What Happens if I Dont use my Credit Card?
What happens if I DON'T use my credit card on a purchase? That is the question that everyone wants to know the answer to. We have all heard about people who run out of money and have no place to turn to. So what happens if you are in this situation? Is there a solution to this problem?
A lot of people say that there is not a solution. I will explain to you why using your card wisely will save you tons of money over time. Most people tend to purchase things when they are not in a financial situation. They do this because they have more expendable income than they actually have. The problem is that they keep spending even if they have the money in their bank account.
If you stop using your credit cards then you will experience some of the same problems that I did. You will go into your bank account and deposit all of your money without a worry in the world. In fact, you may even find that you have more money than you have in your pocket! What is the best way to overcome the problem of not being able to purchase things when you need them? The solution is easy.
First, you must learn how to use your credit cards properly. This may sound simple and obvious, but many people are totally overwhelmed by the hundreds of different ways to make purchases with their credit cards. Once you understand how to make purchases on your credit card in a sensible fashion, then you will begin to realize that the small monthly fees that you have to pay for each purchase are actually quite low in comparison to the amount of money you are spending.
If you cannot properly plan your purchases with your credit card then you could easily fall into the same old problem that I did. You can easily fall into the trap of thinking that it is better to purchase things when you can, than to wait until your next paycheck. I had this happen to me several times throughout my life. I waited to make large purchases because I felt like I had to. If I was not purchasing anything big I thought that I would not incur any debt. Of course, this did not work out as I discovered later.
It is very difficult to predict what the interest rate will be months in advance. Many financial institutions base their interest rate on the average credit card rate in your state. They try to determine the average credit card rate based on your credit history. Unfortunately, this does not give the consumer an accurate prediction of what the interest rate will be months in advance. I purchased items on credit which gave me an excellent opportunity to learn about interest rates and credit card financing.
I realized that one way to determine a reasonable interest rate for a large purchase like a car or home is to look at what other customers have done in the past. I looked up information about the best credit card rates for large purchases. This enabled me to understand the concept of credit cards and how they worked. It was then that I realized that I needed to begin using my credit card more responsibly. I learned that I could use my credit card to make emergency purchases, but I did not need to use my credit card to make every purchase possible.
This knowledge is priceless today. I no longer allow my children to make all of their purchases on credit. I only allow them to use their credit cards to make simple purchases like lunches and school supplies. We live in a world where our economy and our credit rating are vitally important. It is important to understand what happens if I dont use my credit card.
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