How to Use Your Credit Card

Now that you have a credit card it’s important to learn how to use it properly, and I’ll tell you how to do that on this episode, at 2 Minute Finance.
So you have your first credit card, congratulations. Now you want to make sure you don’t form your back kind of have it; now I tell people the magic number 25; number 25 means if the purchase that you’re making is over $25, put on your card, as under $25 for things like food and movie tickets, pay for with cash; that way you know exactly how much you’re spending. It’s easy to lose track when you’re charging everything to your credit card. There’s also some no-no’s you have to remember with you credit card, don’t ever withdraw cash from your credit card, it’s called a cash advance, one of the most expensive loans you’ll ever make. Don’t be late with the payment; your interest rate will skyrocket. Be warned with fees for things like late payments or for using your card overseas on vacation. And remember to pay off your card every month. Card companies are hoping you carry a balance for month, because they earn tons of money fro you at the end of the month. Instead make it a healthy financial habit to pay off the credit card at the end of the month. One foul no-no, if you find something that able to pay off your entire balance at the end o the month, remember to pay not just the minimum payment, and I mean the minimum payment of $15 on a $2,000 total balance, it will take me almost 25 years to pay off that entire balance. Also one other thing, remember to check your card report each and every year; you’re entitled to free credit report a year from AnnualCreditReport.com, it’s important to paint a picture of this core responsibility, and by phone as advised, that’s exactly what you’re doing. And you’ll be rewarded in the future with lower pouring costs. For more resources, visit our website at 2MinuteFinance.com, it’s still (--), I’m Bobby Lee with 2Minute Finance.


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