Stay at home moms don’t get enough credit, and that’s true in more ways than one. When you are busy caring for and raising a family, it is easy to make simple financial blunders that can tank your credit score. People get so busy with life that they don’t think strategically about their credit score.
The problem between not really strategically managing your credit card is its impact on your ability to qualify for a loan, job or even a home in the future. Saving money is key when you are living on one income, or on a meager income. Show that you can use credit responsibly and keep the card from being closed by the issuer for inactivity.
Neglecting your credit can leave you out the cold, but by keeping your credit history in great shape, you are not only protecting yourself, but your family too. Stay at home moms who have access to resources that allow them to make payments on a credit card can get their own cards, is a reasonable law, but it never said you should neglect your accountability.
What makes you over spend? Stay at home moms struggle with feeling financially powerless or emotionally torn when it comes to spending money on themselves. A personal purchase like a new item of clothing or lunch out with a friend feels like it’s taking away from the family budget.
Creating a budget just for the stay at home mom can lead to resentment and feeling like a second class citizen. How much to allocate? There’s no one size fits all amount. You should factor in your anticipated personal needs such as haircuts, clothes, incidentals, etc. to avoid shortfalls.
Call it a personal expense account or personal budget. Don’t call it allowance, because it sounds too childlike. Some days you spend it all, and on some days you save some! Make a good list of the necessary items you really, really need and another list of the items that may be deferred, at least for a few days.
Being a stay at home mom, one way to save is to collect discount coupons. When used correctly, your coupons and credit cards can be used as a financial instrument to dramatically help your financial life. A great credit score can make you pay less when it comes to borrowing money for a house or a car.
Rewards, such as cash back rebates and frequent flyer miles, add tremendous value to your spending, while borrowers are entitled to useful ancillary benefits like extended warranties and price protection.
Misused tools, though cause damage, and credit cards are no different. If you are not careful, you can sink into debt and hurt your ability to borrow money cheaply in the future. Don’t just pick any card.
Get a card that can exactly do what you want. Cash back? Miles? Use the right card at the right place and time. Review what each card can give you. A credit card is an unsecured loan. If you don’t pay off your card every month, you have to pay interest on the amount you owe.
Missing your due date only leads to trouble. It is always better to pay part of your bill on time and carry a balance, than skip the payment entirely. That way you avoid a late payment fee and a hit to your credit store.
Some cards give you a little latitude in their terms and conditions. Make sure you know exactly what you are getting yourself into. Credit card debt affects everyone.
Do take advantage of balance transfers if you are in debt. This allows you to transfer your old debt without a fee. To keep your score as buoyant as possible, don’t spend more than 20% to 30% of your available credit limit, because issuers don’t look kindly on borrowers who max out their cards each month, even if they pay them off in full.
One trick is to only use your credit card for recurring payments, such as cell phone bills and streaming services, track your expenses right there. Don’t make matters worse. Keep the card open, and use it every so often to keep the card active.
Overspending with your credit card is so easy. You walk into the store, fully intending to get just one thing, and before you know it, you’ve spent 10 times what you planned. Dealing with the consequences of overspending isn’t fun, because it leads to big balances and get you into debt that can make everything harder to pay.
The technique is to avoid thinking of your credit card as a free money. Keep in mind that you have to repay whatever you purchase. Hold yourself accountable for what you spent on your credit card. Consider your credit balance and not your credit limit.