Unlike many other sites that deal with the subject of personal finance, we do not consider that credit and especially credit cards are necessarily bad. Indeed, we will show you that if it is well used, the credit can even allow you to earn money. We will indeed explain to you that the credit offers you many advantages which you would be wrong to deprive you from the moment when you respect some rules and that you know how to use it wisely. Credit is indeed a practical tool that is part of our life, which you will be forced to use at some point in your life. It is therefore important that you have credit means, which you can use when you will need it.
The benefits of credit
If you are interested in personal finances, you have often had to explain that credit is bad, which must be avoided if you want to save money. To get rid of misconceptions, we will start by reminding you of the benefits you can get by using the credit wisely.
– Credit gives you greater payment flexibility by allowing you to divide a large amount into smaller installments.
– The credit can allow you to benefit from loyalty programs and therefore potential reduction.
– By using a credit, you improve your credit score, which will allow you to get better rates for larger credits.
By using the credit you can therefore enjoy a cash facility, but you can also save money, directly at the time of purchase through loyalty programs, but also over time by improving your credit score to get better rates. In fact, the more you prove that you know how to use credit in a reasonable way and the more you can enjoy an attractive rate on your next large credit.
Choose the best credit cards
If your goal is to take advantage of the benefits of credit without the inconvenience, you need to start by sorting your credit cards to keep only the most interesting cards. You will get rid of cards with the highest interest rates and the ones that offer you the least benefit. In any case, you do not need to subscribe and keep all the credit cards you are offered. So you may need to download the notices and terms and, if you have used some of the cards you want to get rid of, you will have to clear the accounts, but his efforts will help you clean your card holder.
Debit your credits at the end of each month
Credit cards, which are currently the most popular credits, offer you a period of between 20 and 30 days to pay for your expenses. It is therefore imperative that you succeed in clearing your credits within this period to avoid additional costs. If you want to manage your budget properly while building capital, it is imperative that you adhere to this rule. This is the only way you can manage your expenses correctly, so you have to pay directly from your budget every expense you make in a credit card.
Use your credit cards smartly
If you want to optimize the use of credit, you must follow very closely the various promotions and benefits that are offered to you each month. Indeed, the discounts change every month and you will surely change your habits, if you want to enjoy the best benefits. But by reading carefully the letters that accompany your statements and regularly consult the website of credit companies, you should be able to enjoy a very attractive rate. As a result, you may need to change the network of gas stations you visit regularly, but there are many benefits to doing so.
Plan, save and control
By using a credit card, you will enjoy many benefits, but the credit card will especially require you to program and control very precisely your expenses and your budget. Indeed, all the expenses that you will carry out by credit card will have to be paid only 20 to 30 days later. It is therefore very important that you record each transaction in order to follow your budget very closely. It would not be that you spend without counting and that you are not able any more to pay the balance of your card and that these sums leave in credit.
It is also very important that you control each transaction very precisely on your account statements, particularly if you use multiple credit cards to increase loyalty programs. Moreover, as several programs allow you to collect points that you can then spend in some shops. To be sure you do not lose the benefits of these benefits, you will need to keep track of points and monitor expiry dates and promotional campaigns attached to them.
Reserve large loans for large investments
The credit card must not be used in the form of a credit and must remain a cash facility that allows you to offset your expenses by twenty days. In fact, you have to reserve the credits for the important investments that will allow you to go through some important steps. It is indeed important that you spare your borrowing capacity in order to negotiate a loan for example to buy a property in the best conditions. Since at the time you are asking for a large credit for real estate, the bank will look at your income to assess the amount you are able to repay and your credit score to calculate the rate that will be offered.