Is it possible to use credit cards responsibly, or do you feel as though they are only for the fiscally brash? If you believe that it is impossible to use a credit card in a healthy manner, you are mistaken. This article has some great tips on responsible credit usage.
Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you.
To make the best decision regarding the best credit card for you, compare what the interest rate is amongst several credit card options. If a card has a high interest rate, it means that you will pay a higher interest expense on your card’s unpaid balance, which can be a real burden on your wallet.
Never pay a credit card late. Credit card balances all have a due date and if you ignore it, you run the risk of being charged some hefty fees. Plus, many companies will increase your interest rate, making all of your purchases in the future cost you even more.
There are many cards that offer rewards just for getting a credit card with them. While this should not solely make your decision for you, do pay attention to these types of offers. I’m sure you would much rather have a card that gives you cash back than a card that doesn’t if all other terms are close to being the same.
If you are having trouble with overspending on your credit card, there are several ways to save it only for emergencies. One of the best ways to do this is to leave the card with a trusted friend. They will only give you the card, if you can convince them you really need it.
Make sure that your passwords and pin numbers for all of your credit cards are difficult and complex. Never use your birth date, children’s names, middle name, or anything else that could be figured out easily by someone looking to steal from you.
Avoid the temptation to lend your credit cards to anyone. Even if the friend is a very good one and they are really in need of the card, it just isn’t a smart idea to lend yours out. Lending out a credit card can have negative results if someone charges over the limit and can hurt your credit score.
To avoid interest charges, don’t treat your credit card as you would an ATM card. Don’t get in the habit of charging every single item that you buy. Doing so, will only pile on charges to your bill, you may get an unpleasant surprise, when you receive that monthly credit card bill.
Don’t forget the things you learned in this article, and you are well on your way to having a healthier financial life which includes responsible credit use. Each of these tips are very useful on their own, but when used in conjunction, you will find your credit health improving significantly.