This one is always a complicated matter. I have done my fair share of running up credit card bills and paying them off, running them up and paying them off. Right now, I am fortunate enough to have them all paid off.
If at all possible, don't ever carry a balance. If you absolutely have to, make sure it's on a card that has the lowest possible interest rate (you can call and ask the company to lower it) and do not charge anything on that card with a balance. You should always have one clear card that you can charge what you need to and pay off each month. First, it will allow you to get used to paying off the card each month and second, you won't find yourself paying twice as much for the purchases you make today.
Credit cards can be a great financial tool--if used to benefit you, not the credit card companies. If you use them and pay them off each month, it's like a free loan for a few weeks. It also helps you keep yourself accountable on what you spend--it's all laid out there in one long bill.
Reward Cards
There are some good cards out there for those who like to get rewards but not pay an annual fee. My favorite at the moment is the Chase Freedom card (see card terms and conditions). No annual fee, a respectable interest rate and 1%-3% return on your purchases. What I like most about this card is that if you wait to accumulate $200 in rewards, you can request a $250 check. That's even more free money!
But if you carry a balance, don't be taken in by the promises of these cards. Most likely, the fees and or interest rates will by far cost you more along the way. |
Credit Cards