Using the right strategy for your credit cards helps you avoid hassle and stay on budget. Learn the eight ways Smart Spenders use credit responsibly so you can be a Smart Spender, too!
Smart Spenders know how to use credit responsibly. Here are eight ways to ensure you can use credit without abusing it… or letting it abuse you
Smart spenders don’t run up debt just because they have the credit available
They know how much debt they can afford and stick below that amount
Not sure what you can really afford? Watch the Smart Spender’s Guide to Keeping Credit Affordable
Smart Spenders take time to read each contract and loan agreement before they sign anything
They know how interest, fees, penalties and payments are applied so they don’t get hit by unexpected issues they should have seen coming
Smart Spenders don’t let debts linger, especially when they can be paid off quickly
So they aim to pay off credit card balances in full every month or in as few billing cycles as possible
And they even check terms to see if loans can be paid off early if there’s no penalty for early repayment
Smart Spenders know it’s better not to hide from creditors if there’s ever a challenge with debt repayment
They call lenders and creditors to make arrangements when issues arise, like forbearance or temporary adjustment to the payment schedule
Smart Spenders don’t take having a credit card as a license to spend
They always comparison shop before spending and then shop with a list
So that means no buying on impulse because of a flashy sales display
Smart Spenders are also prompt about reporting lost or stolen cards in order to minimize the damage that can be caused by fraud
And if there’s any potential for identity theft, they know to do things like place fraud alerts with the credit bureaus
Smart Spenders only give out credit card information over the phone if THEY initiated the call OR if they’re certain of a caller’s identity
Because giving out information to the wrong people can lead to the added cost and hassle of ID theft
Smart Spenders only enter credit card information on trusted, secure websites
And they never enter card info after clicking from an unsolicited email that just shows up in their inbox
Those are just a few ways Smart Spenders use credit so it doesn’t cause problems
Watch all of the Smart Spender Videos to get even more tips on how to master credit and debt effectively so you can achieve stability