Thursday, August 30, 2012

Top Tips For Safe Credit Card Usage

In this financial climate, owning a credit card has become a necessity for many of us. Although many people believe these cards are 'bad', they aren't really, they provide a vital purpose. However, many people use them incorrectly which means that the expenses quickly rack up large amounts of interest, and before you know it, spending could be out of control. Follow these credit card tips however, and you will find that borrowing can be incredibly cheap.

Firstly you should always shop around for the best deal out there. Basically you will be wanting to look for the amount of interest charged, whether there is any interest free period, and of course, whether there are any subscription fees for just owning the card. One thing that ties into this really is to not own too many cards. This is one of the top tips offered by people in financial turmoil, most of their problems have been down to not being able to keep up with the repayments on their cards.

Keep your 'limit' though (this will stop you using the card for anything but emergency purchases), and you will want to pay off the card in full every single month so that interest does not accumulate. There is no sense just paying off the 'minimum amount' as to be perfectly honest, you will never pay the credit card back at that rate!

Try to avoid paying late on your credit card, not only can this lead to high 'fines', but it will also lead to bad notches on your credit report. Keep doing this, and you are going to ruin your credit score for a long time to come.

Always make direct purchases as opposed to 'withdrawing cash' on your card. Cash Withdrawals (sometimes known as advances) are a considerably more expensive interest wise than a straight purpose, and quite often, the interest will start racking up on them immediately as opposed to the next month.

Finally, sure you have the money in place, but be honest, do you really need to spend it? You will want to weigh up the difference between what you 'want' and what you 'need'. If you follow just one of these credit card tips, it has to be this one! There are so many people out there who will spend money just because they have it. So when you are considering a purchase, particularly a large one, you will want to consider whether you actually need it there and then, or whether you are better off waiting, which of course will end up being cheaper in the long run. If you provide this same sort of attention to all purchases, you will find that you won't 'dive' into your credit card balance too much.


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  2. Being wise on your purchase is always the top advice anyone can give with regards to credit cards. This is because it is easy to be drowned by the repayments when a credit card is in the hands of an impulsive buyer. Knowing when to purchase is a key mark of a good credit card holder.

    Jesse Baars