There are many ways to use a credit card, but some ways are better than others. If you use credit cards the proper way, they can be very beneficial and can save you a lot of money. However, if you use them the wrong way, they can ruin you financially. Spending more on your credit card than what you can pay off each month will eventually ruin you financially because the balance owed will keep keeping larger. Not only will the balance keep getting larger, but the interest will increase as the balance gets higher. Pretty soon you won’t even be able to make your minimum payments, and that is when trouble starts. If that happens, your credit card will be turned off and you won’t be able to use it again until you make the next payment.
However, if you can be responsible enough to not put more on the credit card each month than what you can pay, and you therefore pay your balance in full every month, you will never have to pay interest, and you will never go into debt. It will be just like using cash, but so much better! When you use your credit card, you will be building up excellent credit so that if you ever have to get a loan, you will be able to not only get the loan, but qualify for the lowest interest rate, which will save you a ton of money, especially if it is a large purchase, such as a home.
Credit cards also have many perks and many even have cash back. Cash back is cash you receive every time you spend a certain amount on your credit card. Many cards have points too that you can earn. The more you spend on your card, the more points you receive, and you can use those points to purchase things. There are also many other discounts as well on things and earning frequent flyer miles just from using your credit card to pay for things!
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