Be Smart With A Credit Card And Use It WiselyPosted by Nick Niesen on October 29th, 2010 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 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 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 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 Like it? Share it!More by this author |