Tips for Using Credit Cards and Checks to Manage Your Personal ...

credit cards and personal finance

They are everywhere you look.? In fact, every time you open the mail, there?s a new credit card offer, a special if you open a bank account today, or a discount service printing thousands of checks.? In reality there are only so many credit cards one person needs.? More than a few bank accounts and you?ll quickly find that a missed deposit here or an overdraft there are actually costing you more than any benefit you received from opening the account.? Checks, in America, are really nothing more than paper.? The penalties for fraudulent check writing are almost nonexistent, as any large payment requires some form of finance or certified payment guarantee.? This means that checks are typically used to pay recurring bills or standard payments, and it is almost impossible to make any large purchase with a check.

Credit cards, on the other hand, can make such purchases, but are most often used for small or one-time payments.? We often put our gasoline purchases or a morning coffee to a credit card.? Want to buy something from the iTunes Store?? Get your credit card.? It just takes a few minutes, and you?ve got new music or a new iPhone application.? Care to be a little more expensive?? No problem, if you?ve got plastic the sky is the limit, at least until it comes time to pay the bills.? Ironically, one of the most common uses for checks happens to be making payments on credit card bills.

There are, however, certain tips and tricks one can use not only to maximize the benefits of checks but also credit cards.? In this way personal finance can be enhanced as well as one?s own credit score. ?The following paragraphs detail a few suggestions that you can use to make the most of your personal finances using credit cards and checks.

First, we will discuss checks.? Anyone who has ever seen their grandmother or grandfather writing checks to pay bills has certainly noticed that they have been using the same checkbook for what seems like 100 years.? This is due to proper check management.? Money is deposited in an account, recorded in a check ledger, and then debited by way of a paper check to make payment.? This is the proper way to use checks, and additionally over the course of a year one receives interest on money otherwise allocated to a bill while the check is in the mail.

For credit cards, the most important thing to consider is the actual building of credit.? One can reap enormous benefits simply by being aware of their personal finance and making the most advantageous use of their credit cards.? In simple terms this means if you have $1000 in the bank that you intend to spend, you?re better served using your credit card to make that same thousand dollar purchase.? Then, as you still have $1000 in the bank, when it comes time to pay the credit card bill you simply write a check.? In this way the credit card company sees that you are regularly using large amounts of credit.? This encourages them to increase your credit limit, and increased credit limits are essentially an insurance against hard economic times like those we are currently experiencing.

Photo by Andres Rueda

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Source: http://www.foreclosurerepos.com/blog/personal-finance/tips-using-credit-cards-checks-personal-finance/

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