Have a Credit Card for Emergencies
Try to save and put aside a rainy day fund for emergencies rather than relying on credit cards, if you need to use a credit card use one with a low interest rate.
- Rewards cards are not Rewarding as you think
Typically the value of the reward is around 1 cent per dollar charged and often the rewards expire at the end of the year if you don’t use them. If you pay off your balance in full each month and charge a lot they can be worth while.
- Two Cards Are Better than One
If you do plan to take advantage of rewards, carry two credit cards. The rewards card for paying for daily expenses and pay it off in full each month and a second card with the lowest possible interest rate to cover any emergency expenses when you wont be able to pay off the balance in full at the end of the month.
- Gain Credit Interest
Use the credit card for all expenses and put the money you usually use in a high interest saving account. Then at the end of the month pay the credit card off in full with the money in the saving account.
- Move the Balance
Look for card which offer introductory offers for example 0% interest on balance transfers if you can move your existing balance to a lower interest rate. And remember shop around for the best interest rates.
- Paid in Full
Always pay off your balance in full at the end of the month