Five Times You Should Avoid Using Your Credit Card
There is a time to use credit cards and a time to know when NOT to use credit cards. The responsible use of credit cards can help build your credit history and improve your credit score so that you are eligible to receive great interest rates on everything from car loans to mortgages.
However, the improper or irresponsible use of credit cards can damage your credit score and hurt your chances to obtain everything from car loans to jobs.
Always avoid using your credit card to:
- 1. Pay other Credit Cards - Using one credit card to pay another credit card is the quickest way to disaster. If you use credit cards to pay your other credit cards’ monthly payments you are simply digging yourself into a hole and delaying the inevitable. If you find yourself in the situation where you simply do not have the cash to pay your credit card payments each month it may be time to contact an accredited consumer credit counseling service.
- 2. Purchase Items you cannot Realistically Afford to Pay off Each Month – The quickest way to get yourself in over your head is to purchase things that you know you are not able to pay off each month. We have been conditioned to be an instant gratification society, although this may be the reason why there are millions of Americans in credit card debt. Simply put: if you can’t afford a flat-screen television, do not buy it!
- 3. Purchase Items you Wouldn’t Pay Cash for (to shop impulsively) - Many consumers are much more likely to purchase items with their credit card that they normally would not pay cash for. So, the next time you make a credit card purchase, take a moment to consider whether you would pay cash for this item. If not, put it back!
- 4. Get Cash - Cash advances are, by far, the most expensive purchases you can make. Cash advances usually come with much higher interest rates than credit card purchases, so think twice before taking out a cash advance!
- 5. Act Irresponsibly – Unless you are prepared to pay your credit card bill on time, each and every month, and to use it only in a responsible manner, then it is best to avoid using a credit card altogether.
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