What's the best way to use a credit card?

Question

Should I use it to buy stuff I don't need at an extremely high interest rate, or should I use it as a paper weight?

Answer 1

why would u buy things u dont need? Thats how ppl accumulate debt. You should use it wisely and always pay ur bill on time...

also if you are having to ask a question like this maybe u are not respondible enough to have a credit card...just a thought!

Answer 2

The best way to use a credit card is like how you'd use cash.  Only use it to buy stuff that you'd normally buy and that you have cash to cover.  Here's the 3 steps to follow:

1.  Get the cash back or rewards card(s) that will pay you the most for your normal spending profile (on groceries, gas, etc.)

2.  Funnel most/all of your normal expenses through your credit card(s) without max'ing any of them out.

3.  Pay your balance(s) off in full every month.

That way you'll:

1.  Build your credit quickly.

2.  Avoid interest.

3.  Earn cash back or rewards.

To find the rewards card(s) that will pay you the most for your spending profile, you can use this rewards calculator:

http://www.creditcardtuneup.com/

Some good cards include the AmEx Blue Cash and the Capital One No Hassle Miles Ultra for Professionals.

Answer 3

very carefully. Before you buy it, sleep on it and if you still want it the next day, then buy it