Cash is king. You may be looking to upscale your lifestyle. Perhaps, you feel you have settled for too long and deserve higher quality. Credit cards can help you raise your credit score. When raising your standard of living never underestimate having available cash.
Decide whether the subject is an object or an idea. Briefly, explain what it is.
Each month you will have a balance for the purchases made on your credit card. Being that you cannot pay your bill with credit, you will need to have cash. The more regular it is for you to have cash the more manageable your credit balance will be. Though you may have available credit, you will much prefer having available cash for the purchases you make.
Give a detail of why this is relevant. Provide an explanation of how it works.
This is important when you consider your credit score. Generally, it helps to have your balance roughly under a third of your available credit. Making purchases, however, gives you the opportunity to display your trustworthiness to creditors.
Answer when this might apply. Answer how I would use this object/ idea, and how I would not use it.
This seems simple, but with credit cards as a major cause of debt burden, this may not be so easily grasped. Cash is the advantage. Do not make purchases for the sake of using your credit card. Purchase the items you intend to buy, perhaps you have saved for and purchase them on credit.
For example, a friend of mine loves brisket for Saturday brunch. Every Friday he gets paid and visits the butcher for seasoned brisket after work. Normally pays with his bank card, but since getting his new card he’s been trying to increase score from 650 to 700. Now he’s making these purchases with his Credit card and saving the cash in his bank savings until the billing date.
I have a friend he likes to play guitar. He wants to purchase a new fender telecaster. He’s been thinking about it for a long time, almost a year. The instrument costs $600 and he saved $450. He decided to purchase the instrument using credit and put his cash into a savings account until the billing date. He’s more confident about his purchase knowing he has saved more than half the items cost in cash.
Closing – The first 4-6 sentences circled back around
Cash is king. You may be looking to upscale your lifestyle. Perhaps, you feel you have settled too long and deserve higher quality. Credit cards can help you raise your credit score. When raising your standard of living never underestimate available cash.