…which is a very common issue.
The remedy for this trap is simple, but takes discipline. You have to set a maximum monthly balance that you will allow on the card. (Note: For FICO score issues, it’s best to keep the maximum under 30% of your total credit cards’ max limit.) You only need a small charge every month to make your credit score shoot up, so spending $25 or so on your credit card is enough to do the trick.
Paying off your monthly balance and continuing about your daily life makes it easy to gain reward points, which in turn can become rewards. This way, you get to be rewarded for shopping for everything you normally have to buy, anyway.