Hi Friends,
Recently we hear of sudden rise in interest rate on credit cards or cut down on the credit limits, as penalty for missed or late payments. Thus, you end up in more debt than you have estimated. I just wanted to share a few smart tips on how to use your credit accounts responsibly:
1)Shopping for new credit- It may seem good to get new credit cards, every time there are some offers of low APR. But the truth is, these offers don't last long. Finally you end up paying more interest rate than you expected. So, it is best to continue with the cards you have, and build a good credit history.
2)Use debit cards- If you end up overspending every time you go shopping, it is best to use a debit card. By using a debit card you can't spend more than whatever you have in your account. Also there are no finance charges for using a debit card.
3)Check your billing statements- Spend time reviewing your monthly statement before you pay it off. In case you do not understand any particular fees that has been added, you must call the customer service of your CC company. You should be sure that you are not paying for anything that you have not purchased.
Smart tips to use credit card
Hi rachael,
Thanks for your post. These are really useful tips. I would just like to add that it is better to not have multiple credit cards. Too many credit cards do not help to increase your score. Instead, it a trouble to manage multiple cards, as you have to remember repayment dates of all of them. In case you forget one, it will lower your score.
If you have already landed into debt, "balance transfer" can help you to get rid of it. You can transfer the balance of all your high-interest cards, to the one that has the lowest interest. Generally banks have a fees for "balance transfer". Even if you pay a fees for "balance transfer", you will still save some bucks, as you will have reduced long term payments, on your low interest rate card.
Shopping for new credit can sometimes be difficult. If confused by any offers then I would suggest calling them and having them go over the credit cards plan. If you are applying for in store credit be sure to have a list of questions before you sign. Some things you really need to know are 1. how long any intro interest rate is and when it expires 2. The regular interest rates and 3. the in terest rate if you default.
People do not relize credit cards are a contract and should be taken seriously.
Credit card agreemnt in advance
Just wanted to know whether I can get the credit card agreement before I actually fill out the application form? I actually tried once but was denied. It is better to know the agreement in advance when you are shopping for credit.
Hi tom,
I agree with you. Whether you will actually take a particular credit card, depends on the company's policies. Most credit card companies have there terms and conditions on their company website. Even if you do not find the terms and conditions on the website, you can call the customer care service of the credit card company and inquire about their policies. You will find the number on the "Contact Us " section of their website.
Tom, you could also ask for a phone number to call and have the terms and conditions explained to you. Most of the applications now a days can have the terms listed in small print on the application. If you are applying by website there should be a link you can read credit card terms and conditions on near the spot where you click to agree to the terms. If in doubt I would check the site or call the number before applying especially if they deny you the opportunity at the store.
Credit cards can either be thought of as the best thing to ever happen to shopping or the reason for your debt, headaches, and sleepless nights. These tips will help you to stay on top of your debt and make sure that you are using your credit cards in the best way possible.
1. Always pay your balance.
2. Keep track of how much you charge.
3. Keep track of your credit cards
You need to be sure if you can not pay an entire balance that you only use roughly a third of what your limit is. This looks well with banks and other companies offering future credit. It shows you do not charge your cards to the limit and can repay.
What I personally like to do is buy one bigger item and then divide the payments so that in approximatley three months I have it paid off. It doesn't add up to alot of interest and you can also get something that would have otherwise took you a while to save for. It is better than using your card for a bunch of little unimportant items.
Hi,
Here some tips for credit card to use credit cards responsibly.
1) Keep your credit cards with you. Don't give them to your friends or family.
2)Do not use credit card for another persons bills payments. I will be harm to your card. That means privacy is must for credit card users.
3)Pay your balance in every month. I know that may not sound like the most fun thing to do, but it will not only help your credit, but also keep you disciplined in using your credit cards properly & it will be advantageous for yourself.
4) Do not or never get more money on your CC that you can pay back this money if you had it.
5) Pay your all bills before due date, It not only avoid costly late fees but also helps you to improve your credit score faster.
6) Think of a CC as has a very shot period loan that has to be paid return before 30 days. That kind of mindset will keep you out of trouble in the future.
7) Secure credit card is the option for secure credit card handling. You must have to pay annual fees for credit card securities, Most banks & credit card companies offer for Secure Credit Card.
Thanks & Regards,
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Secure Credit Card will help you to improve your credit score faster.
Another big one is to be careful using those credit cards online. I know they are secured, at least most of them, but one person gets those numbers and it can start a constant battle of trying to clear up a mess. Using secure sites like Paypal is the best way to go. You will have to be careful there too though.
Recently I recieved a very authentic looking e mail from Paypal and it asked me to verify who I was by entering a major credit card number. I was suspicious and called the company. They denied the email and had me forward it to their spoof dept. It was less than 24 hours and they sent back an e mail saying it was in fact spoof. Never be afraid to question anything asking for your personal numbers especially credit card and social security numbers.