Sometimes, having a credit card to hand can be a life saver, especially in an emergency situation. Credit cards are also a great way of improving your financial standing and your credit score, provided they are used sensibly of course. Here is some great advice on how to manage your credit card and get the best out of it:
- Always keep track of your credit card purchases. Perhaps a whiteboard in a place where you will see it. Write down every single purchase and check it against your statement each month. This serves 2 purposes – it will identify any issues with your card and wit will make you aware of how much you are spending.
- If you have a credit card, don’t let it rule you. If you really don’t need something then don’t buy it. Think very carefully before you hand over your card and give yourself a period of consideration,. 9 times out of 10, by the time you get in your car you will have realized you didn’t need the item anyway.
- Sign your new credit card as soon as it arrives. This is for your protection against theft and fraud.
- If you lose your card, call the issuing company immediately. They can take steps to prevent any unauthorized use of the card.
- Some card issuers will offer free buyer protection on certain items, like electrical ones. If you are making these purchases, use your card to get the protection and then pay the balance immediately. Otherwise, stick to using your debit card or cash and spending only what you can afford to.
- If you are thinking of applying for a premium card, check out the fees first. They may be quite high, depending on the type of card it is.
- Make sure you know exactly what your credit limit is and do not go over it – it will cost you dearly.
- Unless you are using a secure site and a re buying from a trustworthy vendor, do not give out your credit card details over the internet. Do not fall foul of mailshots that ask for your credit card number – they are more than likely scams.
- Stick to one or two cards at the most. The more you apply for the worse it affects your credit rating.
- Don’t treat ownership of a credit card as your right. It is a privilege and one that is not to be abused. Be smart and you will get better credit deals.
- Always make your minimum monthly payment on time otherwise you will attract expensive late payment penalties and more interest. This will have a negative effect on your credit score. Set up auto pay to avoid late payments.
Credit cards are useful in so many ways. From doing you monthly grocery shop, to putting fuel in your car, right the way through to major expenses and emergencies, your credit card can be a lifeline to you. Do not abuse the privilege and you can live a life of relative luxury without having to pay the price for poor financial management.