saving spending and credit

Smart Credit Card Strategies

Once you have a credit card, which of these practices makes sense?

1. Only pay the minimum balance each month.
2. Avoid impulse buys.
3. When you’re short on cash, use your credit card.

“B” is correct. Remember: A credit card is not the same as ready cash. Each time you use it, you are borrowing money. Don’t be tempted to use it to buy things you don’t need. Strive to make all credit card payments on time and in full. If you only pay the minimum balance, the interest you owe will add up fast. Carefully review each credit card statement and dispute those charges you know you didn’t make. Limit the number of credit cards you own -- too many can negatively affect your credit score. So can closing several credit card accounts at the same time. To learn more about credit cards, check out Guidewell Financial Solutions’ “Selecting a Credit Card” course.