The Gas Method of Building Credit

It can be hard not to reach for your credit card when you see a shiny pair of shoes or drive by that expensive sushi place down the block before your next paycheck, but keeping your purchases consistent is the best way to track your credit.  We’ve all put purchases on our credit card that we’ve forgotten about until we check our statement at the end of the month.  These small inconsistencies can be prevented if you use the Gas Method.

What is the Gas Method?

The Gas Method means that you use your credit card only for purchasing gas.  This method works because, for most people, gas is a purchase you have to make once or twice a month and is small enough to not use up too much credit, but large enough that you’ll remember to pay it off.

Did you make it?

No.  I’m just giving it a capitalized name to make it sound more attractive.

What are the benefits?

Because most people use a set amount of gas each month, you are much less likely to be swayed by rewards programs or deals.  Unlike with spending money on groceries or shopping, buying extra gas on your credit card is much less attractive.  It is also easy to budget, because although gas prices and the amount you use may change, it is often within an easy to predict range.

Why gas? What if I don’t drive?

There are many other things you could use to get the same results.  In fact, some people might prefer putting a subscription service on their credit card such as Netflix.  That way, you know exactly how much you’ll be charged each  month.

 

What purchases do you usually make on your credit card? How do you stick to your credit card budget?