About Credit Card Use

quick introduction of credit card use

Get a New Credit Card ...
earn reward points while you shop

You may be buying some expensive items as you improve your home, send a kid to college, or plan some important life-event. These purchases can be bought using a special rebate reward credit card dedicated for big purchase items.

Earn rebates on credit card purchases such as —

  • new flooring,
  • tuition payments,
  • appliance repairs,
  • business startup — other

    use a credit card that pays you back.


Many Cards Come With Great Benefits

Is one card better than the other? Depends on the bank issuer and card brand. That is why you need to search and compare the best card option for your purchasing needs.

Also look on benefits offered by card brands:

American Express
Discover Card
Diners Club


Credit Cards Can Get You Into Trouble ...
... if you don't budget spending and control it's use.

Let's review some important tips on credit card management:

  • Step1:
    you will treat your credit card like cash, deducting from your money account the purchases you make with your card.

    You can either deduct the amount by making an entry in your checking register or using a Personal Financial Management Software (PFM) such as Quicken®

    Basic rules for card management:
    — keep good accounting
    — record every transaction
    — deduct money from your money account for each purchase
  • Step2:
    Pay the entire balance each month. Never carry a credit card balance. The money to pay the credit card balance should be available from the money that has been deducted from your money account.
  • Step3:
    Limit your credit cards to 2-3 cards maximum. Select your cards with the following features:
    • no annual fee
    • 25-day grace period
    • rebate incentive or other incentive program
    • VISA, MasterCard
    • single-cycle billing
  • Step4:
    Note that on average, credit card users spend about 10-12% more on items than buyers who pay with cash. That is why you should establish a monthly budget to curb your spending
  • Step5:
    Understand the benefits.
    • strengthen your credit by paying large balances each month
    • again 25-days use of your money that can be earning interest
    • earn rebate benefits such as airline miles, auto points, etc.
  • Step6:
    Make a quarterly assessment. If you find yourself spending beyond your budget (based on the ease of credit card use), you may need to switch to pre-paid or secured cards curb your spending.


Search a Card of Your Choosing

If you can budget and control your spending,

use a reward credit card to build award points:

If you are unable to control spending

because of the ease of credit cards, consider using pre-paid or secured cards to manage spending:

  • compare pre-paid cards. Choose card with low activation and activity fees.
  • view information below on how pre-paid cards can control spending

Home Owners can avoid debt problems by using pre-paid credit cards to manage funds:

  • budget your monthly spending amounts
  • avoid interest rate charges
  • avoid getting into debt problems
  • manage your account online
  • build up your credit reporting history
  • use where credit cards are accepted
User gets a prepaid card for themselves or other from a lending institution (approval guaranteed). User adds spending money to the card.
User or other uses card to buy home supplies, appliances and other big ticket items at any merchant that accepts MC/VISA cards.
User can monitor pre-paid account electronically for budgeting purposes.
User or other can reload the card with additional spending funds as needed.
Using pre-paid credit cards can protect the user from mis-use and running up debt.
Using pre-paid cards can avoid cost overruns and help budget spending amounts for other life needs such as food, gas, etc.
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