Chicago, IL (PRWEB) October 02, 2013
Following The Motley Fool’s September 29th article titled "How Opening a Credit Card Affects Your Credit Score", Finance Acceleration announced four tips for using credit cards responsibly, in the face of the potential to incur credit card debt and negatively affect credit scores. The article, a cautionary discussion of credit card benefits, spurred a discussion from Finance Acceleration, and corresponding tips aimed to assist consumers in remaining debt free even in the face of credit card use.
The Motley Fool’s article began with an introduction to credit card use in developing credit, citing the conflicting stories coming from credit card companies ("Credit cards are great!") and financial advisors ("Credit cards are dangerous."). The Motley Fool worked to set realistic expectations rather than endorsing either view, instead acknowledging that credit cards have a place for those with limited to no credit history, little available credit, and the ability to control spending. For those who are not able to control their spending, and already have many credit card companies courting their pocketbook, a new credit account will harm their credit score rather than help.
Following this article, Finance Acceleration offered consumers 4 tips for using credit cards effectively and responsibly.
1. Do not charge unnecessary purchases to a credit card. If cash is on hand, or adequate funds are immediately available, do not use a credit card. If building credit is the goal, do not charge purchases to the card without having adequate funds available at the end of each month to pay off the credit card balance.
2. Do not take out credit lines at department stores. Though the kind cashier worker promises a discount on the immediate purchase, these cards may charge hidden fees if consumers do not use them enough, or may simply encourage a consumer to shop there more frequently than they would otherwise, resulting in unnecessary spending.
3. Leave the card at home. To avoid spur-of-the-moment purchases, only use a credit card intentionally. If shopping for a specific necessity is the goal, take the credit card. If shopping simply for the sake of shopping is the objective, leave the card at home to avoid the temptation to charge items to a credit card.
4. Use a credit card to streamline payments. Paying numerous monthly bills may become confusing and result in late fees or some bills slipping through the cracks. Using a credit card to streamline payments—paying bills with a credit card, then immediately paying off the balance—can help save money caused by late fees and other charges.
To learn more about credit cards and how the plastic charge card should be used, Finance Acceleration recommends this web page. .
The Motley Fool is an online publication providing finance and business news and articles. The publication was created in 1993 in Virginia to fill a need for current financial news and opinion articles.
Finance Acceleration announced four tips for responsible credit card use following an article discussing the ups and downs of using credit cards to build or improve credit scores. Though this method of credit score improvement can be effective, many consumers do not possess the control necessary to keep from using credit cards unwisely. Finance Acceleration offered these tricks to keep credit card spending down, eliminating the possibility of credit card debt and abuse.
FinanceAcceleration.com is devoted to helping individuals and families obtain financial advice, particularly as it relates to personal money management.