Please note these are member-submitted secrets and are not reviewed by SparkPeople's health experts for accuracy. If you feel a secret is inappropriate, please click Report Inappropriate Secret and our staff will review it.
Advertisement -- Learn more about ads on this site.
When credit card debts are paid, don't shred your cards
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.)
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.)
I save every $5 and $1 I bring into the house. I try to pay only in cash because cash is so much harder to spend than using a debit card or credit card. I have a savings account that I put a certain amount of money into every month and treat it like it was credit card/bill. I purchase use whenever possible. For three months I have beeing doing really well.
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.
SparkPeople, SparkCoach, SparkPages, SparkPoints, SparkTeams, SparkDiet, SparkAmerica, SparkRecipes, DailySpark, and other marks are trademarks of SparkPeople, Inc. All Rights Reserved.
SPARKPEOPLE is a registered trademark of SparkPeople, Inc. in the United States, European Union, Canada, and Australia. All rights reserved.