Some credit cards are awesome for earning rewards like extra cash or free travel. If your money habits aren’t great, though, those cards can lead to consumer debt. Credit.com recommends mastering these three money habits before jumping into the credit card rewards game.
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First, you want to make sure you’re in the habit of paying balances off in full. If you’re accumulating interest, that kind of offsets the whole rewards thing. Second, you should have a solid credit score. This shows you’ve developed responsible habits, plus, it qualifies you for better rewards cards.
Finally, you want to make sure you’re good at sticking to your monthly budget. If you’re having trouble staying disciplined, you don’t want to play with fire. And if your finances are already stretched thin, you don’t want to get caught in a debt trap.
Of course, there’s a lot more to consider, but these three factors are a good general summary of using credit card rewards responsibly. For more detail, head to the full post at the link below.
3 Signs You’re Ready for a Rewards Credit Card [Credit.com]