| By :
Mark Etinger
How many times have you received some letter in the mail offering you a new credit card? Or claiming that you qualify for some souped-up version of the one you already use that includes bonus points for travel and merchandise with your purchases? Our society is so heavily finance based there is no reason you should ever avoid proper management of your bank accounts. There are only so many credit cards you should have open at any one time, and the rest of your finances you should manage using your checking account and your personal checks. Debit is there for a reason. Do not underestimate how useful it can be with your day-to-day needs. Checks, ultimately, are used for recurring bills and standardized payments. They feature security because they have your signature and only access the funds specifically written on them, no more, no less. Credit is used for things like music downloads, gasoline, mall shopping-- that sort of stuff. You can actually maximize your benefits between your credit and checks. When you look at finances step by step, it starts with your paycheck or beneficiary. When you have that money stored away in your account you can access it by writing on blank check stock or using a debit card. You should always record in some kind of ledger or checkbook what you currently have, what you intend to spend, and what was approved and eventually debited. You will receive interest on money sent via check in the mail otherwise allocated to your bills. Credit purchases on the other hand are not directly connected to the stored finances. It is the temporary authorization of a purchase. If you have a large amount in your account, you will probably be more comfortable charging that to the card. When the bill comes, assuming you have the money in the bank, you pay the authorized amount using a personal check. This is why you shouldn't go card crazy and overcharge what you cannot afford. In the end, everything still relies on your use of that little piece of paper you sign and record. This is why you should always have them around for your convenience. You can order online and probably find discounts when you get them in bulk. Financial management is so completely crucial to building a good score. Always maximize your potential by staying on top of the purchases you make and organizing your payments.
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