Owning a credit card can be quite an advantage. Whethermaking online purchases, booking an air ticket or a hotelroom on the phone or simply being in need of someemergency cash, having a credit card can be a big help.However, getting a credit card is also a hugeresponsibility and if you don't keep an eye on yourspending habits, credit cards can create some seriousproblems. Here is an excellent list of tips on propercredit card use and if you follow these, you will likelystay out of trouble and your credit card will be ablessing instead of a curse:
1. When you make a purchase with the credit card, itis akin to taking a loan from your bank. What youhave borrowed has to be returned - so do not borrow beyondyour capacity to pay it back.
2. Always be aware of your outstanding credit cardbalances. This will help you determine whether you canmake additional purchases. Even small purchases can reallyadd up to big balances and substantial interest charges.
3.Any credit card receipts should be kept until you cancompare them to your monthly statement. If you find anypurchases you did not make, or higher charges than those onthe receipt, contact your credit card company immediately.
4. don't give your credit card to anyone, not evenfriends and family. Its not that you cant trust thesefolks but it would be really difficult to track purchasesif you are not the only one making them.
5. don't ever borrow more than your ability to pay itback. If you do and consequently arent able to pay itback, it can hurt your future ability to obtain otherforms of loans such as home mortgages, car loans etc.
6. Pay your credit card bills on time or even beforethey are due. Doing so will not only help improve yourcredit scores, but also help avoid additional costsassociated with late payment charges and accrued interest.
7. Try to have your credit card bills paid in fullevery month. To ensure this, budget your credit cardpurchases on a monthly basis and then don't allow yourpurchases to exceed that amount.
8.Keep your credit cards for new purchasing. don't pay onecredit card bill with a different credit card. This willinevitably lead to more charging and higher balances.
Connie Gutchrif is the President of FN Credit - An excellentresource for information on credit. To learn more, be sureto visit: http://www.fncredit.com Getting a credit card is a big responsibility
Owning a credit card can be quite an advantage. Whethermaking online purchases, booking an air ticket or a hotelroom on the phone or simply being in need of someemergency cash, having a credit card can be a big help.However, getting a credit card is also a hugeresponsibility and if you don't keep an eye on yourspending habits, credit cards can create some seriousproblems. Here is an excellent list of tips on propercredit card use and if you follow these, you will likelystay out of trouble and your credit card will be ablessing instead of a curse:
1. When you make a purchase with the credit card, itis akin to taking a loan from your bank. What youhave borrowed has to be returned - so do not borrow beyondyour capacity to pay it back.
2. Always be aware of your outstanding credit cardbalances. This will help you determine whether you canmake additional purchases. Even small purchases can reallyadd up to big balances and substantial interest charges.
3.Any credit card receipts should be kept until you cancompare them to your monthly statement. If you find anypurchases you did not make, or higher charges than those onthe receipt, contact your credit card company immediately.
4. don't give your credit card to anyone, not evenfriends and family. Its not that you cant trust thesefolks but it would be really difficult to track purchasesif you are not the only one making them.
5. don't ever borrow more than your ability to pay itback. If you do and consequently arent able to pay itback, it can hurt your future ability to obtain otherforms of loans such as home mortgages, car loans etc.
6. Pay your credit card bills on time or even beforethey are due. Doing so will not only help improve yourcredit scores, but also help avoid additional costsassociated with late payment charges and accrued interest.
7. Try to have your credit card bills paid in fullevery month. To ensure this, budget your credit cardpurchases on a monthly basis and then don't allow yourpurchases to exceed that amount.
8.Keep your credit cards for new purchasing. don't pay onecredit card bill with a different credit card. This willinevitably lead to more charging and higher balances.
