The right way to use your credit card is as follows:
Calculate your monthly income.
Use the credit card for everything you need - food bills etc, leaving your money in the bank to earn interest. Make sure you don't exceed your monthly income.
Use the money from your savings account to pay the credit card to a minimum balance before the due date every month.
Repeat.
This works best if you have a card with an interest free period and a low, or minimum annual or monthly card fee.
You "earn" money by leaving your savings in a savings account earning interest for as long as possible before paying off the card. If you have an interest free period on the card, and you pay it before the end of the month, you have not paid any extra on your goods than what you would normally pay.
DO NOT miss paying the balance of the card out each month.
DO NOT exceed your monthly expenditure.
DO NOT max out the card by buying that TV (or whatever) you always wanted.
Additionally it makes your credit score look better.
I can see how this would make sense, but unfortunately, I tend to go a little too wild with credit cards. I do better using a debit card and keeping my credit cards locked up for real emergencies. At least, that's my philosophy of life this week.
Clypso. this is not just your problem, it is every CC users problem. we all tend to go a little overboard while using the CC. if somebody follow all the rules Lisee321 they dont need to use debit cards. coz there life will be very smooth
Vik
The best way to use your credit card is to use it like you would a check card. This means you need to be responsible and aware of your financial situation. The best and safest way to use your credit card, never get behind on your credit card payments. Just make a weekly ritual of checking your online credit card statement and paying it off directly from your bank account.
The "right" way to use a credit card
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