When Credit Card Debts Are Paid, Don'T Shred Your Cards
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You need a good credit score to get the best rates on insurance (auto/home) & be eligible for loans and cash-back credit cards. You also need credit cards for car rentals, airline tickets, motel reservations, roadside emergencies. So keep 2 or 3 credit cards that pay cash back (usually 1%, sometimes more). Use them several times a month for small purchases (never more than 10% of your limit) & pay them off every month... (Click title for more info.)
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Even if you have paid off your cards in full, make sure you still have credit cards for the benefits listed. A loan for a medical emergency or co-signing a college loan for a child may necessitate a high credit score. (Source: Sept-Oct 2010 AARP Magazine.)
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It's also pretty important to have a back-up card on hand, just in case your normal credit card gets compromised. We had someone use our card number fraudulently, and fortunately the credit card company caught it immediately. They closed the account and opened a new one, but we had to wait a few days before the new card arrived. The weird thing is, we were scheduled to travel abroad the very next day that all this happened. And it would've been a bummer to have to fuss with cash or travelers checks. Fortunately we had a spare card.
JENDOOD8/21/2010 8:41:00 PM
I AGREE!! You pretty much need a card of some sort to do anything these days! Finally time I hear someone that agrees with me!! :)
KATYBUG488/21/2010 1:00:00 PM
Good advice Thanks
Related Secrets
Reducing credit card debt
I have about $40,000 in credit card debt, yet I was still using my credit cards. I know- not very smart. This week, I decided to get smart. I shredded all of my credit cards! It felt great and now I know that I am literally unable to add to my credit card debt! I will continue to pay my bills on time and try to pay more than the minimum due. 410
I always find SOMETHING I think is cute, but remind myself, "Do I really need it, or would I rather spend money on more important things?" (like paying down my credit card debt or saving for kids college education)
Also, I have a list of things I buy that I really can't resist, and look at every so often to think to myself "I could of spent that towards paying off my credit card".
I also don't use credit cards anymore. If I can't pay for it with cash, then I can't afford it!
I've always used my credit cards like debit cards. If I don't have the money, I don't charge it. Credit cards have other benefits such as cash back and extra protection, but they don't have to be used to rack up debt. Doing this has kept me free of credit card debt.
