First and foremost think of using credit cards like a game because it is a game. The credit card company’s ideal customer is one who racks up their credit card with no wiggle room left. And then the credit card company or bank makes a lot of money off of the person who has maxed out their card or who never pays down their balance. Add on whopping interest fees and various surcharges and the game is in full swing!
Now the person becomes the pawn in the game of kings and never seems to be able to make a dent in their outstanding balance. You know that awful feeling of being buried and you can’t get out? 🙂
In the above case you are losing the game so if you want to win the game this is what you need to do.
- Enter into the game knowing that it is a game and that you want to win. 🙂 A credit card can be a good servant if used wisely and a bad master when not used wisely. To start playing the game to win you want to research and find the best card with the best perks that are to your liking and will give you the most benefit.
- Go into the game knowing that you are only in it for 2 reasons A) You want to master a stellar credit rating to set you up for future borrowing if and when you need it to acquire things like a house or business and B) To take advantage of the perks and to NOT pay any interest but to enJOY the perks and maximize!
So the bottom line is that you must pay your card off in full every month! Do this as a strategy to win. Even if you get a credit card with a small credit limit like $1000 or $500… purposely get one for this reason and put charges on it and pay it off every month. This will help to land you a great credit rating and get you knowing how to play the game to win.
I hope that you found this helpful and I will be writing again in the future with more tips around credit cards and finance.
Have a great day everyone!