 |
Credit Cards - A Blessing or a Curse?
Owning a credit card can be quite an advantage. Whether making
online purchases, booking an air ticket or a hotel room on the
phone or simply being in need of some emergency cash, having a
credit card can be a big help. However, getting a credit card is
also a huge responsibility and if you don't keep an eye on your
spending habits, credit cards can create some serious problems.
Here is an excellent list of tips on proper credit card use and
if you follow these, you will likely stay out of trouble and your
credit card will be a blessing instead of a curse:
1. When you make a purchase with the credit card, it is akin
to taking a loan from your bank. What you have borrowed has to be
returned - so do not borrow beyond your capacity to pay it
back.
2. Always maintain a record of your credit card balances
during a month so that you are aware of what you have already
spent. This will help you evaluate if you can make any more
purchases in that month as even small purchases can add up to
large balances.
3. Retain all receipts at least untill you can compare them to
the credit card monthly statement. If some purchases do not match
or if some charges are higher than those on the receipt,
immediately contact your credit card company.
4. Never give out your credit card to anyone! This includes
people in your family and any of your friends. It is not that you
cannot trust these individuals, but you cannot track purchases
you are not even making.
5. When you charge more than you can repay, a lot can go
wrong. This can limit your future potential of getting any kind
of credit, including car loans, home mortgages and other forms of
loans.
6. Pay your credit card bills on time or even before they are
due. Doing so will not only help improve your credit scores, but
also help avoid additional costs associated with late payment
charges and accrued interest.
7. Pay your credit card bills in full every month. This is
easy to do if, based on your income, you establish a monthly
budget for your credit card purchases and then not exceed
that.
8. Keep your credit cards for new purchasing. don't pay one
credit card bill with a different credit card. This will
inevitably lead to more charging and higher balances.
Connie Gutchrif is the President and Editor of FN Credit - An
excellent resource for information on credit. To learn more, be
sure to visit: http://www.fncredit.com
MORE RESOURCES:
Credit - Google News
|
|
|
RELATED ARTICLES
Tips for Credit Card
Surfers
Moving money from credit card to credit card to take
advantage of interest free balance transfers and
effectively borrowing money for free. It's even possible to
make money by borrowing money, transferring the debt to an
interest free card and investing the cash in a high
interest savings account until the interest free period
expires.
Why Americans Find
Predatory Lending Offensive
"Menis - the author translates as "indignant rage" - It is
the kind of rage arising from social betrayal that impairs
a person's dignity through violation of "what's right."
(p21), Achilles In Viet Nam - Combat Trauma and the Undoing
of Character, Jonathan Shay, M.
Credit Cards: How To Use
Them
Credit cards can be a very quick way of getting into even
more debt if you do not know how to use them properly. UK
debt is now at an all time high and, excluding mortgages,
Credit Cards are one of the main contributors.
Defeating Credit Card
Debt With Self Control
Credit card debt is a major social problem in some Western
countries. To rid yourself of credit card debt, it is best
to recognize the problem as both a social and individual
problem.
Minimize your Risk for
Identity Theft
Identity theft is the fastest growing crime in America.
According to the Federal Trade Commission, the number of
identity theft incidents reached 9.
How to Deal with Hire
Purchase Debt
WHAT IS HIRE PURCHASE/CONDITIONAL SALE?Although people
often talk about "buying on HP", Hire Purchase Agreements
are quite unusual these days. Cars are the most usual goods
sold under Hire Purchase or Conditional Sale Agreements.
Figuring Out the Ever
Nebulous Numbers Called Credit Scores
Credit Score FactorsThe information contained on our credit
reports affect every aspect of our lives; including
employment, insurance, and even interest rates (mortgage,
credit cards, automobiles, etc.).
Debt Collection
Agencies
Debt collection agencies are often a viable option for
receiving payment on overdue bills. Here you can earn how
debt collection agencies work and what to look for in
reputable debt collection agencies.
Building Good Business
Credit After Bad Credit
Can you establish good business credit if you have bad
personal credit? The answer is yes..
What is Credit Card and
Debit Card Blocking?
Have you ever been told you were over your credit card
limit, or had your debit card declined, even though you
knew you had available credit or money in your bank
account? If this happened shortly after you stayed in a
hotel or rented a car, the problem could have been card
"blocking."What is Blocking?When you use a credit or debit
card to check into a hotel or rent a car, the clerk usually
contacts the company that issued your card to give an
estimated total.
Will Inquiries Lower
Your Credit Score?
What are inquiries?When you apply for credit the creditor
or lender checks your credit report to verify that you
qualify for the credit or loan you are applying for. The
"inquiry" is then reported to the credit bureaus and shows
up on your credit report.
Credit Card Companies
Are Out for Your Money
You're probably thinking "Tell me something I don't know"
but in this time of low interest rates you might be
thinking that you've got a great deal since credit card
interest rates are low. Wrong.
5 Ways To Raise Credit
Score
It's not as hard as you think to raise credit score. It's a
well known fact that lenders will give people with higher
credit scores lower interest rates on mortgages, car loans
and credit cards.
Is Plastic Making You
Happier?
If you're like most people, you probably own at least
one.And like most people, you've maybe never thought what
it's really costing you?At a recent conference held by the
Fabian Society at London's Imperial college, one of the
issues discussed was happiness, and, more specifically, why
it seems to elude so many of us.
Collection Agencies:
What Do They Do?
Collection agencies are businesses that collect past-due
bills and accounts receivable for other persons or
businesses in exchange for a fee. Collection agencies
charge for their services one of three ways:1) A flat fee.
10 Signs You May Need
Credit Counseling
Debt management programs can be of real help for people
that discover they cannot face their debts. At first, they
will attempt to solve the situation all by themselves by
cutting down on spending and keeping a close eye on
accounts.
What is a Bad Credit
History?
A bad credit history can sometimes seem like a curse..
Cash Back vs. Rewards
Credit Cards
Ah, the sweet rewards of using credit!Not only do you get
immediate gratification with the buy now-pay later plastic,
but now, many credit cards offer rewards and incentives for
using their card to make purchases. You can get cash back,
or gift cards, or 'reward points' that you can spend on
merchandise or services from various merchants.
Easing Your Financial
Burdens With Credit Counseling
It is a well-publicized fact that more of us are getting
ourselves into greater debt, and this may be true for you.
The embarrassment of your financial situation can mean you
are unlikely to seek credit counselling or other credit
management solutions.
To Repair Credit Is No
longer Satisfactory - Learn How To Earn A Millionaires
Credit In 30 Days...
To repair your bad credit does not necessarily mean that
you now have a good credit, absolutely not. When most
people have bad credit, they either purchase a credit
repair book or seek a credit expert help.
|
|
