Simple Credit Card Rules
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From my own experiences, and from the experiences of others, it’s pretty safe to
say that it’s easy for your credit card and spending habits with it; they can
get way out of control. First you start off saying that you’ll just use it for
emergencies, but then just a trip to the mall somehow becomes a major emergency,
and before you know it, you end up with a bill that you can’t even begin to pay.
This will then lead to bad credit, and a whole host of other problems.
Therefore, you need to remember some simple credit card rules, before you get in
over your head, and before you get into trouble.
Let’s say that this is your first credit card, and the only experience or
knowledge you’ve had with credit cards is through friends or family. You may not
know a whole lot, but here’s one very simple rule; don’t set the limit too
high!!! It may seem like a really great idea to have a credit card with a $1,000
to $2,000 dollar limit, but if it’s your first card, you’ve got to ask yourself;
can I really that off, if I max it out? Chances are the answer is no, in which
case, you should set the limit to a lower number. The reality is that practice
makes perfect, and by setting your limit low and paying it off little by little,
you can guarantee that you are making yourself more responsible, and you can be
sure that you will build better habits with your money.
Another great way to avoid a credit card crisis is to make a list. Write out
five specific things, and only five specific things, that your credit card can
be used for only. For example, my credit card is going to be used as a gas card,
and that’s it. Now, if this seems a little too extreme, than write out five
different things that won’t break your bank, but will help you build better
credit in the long run. Also, if you feel comfortable with it, make your list
shorter, to say three things, because that way you can save more and spend less.
Credit cards are the most essential and best way to build credit, but they can
get many of us into trouble. However, if you follow these rules, and remember
the difference between a want and a need, then you will surely be better off
with your credit card habits, and your overall savings.