How to use Credit Cards to your advantage.

Growing up, I'm pretty sure we have all been told to never mess with Credit Cards and if we did happen to have one, we should only use it for an emergency. The stigma against credit cards is real and it hinders a lot of people from being able to succeed in using credit cards the correct way. Well by the end of this article hopefully you learn some tips that will have you using your credit card every day to benefit you.

1. Don't pay to have a credit card.

When I first looked into credit cards, it was intimidating but all you really want to pay attention to is if the card has NO ANNUAL FEE, and CASH BACK REWARDS. Sign up bonus is a huge plus too. If you have to pay an annual fee for your credit card, you should really be taking advantage of the rewards to be able to make that annual fee worth it. I recommend getting a card with no annual fee so that you have no worries at all.

2. Purchase only what you were already going to buy!

Everyday we make purchases that we need to make like gas, bills, groceries, food, etc. Instead of using your debit card, you can use your credit card and benefit from the sweet CASH BACK! Think of it as a virtual piggy bank every time you make a purchase with your card. At the end of the month, you get to reap in the rewards and use your cash back to pay off part of your statement or deposit it into your account to use as cash. Either way, its money that goes back to you for whatever you may like. Pretty sweet right?

3. Cash back is like getting a discount on EVERYTHING!

Depending on the type of credit card, you can get anywhere between 1%-5%. Usually the best cash back cards have no annual fee and will sometimes offer a bonus for spending over a certain amount in a few months. This comes easy for me when I use the card for bills, groceries and gas.

4. Spend what you can afford.

When used correctly, your credit card will help you manage your money better while helping you save money in cash back form. The misconception of only using your card for emergencies can actually hinder you since an emergency expense can be something that will take a little longer to pay off. this is where you got to be careful with the interest trap. So long as you are able to cover the balance on your statement each month, you will never accrue any interest on your credit card purchases and that feels so so good...

5. Improves your credit score.

The major benefit of taking control of your credit card use is that it helps with improving your credit score. This score has a huge impact in able to receive loans, get approved for mortgages, and acquiring low interest rates for situations like getting a car loan. With the frequent use of your credit card, your credit score will be able to rise much quicker than never having and using one. Do more research on what improves your credit score to find other ways to take advantage in helping you out.

Ever since I started making these goals for myself to manage my finances, I have felt much more in control of my money and less stressed. Again, I recommend doing some research and Nerd Wallet is a great place to start.

Hope you enjoyed this article. Any share, like and tip to support is gladly appreciated.

Happy Wealth Building,

-Ruben Dorame