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Should You Use Credit Cards For Daily Purchases?

Most of have, and love, our credit cards but should we use credit cards for daily purchases?  When it comes to credit cards, the credit card companies are masters. Their computer systems can keep track of your transactions on a minute-by-minute basis, which helps them determine your individual profile. .

There are many people in today’s word with credit cards who do not know the first thing about them. Many people who had been using their credit cards to make their payments do not know how to handle the accounts or how to handle their spending with cards appropriately. It is extremely important that you learn the basics and then go back and re-visit what you’ve learned and stay as up to date as possible. 

Should You Use Credit Cards For Daily Purchases?

 

The first step to becoming familiar with your credit card and how to properly use it, is to learn all of the terms associated with the use of the card. Credit cards have different fees for different card purchases, so it is necessary to understand what each term means. For example, if you wanted to buy a movie ticket on a daily basis for a month, then you would pay the same fee, no matter which day you made the purchase.

There are also other fees associated with the use of the card that you may not be aware of. This means you must be sure that you know the terms of these fees as well. Before you actually make a purchase, you should know how much each purchase will cost and then compare that to the actual charges.  If you knew the actual cost to you in the long run, you may not use your credit cards as much as you do. 

Did you know that prepaid cards exist?  Prepaid credit cards are typically available in a variety of  formats. It is possible to obtain them in cash, check, or debit card. The only difference between the two is that with a prepaid credit card, you need to put down a deposit. If you do not have the money, then you may want to choose the debit card option. 

Another consideration is to open a credit card that works just like your bank account does. You will have access to your account and be able to transfer funds directly to your account when you need to. You should make sure that you always have sufficient funds on your account to cover any unexpected expenses and do your best to avoid overspending.

In today’s economy, it is very easy to use credit cards for everyday purchases but you should take the time to budget your purchases properly. Many people simply use their cards to pay for all of their expenses because they haven’t taken the time to plan properly and then they end up with extremely high bills they can’t pay off. 

Credit Cards are very useful when you are going to go to an out of town event, or you are needing to make a large purchase. Either way,  it is imperative that you use your credit card wisely. Don’t use your credit card at a gas station or a store for small items unless you:
1. know you can pay off the bill each month
2. have a card that gives you points, or cash back
Using a card this way for small purchase may end up costing more than the price of the item. You don’t want to end up paying 2x-4x higher price for  something because of interest and fees. 

Using your credit cards wisely is extremely important in today’s economic environment. Using your card for major purchases only, and not for minor expenses can help you build up your financial power. Besides having a good credit score, using discipline means you will always have a balance on your credit card account too which benefits your credit scores in the long run.

Should You Use Credit Cards For Daily Purchases?

By building up a positive payment history, and having at least 70% available balance on your card, you can use your card for whatever purpose you choose and not negatively impact your credit score.  By simply watching your spending , you can improve your credit rating. 

Having and using your credit card wisely can be an effective financial tool. It is one of the most effective tools you have when it comes to money management. 

You can use your credit cards for daily purchases only if you know you can pay off your balance each month and if your card offers rewards like points or cash back. Otherwise, stick to major purchase and emergency purchases only. 

Should You Use Credit Cards For Daily Purchases?

If you found some value in this article, leave us a comment below. You can also contact me with any questions about what you’ve just read.

Regina L Floyd

After developing a wheat and dairy allergy over the last few years, I decided to find better ways to eat to feel better. Although I DO eat meat, I often seek out GF Vegan diet to avoid dairy and eggs (my new allergy lately). I hope you enjoy the variety of articles shared here.

http://glutenfreevegandiet.com

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