Credit cards and loans are amazing tools for consumers to have under their belts. However, people still have to use them wisely to get their full benefits. The following are some good and bad ways to use available credit or loans and some information on how to use it wisely instead.

How Credit Cards and Cash Advances Work

Credit card lenders usually give their cardholders a credit limit that they feel is sufficient. The cardholder then shows that he or she can use the money wisely and pay back the funds in a timely fashion. The cardholder can receive regular increases to that credit line after six to 12 months of timely payments and smart usage. Credit card accounts revolve, so the available credit returns to the cardholder rather quickly. 

A cash advance is completely different from a credit card. A consumer applies for a check advance online and does not necessarily have to have good credit to obtain approval. The lender deducts the loan proceeds from the person’s bank account at the agreed upon repayment date. Advances do not revolve, but they can give the borrower a good chance of getting an advance in the future.

Good Ways to Use Credit Cards and Advances

The key to having a good financial profile is using the funds from a credit card or check advance online wisely. Credit cards and loans are excellent for emergencies. Automobile repairs are emergencies that would be good to put on a credit card. Expenses such as a utility bill or overdue rent are a good use of a cash advance. Home repairs and medical bills are other legitimate reasons to use your credit. It’s fine to use your loaned money for such things as long as you’re willing to put it back quickly.

Bad Ways to Use Credit Cards and Cash Loans

There are some bad ways for you to use your credit cards and advances, as well. These uses are not productive, and they will usually result in having low limits and high balances. An example of a poor way to use your loaned money is a vacation. A vacation is something that you should save for and not binge on your loaned money to do. Another bad way to use your credit and loans are shopping sprees. You can always save money and buy your wardrobe a little bit at a time. Splurging with your loaned money will only put you into debt more when you could have waited until payday. You should use your credit wisely for things that are important to your survival or productivity. Being responsible with your loaned funds will get you far in the credit world.

How to Improve Your Habits

You can improve your habits by starting with your budget. Include things like recreational activities and shopping in your monthly budget, and then you’ll have the money to spend. You can also set notifications and reminders to keep track of your credit card balances. You can keep your expenses down to a certain threshold and receive a text message or email if you get close to that threshold. Finally, always try to wait to see if you can get the funds you need some other way.


Now you have a better handle on personal loans and credit cards. You should be able to use them to your full advantage now and come out of the process with amazing credit.

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