Parenting Blog

Learning How to Use Credit Cards and A Good Credit Score to Your Advantage

This post is sponsored by Lexington Law

It took over a half decade to fully escape the whole financial mess I made for myself as a young man. Many overtime hours were clocked by my fiancé and I both and many sacrifices were made in an effort to completely pay off my credit card debt that came about from me not knowing how to use credit cards wisely.

After getting back to square one, I swore off credit for years. I simply refused to charge anything for fear of relapsing into another battle with my poor financial decision making. Eventually, I got to the point of trusting myself to be smart, diligent, and disciplined with money, budgeting and credit cards. Once I reached this point, a whole new, very rewarding world opened up to me and my family. I learned how to use credit to my advantage and haven’t looked back since.

How To Use Credit Cards To Your Advantage

Using credit cards right can help you and your family travel the world for free.

Learning How to Use Credit Cards and A Good Credit Score to Your Advantage

When used correctly, the world of credit and credit cards can reward you for your wise financial decisions and discipline in paying off your debt. Here are a two ways I have used credit to my advantage and how you can too.

Good Credit Can Get You Lower Car Loan Interest Rates

Good Credit Can Get You Lower Car Loan Interest Rates, Which Means You’ll Have More Money For Travel

Good Credit Can Get You Lower Interest Rates on Mortgages and Car Loans

By repairing your credit and learning to be diligent in paying off your debts in full and on time, your credit score will rise, just as mine did over time. A good credit score will allow you to access lower interest rates on a mortgage, car loans, and possibly on a line of credit too, to start a major home repair project. Lower interest rates mean you spend less over time to live the life you want for yourself and your family. Good credit is key to taking advantage of lower interest rates. We were able to refinance our mortgage after 1 year, to get into a 15-year mortgage at a very low rate. We paid off our mortgage last year, thanks in large part to our good credit!

How To Use Credit Cards For Free International Flights

How To Use Credit Cards For Free International Flights

Being Smart With The Right Credit Cards Can Get You Free Hotel Stays and Flights

Understanding how to use credit cards to my advantage has made a world of difference for me and my family. By choosing the right card(s), charging only what I know we will have the money to pay off in full the following month, and then paying off the balance on time each and every month, the credit card companies make no money off of me, but I make out like a bandit!

I use only three credit cards today:
With one, I accrue airline miles which have allowed me to go back and forth for free to Detroit to see my Red Wings multiple times, and for my entire family to fly to Mexico! With another, I earn hotel points that have provided us with free stays in NYC, Seattle, Los Angeles, Barcelona and beyond. And finally, I earn cash rewards to put towards future Amazon purchases (because there are always future Amazon purchases!)

Don’t Be Afraid Of A Credit Card With An Annual Fee!

I used to think that I would never want a credit card with an annual fee but then I learned that an annual fee isn’t necessarily something to run away from! When a credit card has a $59 or $89 annual fee but gives you one free hotel night certificate annual to use on hotels that would normally cost upwards of $450, THAT is a good annual fee to assume when using credit to your advantage! You simple need to make sure you use your annual certificate to book the best hotel possible!

Quick review:

— Remember that credit cards are loans: Only Borrow What You Can Afford To Repay Within 30 Days!
— Never Carry A Balance
— Pay Off Your Balance In Full Every Month
— Make Your Payment On Time Every Month
— Log On To Your Credit Card Accounts Online Every Day To Review Purchases and Check Due Dates: Make It A Habit!

By doing the above, you will successfully use credit cards to your advantage. And oh what an advantage it is!

My debt of youth was a nightmare but I don’t regret it because I was able to learn from the experience. I owe the hawk-eyed discipline and the reward-maximizing skills I possess today to those dark debt days of my youth. My credit report is clean, my credit score is through the roof (according to the car dealership from which we just leased our new Kia Soul), and I earn free trips and cash by using credit cards wisely. If you need to get moving in the right financial direction by finding the best credit repair service, look no further than Lexington Law.

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