Finance & Loans

Yes, there are options for credit cards

Avoiding credit card use is hard to do. One big reason to avoid them is the interest rate. The interest rate on your credit card depends on many factors, but many of us are subject to hefty rates closer to 20 percent. But, if you are trying to kick the habit, here are some options for you.

• Use other methods such as prepaid charge cards. They work like credit cards but the money comes out of funds you already put in. When money runs out, you can add more to it.
• Use charge cards that bill you every month and the balance due at the end of each month. This force you to charge only manageable amount to the card that you can pay off every month. Your charges are gets reported to the credit bureaus and they add to building a credit history for you.
• If you are using a credit card to build a credit history, consider other types of loans for the same purpose. These lines of credit get reported to credit bureaus and you may be able to get a lower interest rate than a credit card. Many of these lines of credit can run for years.