Manage Credit Wisely — Make Credit Cards Work for You

Virtually everyone uses a credit, and with good reason. They give us a simple way to carry money, enable us to spread payments over time, and are convenient to use. They even make online shopping a matter of a single click. However, the same things that make them easy to use can be their downside. Credit cards are a detriment to some families, who end up drowning in debt by over-using the card. If consumers don’t use a credit card wisely, they can spend years trying to dig out of the debt they’ve created.

Fortunately, when credit cards are used effectually, they can be a tool to help your financial situation. The best rated credit cards also offer perks and rewards that make them fun to use. Having a credit card (and using it responsibly) helps you to get good loan rates and even make purchases you could not normally make. Here are some tips for utilizing credit cards as part of your overall financial strategy.

Always check your credit report. Anyone over the age of 18 should be checking their credit report yearly or even quarterly. Credit information shows lenders whether you are worth the risk to them; if there is incorrect information on your report, it will reflect badly on you and can affect your loan interest rate.

Credit reports come from one of three places:

  • TransUnion
  • Experian
  • Equifax

You can get a $1 report from each of these companies, or get a free yearly report from The reports show the total debt you have accumulated, whether you make payments on time, and how many recent credit inquiries you’ve made (think credit applications). It is worthwhile to get a report from each of them, spreading them out over 3 or 4 months.

Know your credit ratio. Debt plays a part in whether you can reach your long and short-term financial goals. Most financial advisors suggest that your total debt – including loans for vehicles, your home, student loans, and credit cards – should not exceed 20% of your income. By calculating this ratio frequently throughout the year, you can adjust spending habits and cut back on unnecessary purchases. This helps you stay out of the debt trap, but even better it keeps you from tapping into retirement funds.

A rarely heard warning is perhaps one of the most important: think before cancelling. Often, people believe that cancelling an old credit card that they don’t use any more will help their credit. Actually, it can hurt it. So can closing out all your store credit accounts. This is because lenders are looking for one more component: longevity. They like to see a good debt-to-income ratio, and they love for you to make payments on time. But they want to be sure you are a good risk over the long term.

It’s also worth mentioning that, if you close a credit card account, you are reducing your available credit without actually changing the amount of credit you already carry. It changes the credit ratio, without actually buying anything extra! So think twice before cancelling out accounts, even older ones you don’t use any more.

Lastly, credit cards are tools. By using the above tips, you can make credit cards work to your financial advantage. When you manage them carefully, they can help build credit and can enable you to create the lifestyle you’d like to have. Through use of cards like the Canadian Tire Mastercard, you can not only build up your financial status, but also enjoy perks like low APR and cash back rewards.

Find Financial Freedom

We live in a world where the subject of personal finance comes with a lot of emotion. However, we cannot gloss over the fact that multiple factors can hinder anyone from building a strong financial profile. The journey to financial freedom is strewn with so many distractions and it takes total focus to achieve your goals. A cursory look would be done at one of the financial strategies you can use to stay in good shape. When it comes to saving money, many ideologies come up but it is safer to follow a well thought-out plan. That is one of the major high points of our discourse. Essentially, the best rated credit cards can help to put you on the path you need to follow to achieve your financial goals.

Why the need for a Plan?
There are so many factors that necessitate the need to have a plan in saving money. Your educational level, family background, fiscal discipline and earning potential are some of the issues that determine how the journey goes. A popular idiom states that the early bird eats the fattest worm and this uniquely applies to your finances. There is nothing new under the sun, so no matter where you are; you can begin taking steps in the right direction. A plan is simply a measurable yardstick for documenting your progress. It also allows you to make detours or necessary adjustments as you go along the way.

How Rich do you want to be?
One of the major things to do when taking a firm step towards saving money is to clearly set your goal. If you do not fully comprehend why you need to organize yourself, your journey to financial health might be long far from coming to fruition. When we talk about being rich, it is not necessarily about the flashy cars, the big houses or cool toys. It is all about your ability to meet your needs, to take care of yourself in case of an emergency while still having some money left over to invest. There are so many financial experts who offer a lot of ideologies to help you get started. However, it is better to follow a path that has a traceable track record of delivering on its promise.

The Alternatives:
Just like every other issue in life, there are alternatives to your path to saving money. You can decide to invest, live below your means for a time or work multiple jobs. They all have their merits but it is always ideal to find the best fit for you. One of the disciplines needed to properly save money is a high level of discipline. Unfortunately, this is not found in the life of most young adults. Impulse buying and other wants can take a huge chunk of your money. The alternative plan to conventional saving is a fail-safe methodology for some. However, since we are at different levels of financial intelligence, it might not be feasible for everyone to implement.

What more do I need to know?
Before we fully delve into how you can use an Insurance saving plan to safeguard your future, we must note a few points. No one is meant to plan your finances; it is your full responsibility to determine how you want to go. Also, as you take up higher responsibilities, there is a greater need for money to handle your various purchases. It is expedient that you shore up your reserves so that when the rainy day comes; you will be ready for it. Some of the best offers out there for just that scenario are the Wells Fargo financial cards. It is important to search through many offers to find the right one for you, but Wells Fargo is a great place to start your search.

There are certain metrics that determine your true value especially in the area of finance. One of the best rated credit cards has a very flexible plan that can fit in perfectly to the needs of different age groups. Why is this essential? Through use of a well established credit card you can provide yourself with a flexible form of extra money to help get you out of your current financial threshold. In addition, a credit card offers greater financial planning opportunities by creating a safeguard to fall back on when the unexpected occurs. This is why you will want to find the best rated credit cards on the market today. Once you have narrowed down the top cards, make the choice that will help you reach your goals the fastest.