A Credit Card is not a Substitute for Cash

by John S. Pubisher

Like most people, we all think that having a credit card is the only way of making us financially independent. The only challenge is that having a credit card gives one a sense of having it all; it may not be necessary to make a purchase but just because you do not part with lots of bank notes at the same time, it seems affordable. A great deal of this misconception can be attributed to the fact that lenders and banking institutions market good credit score range as something that can be obtained through spending. Are you keen on figuring out how to build good credit? It is time to go easy on the credit card.

It is important to carry cash whenever you step out of the house so that in case you need to make a minor purchase, it will not be reflected in your credit card history. For instance, instead of buying a park of touch batteries using your credit card and have that amount gain interest, wouldn’t be cheaper to just have the money in cash and avoid the debt. Making conscious purchases is the only way to ensure that you maintain a good credit score range since tracking expenditure will be easy.

Apart from being aware of how much you use your card, you can also succeed in learning how to build good credit by keeping track of the due dates of the credit card debt you already have. Paying your debt on time and in the full amount guarantees you a good credit score range. If you have an impressive credit report, obtaining credit facilities in the form of loans or unsecured credit cards can simplify your life to a great extent.

Being turned down for a credit card is frustrating, especially when it's because your credit history is merely a blank slate, but it's a barrier worth breaking. Once you're eligible for a regular, unsecured credit card, you can save thousands of dollars over your lifetime by using rewards credit cards responsibly. Also, if you ever plan to take out a mortgage to buy a house, having an excellent credit history will help you get the lowest interest rate available. Even if you'd rather not deal with credit, taking some of the above actions to begin establishing your credit history is a wise financial move.