Credit Cards - A Blessing or a Curse?
Owning a credit card can be quite an advantage. Whether making online purchases, booking an air ticket or a hotel room on the phone or simply being in need of some emergency cash, having a credit card can be a big help. However, getting a credit card is also a huge responsibility and if you don't keep an eye on your spending habits, credit cards can create some serious problems. Here is an excellent list of tips on proper credit card use and if you follow these, you will likely stay out of trouble and your credit card will be a blessing instead of a curse:
1. When you make a purchase with the credit card, it is akin to taking a loan from your bank. What you have borrowed has to be returned - so do not borrow beyond your capacity to pay it back.
2. Always maintain a record of your credit card balances during a month so that you are aware of what you have already spent. This will help you evaluate if you can make any more purchases in that month as even small purchases can add up to large balances.
3. Retain all receipts at least untill you can compare them to the credit card monthly statement. If some purchases do not match or if some charges are higher than those on the receipt, immediately contact your credit card company.
4. Never give out your credit card to anyone! This includes people in your family and any of your friends. It is not that you cannot trust these individuals, but you cannot track purchases you are not even making.
5. When you charge more than you can repay, a lot can go wrong. This can limit your future potential of getting any kind of credit, including car loans, home mortgages and other forms of loans.
6. Pay your credit card bills on time or even before they are due. Doing so will not only help improve your credit scores, but also help avoid additional costs associated with late payment charges and accrued interest.
7. Pay your credit card bills in full every month. This is easy to do if, based on your income, you establish a monthly budget for your credit card purchases and then not exceed that.
8. Keep your credit cards for new purchasing. don't pay one credit card bill with a different credit card. This will inevitably lead to more charging and higher balances.
Connie Gutchrif is the President and Editor of FN Credit - An excellent resource for information on credit. To learn more, be sure to visit: http://www.fncredit.com
MORE RESOURCES:
 MSN UK News | Credit firms on Facebook 'breaking the rules' Telegraph.co.uk, United Kingdom - Credit firms who target young people by advertising on social networking websites such as Facebook are breaking advertising rules, a charity has said. ... Facebook users warned about loan adverts Credit firms breaking rules with Facebook ads Credit ads breaking Facebook rules |
MBIA posts huge loss on credit derivatives Reuters - The 2008 figure included unrealized losses on insured derivatives, such as credit default swaps, of $3.58 billion. Factoring in the unrealized losses, ... MBIA loses $2.4 billion MBIA (MBI) Reports Q1 Loss of $3.03 |
Credit Suisse, GE Raise $5.64 Billion for Infrastructure Fund Bloomberg - By Jason Kelly May 12 (Bloomberg) -- Global Infrastructure Partners, the private-equity venture created by Credit Suisse Group and General Electric Co., ... Global Infrastructure Partners Announces Close of US$5.64 Billion ... |
 Dallas Morning News | Regulators' moves to stop credit card tricks deserves vocal support Dallas Morning News, TX - Consumers should be applauding and pushing rules proposed by the Federal Reserve and other regulators to rein in some much-criticized practices of credit ... A guide to how new credit card rules could affect you Michelle Singletary: In credit card game, users usually are losers Good ideas for credit card reforms |
 Jackson News-Tribune | IndyMac Bancorp swings to 1st-qtr loss, sees 2008 loss The Associated Press - LOS ANGELES (AP) — IndyMac Bancorp Inc. said Monday it swung to a loss in the first quarter as deteriorating credit markets forced the mortgage lender to ... IndyMac Bancorp Reports First Quarter Loss of $184.2 Million ... IndyMac Reports Loss, Doesn't See Profit in 2008 (Update1) UPDATE 1-IndyMac Bancorp reports quarterly loss |
Telecom increases standby credit facility Stuff.co.nz, New Zealand - The new facility, with Telecom's existing bankers, replaces the previous standby credit facility which had a limit of US$500 million (NZ$654 million), ... TEXT-NZ's Telecom increased standby credit to NZ$800 mln Telecom Raises Standby Credit Facility |
Credit-Default Swaps: Weapons of Mass Speculation Barron's - Buying credit-default swap protection is the ultimate bearish bet. But don't be fooled by the low profile of the business. In the decade since credit- ... MBIA Inc. Reports First Quarter 2008 Financial Results |
Portfolio Recovery Associates Increases Bank Credit Line to $340 ... CNNMoney.com - These are the unpaid obligations of individuals to credit originators, which include banks, credit unions, consumer and auto finance companies, ... |
 CPI Financial | United Rentals' $1 bln senior secured credit facility rated 'Baa3 ... Forbes, NY - United Rentals (nyse: URI - news - people ), Inc.'s existing rating of 'Ba1' for its senior secured credit facility was not affected by these rating actions ... Target ratings, outlook unaffected by credit card receivables sale ... TFN NEWS BRIEFING: Banking and insurance highlights to 09:15 BST Moody's Investors Service Names Michel Madelain As COO |
Credit squeeze makes Dragon prey The Age, Australia - The global credit squeeze and the higher cost of funding it has induced is the key that Westpac chairman and former Treasury Secretary Ted Evans hopes will ... Westpac of Australia Offers to Buy St. George Bank (Update7) Asian shares pare losses as Japan rebounds; Australia lifted by ... Westpac Bank in takeover talks with St George |
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