1. Consumer Credit
If and when possible, pay with cash. There is nothing wrong with having a credit card for emergencies. Find the credit card that is right for you. Be particular, use your consumer credit wisely. There are credit cards that will earn you points that you can earn gift certificates, gas, groceries, cash back, etc. So in other words the card is working for you, not you working for the card.
You can pay your bills with the card and earn points, just make sure you pay the card off at the end of the month. That is the key. Now the negative side of this is if you just charge and only pay the minimum balance each month, then again, you loose, because the interest rate is compounded and you end up paying more money than is necessary. Perhaps you travel a lot. Find a credit card that offers frequent flyer miles. You may accumulate enough to fly somewhere free. Now the card is working for you.
2. Credit cards 6 or 12 months no interest
This is a credit card that can work for you, if you know that you will be paying the card off before the 6 or 12 months. The problem occurs if you do not pay it off within the 6 or 12 months per the agreement, the interest will be charged to you. Again, you end up spending more money than was necessary.
3. No Annual Fee & Fixed Loans
There are credit cards that will charge you an annual fee every year, whether you use the card or not. You do not want a card like this. You want to look for cards that have no annual fee.
If you need a loan, then do not use a credit card in place of a loan. Again, the interest that is charged on the credit card will cause to you to spend much more than necessary. Instead, apply for a loan with a fixed interest rate, and fixed monthly payments. A Credit card should not be used in place of a loan .
4. Pay off
The wise thing to do with a credit card is to use it to your advantage. Always remember it is up to you to control your personal finances. For example, possibly a store is offering a deal such as 10 or 15% discount if you use a credit card. Now if you know you were planning to make a purchase use the credit card, but make sure that you pay that credit card off at the end of the month. Now the problem that could occur is that you do not pay off your credit card balance at the end of the month. Because credit card companies can charge outrageous interest rates you may end up spending twice as much for a product.
5. Pay a credit card balance with another credit card
It is not wise to pay off one credit card with another card. This is similar to what bankers used to call “kiting.” When a person writes one check to cover another check, hoping the other check does not bounce first. This is a practice which is against the law. When you pay off one credit card with another credit card, it does not alleviate the balance. That balance will still be there and eventually even more interest and fees added.
