There are some people who apply for credit cards and have them for maybe a year and they have never used them. They pay the monthly fees that are required if there are any. These people simply have the credit card with obviously extended ability to use it and they know they could use it if they wanted to. Many have unsecured credit cards to top it all off.
So, why don’t these people use their credit cards? Is it out of fear, or are they so used to using cash it just never crosses their mind to use the credit card in the first place?
It could be that way however believe it or not, that’s not exactly true. A lot of people who have been approved for an unsecured credit card only use the credit card for emergency purposes. This way they know they have the means to do whatever it is that is so important and they just don’t have the cash funding to get the task accomplished.
This is such a good idea, and those who are in control of their spending habits are able to do this. It’s as if they put the credit card in their purse or wallet and forget or pretend they don’t really have it.
Although you have to admit there are several people who once they have that credit card in hand cannot help themselves but go out and use it to the maximum amount. Then when the monthly statements come in they are simply paying the minimum they can in order to actually keep the credit card.
I believe the idea of having a credit card for the sole purpose of those emergencies that arise in one’s life is a good plan. And everyone knows those times do arise, often times more than once. In these cases, the person that is only using the credit card for the sole purpose of emergencies can have it paid off a lot quicker for the simple reason that the credit card is usually not to the maximum amount and can easily and quickly repaid before all the interest fees are accumulated. Not to mention the fact that they do not have to pay the minimum each month, they simply pay the amount used for the emergency purpose that has arisen and then put the credit card back in their purse or wallet all but forgetting they have it once again, until the next emergency situation arises and they don’t have the cash flow to take care of the problem.
This is turn also builds their credit, whether people can see this or not. You see when they use the credit card and then turn around and quickly pay it off, this looks good on the their credit scoring or their credit record as a whole. So which are you? The one that uses the credit card for emergencies literally forgetting you have it until the absolute need arises and you have to use it, or are you the individual that goes out and uses it up to the maximum amount allowed and simply pays the minimum required each month?