Factors That Credit Card Companies Look at When Evaluating an Application
We all know that having a credit card allows us to buy many things. The problem is those things are not a priority and you buy them because you have the cards in your wallet. It's like we feel obligated to use them at least once a day. It turns into a terrible habit that has racked up so much debt we are stuck financially. Cards can be a curse on our lives where we have destroyed the limit and we can't get it back down. We have to learn better ways of using our cards or not have them at all. There is a time when it's necessary to find the scissors and start cutting up cards so you don't use them. Here are some ways to maintain your credit cards.
You have to take a good look at your spending habits. Some of us may not realize, but we could be addicted to shopping. Having cards that you know you can buy things with seems to make our spending worse. We end up purchasing things just because we can and it makes us feel good. Spending needs to have some kind of control when maintaining your cards. If you don't get this handled, then it can be a disaster working through all of your debt. That card debt will show up every time you actually need something that can further your life. This could be a new home for the family or something else. Your spending habits on your cards have ruined your ability to effectively manage your money correctly.
Write down all of the emergencies your family could possibly have and what card should be used. This is so important because this is what credit card's really should be used for in the first place. You might have kids where they could end up in the hospital at any time. This situation might require you to pay for needed medicine to keep them alive. It might not be that drastic, but at least you will have a card set aside with an untouched limit you can use. Emergencies are a wake up call on how we should handle our credit. These put things in life in perspective so we don't over spend and save a little more. Keep cards at home in a safe place so you have them when an emergency happens and your not lost with no money.
Today, card companies are doing their best to keep us interested in their business. This mean you can either get cash back or no interest for 12 months. Find the cards that work with your lifestyle. If you find that you travel all the time, then get the card that gives points for that. You could find yourself traveling for free by racking up some serious points flying from coast to coast. Always inquire with the card companies about what they are offering. Don't just take any card that keeps charging you a fee on every purchase. This is what gets us in debt because we are using cards that don't suit our needs. If you spend a lot on gas, then get the gas card that will at least give you something back.
Consider making your life easier and lowering your debt by keeping one card in your wallet. There is no sense in having 10 cards in your wallet that you barely use. Further, just because you have a great credit score and the card companies are offering them to you, doesn't mean you have to take them. Try to be frugal with your cards just like anyone would be with cash. One card is more than enough and you don't need the accumulating debt on the others you might have. Having a list of cards from various companies that are not helping you in anyway is not a smart money move. Maintain your life by getting through it with one card for specific expenses. Avoid all offers and start declining any that come to you by email. You are not obligated to sign up for anything, especially if you never requested the card in the first place.
Maintaining your credit cards can be a hassle if you let it. Think about your personal lifestyle and what a card can do for it. Get your spending in check as using your cards for all expenses might not be the way to go. Always understand that life can bring us emergencies that we don't expect. Put away a card in a safe area and only use it when an emergency comes up. You will be happy that you did when something tragic happens and you have the money to pay the bill. Pick the best cards that work for you not against you.