January 12th, 2009
5 Quick Tips for Healthy Credit
Most of these credit tips may be common sense, but that does not mean it is easy to remain disciplined when you think about all of the things that you can do with a sizable amount of credit. Keep these quick tips for healthy credit in mind, however, and you may have an easier go of keeping your credit in check and your finances on the up and up.
1 – Never buy anything on your credit cards that you cannot pay off right away.
The trick is not to buy things you won’t be able to pay off for a few months, but rather to buy things you can pay off as soon as your next paycheck rolls around. While carrying a small balance on your credit cards is not detrimental to your credit health, carrying around a large balance is not going to do you any favors.
2 – Pay off more than the minimum amount due on your credit cards every month if you are not able to pay the entire balance off.
The minimum amount due may protect you from late charges, but it will not protect you from high interest rates and other finance charges. By paying off more than the minimum amount due every month you will better be able to pare down your credit card debt for a stronger and healthier financial future.
3 – Try to avoid department store cards and other specialty credit cards unless you absolutely need them.
These cards may appear useful, but they also become somewhat of a license to shop. While they do offer benefits, and may come in handy in stores where you shop often, don’t let them become a reason for you to spend money because the benefits do not normally outweigh the costs in situations like these.
4 – Periodically check your interest rates as well as the terms for each of your credit cards in order to make sure that nothing has changed.
Sometimes interest rates, credit limits and monthly payment amounts can change, and while you are required to be notified, things like this can slip through the cracks so make sure you are up to date with the current information about your credit cards so that you do not end up losing money to unexpected fees or rates.
5 – If you are afraid that you are going to be unable to resist using a credit card when out and about, leave the cards at home.
You don’t necessarily have to cut them up, but why bring them everywhere you go? Put them somewhere safe and keep them stored – This way you will only use them when you absolutely have to, and not a moment sooner.
These five tips will help you keep your finances healthy, especially when it comes to proper credit card usage.
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Simple yet wise advice.