Let’s Talk… Credit Cards!

When looking at the benefits of a credit card, here are some things to keep in mind.

• First, ask how opening this account is going to affect your credit report. If you’re approved for an amount of $2500, you can have the credit line lowered to $1000. This can keep you from overspending.
• Second, pay off your balances every month. It may be tempting to play the balance transfer game but don’t do it.
• Third, check your balances daily with an app or budgeting program so that you don’t have any surprises at the end of the month.

For people who diligently pay off their balances every month, credit cards are fine. They have rewards, they help you build a credit history, and the benefit of not being responsible for any fraud is quite appealing versus most debit cards. For those who can’t do this, just say no and shred your credit cards when the balance is paid off.