Credit cards re quite tricky; on the one hand, they offer great rewards, and on the other, they pave an easy way for you to drown in debt. It is imperative to know how to tread the thin line between using it to your advantage, and it using you to its advantage. Before you start using that gold, platinum or titanium card you have in your wallet, take care to remember the following tips.
Make sure that you understood all the terms and conditions that apply to your credit card account. This involves all those interest rates, annual percentage rates, due dates, additional fees and charges, and the perks.
Know your credit limit. And please stay within it, or better yet, keep to only 30%. Control your purchases and veer away from purchasing everything by swiping. If you have cash on hand, do the usual thing you did before, pay by cash. Especially for buys like dinner, a night-out or luxuries such as shopping for clothes and shoes.
Treat your credit card like you would cash. It is not a way to “extend” cash. It is quite impossible that you can afford something later what you cannot afford today. Credit cards are debts, not income to spend the way you want to.
Pay the full amount of your monthly dues. I should have put this right on top of everything. In fact, this should be the title to any article pertaining to credit cards. Unfortunately, most credit card issuers do not mind late or delayed payments, unless you have reached your maximum credit limit. Not paying the full amount allows them to waive 0% interest privileges, increase your annual percentage rates, and charge you late fees. Of course they would not tell you.
If you cannot make your payment on the due date, call up you plastic issuer and explain the situation; either you have too many due payments on that date, or you will e out of town for a couple more days where there are no banks, no internet, and no couriers.
You can negotiate for a lower interest rate. If you have a generally good credit standing, and you have been a faithful borrower since you started your account with them (you have paid on time, and wholly). You can also ask for a lower rate if the benefits you get are not commensurate to the high interest rate you are paying.
If you “accidentally” maxed out your credit card, like maybe buying or paying for something too costly but you really needed at that time, and you know you can pay it, you can ask for a higher credit limit. The approval of course depends upon your credit standing overall, and your credit standing with the issuer itself.
These are just some of the guidelines you should establish in your mind, body and spirit before taking on a credit card. More so if you already have several credit cards in your wallet.