3 Great Ways To Use Credit During A Move
While the irresponsible use of credit should be avoided during a move to a new home, there are smart ways to use credit while moving that can help you end up in a better financial position than you would otherwise be in.
TUTORIAL: Credit Cards: Introduction
Get Those Rewards
Do you have a credit card that offers rewards? Do you want to go ahead and get some of those rewards? You probably know by now how hard it is to make purchases that qualify for rewards while still paying off the purchases each month so that the interest you pay doesn't negate any benefit the rewards bring. Moving offers you a great opportunity to do just that. Instead of paying cash for everything you budgeted to spend during your move, use your rewards-bearing credit cards instead. Just make sure you take your unused moving expense cash and make your credit card payment well before it's due. (For related reading, see How To Establish A Credit History.)
Take Advantage of Interest-Free Offers
Many retailers have special, interest-free for a limited time credit deals that you can take advantage of when you are moving. If you need new furniture, new appliances or even materials to make improvements in your home, you may find that a lot of the stores you visit to fulfill these needs have credit deals. As long as you know you can pay the balances before they become due and start paying interest, these are great ways to use credit during a move. Keep in mind that any minimum payment you are asked to make during the interest-free period is not likely to be enough to actually pay it off by the time the interest-free period ends. In addition, if you pay late, it may end the deal early. Finally, be careful of some of these interest-free cards, they accumulate interest during the interest-free period and charge it all to you if it isn't paid off before the deal ends.
Paying the Cards off
Even if you can't find a great, interest-free deal or reward, you may still need to turn to credit cards to help you fund your move. While this isn't ideal, it is perfectly acceptable as long as you pay your balance in full each month to avoid interest charges. It is expensive to move, and adding interest fees to an already pricey activity just makes it that much worse.
The Bottom Line
Don't be afraid of using plastic during your move. Instead, have a plan for using plastic the right way and taking advantage of any benefits that you can. When you think it through and have a plan, you approach it from a place of empowerment, and you can't go wrong there. (For related reading, see Top 5 Way To Make Your Credit Card Work For You.)