Most people can benefit from getting and using a credit card. When you have a credit card, you will have a lot going for you. When you want to buy things from far away, a credit card can be very helpful. Think about how much easier it is to buy things online and make phone reservations for plane tickets or hotel rooms when you have a credit card. It can also help if you want to buy something but don't have enough cash on hand. But there's a flip side...
Most people can benefit from getting and using a credit card. When you have a credit card, you will have a lot going for you. When you want to buy things from far away, a credit card can be very helpful. Think about how much easier it is to buy things online and make phone reservations for plane tickets or hotel rooms when you have a credit card. It can also help if you want to buy something but don't have enough cash on hand. But having a credit card also has a downside. If you don't pay close attention to how you use your credit card, it can lead to a number of problems. When you get a credit card and use it, you should know that you are taking on a big responsibility that could have very bad results. If you follow the simple tips below when using your credit card, you can stay out of trouble and get the most out of it:
Putting something on your credit card is like taking out a small loan. Keep track of your credit card charges and make sure you don't charge more than you can afford. You have to be able to pay back all the money you borrow.
Keep an eye on the balance on your credit card and write down the balance each month. Keeping track of how much you've already spent on your credit card will help you decide if you can use it to buy anything else. Even small purchases of $5 here and there can add up quickly on a credit card if you're not careful, and the interest will add to the amount you owe.
Save your credit card receipts until the end of the month and compare them to your monthly credit card statement. By doing this, you'll be able to catch any wrong charges, or you might even find a purchase you never made. If your receipts and your credit card statement don't match up, you should call your credit card company right away.
Don't lend money or borrow money! When it comes to your credit card or credit card number, that is a good motto. Don't let anyone else have them! Even if you trust your family and close friends, you won't be able to keep track of what they buy.
Don't ever borrow more money than you can pay back. If you charge more and don't pay it back, it can hurt your credit score and make it harder for you to get credit in the future. This can include important purchases you may make in the future, such as car loans, home mortgages, and other types of loans.
Don't be late with your bills! If you pay on time, you won't have to pay interest or the very high fees that come with late payments. If you don't make a payment, finance charges and interest keep adding up, which makes your balance go up and up.
Try to pay off the full balance of your credit card every month. Include credit card payments in your monthly budget and don't spend more than that amount each month.
Don't forget that you're responsible for any unauthorised charges on your credit cards that cost more than $50.
Keep your credit card and only use it to buy new things. Don't use your credit card to pay for other bills around the house. This will inevitably lead to more charges and higher balances.