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[T1089]Top 10 Credit Cards

by Devin Gilliland, Dev

Credit cards are often misused, and as a result of this misuse lass than savvy financial planners end up in more trouble with credit cards than they had ever anticipated. By following these top 10 tips, you will end up in less trouble and you will ultimately save money. The fundamental thing to remember is that credit cards are only a short term solution, and should never be used to provide finance in the long term. Many people forget to apply this rule, and ultimately end up in trouble as a result.

1.Consider how you are going to use your credit card. Do you intend to clear your balance at the end of the month, or will you not be able to finance this for two months?

2.Calculate the total amount of expenses you are likely to incur over the course of a year, by applying formula within a providers proposal, to your likely repayment and borrowing requirements. Now work out what is the cheapest.

3.Consider working with a larger company that is regulated by the appropriate bodies and for the safest option, work with a company that is a listed company or one that is owned by a listed company.

4.Protect your account details at all cost, and ensure that you are careful about the companies that you contract with. If in doubt, pay with cash or go elsewhere.

5.Shopping online? Look for companies that use a third-party payment provider like ?Pay Pal? or ?World Pay?. Also ? always ensure that when you complete a payment, that the address bar reads https:// rather than http://. This means that the data is encrypted.

6.Only carry the credit cards with you that you intend to use. If you carry too many then you are just asking for trouble, because it will take you longer to notice when they go missing.

7.Hold onto any receipts and keep a note of all credit card transactions that you have been party to. If you are ever in doubt about a transaction contact your credit card provider immediately.

8.Always check your statements in detail, and try and do this as often as possible. The longer you wait, the less likely you will be to remember transactions, and the less time you will have to do something about it.

9.Never use your credit card as a way of financing purchases that you are not certain you will be able to afford in the near future. If you have a job for example that is ending in 2 months, then ensure that your credit card balance will be zero for that time. This will eliminate the risk of you not being able to keep up repayments, should your contract not be renewed or you not being able to get a new job.

10.Remember that you can always churn. Always keep abreast with pricing in the market, and don't be scared to move provider to attain better prices, this can often be the best way to ensure that you save the most money.

Credit is good, but only when it is absolutely necessary. An irresponsibly used credit card is a sure shot way of getting yourself into a debt trap that is nearly impossible to get yourself out of with out the help of a debt professional. So, for those who feel that they have been adorned with the privilege of being trusted with a credit card, this could be a wake up call to stay out of debt.

Use Your Credit Card for Emergencies
Make it a rule to use your credit card only for emergencies. You never know when you will need the credit facility your card offers you. Though the card facilitates you to buy something you would not normally be able to buy with cash, you should try to pay some amount of the bill through cash and the rest through your credit card. This will make it easier for you to repay the bill when it comes.

Don’t Use Your Entire Credit Limit
Your may offer you a limit that is ten times your monthly salary. This is a temptation of getting into a debt trap where you will be repaying the interest most of the time. Try to use only 10 percent of the credit limit of the card. Do not over spend unless you are sure you can spare the cash from your next salary cheque. Don’t rush to use your full credit limit.

Repay Maximum of the Debt You Have Incurred
Make it a practice to repay the maximum of the debt billed to you. Many people try to stick around the minimum amount they have to pay, which is typically 10 percent of the bill amount. At this rate you will take about six years to repay the debt if you keep on using the card. Try to keep your credit card expense limited to 10 – 20 percent of the credit limit and repay as much as you can every month.

Keep Your Card At Home
If you find you are over spending try leaving your credit card at home when you go out. Take it with you when you feel you actually need to use it in an emergency.

Do Not Give Out Your Security Information to Anyone
Your security information is kept secret for a reason. Do not give this information to anyone. Not even to your best friend or credit card representative. This information includes date of birth, PIN and security questions.

Verify a Merchant Bill
Verify that the merchant outlet you have swiped your card at has only swiped the card once. Else you will be billed twice for the same transaction and will be a hassle to undo.

Never Give Out Your CVV Code to Anyone
Without your CVV code (the 3 digit number behind your card) you cannot make any online transactions. Your card number combined with this CVV number can be misused by any one who knows both. So when using your card at any outlet, ensure the attendant is not recording the CVV behind your card.

Never Leave Your Card Unattended
Many credit cards are stolen from vehicles. SO never leave your card anywhere out of sight including at your work place.
Check If the Card Returned To You Is Yours
Sometimes by mistake and at times deliberately, attendants return redundant cards to customers and retain the actual card for misuse. Check that the card returned to you is yours – every time.

Report Lost Cards Immediately
Do not wait to report lost or stolen credit cards. The damage might be much more than the nominal fee for blocking your card.

If you are careful with your card the above mentioned ten responsible actions regarding your credit card can save you many headaches – and a lot of money.

Article Source : Cash Reward Credit Cards

About Author

Both Devin Gilliland & Shahid 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.

Devin Gilliland has sinced written about articles on various topics from Gardening, Credit Cards and American Express Card. This article is written by Devin Gilliland publisher for and