A credit card is very convenient. It is easier to carry around than cash. Here are 4 Tips you need to live by with credit cards.
1. Pay off your balances each month: It doesn't matter how many purchases per month you make with your credit card. Just be sure to pay those balances off in full. If you can't pay off the entire debt when the bill arrives, plan to pay it off in no more than three payments. Otherwise, put off the purchases until you have stockpiled some cas
2. Take out a cash advance only if it's absolutely necessary: If you need money in a hurry, taking cash advances against your credit card is probably one of the quickest ways to get it. But it is also one of the most expensive forms of borrowing. Interest rates are often higher for cash advances than for regular purchases. And many issuers charge an additional "cash advance" fee. What's more, there is generally no grace period. Unlike purchases, cash advances accrue interest charges immediately.
3. Keep things simple: Limit yourself to just one or two credit cards, such as a Visa, a Mastercard, or an American Express. Ask yourself, do you need the others.
1. Pay off your balances each month: It doesn't matter how many purchases per month you make with your credit card. Just be sure to pay those balances off in full. If you can't pay off the entire debt when the bill arrives, plan to pay it off in no more than three payments. Otherwise, put off the purchases until you have stockpiled some cas
2. Take out a cash advance only if it's absolutely necessary: If you need money in a hurry, taking cash advances against your credit card is probably one of the quickest ways to get it. But it is also one of the most expensive forms of borrowing. Interest rates are often higher for cash advances than for regular purchases. And many issuers charge an additional "cash advance" fee. What's more, there is generally no grace period. Unlike purchases, cash advances accrue interest charges immediately.
3. Keep things simple: Limit yourself to just one or two credit cards, such as a Visa, a Mastercard, or an American Express. Ask yourself, do you need the others.
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