What credit cards are for
October 19, 2008
Credit cards are not evil. They are not bad. Credit cards can actually do good things for you if they are used correctly. Having a few credit cards with high limts and very low balances can give your credit score a good boost. Paying your credit cards on time and not using them until you have reached your maximum limit can help you get better interest rates on large ticket items like your vehicles or your home mortgage.
Credit cards should be used wisely and are best used for emergencies only. While most of the time you should never charge more on your credit card than you can pay off in a month this is not always possible. An unexpected medical bill or if your car breaks down and you may have no choice but to charge more on your card than is possible to pay off in a month. This is why it is wise to keep a very low balance on your credit card. If that emergency does arise you want to be able to use your card.
Credit cards should not be used for vacations, clothing, eating out or other non-essentials. These things can be saved up for and do not constitute an emergency.
Use your credit cards but use them with care.
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