Thursday, July 10, 2014

The Disciplined Credit Card User

I use credit cards regularly and pay all of them off every month for the following reasons:
     - Helped built my credit score to above 780 (from the 850 max scale).
     - Getting free points/money because I am purchasing essential items anyway.  
*Note: I do not overspend and pay off the balance on all of them every month.  You have to be disciplined and not overspend.  Over 2 years, I was able to accumulate enough points to get a round trip ticket from Chicago to Paris (direct) all from airline points!

As other disciplined credit card users know, the FICO score uses a weighted average on various categories, and one of the important factors are showing that you are paying regularly on credit.  While people like Dave Ramsey argue that this is the death spiral because you have to use credit regularly in order to pay regularly, the response is that whether I am using cash or a credit card, I am still having to make the purchases anyway, therefore, why not get free points towards things that can help cut down on the expenses on the other things that are fun in life?

Dance Party Time!

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