🐷What is your opinion of credit cards? Do you like them and use them? Or do you avoid them like the plague?

Here at Budget|BFF, we believe credit cards are an important financial tool.

Credit cards, when used responsibly, can:

Help build credit history and improve score
Earn rewards
Offer more protection than a debit card

That being said, it's also a privilege to be able to qualify for a credit card.

There was a time when I was in a lot of credit card debt, my credit score had TANKED and I couldn't get a loan or transfer balances because I couldn't get approved.

So, how can you rebuild your credit when your credit score has tanked?

1. Take all of the credit cards out of your wallet.

2. Get organized and start paying my credit cards on time, even if it’s the minimum payment.

I had so many damn cards {like, 12 - all maxed out} that I couldn't keep track of them all and was missing payments.

I listed out all of my credit cards along with the payment due dates, interest rates, the balance, etc. and put them in order of smallest to highest balance.

If you need help getting organized, CLICK HERE to sign up with your email and gain free access to the Budget|BFF Vault where you will find a printable Credit Card Organizer.

3. Use the debt snowball method.

I put whatever extra money I had toward my SMALLEST DEBT {Christmas money, birthday money, anything - even if it was $5 extra}, paying that card off and then putting that monthly toward the next smallest debt.

I was at the point where I couldn't worry about paying down the largest interest rate - momentum was more important to me.

4. Get a secured credit card.

It took me a while, but I saved $200 and used it as a security deposit on a secured credit card, which gave me a $200 credit limit. Then, I used that card to make ONE purchase per month {something small that I was already buying}, so that I was able to start rebuilding my credit and start to show a positive history of using credit responsibly and paying the balance in full every month.

Did my credit score improve overnight?? It sure didn't, but using this plan helped create the habit of paying attention to my credit and credit score, and taking small steps to rebuild it.

Now, credit cards are an important part of my budget, and they can help yours, too.

How do you feel about credit cards? Yay? Nay? Comment below and share with me!

Happy Budgeting!

Caitlin