What do you think of when you hear the word credit? If you start to shake or cower in fear because of a bad experience, then this article is perfect for you. It contains many tips related to credit and credit cards, and can help you to break yourself of that fear!
When making purchases with your credit cards you should stick to buying items that you need instead of buying those that you want. Buying luxury items with credit cards is one of the easiest ways to get into debt. If it is something that you can live without you should avoid charging it.
When you are getting your first credit card, or any card for that matter, make sure you pay close attention to the payment schedule, interest rate, and all terms and conditions. Many people neglect to read this information, but it is definitely to your benefit if you take the time to read through it.
Make sure to keep a budget when you are using credit cards. It is important to use a budget for your entire financial life, and it makes sense to include credit expenditures in that budget as well. Never look at a credit card as more money. Therefore, it is important to set a budget stating the amount of money you can charge to your credit card. Don’t deviate from spending that amount, and aim to pay off the entire amount every month.
A great way to keep your revolving credit card payments manageable is to shop around for the most advantageous rates. By seeking low interest offers for new cards or negotiating lower rates with your existing card providers, you have the ability to realize substantial savings, each and every year.
If you have a credit card account and do not want it to be shut down, make sure to use it. Credit card companies are closing credit card accounts for non-usage at an increasing rate. This is because they view those accounts to be lacking in profit, and therefore, not worth retaining. If you don’t want your account to be closed, use it for small purchases, at least once every three months.
Never let anyone borrow your credit cards. No matter who it is, it is never a good idea. Doing so can cause over-limit charges when someone else charges more to the credit card than you said he could.
Keep one low-limit card in your wallet for emergency expenses only. All other cards should be kept at home, to avoid impulse buys that you can’t really afford. If you need a card for a large purchase, you will have to knowingly get it from your home and take it with you. This will give you extra time to think about what you are buying.
How do you feel now? Are you still scared? If so, it is time to continue your credit education. If that fear has passed, pat yourself on the back. You have educated and prepared yourself in a responsible manner.