It’s easy to rack up credit card debt – but VERY difficult to get rid of it.
Once we eventually do pay off our debt, though, we might not know the right steps to take afterward and get caught right back up. Especially if you do what common sense tells you – but with credit cards, common sense is WRONG.
After paying everything off, you might assume that you should stop using your credit cards altogether. But this is actually counter-productive! Why?
If you stop using your credit card, you might stop checking your account – but you could still be a target of fraud. Also, your bank could close your card if you don’t use it.
But you also shouldn’t just cancel your card. Credit card companies make us dependent on their services in a sneaky way.
Your credit score is partially based on card utilization, so when you don’t use it, your credit could suffer! Closing a card you’ve had for a long time can even cause your credit score to plummet.
Your best option is to still use your card – just a little at a time, and pay it off EVERY month.
The rules of how to use credit cards seem confusing on purpose. But if we learn how to properly use credit, it can be a great tool rather than a burden!