Pay your credit card balance off every month

Kirsten HStarred Page By Kirsten H, 26th Aug 2010 | Follow this author | RSS Feed | Short URL http://nut.bz/.2_55gr7/
Posted in Wikinut>Money>Credit Cards

There are great reasons to pay off your credit card off in total each month, keep reading and find out why.

Credit cards

Credit cards are a wonderful luxury to help you purchase items you want. However they can be a temptation that can cause one to get deeply into debt. Each time you use your credit card, make it a practice of paying it in full each billing cycle.

You won’t purchase what you cannot afford

Having a credit card can cause things you cannot afford to be very appealing. Walking into a store you may see something you desire, but don’t need. Looking at the price tag, you don’t have the cash, but you have the credit card.

The lure of charging can be extremely enticing. After you purchase one item, it will become easier each time to buy something you cannot afford. By practicing paying your credit card every month, this will prevent you from making a purchase you cannot afford.

Keeping a good credit score

By paying your credit card each month will help your credit score remain high. It is important to maintain a high credit score to keep your interest rates low. When you apply for a mortgage or credit card, your interest rate is lower the better your credit is.

By carrying a balance on a card will not improve your score. It has the opposite effect. Showing you are able to pay your bills off each month and in their entirety will help improve your credit score.

Saving money

If you pay your credit card in full every month you will save hundreds if not thousands of dollars by doing so. The interest rates on credit cards can charge exorbitant fees which will add up to a significant amount of money. By paying your credit each month this money can be put into a savings account, earning interest instead of paying interest.

Now you are building your savings account and have the credit card available for an emergency. Things happen in each person’s life. Having the available funds in savings is a great solution. If you don’t have the money available, you at least have the credit card to assist you.

Less stressful

Having many credit cards and balances to carry each month can cause a lot of stress in someone’s life. By not having this problem in your life you will have less stress and feel better. Money is the cause of many troubles. By not carrying a balance on your credit cards you will discover this is a good choice.

Tags

Budget, Budgeting, Budgets, Credit Cards, Credit Score, Save, Save Money

Meet the author

author avatar Kirsten H
I am a freelance writer who has written for local magazines and am expanding my portfolio to the web. I enjoy putting my thoughts on paper, or computer nowadays!

Share this page

moderator Mark Gordon Brown moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar Retired
10th Sep 2010 (#)

saving moneyis the best reason for paying the bills!

Reply to this comment

author avatar Benter Adede
29th May 2012 (#)

Wow! I'll start saving right away!

Reply to this comment

Add a comment
Username
Can't login?
Password