If you have a credit card do you know how to use it wisely? Having a credit card is a lot of responsibility. New credit card users especially can get carried away with spending and before they know it they could have a pretty hefty bill with no funds to pay it. If you are going to use a credit card you need to take responsibility of ownership. Here are some great tips that you will want to follow.
1. Use your card as if you were paying with cash. This simply means if you do not have the cash available to pay for the purchase when your credit card bill arrives, then skip buying those items.
2. Pay your balance in full each and every month: In order to avoid interest and credit card debt, make sure you pay your credit card bill in full each and every month. If you cannot pay it in full you should at the very least be making more than the minimum payment due.
3. Pay your bill on time: In order to avoid late penalty fees and interest, make sure you know your due date and always pay your bill on time.
4. Limit the number of cards you have: The more credit cards you have, the easier it will be to overspend, which in turn can lead to credit card debt. Stick to just one or two cards.
5. Don’t take out cash advances on your credit card: Taking out a cash advance is one of the worst things you can do. Most cards charge cash advance fees and your interest charges begin immediately, without a grace period. Additionally, the APR rate for cash advances can be higher than your regular APR.
6. Don’t make impulsive buys: When you have plastic it gives you the freedom to purchase things that you really cannot afford. You will need to control the urge not to make a purchase unless you truly can afford it.
7. Always check your monthly statement: In today’s fast paced world many people forget to take the time to review their monthly credit card statement. You should always take the time to review it making sure that all charges are legitimate.
8. Never sign up without reading the fine print: When choosing a credit card make sure you have read all the fine print. You will want to be aware of all the fees the card company might charge, what the interest will be etc.
9. Use a rewards card: If you are going to use plastic for your purchases make sure you look for a rewards card. Find one that offers no annual fee and pays you back in cash or other rewards that will be useful to you.
10. If you already have credit card debt consider a balance transfer credit card: If you have credit card debt and are ready to pay it down and work to be debt free a balance transfer credit card can be a great tool to help. If you can quality, search for a card that offers at least a 12 months introductory 0% APR rate.