Credit Cards: Using Them Smartly!

Credit Card debt is one of the main causes of bad credit, defaults and bankruptcy. Credit card debt accumulates easily when people do not have control over their finances and money management skills to fight debt accumulation. Therefore it is a good idea to acquire these skills if you want to keep your finances healthy and sound. Though we do not pretend to explain everything there is to know about money management on this article, at least we want to contribute with some tips and tricks to make credit card use more efficient.Shop Around As You Would Do For That Digital Camera Or CarYour credit card is something that you will use for many years. It is advisable to take your time when deciding which credit card product is best for you. It is a good idea to shop around for credit card offers and find a company that features terms that adjust to your needs and budget. Run comparisons and check the interest rates charged for purchasing and financing with each product. Only after you are fully satisfied that a particular card is right for you, you should apply for it.Watch out For The Credit Card Contract’s Fine PrintAlmost all credit card contracts have intricate clauses that may be hard to understand. Fortunately, the law and courts are on your side whenever this happens but chances are that you will pay whatever they want to charge before getting into legal problems and damaging your credit till the issue is resolved. Therefore, it is a good idea to be familiar with credit card contracts prior to signing anything. All issuers will provide you with a copy of the contract if you want to read it calmly at home before signing and that is what we suggest.Pay Always On Time And Make High PaymentsMake all your payments on time and if you are one of those that have bad memory and are always running to the bank at the due date, you should try having the balance payments debited directly from your bank account. At least, you can set a direct debit of the minimum payment and pay any surplus whenever you like knowing that you will not damage your credit or incur in penalty fees or charges.Moreover, try to avoid making only minimum payments on your credit card. Such conduct contributes to interest accumulation because the minimum payment not always cover the interests in full and even though they usually do, additional purchases will keep accruing interests and principal which is a high debt risk.Protect Your Money And IdentityDo not disclose your credit card information or personal information to anyone that asks for it. Never send the information when you are contacted by phone or by email if you did not request those contacts. If you make internet purchases make sure it is a trusted site or at least contact your credit card issuer to know their policies on internet purchases and what kind of protection they offer to you. Also, keep in record the contact numbers of your credit card issuers in case you need to contact them immediately if you are victim of identity theft or internet fraud so you can minimize the damage.