Using Credit Cards Wisely

Online purchases

Everyday purchases

Big-Ticket Items

Recurring Purchases

Stores with store credit cards

Online purchases

Everyday purchases

Big-Ticket Items

Recurring Purchases

Stores with store credit cards

1. The credit card company extends you a line of credit. You then pay a small percentage of the cost of those purchases in one annual payment.

1. The credit card company extends you a line of credit. You purchase "stuff"  and the purchase gets directly paid with funds in your checking account.

1. The credit card company extends you a line of credit. This is free money that you can use to purchase the "stuff" that you need.

1. The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month.

1. You will incur only a small "paid in full" fee on your next credit card statement

1. You pay only a small amount of interest

2. You have less of your credit limit available, therefore, less temptation to spend

3. You avoid paying any interest and fees

1. The amount you paid in your minimum payment

1. The amount you spent in total

1. The amount you still owe after you have made your most recent payment

1. The amount you still have available in your line of credit

1. Your entire minimum payment goes toward principal and the interest continues to compound

1. The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal

1. Your credit limit always resets, so you have a lot of spending power each month

1. Pay your credit card bill in full and on time every single month, thus paying no interest or fees

1. Make the minimum payment on your credit card on time each month

1. Never open a line of credit so the credit card companies do not make any money