Pay Off Your Credit Cards in Full Every Month
The idea behind getting a credit card is to help establish a credit history as well as a credit score.
Unfortunately too many people use it without really thinking about how much they are spending.
Yes you go out a buy $100 on some new clothes, but are you really thinking about the fact that you $100 to the card company or are you saying to yourself the I can make the $15 a month payment on this without a problem? Just think about that for a moment, you say, "it's only $15 a month for about seven months".
Is that really the case? No.
It actually will work out for you to pay back $15 a month for about 10-12 months.
Depending on the interest rate that you receive from the card issuer.
It can range anywhere from 13% all the way up to 29%.
So if you buy a $100 dress at a 25% rate and take twelve months to pay it off in full.
You will have actually paid closer to $120 for the dress that was on sale and you thought you were saving money by buying it.
Too bad that's not the case.
The concept of having a credit card is changing as each generation becomes old enough to start building credit.
Many young kids today don't really learn how to handle credit in a responsible way.
Many adults don't take the time to teach their kids to pay the credit card off in full each month .
The idea is to show that you can live within your means.
Not to spend more than you make and if you do it's short term debt.
Credit cards are not meant to be used as a way of supporting yourself, they are meant to get the credit status so you can buy a house, get a loan to open a business or to go to college.
The better your credit score is, the better the interest rate you will be able to get on a mortgage.
Don't jeopardize your future by being irresponsible with your credit cards.
Unfortunately too many people use it without really thinking about how much they are spending.
Yes you go out a buy $100 on some new clothes, but are you really thinking about the fact that you $100 to the card company or are you saying to yourself the I can make the $15 a month payment on this without a problem? Just think about that for a moment, you say, "it's only $15 a month for about seven months".
Is that really the case? No.
It actually will work out for you to pay back $15 a month for about 10-12 months.
Depending on the interest rate that you receive from the card issuer.
It can range anywhere from 13% all the way up to 29%.
So if you buy a $100 dress at a 25% rate and take twelve months to pay it off in full.
You will have actually paid closer to $120 for the dress that was on sale and you thought you were saving money by buying it.
Too bad that's not the case.
The concept of having a credit card is changing as each generation becomes old enough to start building credit.
Many young kids today don't really learn how to handle credit in a responsible way.
Many adults don't take the time to teach their kids to pay the credit card off in full each month .
The idea is to show that you can live within your means.
Not to spend more than you make and if you do it's short term debt.
Credit cards are not meant to be used as a way of supporting yourself, they are meant to get the credit status so you can buy a house, get a loan to open a business or to go to college.
The better your credit score is, the better the interest rate you will be able to get on a mortgage.
Don't jeopardize your future by being irresponsible with your credit cards.
