Had a few down the years. Always switch once they start raising their interest rates.
The thing to remember about credit cards is that it's free BORROWED money - but only if you pay it back on time. If you pay the minimum all the time, then it becomes EXPENSIVE borrowed money, and NEVER withdraw cash from a credit card.
Doesn't matter if you pay it back a day or week early. What matters is that you pay the FULL balance. Sure you may have months when you're a bit short, and need to pay minimum. But you MUST ensure you clear that amount, plus your new balance, the next cycle.
The easiest and low tech way to build credit is to open another credit card, doesn't matter what type. Spend only what you know you will cover each month on it. So say you spend 30 bucks a month at Mcdonalds. Use this card for it, and pay that balance in full every time.
Also NEVER max out your cards - it shows bad spending discipline. It's better to spread across cards than hit max with one. .
I got my first one with a $300 limit when I bought a $30 coat at Wieboldts. (It was 52-53 years ago). I would just get a shirt or something here or there, pay off each month in full. The next step was when I bough an electronic keyboard with 12 easy, monthly payments and paid those off all on-time from my savings.
Too this day, my wife and I only have one credit card for "the household". We each have 1 business card for each of our businesses, so that's three total. Do NOT max them out: stay way below the limit, and pay off on time (or use auto-pay if you get itchy thinking about paying off the bills). :- ) If you are having a problem paying, NOTIFY the bank: don't play around with excuses. Work something out with the assistant manager. It helps to a lot of your banking in person: tellers and other personnel will get to know you. We bring some Christmas cookies to our bank each year. Every little bit helps these days, and it's a kind gesture anyway. Good luck.
s Hi! Credit nerd here!
I personally have 4 that I am on and a couple lines of credit. So the trick is to keep your total usage under 30% of your total borrowing limit but even better to keep it under 10%. Be sure to have a great payment history of on time payments. This is a combined total not just a single card.
When card shopping, look for ones without fees for membership or annual fees. Browse around for the ones the give you the best rewards as well. It's important to leave the accounts open as well even if you don't feel you need it. Average account age also plays a factor into your score.
Finally, every year call in and have them increase your credit limit and lower your interest rate assuming your payments have been on time. Avoid opening new accounts of it can be helped.
Try not to overspend your budget and you should be fine.
The best way to use them is not at all.
They're traps that will keep you in debt.
IF you're going to use them, NEVER max them out. Only use 10% of the available funds or less. And always pay it off before interest kicks in.
I have 1 credit card I was given when I opened my bank account and I never use it.
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7Opinion
Using a credit card instead of cash, and paying off the entire balance each month, is a sensible way to manage your finances as well as build your credit and improve your credit score. Having a couple of the major credit cards is a good idea, and use each of them as appropriate. Try to take advantage of special credit card deals, for example use a specific card for specific purchases when you get more cash-back that way. Also, there are so many credit cards out there... try to get one that has no annual fee.
Overall, I have too many I don’t keep track, and acquired them due to promotions, etc.
I really have 2 travel ones that I use most often for the benefits (airline and hotel)
I never max out and try to pay in full on time... makes for good credit rating and they continue to increase your limit that way!
I have 4. One is a gas card, One I use for just online purchases another I use most of the time and I have another I just use when I go to Canada.
3. Just one I got when I was 18 through my bank. Technically when I was 16 my mom put me on here, so I could start to build credit early.
2, 18, and I use them for everything. Use less of your available credit and pay off right away and you’ll be fine
We share three cards. I got my first one in 1984. with the credit limits we have, we don't even come close to maxing them out. Normally pay them off each money.
You’re doing the right thing. Never max them out.
u One, for Netflix... lol
None,
About 18 years ago
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