There are many articles published every day about ways in which to get out of debt and build up a person’s credit. Being smart with credit is one sure way that an individual can keep themselves from getting into bad debt to begin with. When there is more than one credit card a person has, it is best to use both of the cards on a monthly basis so the credit card company sees the utilization of the card.
It is never a good idea to over utilize or underutilized the cards a person has. It is best practice to use a credit card for gas, groceries, or smaller bills. When using credit cards to pay off higher bills or expenses it is a lot harder to pay off the remaining balance for that particular card or cards.
The reality is no matter how strong the desire is to pay off debt; it’s extremely hard to do so when there are other financial challenges that a person has. When the debt is smaller; let’s say in the lower hundreds, it easier to manage and pay the monthly statement on time.
No one likes to be told what to do as an adult; especially when the lesson is from the posture of conviction. Being smart with your credit cards allows more discipline to enter into other areas of our lives. Banks love when one of their customers don’t pay their bills on time because there lies another sure way for them to capitalize on late fees, interest rates, and the possibility of credit limit decreases.
Using a credit card will help a person’s score go up, but not using it can actually make it go down. As many say there has to be a balance with everything, this definitely includes with using credit cards.