Author: Holly Johnson / Source: Wise Bread
This post contains references to products from our advertisers. We may receive compensation when you click on links to those products. The content is not provided by the advertiser and any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any bank, card issuer, airline or hotel chain.
Please visit our Advertiser Disclosure to view our partners, and for additional details.Imagine you’ve just paid off a boatload of debt after months, or years, of struggle. Now that you’re finally debt-free, you have extra cash to spend each month and your credit score is higher than ever.
With that in mind, you may think you’re ready to use credit cards again. Thanks to the array of travel rewards and cash-back offers available, you may even be itching to start earning rewards for each dollar you spend. And why not? You’re debt-free and have a much better grasp on your spending now. Plus, paying off debt has helped you develop the discipline to avoid letting your spending get out of hand.
While it’s great to feel confident, many financial advisers say you should probably still err on the side of caution to avoid any more credit mishaps. It’s true you may be ready for credit cards, but there are still precautions you’ll want to take right away, they say.
As you ease back into credit card use, here are some steps you should take.
Review your spending frequently — especially at first
Wealth adviser and certified financial planner Brian Behl of Bronfman Rothschild says one of the best steps you can take as you get started is reviewing your spending often. “Every few days or at least weekly” at a minimum is what Behl suggests, although you can tailor this advice to your lifestyle and needs.
By reviewing your spending at least once a week, you can check to see if using a credit card has brought on any of your old habits. For example, you can make sure you’re not using credit as an excuse to splurge, and that everything you’ve purchased can be paid off immediately when your credit card bill becomes due.
Make frequent payments
Behl also suggests making more than one payment each month. If you have access to your account online, you can usually make payments from your checking account instantly without sending a check. This allows you to keep your balance from accumulating and lets you maintain a low credit utilization ratio.
By…
The post How to Ease into Credit Card Rewards After Debt Repayment appeared first on FeedBox.