Credit Card Savvy…..

You have a credit card…. do you know, really know… how to use it to your advantage?

The Savvy Rule…… Use your credit card for purchases you know you can completely pay for when the bill comes due. Otherwise,…… do not use it.

Reason???    …… You get the benefit of generating a high Credit Score.  You get the benefit of possibly getting something on sale so you save money there, but unless you pay for the item(s) in full when the bill comes due, you won’t.  You’ll wind up paying finance charges on the portion you don’t pay along with additional finance charges added each month on the unpaid balance.

And, if you’re late in paying, even one day late, you are charged a hefty late fee as well….. so the sale item (or whatever your purchases are) are no longer a bill for just the purchase(s), but rather a bill for the additional fees.

This is now called a financial nightmare!  If you pay the minimum or anything other than the full balance the fees pile up, and continue to pile up so you’re in a financial hole that can take years to climb out of.

And….. your Credit Score will take a nosedive causing headaches when you want to get an apartment, mortgage or a loan…. as they check out your history and if your’e too risky at repaying, then they’ll deny your request.

So…….  Use a credit card wisely……..   Charge —- then pay…..  Pay the full balance when you receive the bill.

If you can’t do that…… then don’t use the credit card!