Credit Cards – One Should Be Enough
Filed under Credit Cards
Nowadays you have to have a credit card in order to make most purchases and have access to most things. In fact, it is more common today to use credit cards to purchase items than it is to pay in cash. There are very few stores that do business on a cash-only basis. And with the ability of people today to make purchases online, credit cards are the primary payment options for online transactions.
When you use your credit card for purchasing a goods or services, you should be aware of what it can cost you in the future. Credit card companies impose a certain percentage of interest on all of your purchases and most of these are computed on a daily basis. So as much as possible it would be beneficial on your part if you don’t go over your credit card’s available spending limit. Interest compounds so don’t wait until you find yourself in deep debt and unable to pay your monthly credit card statement.
If you are shopping for a credit card, try looking for a credit card that is most appropriate for your spending habit. One of your primary goals is to get a credit card with the lowest interest rate and requires no annual membership fee (or if there is an annual membership fee, it should be very minimal).
If you want to reduce your debts, get rid of all your credit cards save for one. With just one credit card, you only keep track of one credit card payment every month. Strive to keep your credit limit low and try to pay off more than just the minimum amount due on the card each month. Use your credit card only when necessary and for emergencies. You don’t want to live on your credit card and put all your purchases on it.
You probably get a credit card offer in the mail every week or so. The offers may be tempting, but unless the terms are really good for both short term and long term. If you have many credit cards and you can’t cut it down to just one credit card, you can keep your oldest credit card and another card that has the best terms among the ones you have. You can also maintain one Visa and one Mastercard. And if happen to have one of those high interest rate store credit cards, get rid of it…fast! If you own a lot of credit cards, you’ll be more likely to have uncontrollable spending.
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