First, organize your finances and make sure you’re able to make all your monthly payments comfortably. Once you’ve worked out a monthly budget you know you can comfortably afford, you can take advantage of your full credit card reward potential.
Next, research the terms to understand the rewards being offered and the conditions of receiving them. Some cards only reward points on specific purchases – like gas or travel. Also, be sure the rewards outweigh any potential fees or interest rates.
Then, start by paying your regular monthly bills such as car loans, automobile and homeowner’s insurance — even rent, if your landlord permits it — on your credit card. Be sure to pay your balance in full before the due date to avoid interest fees.
You’ll pay your bills on time, have a monthly statement for tracking spending, and earn points you can use to reward your responsible behavior. Just make sure to monitor your credit usage carefully and be sure you aren’t getting in over your head.
About the Author
Nannette Croce is a certified paralegal who has worked as an employee benefits specialist and counseled employees on retirement preparation, including financial and estate planning.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2014 ConsumerInfo.com, Inc. All rights reserved.