When we’re young somewhere along the line Finance, the fundamental foundation of living a stress-free life, was never a topic addressed in public school in any realistic way. We have to fend for ourselves if we’re not lucky enough to be born into a financially literate family. If you want some tips that’ll help you get by and have a good credit score then you’re on the right track.
When I learned about balance transfers and 0% intro APR periods I took advantage of that, but I didn’t know it was the start of a good long credit history.
Understand Credit Cards – Don’t Fear Them.
Without a proper understanding of how to utilize the credit card for your benefit, you or someone you know will misuse it and tell you how much debt they’re in. So this is where you change your mind about credit cards so that you can navigate this game of Monopoly best.
What is it that you want but can’t immediately afford?
Buy it with a credit card, pay over the minimum payment by a little bit each month and always pay on time. If at the end of your intro 0% APR cycle you still hold a balance, open a new card with another company and transfer that balance. It will cost about 3% of the debt you have left, but you can transfer it and not pay any interest on the debt for another 12-21 months depending on your new credit card company’s intro rates. Continue to utilize this method somewhat responsibly for years.
Being a conniver by nature, I was always down to pay a debt for the things I wanted. It started with buying my first iMac in 2009. My parents helped me out a lot, so if you’re in a pickle than ask someone close to you for help.
Notice I didn’t buy something that wasn’t investing in my self. That iMac helped me hone in on design and video, which I’ve grown to know very well since then. Make a choice that will benefit you. What’s the key thing that you need to have to start your journey? Buy that.
Example of How to Use Credit Card Debt:
- Start with a $2,000 credit limit with Discover at 0% intro APR for 12 months
- Buy something no more than 75% of that maximum credit limit, in this example $1,500
- Pay that $35 a month payment on time, but pay $40 instead. The sooner you pay it off the better.
- If month 11 comes and you still have debt, open another credit card and ask to transfer that debt on the phone with a person from your new credit card company.
- Pay off that debt, try not to accumulate too much more, but continue to use it and eventually pay it off.
Simple isn’t it? If you’re not a careless person and can be accountable to your purchases, credit card debt is what is used to create an overall credit score. This score will some day determine how easy it is to offer you a loan for a home.
Good luck, if you have any questions of how to handle your credit card debt or how to get straightened out let me know.
