Do I HAVE to use it?

Credit cards. Ughh.

I’ve been using my own check card since I was a senior in high school, and I love it. Transactions are immediately posted online and you can only spend what you have. I’ve only recently got a credit card to help build my credit, but I’ve barely used it.

Since I have to use it, I fight the tactics CC companies use to make you overspend and borrow their money. Two of my tactics:

1.) Pay before you buy. I will pay off my credit card before any charges are posted. I will have a negative balance, and work my way up to a $0.00 balance as I charge items.

2.) Counteraction. Everytime I make a charge, I go home and immediately transfer the funds into an account I have for paying off the credit card. When the charge finally posts to my account, I always have the funds to pay it off.

I still believe credit should be used for buying assets only, not a new Gucci wallet.

Blog posted on: December 14, 2004

2 comments on “Do I HAVE to use it?

  1. Anonymous

    Credit cards can be used to your advantage if you can get a cash back card and set your bank account to pay the bill automatically. You can get a lease of 60 days on this money.

  2. Anonymous

    I agree with anonymous. You should leverage your credit cards, especially since you can pay them off in full each month. For some credit cards, you can make up to $300 a month on cash back rewards. I have everything I possibly can, from groceries to gas and electric bills charged to my cc (I use an airline mileage card) and then do automatic payment of the full balance two days before the due date. In the meantime, the thousand or so dollars that is reserved to pay off the cc balance at the end of the month is earning a little interest in my money market account. In addition, I’ve earned a thousand or so miles toward a plane flight. Plus, if you can demonstrate your ability to pay down very substantial cc balances each month, your credit score will become very, very pretty, allowing you to get an extremely low interest rate on a mortgage loan when you are ready to buy your first house. You should just flip the shit on all the credit card companies.


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