With a
credit card, you don't need to worry about carrying a lot of cash in your
wallet. They are accepted in many businesses, you can save points for
rewards and you are building credit for
yourself. Yet, many people are in debt because it's so easy to pay with a
credit card and not notice how much is spent until a huge bill arrives in the
mail. Follow the tips below to become a savvy credit card user.
Shop around. Just as you would shop
at a number of stores for the best bargain, the same care should be taken when
applying for a credit card. Use the credit
card checklist to compare credit card offers and check the Federal Reserve
System's Survey
of Credit Card Plans to find the card that best suits your
needs.
Read the fine print. Read all of the
terms and conditions that apply before applying for a credit card. Many
credit card companies provide great introductory offers that last only a
couple of months and include a list of detailed exceptions. Make sure
you read and understand all of the terms and conditions, and learn common credit card terms
Never spend what you can't
afford. Credit card companies give you a spending limit, but that
doesn't mean it's okay to spend that limit. You should never go over the
limit. Think about your budget
before you make a purchase because using credit that you can't pay back on
time will hurt your credit score
Pay off the balance in full each
month. It may seem easy to pay just the minimum balance each
month, but interest adds up and you could easily be paying double your
original balance. If you can't pay the balance in full, try to pay more
than the minimum balance so that you pay less over time. See how Danny pays off his credit card bill
Limit the number of credit cards in your
wallet. Keeping track of multiple credit card bills can be quite a
balancing act. To avoid confusion and reduce the chance of identity
theft, limit yourself to as few credit cards as possible. You can stop
credit card offers from coming in the mail by visiting OptOutPrescreen.com or
calling 1-888-5-OPT-OUT (888-567-8688).
With a
credit card, you don't need to worry about carrying a lot of cash in your
wallet. They are accepted in many businesses, you can save points for
rewards and you are building credit for
yourself. Yet, many people are in debt because it's so easy to pay with a
credit card and not notice how much is spent until a huge bill arrives in the
mail. Follow the tips below to become a savvy credit card user.
