Budget Smart Girl's Guide

Credit Cards-Enemy of the Budget Smart Girl…well sometimes-Part Two

 

Here’s part two of when it might be a good idea to use a credit card…

You Get a Bonus – Some credit cards offer you immediate cash and credit the moment you open the account and if you use it within a certain amount of time. If you pay the bill off before it adds interest then it’s a great deal.

You Get Cash Back – If you’re going to get cash back for your purchases, and you’re going to pay it off before any interest is added, then it’s a good deal.

Points to You– Some cards offer points which can be used for things like flights, hotel rooms, and even buying groceries or gas. Each card is different Find a card that offers points for things you already use often. Then use the card for planned purchases, pay the full balance each month, and collect your points which are like even more free money.

It Helps Your Savings Account – Some cards will put money into savings for you. One popular card works like this: You make a purchase and it rounds up the purchase, putting the money into savings, then they add to it (usually up to a certain amount) practically doubling your investment. Just remember to pay the card off each month.

And one last thing I should add to the list, and this was another reason I finally went ahead and applied for a credit card all those years ago…if you have one, make purchases and don’t run into debt, aka, be a responsible budget smart girl, it establishes credit in your name, and gives you a great credit score which is essential when it comes time to buying a home or if you’re looking for a really low interest rate loan for say, a car.

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