How To Use Your Credit Card.

byfirstlearn

5.8K followers

6 years ago

While many people have a credit card there are those that don't or won't use them. There is nothing wrong with using a credit card to pay off bills and then paying the credit card off when the bill comes in.

Did you know that you can use your credit card to improve your credit rating?

When checks are made on your credit history all your past financial transactions are taken into account. One of the things that is looked at is whether or not you are using your credit card and if you are are you keeping the payments up. If you are not using the card then you have a poorer credit rating as there is nothing to prove you would make the payments due. The more you use your card the higher your credit rating.

If you are using a debit card or a checking account to pay your bills, then you should be thinking of making some of these payments using a credit card. You should pay your card off each month.

A credit card gives you up to 45 days interest free credit. How do I work that out? If you make purchases the day after your bill is prepared it will be some 30 days later before the next bill is prepared with a further 15 days before payment is due!

Did you know you have a guarantee with your credit card? Should your products be faulty or not turn up, in most circumstances the credit card company is jointly liable along with the supplier. So if the company has disapeared the card company are liable to pay the bill.

For this reason I would suggest using a credit card for all your big purchases and for any purchases on the internet. You can pay off your credit card using your debit card or checking account. I don't advocate getting into debt but I do advocate free credit and using it to further myself.

By using a credit card sensibly you can improve your credit rating. Use it often, but only use it up to the ammount you can safely pay when the bill is due.

Please like & share

Derek