Four Tips for Owning/Using a Credit Card Without Racking up Debt!

I am not the type of person who typically carries a ton of credit cards.  I like to have one or two good ones that really can work for me, or will at least not charge me any outrageous fees.

I already have great credit cards that I use for my personal accounts, which I charge all of my purchases to and then simply pay off the balance at the end of the month (I only recommend this method to those who are very good at keeping track of their finances; if this is not you, I would not recommend using a credit card this way); but now I am looking to add a credit card for my business use.  

I really want to keep my expenses separate, and I think a great way to do that is to add a business card.  I am hoping this will make keeping track of information for tax time much easier.  Unfortunately, I don’t know quite as much about business credit cards as I do my personal ones, since I have never had a business card before.  

After browsing around online, I found there there are sites you can visit that will actually give you a quick comparison of different credit card companies, what they offer, what the rates are, and any fees involved.

I really dislike using cards that have any type of annual fee, or any other type of fee for that matter.  Using a comparison site might be a great way to look at the options that are out there and rule out any cards that charge fees right off the bat! 

Once you finally pick out a card that may work for you, there are some suggestions I have on how to use it to ensure you don’t rack up more charges than you can handle.

TIPS FOR OWNING A CREDIT CARD

I probably use a credit card in a slightly different way than most people do, but I have some tips for you to try to avoid racking up huge bills you cannot pay off.  It has worked for me so far, and hopefully it might be useful advice for you:

1. Only carry a credit card (or only use it) if you are sure you can pay off the balance each month.
   1. If you cannot pay off the balance each month, either do not charge items (pay with cash); or have a plan to set aside a certain dollar amount each month to pay it off.  
2. Do not allow any expenses charged stay on your card for more than 2-3 months (this is my rule of thumb to avoid unnecessary finance charges–they will eat up all your money!)
3. Only open charge accounts with cards that have NO annual fees.  The interest rate is irrelevant as long as you follow rule #1 above!
4. Be sure to keep track of your expenses.  If you just start charging everything left and right, soon you will be way over your head in debt and it will feel like you are climbing a mountain to get out of the hole you are in.  DO NOT CHARGE WHAT YOU WOULDN’T BE ABLE TO PAY CASH FOR IN THE FIRST PLACE!