Finding the Right Credit Card for you can be Very easy if you Know your Limits!
When it comes to credit cards people go a bit crazy from time to time, which is why we have become a nation that is dependent on financing. This is not a good thing and it can be avoided if you know a few specific things about the limits you should be willing to accept and if you know how to properly manage a credit card.
One of the first things you have to understand is how credit cards affect your credit. It does not matter if you pay your credit card payments on time if you carry a balance that is more than 25% of your limit it actually hurts your credit. This means if you have a credit limit of $1,000 you cannot carry a balance from month to month of over $250 or it will lower your credit score.
Another thing you should know is that if you always make the minimum payment on your credit card the companies that give you these cards will simply give you limit increases so that you will spend more. This is how they make their money and you need to be careful about this. You should be using a credit card for the right reasons, but that means you have to be finding the right credit cards for you.
The right credit card for you is one that has a limit that is not more than 25% of your monthly take home income. Do not allow them to raise your limit higher than this. So if you take home $4,000 a month you can have a limit on one card of $1,000 or you could do two cards with $500 limits. This will keep you from spending too much and it will keep you in a place where you can afford to pay much more than your minimum payment.
Now you also want to make sure you manage this card correctly. It can be a tool to help you make online purchases and faster gas station purchases. Make sure you at least pay enough on your card each month to keep it under 25% of the limit you have been given. It is best if you just pay it off in full each month, but if you cannot pay enough to get it down below 25% of your credit limit.
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