Minnesota Musing: Credit Card Use - Pay then Pay Off
Credit cards are a wonderful creation, but, dangerous in that it is easy to use them promiscuously, wracking up easy purchases, without thinking of the ramifications of not being able to pay off the balance.
No. A person should use credit cards, but, wisely.
Watching Fine Print
Some cards give you incentive credits for using their card. The card that we carry, gives merchandise credit at their stores. It builds up cash value and then, the hubby goes and treats himself to something sports related. To him, it's fun.
The card he carries, lets him purchase items and lets the balance ride until he pays his bill for the month. If he pays the balance in full by the due date, he has no interest charge on his purchases.
So, he just uses it like a checking account, paying it off at the end of each week. It works for him.
There are some cards that we have been offered that aren't as functional. The interest charge starts immediately, the moment that the store sells you the item. Sometimes, to soften the blow, they offer a percentage of money off for the first month.
We do not participate in those types of cards.
Travel and Credit Card Use
It's a requirement to have a credit card when you travel or book hotels or cars. There is an age requirement, and there are rules for use.
They are an advantage. But, again, try to pay off your balance as soon as possible.
It's nice that credit cards offer more than one option for payments. You can pay your bill from your phone, offering up your checking account routing numbers and account numbers, using any type of account to pay - saving or checking.
You can set up a member account online and make electronic payments as well, using again the routing numbers from your saving or checking accounts.
The other method of payment requires using written checks from your checking account, an envelope, stamps and your return address on the envelope.