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Learn This One Simple Rule To Change Your Bad Credit Card Behavior

If you’re a credit card user you must agree to the fact that the use of credit card can increase your spending when compared to cash spending. Yes, that’s true, but credit cards also offer some benefits which cash cannot provide. After all, it offers you financial protection which is a must for every consumer. According to the latest study of Urban Institute and D2D Fund, the more realistic way is to use cash for anything which cost under $20. The organizers offer a middle ground of cash and credit card usage and are reminding thousands of credit union customers each day, that for their purchases below $20, they should use cash instead of credit card.

Here are the reasons why you should try this simple tip.

Card Swiping Is Easier

  • Swiping cards are much easier than paying anything tangible (cash).
  • When you know about your high credit limit, a small individual purchase seems like a single water drop in the bucket, so you go for more spending.

Taking a baby step on small purchases?

Spending small amounts on small purchases is for several reasons:

Small Impulse buying: 20% of consumers told about their impulse buying behavior, which was just reduced to $25 in the past three months.

More awareness: Spending $10 on lunch, $3 for a new app $4 on morning latte and so on they can sum up quickly and using cash for these small things gives you budget awareness of your daily routine.

Less risk: Suppose your $1000 cash lost or stolen, on the other hand, if a thief steals your credit card, imagine to what extent he can make purchases?

Build good credit card history: If you’re not a card user, how would you build your credit score for future need of house loans? The biggest advantage of using credit cards is to earn a good credit score over the time, however, cash has no such benefits.

Cash back rewards: You can earn bonuses or other fringe benefits on your credit cards.

Big purchases: Cash does not allow you to make big purchases such as for car, homes etc.

So, the study of “cash for small purchases” is much more useful and effective in practice, when compared with “no cash” theme and use of credit cards also has its own benefits, so put your card back in your wallet and adopt a middle usage approach of both.

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