New Shutr

A wise single woman who is going to be a “do it yourself” woman should have both a credit card and a debit card and a little cash on hand.  However, when and how to use the credit card is the most important lesson any single woman can learn.

The debit card should be attached to the single woman’s checking account.  This card should be used for necessary purchases when she would otherwise write a check or pay cash.  Checks have almost become a thing of the past in the new digital age.  However, when using the debit card it should be treated just as if a check had been written.  The amount should be deducted on a ledger from the previous balance so the single woman will know at all times exactly how much money she has left in the account.

It is recommended that cash be used for those small daily purchases such as lunch or lattes.  We have a tendency to spend less when we pay in cash.  Even using a debit card for those purchases will often cause us to spend more than we would if we had to pull out that old green wrinkled bill.

Even if the single woman pays all her bills and daily expenses by cash or debit card, she will need and should have a credit card.  That said, the single should understand that her primary reason for having and using her credit card is not to buy more than she can afford, but rather to build her credit score.

Credit cards should be used if and only if the single woman has not reached half of her credit limit.  The last thing anyone wants to do is max out the credit card.  To build a credit score that will help the single woman get a better interest rate should she decide to buy a house or car, she must first prove to the credit card banks that she can manage her money and does not spend every penny she has access to.  A good rule of thumb is to spend no more than half of what the bank has determined to be the credit limit.

Additionally, the entire balance on the credit card statement should be paid off each month.  We all like to fudge and pay only part of the statement, but that is far from wise.  In fact, when a single woman makes a charge on her credit card she should know that she could just as easily pay for her purchase with her debit card.  She chooses to use the credit card only to build her credit rating.