The Only Time I Apply for a Credit Card
I only have one credit card and I avoid applying for them. Having too many credit cards can tempt one to overspend or spend money they don't have. Using a credit card can cost more money in the long run if used the wrong way. I will go over the only time I apply for a credit card and explain the right way to use credit cards.
When to Apply
The only time I apply for a credit card is when I have the money to pay for what I am buying, yet am offered a great discount just for applying for the credit card. The saving has to be significant for me to apply. As soon as I get the bill, I pay the credit card off in full so I am not left paying any interest.
The Right Way to Use a Credit Card
I see only two times that I should use a credit card. When I can pay the balance in completion upon receiving the bill and If I have a true emergency. A true emergency means my car has to be repaired unexpectedly or we need money to buy food for some reason and don't have it. An emergency is not buying something I want, it is paying for something myself or my family has to have to survive. If having to use a credit card in an emergent situation I would pay it off as soon as possible.
How to Avoid Having to Use a Credit Card in an Emergency To avoid having to use a credit card in the instance of an emergency I have a savings account. It is easy to set aside a small amount of money from each pay check and put it into savings. Over time the savings account will grow in number in case of an unexpected emergency. Even putting as little as $10 a month into a savings account can help me avoid having to use a credit card if faced with an emergency.
Interest
When you and I pay interest every month on a credit card, we end up spending more on our purchases. For example, we will take a purchase costing $213 with an annual percentage rate of 24.50%. If I pay the minimum $25 monthly installments for 10 months, I will end up paying $239. That may not sound like much more, but if I have several credit cards or high balances, it adds up quickly.
Published by Rebecca Bardelli - Featured Contributor in Lifestyle and Sports
Rebecca is a freelance writer who is passionate about writing. She has been writing for enjoyment most of her life. She has content published on Yahoo News, Yahoo omg!, and Yahoo Sports. She also took j... View profile
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3 Comments
Post a CommentCredit cards are the devils of the world! What a love-hate relationship!
Great advice!
You're right....the best idea is to have an emergency fund and try not to tap that credit card....not always easy, of course, especially in this economy.