Credit Card Smart

Having a credit card is a good thing for emergency situations and is also an excellent way to build your credit history. However, you can get in over your head by using credit cards for some purchases that you shouldn’t. Some of those things are:

·         College Tuition

Paying for your college tuition with a credit card is a good way to put yourself into debt before you even complete your first year of college. There are other options, such as obtaining a student loan that will have a lower interest rate and lower payments that are manageable.

·         Taxes

Paying your taxes with a credit card will incur interest rates and only paying the minimum due will allow that interest due to keep growing. Working out a payment plan for your taxes may be a better option.

·         Large Weddings

No one wants to start out their newly married life in debt because of their wedding day. Plan your wedding on what you can afford to spend. Look at all your options for the money you need before pulling out that credit card.

·         Vacations

Everyone loves a good vacation, but you don’t want to carry this year’s vacation into your next one. It adds to the stress of enjoying your peaceful escape. Plan your vacation where you can spread the charges out longer to balance the financial burden.

·         Medical Bills

Using your credit card to pay for your medical expenses can leave you with a large bill from a hospital or a doctor. Many facilities are willing to work out payment plans to cover the substantial costs of going to the doctor or having a medical procedure.

Credit cards are not money. They are a way to help balance purchases when you already have the money to pay for items, or need them for an emergency because there are no other options. Remember to use your credit cards wisely to create a history of good payments and to establish better credit.

With the GOFederal Credit Union Visa Credit Card, you’ll receive interest rates lower than most bank and department store cards that can save you money every month. You can also set-up automatic payments from a GOFCU account, make payments using GOFCU online banking, or stop by your nearest GOFCU branch to make it easier to stay on top of your bills.

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