Consumers all have different notions when it comes to having and using credit cards
. Some people will choose to avoid credit cards entirely. Provided you are ready and able to use credit cards responsibly, making a choice about what will work best for you can be somewhat difficult. There is no defined right or wrong when it comes to choosing a credit card but there are some general rules of the road that you can follow if you are a novice user or even for the most experienced in the world of credit cards.
Here are some general tips and considerations for using your credit cards:
Using a General Purpose Card
For instance, if you commute to work and your car requires a lot of fill ups at the gas station during a month’s time, it may be wise to get a credit card that offers cash back rewards or other incentives each time you fill up. The reward programs will differ from card to card, so thoroughly research all of your card options before choosing a card for your general spending needs. You also need to make sure that you only buy what you have the cash to afford. The credit card is not an extension of your income and you need to make sure you are not using it as such. Keep the cash equivalent on the side so you will be sure you can pay your balances in full each month.
Using the Emergency Card
Your second card should be kept for emergency purposes only. This is essentially a back up card if you ever have an instance where you have an unexpected expense arise, you know that you have a card to cover it. The one important thing is to be able to differentiate between what constitutes a true emergency. For example, if an unexpected emergency medical expense should arise, you can use your card to set your mind at ease. However, an unexpected shoe sale does not fall into the category of emergency credit card use.
Spend Wisely
Having a credit card doesn’t necessarily require that you use it. Living beyond your means is one of the most common reasons people are drowning in debt. It is essential that you control your spending with a credit card in your wallet. If you find you can not resist the temptations the plastic brings about in the mall, leave your credit card at home when you do not have the money to back up your purchases.
Apply For/Keep Only What You Need
With the general rule of thumb, keeping only two credit cards is a good idea to remain in control of your accounts. However, some people feel that the more cards the merrier. It really is a personal decision as to how many credit cards you have at anyone time but it is never a good idea to open too many accounts. If you do find that you have an excessive amount of credit cards, don’t rush out and close out all of the extras because doing so can hurt your credit score. Instead, work at paying off any remaining balances and stop using the extra cards. Choose the two you want to keep actively using based on the APR and rewards incentives each card offers.
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