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  • Using credit the right way

    Using credit the right way

    August 12, 2014

    As the summer season begins to wind down, it’s a good time to check how you’ve been using that credit card over the past few months. Last minute weekend road trips, back-to-school shopping, and that new shiny barbecue are common purchases when it comes to paying with credit. At Libro, we understand credit and can help you use it wisely. Here are five friendly reminders on the best ways to maximize your credit.

    • Think it over before pulling out your credit card to make a purchase. We’re all familiar with buying something impulsively, often times it is just too tempting to use a credit card. Spontaneity can be good in certain situations but when managing credit, try to ask yourself if you really need to buy that item in front of you.
    • Don’t use credit cards for everyday purchases such as groceries and gas. These purchases are best paid for in cash, and should be part of your monthly budget expenses.Instead, try to use your credit card for bigger ticket items that provide major benefits to you and can be considered assets, such as a computer, or helping with an unplanned necessity, such as an automobile repair. If you use a credit card on everyday items to earn cash back benefits, you should always pay down the full balance amount each month.
    • Review fees and interest rates regularly. Since some credit cards charge an annual fee and have higher interest rates, it’s always smart to investigate other fee and interest rate options. If you find lower rate card, make the switch.
    • Don’t get caught up in alternative credit companies. We’ve all seen those payday loan shops promising instant cash to meet short term needs. Less clear is actually how much these and other alternative finance companies charge in fees and rates. Stay clear of payday loans, there are other better options available and we’re happy to work with you to come up with a plan.
    • Be aware cellular phone accounts are now reported to Canada’s credit bureaus. This started in 2013, so always pay your cell bills on time. Late payments will ultimately affect your credit score.

    Your Libro Coach or local branch is there to help you manage all your financial needs. The best advice on managing credit is to identify potential issues early on, and Libro can help you navigate through the best credit options. Be sure to connect with us in person at the branch, by phone, or via e-mail.

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