Four Tips for 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 that 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. My suggestion is to utilize one of these sites to make credit card comparisons before you sign up for a new card.

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 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!
Hopefully these tips will help those out there who are thinking about getting a card for the first time, or those who are just unsure about how to use a credit card without racking up large amounts of debt.  If you have any other tips or suggestions, please feel to leave a comment and let us know!
 
 
 
 

Jesica H

When she isn’t drowning in a pile of never-ending laundry or picking up Legos, Jesica is busy helping other parents make their lives a little less stressful with homemaking hacks, easy recipes, fun DIY projects, and more. On her successful blog, The Mommy Bunch, her Cricut crafting tutorials are the most popular articles and are what sparked her passion for helping others build a business of their own. Jesica started rockyourcraft.com where you can find loads more craft tutorials and business advice. In her FREE Facebook group, Rock Your Craft Business, Jesica teaches other entrepreneurs how to take their craft business to the next level by building their brand, targeting the right customers, and utilizing smart social media strategies. Join us!

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