Sensibly, that’s how you should use your credit cards. If you cannot figure out how to do that, here’s a lengthier discussion on the adage “use your credit card wisely.”
1. Protect your credit score. Make sure that you are aware of when your due date is and how much you need to pay. Aside from being aware, make the payments! Late or missed payments lower your credit score, and increase your fees.
2. Do not have more than six credit cards in your wallet. Better yet, stick with half that number. Do you realize that by having more than 3 or 4 you are actually paying more in interests than what you actually spend? That’s not good right? An average American has about ten credit cards, and when they get into debt, they close several at one time which lower the credit score even more.
3. Know the terms and conditions your credit card issuer has, by heart. It is not uncommon for people to get frustrated by the billing statement they receive. They complain to the credit card provider and the conversation ends with an exasperated client, commenting, “But I didn’t know that. You didn’t tell me that when I signed up!” Ignorance is definitely not bliss.
4. Do not exceed 30% of your credit limit at anytime, on any card that you have. It is important for your credit score. There should always be a high credit available on your card.
5. Balance transfers may surprise you with double interests. This means that the balance was not transferred quickly enough to not accumulate fees on the older card. Try to get a guarantee from your issuer that this would not happen.
6. Reward cards sometimes are too good to be true. Remember this; you can only get rewards if you do not carry balances on to the next billing statement. The interest rate that comes with it is enough to pay for the reward you.
7. When you find yourself with an erroneous charge on the billing statement, your credit card issuer is forced to investigate. If your card is stolen, you are not to pay more than $50 on unauthorized charges.
8. Heard of contact less credit cards? That’s a card that you do not have to hand over to the cashier but, technology has allowed hooligans to use it anyways, so buy a signal blocking sleeve or cover your contact less cards in foil.
9. Credit cards sometimes send you convenience checks via post. Do not use them. They cost around 4% of the amount you write.
10. Credit card insurance is helpful on the event that a cardholder becomes differently able or unemployed. However, it only covers the minimum payment required on your account. All other balances are carried over to the next billing statement.
11. A department store credit card lowers your credit score. It just does.
12. Bad credit entitles you to an 18%-22% rate on your credit cards. If you’ve gotten yourself into this category, do not apply for any card until you have raised your credit score a bit.