Using Credit and Comparing Costs
Tips for Credit Usage
- Get a copy of your credit report. They allow you to easily view your debts and accounts, and review it for any errors.
- Set a budget. Living within your budget allows you to save money for your future and live within your means. Make sure this budget it feasible and realistic.
- Pay bills on time! Late (and nonexistent) payments send your credit score skyrocketing downward!
- Keep credit card balances relatively low. By doing so, you prove that you are not tempted to charge more than you can afford to pay back. Feasibility.
How to Use Credit
There's no simple way to use credit. When you are just starting, you should make small charges and pay them in full each months. Using them for monthly payments of around $20-$30 a month helps instill good credit habits and have a positive effect on your credit score. Eventually, you can condition yourself to make larger purchases responsibly.