A Good Credit Score

A Good Credit Score

Responsible Credit Card Use – What to Buy and What not to Buy

One of the quickest ways to get in huge trouble with your credit is through the irresponsible use of credit cards. Over the past few years, a stigma has become associated with credit cards. Some people feel that they are “evil” and that using credit cards is a sure way to damage your credit. In reality, this isn’t entirely true. There is a way to be responsible with your use of credit cards. One of the basic principles that must be addressed is the question of what to purchase.

There are certain things that should be bought with credit cards and a few things that, no matter what your financial situation is, should not be purchased with a credit card. The government has even taken notice of this budding problem, prompting the Federal Reserve Board to make statements on their website about responsible credit card use. That advice can be found at Federal Reserve.

Everyone understands that there are times when a credit card is necessary. In general, the things that should be purchased with a credit card are larger, out of the way expenses that you simply can’t afford to pay out of pocket. For instance, if your car breaks down and you need to purchase a part to get it running again, you might consider putting that part on a credit card. In addition to emergencies, it is sometimes alright to make large, planned purchases with a credit card. If you have a kid going to college and you know that they need books, use the credit card to help them with that expense, but be prepared to pay off the debt before it accumulates interest.

Where do people run into problems? According to an article at MSN Money, which can be found at Credit Card Companies Evil Tricks, people run into problems when they put a number of everyday expenses on their credit card. From there, the credit companies are able to take control and influence the amount of money that you have to pay off over the long run. It is never a good idea to go around putting things like food, clothing, gasoline, or other bills on your credit card. Sure, at the time it might seem like a good idea, but in the long run, it is going to cost you a whole lot more. Rising interest rates at these companies is reason enough to avoid carrying a high balance.

A little bit of common sense is a requirement if you want to practice responsible credit card use. It’s important to look upon that credit card as a tool to be used wisely. It can be a short term insurance policy in the case of emergency, but it shouldn’t be looked upon as the catch can for all of your everyday expenses. Remember, every dime of that money must be paid back over time. Credit card companies make their profits off of people who put off today in order to pay tomorrow.

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