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[I330]Instant Credit Card Use

by Debbie Dragon, Deb

Owning a credit card is something that can be a very positive thing… as long as it is used responsibly. There are many ways for people to use credit cards to their advantage, but there are also ways for credit cards to get people into financial trouble. By following a few simple tips related to managing credit card usage, a credit card can be a very beneficial piece of plastic to own.

Establishing Credit
For anyone who has never before owned any sort of credit card and has never been loaned money, there will probably be very little information (neither good nor bad) on their credit report. Without a credit history, it's difficult for credit card companies to determine whether or not to offer a line of credit to a person. In this situation, the credit card companies tend to err on the side of caution and not offer a card.

However, if there is one credit card company out there willing to offer a credit card with a very small line of credit to someone with no credit history, that card should be immediately obtained. It should be used very wisely to purchase a few low-priced items, and the monthly payments for that credit card should be made on time every month.

As time goes on, this sort of spending and monthly payment behavior will allow a credit report to grow with nothing but good marks. A person's credit score can continue to grow higher and higher when they can show the ability to handle and pay for their credit card purchases.

Over time, a person's positive credit report will allow him or her to obtain either additional credit cards or credit cards which offer great interest rates and other types of benefits.

Don't Charge Too Much
Just because a credit card has been obtained does not mean it should be over used or abused. If a new credit card has a credit limit of about $1,500, it's smart to keep the balance on that card significantly lower than the maximum allowed to be charged. So, charging no more than $1,000 - at the most - is reasonable.

A credit card company issues a credit limit based on how much they believe a person can afford. And, higher balances means a significant amount of interest must be paid on the balance, which can create an amount due that is unaffordable.

If the credit card is used to charge more than the available credit limit, the credit card company will issue an over-charge fee and the user will not be able to use the card again until some of the balance has been paid.

Don't Pay Payments Late
When it's time to make a minimum payment on a credit card balance, PAY IT! Payments should NEVER be late. Late payments can negatively affect a person's credit report, and in turn, lower a person's credit score. Making payments on time, conversely, can help a person build a good credit history and earn a better credit score.

Knowing that a credit card bill will be received in the mail on approximately the same date each month, prepare ahead of time and make sure there is enough money in the bank to send AT LEAST the minimum amount due.

Keep Credit Cards Safe
In today's world of being able to easily purchase items via telephone or the internet, it's important to keep credit cards and credit card numbers in a safe spot. If anyone non-trustworthy person were to get their hands on another person's credit card, charges could be made to that card which were not authorized by the card owner. While most credit card companies do not hold card holders responsible for unauthorized charges, it does not look good if this sort of situation happens more than once (at the most!) during a person's lifetime.

You charge more this month than you did last month, without any major purchases like a new refrigerator.

You charge consumables like groceries and gasoline and don't pay off that entire amount each month. You go into the debt tail-spin when you charge items that get used up before you pay for them.

You make less money this month and can't make the usual payments with increased living costs.

You only make minimum payments. You'll never get out of debt if you can only pay the interest and a few dollars off the principal.

You borrow money from one credit card to pay payment on another account.

You use five or six credit cards each month. The best way to manage credit card debt is to only use one credit card and keep one with a low balance for emergencies.

You go over your limit on your credit cards. Besides paying overlimit fees, you will get penalties like increased interest rate. Plus, your credit score will take a nose-dive when you go over the 70 percent of available credit line.

You owe more than 50 percent of your credit line on more than one credit card accounts.

You can't make all your credit card payments each month.

You lie or cover up your credit card use to your spouse.

If you find that you make at least one of these warning signals, make yourself a financial plan--today.

Article Source : Deck Of Tarot Cards

About Author

Both Debbie Dragon & Jeanette Joy Fisher are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Debbie Dragon has sinced written about articles on various topics from Finances, Credit Cards and Kitchen Home Improvement. This article has been provided courtesy of Creditor Web. Creditor Web offers great available for reprint and other tools to hel. Debbie Dragon's top article generates over 165000 views. to your Favourites.

Jeanette Joy Fisher has sinced written about articles on various topics from Real Estate, Network Marketing and Real Estate. Jeanette Fisher, author of interior design, real estate, and credit books teaches first-time home buyers and real estate investors how to meet the five mortgage requirements beyond credit scores. Credit Articles FREE Credit Help ebook. Jeanette Joy Fisher's top article generates over 135000 views. to your Favourites.