Roy Gilbert

4 signs you probably shouldn’t be using a credit card

credit card grocery shopping checkout

Click here to view original web page at 4 signs you probably shouldn’t be using a credit card

Cavan Images/Getty Images Credit cards are a tool that can either work for you or work against you.

If you want to use a credit card to earn miles or points , you should be paying off your credit card every month instead of carrying a balance.

If you’re only making the minimum payment and finding that you can’t make a dent in your credit card balance, you may want to consider cutting up the plastic.

Building credit is important, there is no arguing that. And getting miles or points on a credit card can be a fun way to earn a little something for the spending you’re doing anyway. But, before you can enjoy those credit card miles , you have to know how to manage your finances – and especially your credit.

Here are four signs that you should probably take a break from buying on credit: 1. You’re only making the minimum monthly payment

If your credit card balance is creeping up over time , making only the minimum payment may just be the culprit. Learn More In an ideal world, you’re paying off your credit card balances in full, each month. That way, you’ll avoid interest payments – and avoiding interest payments is critical, considering how quickly they can add up. Carrying a balance and making only minimum payments ensures you’ll make interest payments on your credit card.

Perhaps more importantly, making only the minimum payment may be a signal that you are spending […]

Tagged on: ,

Leave a Reply