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| Being Smart About Credit Card Use |
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| Written by Dan Jervas |
| Thursday, 24 July 2008 21:45 |
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Congratulations! You've just received a brand new credit card with a huge limit. Don't get too excited yet. Before you go out on that dream shopping spree, There are a few important things you need to know now. The last thing you want for the future is a bad credit situation. Perhaps your new card is designated for "emergency use only." If so, you must define what specifically qualifies as an "emergency." For some people, it could be a ruptured pipe flooding the basement. On the other hand, some people think the Annual Shoe Blowout at the Super Shoe Warehouse constitutes an emergency. Whatever your definition, decide what the card's purpose is and stick to it. Perhaps you've obtained this new card in an effort to improve your credit rating. This is an excellent idea if you're young and hoping to make a major purchase in the future such as a home. If credit improvement is your goal, be sure to use your card in a manner that helps your credit instead of hurting it. You can maintain a healthy credit score by paying the full balance each month. Be sure to do it on time. Doing so will show that you're a responsible borrower. You will also avoid having to pay high interest fees. Set a budget and stick with it. This will prevent you from accumulating debt rather which will hurt your credit rating. Charge only what you can comfortably pay off, without having to tap into your savings. Some people feel the need to look at their credit record on a monthly, weekly, or even a daily routine. It's wise to carefully observe your report to detect any fraudulent activity. However, you should do it responsibly. It's best to check through one of the three major credit bureaus. You can actually hurt your score if you constantly check though a credit lender. You should only check through a credit lender if you're actively trying to get credit. A common credit pitfall is regularly counting on credit cards instead of savings to make ends meet. Doing so will lead to deep, long-term debt, and should be avoided at all costs. The purpose of having a savings account is to have a nest egg for the future or an umbrella for a rainy financial season. Credit cards come in handy for shopping no matter where you are. The internet has generated a global shopping market. It's easier than ever to find whatever you want and have it sent directly to your home. When using your card for online shopping, make sure that the site you're using is safe and secure. Being careful will help you avoid fraud, scams, and identity theft. These situations can irreparably damage your credit. Once you know the basics of smart credit card use maintaining a healthy credit score and staying out of debt will be a piece of cake. You're now ready to go out there and start charging! About the Author: Find more info and a great selection of cards right here. Visit Top-Ten-Credit-Cards.com for amex cards . Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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