Using a credit card

Today, many people use credit card for their transaction. A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user’s account after every transaction. Using credit card is more convenient and safety than bringing cash. Well, maybe you may already have a credit card, but if you don’t, you can be sure there will be many opportunities to get one once. Credit cards offer the most flexible form of short-term borrowing and repayment terms available on the high street. Use it wisely, and your credit card could really extend your spending power.

Following a few simple rules you can avoid the missteps and use credit cards to improve you personal finances instead of falling into the credit card traps.
• Don’t use your credit card for loans. Pay off your balance each month. If you use your credit card for a loans - 98% of the time that is a mistake and big risk to your personal financial future. Don’t do it.
• Pay off your loan as soon as possible. Payment the minimum payment is huge mistake. You should not be making any discretionary purchases if you are not paying down your credit card debt substantially each month.
• Pay your credit card bill in full each month on time. The huge fees credit card companies charge if you are late should be avoided.
• Get a card that pays you for all your purchases. Straight cash is simplest and usually best but if you really want to take the time and effort to try and get more advantage through the use of airline miles or some such other gimmick go ahead.
• Ask for reduced fees and interest rates. The credit card companies make a great deal off the use of credit cards and the cost of acquiring new customers is high so they are most often willing to negotiate. So try it.
• Setup an automatic withdrawal of your monthly payment from your checking account. You need to be sure you have the funds to cover these payments in full or you may incur fees not only for your credit card but from your bank. Many banks (and credit unions) will allow you to pre-arrange to have checks or deductions covered by the bank in the event you don’t have the funds in your
account though their may be a fee if they cover a payment for you.

You know, mostly credit card companies take advantage of those that don’t plan ahead, so don’t let the credit card companies play you for a fool

March 21, 2008 | Filed Under Finance

 

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