Up next in Credit & Credit Cards (16 videos)
Save money and stay out of debt with the advice in this Howcast video series about credit and credit cards.
You Will Need
- Awareness of your spending habits
- Knowledge of your credit history
Assess your finances
Ask yourself a few questions. What you want to use your credit or debit card for? Is it for convenience? Do you want buyer’s insurance? Do you want to improve your credit score?
Gather all the information. Be sure to read about all charges and rules on both credit and debit cards.
Choose a credit card
If you think you can pay off the balance in full every month, choose a credit card. It helps you build a credit history, and there are more perks, like rewards, cash back, travel and buyer’s insurance. You also get more protection if your information is stolen or lost.
Get a no-fee card
Choose a "no-fee" card with a zero percent interest introductory rate. Read any pamphlets and updates that the company sends, and pay your in full balance every single month.
Assess your habits
Be honest with yourself. If you are prone to accruing debt, a debit card is a good choice for debt deterrence, because they are directly linked to your checking account, and you will incur a penalty immediately if you overdraw.
Get a debit card
If you think you want a debit card, read the bank's policies to see what penalties there are for exceeding your account balance. Remember – you’ll have to keep close track of how much money is in your checking account. Now plunk your plastic with impunity!