Having a credit card can often mean that your finances become more difficult to control. Therefore, it is essential that you are always aware of the balance on your credit card(s), and make sure that you have relative funds to make some form of payment on them each month. Here are some important points to remember to avoid getting into trouble:
- Treat your credit card in the same respect you would a loan. You still have to pay it back, so do not spend too much on it. You will usually have to pay more than what you spend due to interest and fees, not forgetting the potential long-term ramifications for your credit rating.
- Keep tabs on how much money you spend on each card each month, and if any remaining balances are carried across from the previous month's spending.
- When you get your credit card bill, compare it to your bank statement to make sure that the correct amount (i.e. the one you specify) is taken from your bank account.
- Obviously, do not give your credit card to anyone.
- Make sure that you are always able to pay the minimum amount on time, so you do not incur any financial charges.
- Although balance transfer credit cards will often save you money on large sums, try not to pay off one credit card with another for small amounts as, ultimately, the debt will still be there.
- On average, every purchase you make on a credit card is 1.12% more than if you use cash. With large sums, this can add a great deal to the total amount of money you pay. Use your credit card wisely.
- Losing a credit card receipt which details the full account number and expiration date of the card is nearly as problematic and dangerous as if you loose your actual credit card. The security number will usually save you in these situations and this nearly always has to be stated for online transactions, but make sure you look after or destroy all your receipts anyway.
