Money $marts: Take Credit

What do you use a credit card for?


	Hardly ever use it–I only have one for emergencies.
	Mostly online or if I’m short on cash.
	Are you kidding? What DON’T I use it for?

Credit cards are a way of life these days. They’re convenient, easy, and they let you make big purchases without carrying tons of cash. Credit cards are also pretty essential for buying things online.

The hitch with credit, though, is that with that little card it’s way easy to spend more than you have in your bank account. If you buy things on credit, and can’t pay the credit card bills, that can put you on the road to debt. It can also ruin your credit rating, which could make it hard for you to get loans, like for a car, buy a house, or get other credit cards in the future.

So, savvy spenders use credit wisely. That means charging only what you know you can pay off when that bill comes in the mail. Or, at the very least, pay the minimum amount due, and pay it on time.

It’s true that you can’t get a credit card in your own name until you’re 18 (although you may have a card that is linked to your parents’ account). That’s why you might want to consider a prepaid card. A prepaid card isn’t really a credit card, but it offers lots of the same perks.

Here’s how it works: You or your parents add an amount of money to the card, and then you use it until the money is gone, kind of like a phone card. Then, the card’s value can be refilled, usually online or over the phone. It’s safer than carrying cash, but without the temptation of overspending the way you can on a credit card.

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