There’s always the misunderstanding that having a credit card will solve all of our problems, but great power, always comes with great responsibility. But if you don’t know how to handle yourself and don’t know what your bank wants from you in return can make having credit cards both a blessing and a curse.
To know how to work with a credit card the best way possible, it’s important to know the basics about credit cards. And whether you used it to pay a new car’s down payment, or just groceries, you could end up paying more interest than your actual purchase if you are not aware of these facts shown below.
What You’ll Like
They can be a blessing in the middle of a bad financial situation, and help you pay for things online can make you improve your credit rating, which can make the bank to offer you more than one credit Card at a time, if you are a reliable debt payer.
But you will never need more than one credit card to make your credit score go higher. So never fall in that game where all the Stores offer you a special credit card to have more discounts or buyers rewards if you use it in their inventory.
Credit Cards were a way to wealth for the post-war generation because the card let you get low interest to buy homes or pay for education, and pairing that to a steady job, it can provide some financial security.
What You Won’t Like
You can always pay the minimum balance and maintain your bills on the low side of the spectrum. The bank will appreciate it as you keep the interest going up. But no one wants to give away their money to pay higher interests when you don’t have to. In the end, that minimum balance may not even pay for the total interest you are dealing with.
Look around for a bank that let you apply for a card with a low interest and a low credit limit. This way it will pay you back eventually and it will inhibit your chances to risk a big deal just by impulse shopping. You will learn how to save money on your credit card if you don’t have much to spend in the first place. Maybe the bank won’t like it, but your wallet will thank you for it.
Whenever you find yourself in some credit card trouble, and have more debt than income, it is important to call your credit card company or your bank to explain your situation. They will, most likely, offer you a lower interest rate and let you pay the new debt in less than a year, but in times of need, it’s a good thing to know.
We understand that with credit cards, the game is about priorities. Learn to choose your battles and try not to give in spontaneous shopping without analyzing what would that mean to your credit and your payments abilities.