Developing Trust through Smart Credit Card Usage Find out: How to pick the right credit card for you Four scenarios to use your credit card to maximize its benefits How to pay off your credit card quickly Welcome back! It’s wonderful to be trusted with a credit card. The freedom it gives you to buy what you need – when you need it – is life changing. But like so many things, we must enjoy that freedom in moderation. In fact, we urge you to only use your credit card in the four scenarios we’ll discuss in this video. We’ll also explain how to to choose a good credit card, how to maximize its benefits, and how to pay it off quickly. Okay, so you want to pick the best credit card. If you like to dig into the fine print of a credit card offer, then you’ll love what we’re about to say: picking the best credit card means you’ll have to study the details. Answer these questions: Is there an annual fee? Hint – the answer for your credit card should be no. What is the annual percentage rate? Does the annual percentage rate vary? If yes, when? How will you be notified of rate changes? What is your monthly interest-free grace period? Will the bill come due immediately after the billing cycle ends or do you have a couple weeks of a grace period? Finally, is there a program that will reward you for using the card? Offers such as cash back, airline miles, or other incentives are an added benefit, but should not be so beneficial that they encourage overuse. Ideally, you’ll find a card with no fees, a low fixed-interest rate, and a longer grace period to allow you more time before payment is due. Do the research before you settle on a card. In school, use just one credit card and avoid balance transfers and 0% APR offers that will actually damage your credit score and cost you money. Pick your card and then limit its use. If you have a debit card connected to your checking account, most of your purchases can go through that debit card. That way, you’re using the money you have now to pay for most of your expenses. But in these four scenarios, experts agree that a credit card can be used: 1.Credit cards are made for emergency situations, but an emergency must be serious, unexpected, and require immediate attention. If the situation fits those 3 descriptions then use credit and make a plan to pay it off. 2.When traveling by air, using rental cars, or staying in hotels, using credit is a good way to take advantage of some credit card privileges. Many credit cards provide travel insurance as part of their benefits. Check with your credit card company. 3. Online purchases are increasingly safe, but if you use a debit card and the purchase doesn’t go as planned or your account is hacked, you may be charged and have to wait a couple weeks to be refunded. Your credit card likely offers a “zero liability” policy. If your account is hacked, you will not have to spend a dime. 4. Your credit card may provide you with an extended warranty on those large purchases you make. Again check with your credit card company to see if they provide consumer protection packages. The most important aspect of your credit card is to make sure you pay off as much as you comfortably can every month without taking on more debt. Now that you have the basics, enjoy the freedom of credit cards responsibly, and remember to keep your credit score high by keeping your credit card balances low.