Credit is one of the most important things that you can have when you’re an adult who wants to be financially independent. For starters, good credit is going to be foundation for all of the big purchases that you make throughout the rest of your life. When you want to buy a car or a house, you’ll have to have good credit. Even if you just want to rent a car, you might have to go through a credit check to be approved. You can’t get good credit if you don’t start building it through the use of a credit card. Even so, you also should be careful to avoid overspending with your card. Doing that can really wreck your finances and even your life. You don’t want debt to crush you!
In order to avoid that, you’ve got to be careful about when you pull your card out of your wallet. You can’t just be whipping it out for every purchase you feel like making. It’s not there to make your impulse buys easier to do! In fact, it’s just the opposite. You need to treat your credit card with the careful respect it deserves. After all, it can make or break your financial future. Below, you can find three tips and tricks that will help you to keep your card tucked away except for when you absolutely have to use it. Do these things, and you’ll be building good credit in no time.
Only Use Your Card for EmergenciesHere’s one of the simplest ways to make sure that you’re not whipping your card at at inappropriate times. Make a rule for yourself that you’re only going to use your card in emergencies. That means, for example, if your car breaks down in some strange place and you don’t have any cash. You’re going to need to get home, so you can use your credit card to charge the expenses. That’ll make your life a whole lot easier, not to mention less stressful! When you start to take your card out now, you’ll remember that it’s not a good time to use it and put it right back. That’s a foundation for good financial habits right there.
Ask If You Really Need to Use It
When you’ve got your card in your hand, take a moment to stop and think to yourself. Ask if you really need to be using the card right now. Think about what your last statement was. Do you want to add even more to the balance you’re already carrying? Probably not! So why would you want to make a purchase right now? Once you go through that sequence of thoughts, your card will be put safely back in your pocket where it belongs. That’s how you avoid making any unnecessary impulse buys while you’re shopping!