Credit Card use for a Good Credit Score

Credit worthiness is important in today’s economy. Only those with excellent credit and high credit scores get approvals for first and second mortgages, lines of credit, home refinancing, car loans, and personal loans. A low interest rate on credit cards is also a byproduct of good credit. One of the biggest challenges to a high credit score is keeping your credit card bills at a manageable level and paid on time. The best way to do this is to carry only one credit with you on a regular basis. Following are several reasons this makes sense and why the wise credit consumer will heed this advice.

1. Spending control:

When carrying only one credit card, you are better able to resist impulse buying. Companies are competing very hard for your dollars. Products are packaged in such a way as to make them compelling to the buyer. Advertisements flood mail boxes across the nation, enticing consumers to part with their hard earned money. The large print tells you the item can be had with low easy payments. The small print tells you it will take a lot longer than you think to pay it off and you will pay a lot more for the item than you thought. When you carry only one credit card, you will make more critical decisions when spending and don’t get caught up in instant gratification.

2. Expense management.

Rent or mortgage bill, car loan, electric bill, gas bill, oil bill, cable television or satellite bill, water bill, student loan bill, and on and on and on. It never seems to stop. Add to that; Visa, MasterCard, American Express, Discover, Diners Club and a host of gas company and store credit card bills; and you need your own personal bookkeeper to manage your expenses. When you use only one credit card, you will cut down on the time, interest, and aggravation at the end of the month when bills need to be paid.

3. Living debt free.

A major source of anxiety is debt. You can help keep your debt under control or paid off much easier if you only use one credit card. Use it to purchase only what you can pay for in full at the end of the month and you will stay out of debt. You will save on interest payments and your credit score will remain high. It is a winning strategy in managing debt.

4. Credit score management.

When you have too many accounts open and in use, you could hurt your credit score. Having several cards with high credit limits means you could potentially run up your debt several thousand dollars. A loan officer for a mortgage company or bank will see that as a potential risk and it could cost you your approval. Only keep accounts you need and use them sparingly.

5. Security.

Now more than ever it is more important to protect your identity and credit security. If your wallet or purse gets lost or stolen, it is much easier to cancel one card than having to cancel and replace ten cards. Keep it simple and stay secure. Only carry one card with you.

6. Peace of mind.

While having a wallet or purse full of credit cards may seem impressive at the checkout counter; the truth is; they are a dime a dozen. A large volume of credit cards in your possession is no longer the status symbol it once was. That is the problem with our economy today. The banks and credit card companies give out cards to many people. Knowing you are not in debt over your head will give you the peace of mind you need, and keep your wallet or purse available to carry more important things like photos of loved ones.

These are just a few reasons it is a smart choice to carry only one credit card. Consider what you have read and do the right thing. You will be better off and glad you did.