Truth to building good credit

Nowadays people are struggling with bad credit. The main issue is simply they weren't taught how to build credit. For example, credit cards are viewed as a terrible thing and they should never be used. The truth is without credit cards you will be stuck needing co-signers until you are 25. Personally I got a credit card when I was 18 years old and never got into any trouble with them. The trick is to use the card as your bank account and pay it off every month. You need to keep in mind that the goal is to build credit not to have another place to store our debt.

Here's the issue, most people charge their purchases and don't keep track of their balance. You need to be conscious of that balance after every purchase. For the most part you know exactly how much you will make every month and you should also know roughly how much your expenses are. Whatever the difference between the two is makes up your spending money. You need to know that number so when you look at your credit card balance you know how much you have left before you can't afford to buy anymore. You need to be able to pay off that credit card every month, otherwise the interest is just a waste of money. Consider that money you being scammed once a month. One way to ensure you don't overcharge is to simply have the credit card company fix your credit limit below your monthly allowance.

Here's why you need a credit card. At some point in your life you will need to use a credit card. Whether it's for emergency's or to buy a Christmas gift so your spouse doesn't know the amount or store. Credit cards can be a help in your life when managed properly. A buddy of mine recently had a paycheck that was delayed a week and his bank account didn't have enough to cover a tank of gas. He had to miss 4 days of work (including overtime) instead of being able to just charge the $50 and pay it a week later. Another friend who is 23 couldn't get a car loan without her parents co-signing because of her lack of credit history. I was able to purchase a home at 20 years old without a co-signer. When asked how I did it I simply replied "I started building credit history with a credit card at 18". She replied "I'm to afraid to use a credit card".

That's the problem in today's world. Everyone is taught to fear credit cards, but no one is taught how the can help or how to properly manage one. They just stay clear and when they finally need one they get into problems because they weren't taught the good practices.

The bottom line is to stay on top of your finances. No person is totally unaware of how much they make each month nor are they ignorant of their monthly expenses. As long as you stay aware of your credit balance you should never run into trouble. If you have a spending problem I definitely wouldn't recommend get a credit card until you get that under control.

  In conclusion I want to say that Credit Cards are not something to be afraid of. There are many credit cards that have rewards that actually make it worth your while to charge. It all comes down to personally disciplining yourself in order to keep out of trouble. If you consider this your new checking account I believe you will stay out of trouble.

  If you have to incur a large expense that you know you won't pay off within the 30 days, look for a credit card that has 0% APR. There are plenty of offers out there and most of them are for a year. The second thing to look for is the yearly charge. Some credit cards have amazing rewards, but you need to look for whether they charge a yearly fee or not. Some even charge a maintenance fee every month you don't use your card. My advice is to get a basic credit card with a limit that would cover a large car repair bill, but not too high where you would need a second job to pay it off in a year.