Credit Cards: Are They Right For You?
In today’s world, so many places are cashless including campus. Credit cards are a way of life. In a cashless society they are easy to use, but they do have consequences: they are a source of debt. It is important to understand why credit cards are useful, but can also get you into trouble. But credit cards can help you build up your credit score and benefit you in the future when you are looking to get better loans.
FIGURE OUT WHICH CARD IS RIGHT FOR YOU
Many cards have different benefits. Some may offer cash back or lower interest rates or no annual fees. Before you decide, look at all the details and contract of the credit card.
CHECK YOUR STATEMENT
Every cycle you will receive a billing statement. It will list all your purchases. These help you with tracking your budget, seeing how much you are spending, and how much you owe.
MONITOR YOUR CREDIT REPORT
Your score determines your ability to borrow. Credit reports look at how much you make, what you owe, and how many tunes you have had credit inquires. Having a good debt to income ratio is what will lead you to success in the future.
KEEP YOUR BALANCES LOW AND PAY ON TIME
It is always a good idea to not spend more than you can pay off. Missing a payment or having too large of a balance can impact your score. By paying more than the minimum payment, you will pay less on interest and build up your credit score.