HOW TO: Use Credit Cards Properly

I am tired of people always saying that credit cards are the devil and that you will just end up in debt using them. This is far from the truth. This is usually info coming from people who can't manage money well or have seen other people get burned by their credit cards.

Let’s dispel some things right now:

· Credit cards are a cash supplement

· Credit cards are NOT free money

· Credit cards are just a way for you to borrow money from yourself

Here is the key to using a credit card or several:

· Memorize you closing date

· Pay your bill at least one week ahead of the due date

· Pay your bill in FULL

If for whatever reason, in a non emergency, you accrue interest on your credit line, then YOU SHOULD NOT USE CREDIT CARDS BECAUSE YOU SUCK AT HANDLING MONEY. The fix for this is to stop using your credit cards and use a debit card instead. End of discussion.

If you ever say to yourself, "this is too expensive, ahhh... just put it on the credit card." And you know you can't afford it, YOU SHOULD NOT USE CREDIT CARDS BECAUSE YOU SUCK AT HANDLING MONEY.

The whole point is to use credit cards as if you were paying cash up front. A credit card is just a helpful tool for handling expenses and it is a safe way to spend money with an added layer of protection. There is no direct access to your bank account information and you can usually dispute charges.

Credit card companies thrive on mooks who know dick about handling money. This usually targets brainless people who live above their means to show off. Don't be a mook, be smart and don't lie to yourself about something you will have to pay off. Never make partial or minimum payments, this is a terrible scam. Do not pay yearly credit card fees, this is pointless.

Be smart and use credit cards responsibly. I have four and I rotate the one a week of the month. It helped me build my credit. Unfortunately, if you have a credit card for too long you are married to it and you cannot cancel it. If you cancel it, it will kill your credit score so be careful. Don't believe me? Call a bank or your credit card company for verification. I kid you not.