Credit Cards – Use With Caution

Stay away from credit cards if you don’t know how to use them.

One of the biggest mistakes I made in my first year of college was sign up for a credit card.  They made it so easy though. pre approved, $2500 limit, and the credit card company was in the schools cafeteria (yes this company came into the school cafeteria to get us hooked). I signed up… at the time to me it was free money.  Needless to say that I maxed it out very quickly. The good news is that I was able to pay it off 3 years after I graduated. For those doing the math that was a 3 year diploma program plus 3 years of working… Equals 6 years.  I didn’t know it would be so hard to pay off. Some of you reading this might have tens of thousands dollars of credit card debt accumulate from school. But be wise about it and create a strategy to pay it off.

Most people think that if they don’t have the money for something that they can put it on their credit card and BAM! Problem solved. But what they don’t consider is how they will pay it off before interest is applied to the balance.  I do understand that if you are in a tight position and there is something that you NEED and don’t have the means to pay for with cash.  But if the purchase is something that you want and don’t have the money for then don’t put yourself through the trouble.

How To Use a Credit Card

The following is just my opinion on how to use a credit card.  If there is something that you need to purchase on the credit card… Use it.  But always evaluate if you can afford to pay the balance off by the end of the month. When ever you let interest accumulate on the balance its like your paying more than the actual price that you saw in the store.  I work hard for my money and banks make enough money as is (I’m using my money for other important things)

Rewards Programs

If you get really smart with your credit card company you can sign up for a card that has a reward program (for every dollar you spend you get one point that can redeemed for something else in the future). Again, you must use your card responsibly. Try to make sure that you can pay off the balance by the end of the month.

Keep Your Name in Good Standing

The bigger issue that is involved here is your name.  Your credit score is attached to your name and if you have a lot of debt or if you are late with any payments then your credit score will go down.  This can hurt you if you plan to make a big purchase like a house, car or apply for a small business loan.  You want to make sure that you always keep your credit score in good standing and if you miss a payment then work diligently to bring it back up.  When you have good credit in this country then so many more doors of opportunity can open for you.

So just to finalize, if you don’t know how to use a credit card responsibly then I would suggest you don’t use one.  If you do, try to get the most out of the credit card company by signing up for a card with a rewards program.  Use discernment and Godly wisdom found in the bible to make your decisions. I’ve created a simple PDF guide that can be easily downloaded by clicking here or entering your information on the section below. This house is a quick read and will help you make wise decisions concerning not only your money but your big life decisions. Until next time be a good steward over what God has trusted you with.

Go be GREAT today!